INTRODUCTION TO PROJECT MANAGEMENTSergey V. Nesterov MD, PhD, PMP

Our PROGRAMME:

1. INTRODUCTION TO PROJECT MANAGEMENT

2. STARTING A PROJECT

3. WORK MOTIVATION

4. COMMUNICATION

5: TEAMS AND TEAMWORK

6: LEADERSHIP

7: SCHEDULING AND TIME MANAGEMENT

8: MONEY AND CONTRACTS

9: QUALITY AND PERFORMANCE IN PROJECTS

10: RISKS AND CRISES

11: PROJECT EXECUTION AND CLOSURE

12: THINKING IN A PROJECT

January 21, 2015

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Tu We Th Fr Sa Su

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WORK WE DO

CONTINUOUS

MASS

BATCH

JOBBING

PROJECT

PROCESS FLOW

PROCESS TASKS

VARIETY

VOLUME

(mod. SLACK 2009, p.92)

lowlowhigh

high

intermittent

continuous

diverse/complex

repeated/divided

What is a PROJECT?

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PROJECT. A temporary endeavor undertaken to create a unique result.

(mod. PMBOK 2013, p.553)

PROJECT LIFE CYCLE (PLC). The series of phases that a project passesthrough from its initiation to its closure.

PROJECT PHASE. A collection of logically related project activitiesthat culminates in the completion of one or more deliverables

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Generic PLC STRUCTURE:

1. STARTING the project

2. ORGANIZING and PREPARING

3. CARRYING OUT the project work

4. CLOSING the project

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(PMBOK 2013, p.39)

NOT all projects are SUCCESSFUL

…large IT projects run 45% over budget, 7% over time, while delivering 56% lessvalue than predicted1;

…only 40% of projects met schedule, budget and quality goals2;

… 413 of 840 (49%) federally funded IT projects are either poorly planned,poorly performing or both3.

1http://www.mckinsey.com/insights/business_technology/delivering_large-scale_it_projects_on_time_on_budget_and_on_value2http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03100-usen-03-making-change-work.pdf3http://www.gao.gov/new.items/d081051t.pdf

…the cost of [IT] project failure across the European Union was €142 billion in 20041

…$6,2 trillion spent worldwide on failed technology projects2

1http://www.gallup.com/businessjournal/152429/cost-bad-project-management.aspx

2http://edge.papercutpm.com/annual-cost-of-project-failure/

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Project FAILURES COST

..cost a lot

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WHY do projects FAIL?

• The project was not actually sensible• No clear objectives• Unclear scope• Poor planning• Unrealistic finance• Unrealistic staffing• Poor communications• No effective process monitoring• No change control• No risk management

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• The project was not actually sensible• No clear objectives• Unclear scope• Poor planning• Unrealistic finance• Unrealistic staffing

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"Would you tell me, please, which way I ought to go from here?”

"That depends a good deal on where you want to get to," said the Cat.

"I don’t much care where—" said Alice.

"Then it doesn’t matter which way you go," said the Cat.

”—so long as I get SOMEWHERE,” Alice added as an explanation.

"Oh, you’re sure to do that," said the Cat, "if you only walk long enough."

Understand your GOAL

STRATEGY. The direction and scope of an organisation over the longterm, which achieves advantage in a changing environment throughits configuration of resources and competences with the aim offulfilling stakeholder expectations.

(mod. JOHNSON et al. 2008, p.3)

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The vocabulary of ‘STRATEGY’

(based on JOHNSON et al. 2008, p.10)

TERM EXAMPLE DEFINITION

MISSION Be extremely fitOverriding purpose in line with the values or expectations of stakeholders

VISION(STRATEGIC INTENT)

Be able to run a half-marathonDesired future state: the aspiration of theorganisation

GOALLose weight, increase aerobic capacity, strengthen muscles

General statement of aim or purpose

OBJECTIVELose 15 kilos by 1 February and run the half-marathon in May

Quantification (if possible) or more precise statement of the goal

STRATEGICCAPABILITY

Have gear, maintain a successful dietResources, activities and processes. The unique ones provide ‘competitive advantage’

STRATEGIES Exercise regularly, stick to the right diet Methods for achieving the goal

CONTROLMonitor KG, KM, MIN: dynamics good –continue; not – change strategies

The monitoring of action steps

HIGHLIGHTS:

1. PROJECTS DEAL WITH LOW VOLUME, HIGH VARIETY, COMPLEX TASKS

2. PROJECTS HAVE A LIFE CYCLE

3. PROJECTS DO FAIL; OFTEN, ‘DOOMED’ AT THE VERY START

4. UNDERSTANDING YOUR GOALS HELPS

What do you think?

“Life is what happens to you while you’re busy making other plans”

or

“Failing to plan is planning to fail”

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Our natural TENDENCY is TO ACT FIRST

People have a natural tendency to act first and think later –especially when the assignment interests them.

Most people tend to overlook all of the consequences, such as thereal cost or exact specifications.

This makes a professional approach to projects and programsessential.

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PROJECT MANAGEMENT HELPS

PM forces to reach agreements on “boring” activities—planning,tasks, authority and responsibilities—before the assignment evengets off the ground.

This initial investment always pays off in the end.

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What is PROJECT MANAGEMENT?

PROJECT MANAGEMENT. The application of knowledge, skills, tools,and techniques to project activities to meet project requirements.

(PMBOK 2013, p.553)

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PM KNOWLEDGE AREAS

1. INTEGRATION management

2. SCOPE

3. TIME

4. COST

5. QUALITY

6. HUMAN RESOURCES

7. COMMUNICATIONS

8. RISK

9. PROCUREMENT

10.STAKEHOLDER

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The manager is of utmost importance

It is not the methods, concepts or the checklists themselves that canbe useful and advantageous in project and program management: itis the individual manager, together with those charged with theactivities and efforts, who determine success or failure.

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Who is a PROJECT MANAGER?

PROJECT MANAGER. The person assigned by the performingorganization to lead the team that is responsible forachieving the project objectives.

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(PMBOK 2013, p.554)

A project manager MUST BE SKILLED IN

• Leadership

• Influencing, negotiation, conflict management

• Effective communication

• Planning and estimating

• Contract management

• Problem solving and creative thinking

• Time management

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The project manager IS EXPECTED TO

• DESCRIBE the intended project deliverable

• PREPARE the relevant decision documents

• INITIATE activities or efforts at each phase or stage

• ACT as coordinator for the various parties involved

• PREPARE management plans for the program or project

• ENSURE that these plans contain adequate margins

• CLARIFY who will monitor progress and how they will do so

• ENSURE that plans are adjusted

• MODERATE internal relationships within your project

• INFLUENCE the environment and ANTICIPATE changes23

HIGHLIGHTS:

5. PM PROVIDES A STRUCTURED APPROACH TO COMPLEX TASKS

6. A PROJECT MANAGER IS OF UTMOST IMPORTANCE

7. THE MANAGER MUST BE SKILLED IN MANY KNOWLEDGE AREAS

What is PROJECT SUCCESS?

…the success of the project should be measured in terms ofcompleting the project within the constraints of scope, time, cost,and quality, as approved between the project managers and seniormanagement.

Project success should be referred to the last baselines approved bythe authorized stakeholders.

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(mod. PMBOK 2013, p.35)

The PROJECT MANAGEMENT TRIANGLE

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TIME

SCOPECOST

QUALITY

PROJECT MANAGEMENT PLAN. The document that describes howthe project will be executed monitored, and controlled.

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PROJECT MANAGEMENT PLAN includes

PROJECT BASELINES:

• SCOPE baseline

• SCHEDULE baseline

• COST baseline

SUBSIDIARY PLANS:• SCOPE management plan• REQUIREMENTS management plan• SCHEDULE management plan• COST management plan• QUALITY management plan• PROCESS IMPROVEMENT plan• HUMAN RESOURCE management plan• COMMUNICATIONS management plan• RISK management plan• PROCUREMENT management plan• STAKEHOLDER management plan

(PMBOK 2013, p.76-77)

The PMBOK is an accepted guide

An inclusive term that describesthe sum of knowledge within theprofession of project management.

The complete project managementbody of knowledge includes proventraditional practices that are widelyapplied and innovative practicesthat are emerging in theprofession.

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The four territories of the PM LANDSCAPE

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(mod. WYSOCKI 2014, p.8)

CONCEPTUAL MODELS of Project Management

SCOPE PLAN LAUNCHMONITOR

&CONTROL

CLOSE Project

SCOPE PLANLAUNCH

Increment

MONITOR &

CONTROL Increment

CLOSEIncrement

CLOSE Project

Next Increment

?

SCOPEPLAN

IterationLAUNCHIteration

MONITOR &

CONTROL Iteration

CLOSEIteration

CLOSE Project

Next Iteration

?

SCOPEPhase

PLANPhase

LAUNCHPhase

MONITOR &

CONTROL Phase

CLOSEPhase

CLOSE Project

Next Phase

?

TRADITIONAL

LINEAR

TRADITIONAL

INCREMENTAL

AGILE

EXTREME

N

N

N

Y

Y

Y

HIGHLIGHTS:

8. THE MAIN PM MODELS ARE TRADITIONAL, AGILE AND EXTREME

9. PROJECT SUCCESS IS IN THE EYE OF THE STAKEHOLDER

10. THE PROJECT TRIANGLE BINDS TOGETHER SCOPE, TIME AND COSTS

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