unit01-role of projects in organizations

8/19/2019 Unit01-Role of Projects in Organizations

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Dr. Rameez Khalid, PMPFaculty, Department of Management

Institute of Business Administration, Karachi


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PM is used in all industries, at all levels

[email protected] 3Unit-1: Role of Projects


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Project Characteristics

• Have a specific objective (which may be unique or one-of-a-

kind) to be completed within certain specifications.

• Have defined start and end dates.

• Have funding limits (if applicable).

• Consume human and nonhuman resources

(i.e., money, people, equipment).

• Be multifunctional (cut across several functional lines).

Unit-1: Role of Projects [email protected] 4


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What is a Project?

A project is a temporary endeavor undertaken to createa unique product, service or result.


Temporary means

that every project

has a definite

beginning and a

definite end

Projects involve creating

something that has not

been done in exactly the

same way before and

which is, therefore,unique and distinct

Note : temporary does not mean short in duration


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Projects Vs. Operations

• Projects and operations sometimes overlap and theyshare many of the same characteristics: – Performed by people

– Constrained by limited resources

– Planned, executed and controlled

• Operations are ongoing and repetitive, while projects aretemporary and unique

• Project objectives are fundamentally different thanoperational objectives: – Purpose of a project is to attain its objective and terminate

– Purpose of an ongoing operations is to sustain business



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Operation

1. Repeat process or product

2. Several objectives

3. On-going

4. People are homogeneous

5. Systems in place

6. Performance, cost, & time known

7. Part of the line organization

8. Bastions of established practice

9. Supports status quo

Project

1. New process or product

2. One objective

3. One shot – limited life

4. More heterogeneous

5. Systems must be created

6. Performance, cost & time less

certain

7. Outside of line organization

8. Violates established practice

9. Upsets status quo




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Unit-1: Role of Projects 9


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Why Project Management?

• Identification of time limits

• Minimum need for continuous reporting

• Early problem identification

• Knowing when objectives can’t be met• Project Management and productivity are related!



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What is Project Management?


It’s both a science and an art

PMI breaks it into:• Process groups

• Knowledge Areas• Professional and social responsibility


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Humor

• Project management means different to

different people

• Definition of Project management

– It is the art of creating the illusion that

any outcome is the result of a series of

predetermined, deliberate acts when, in

fact, it was dumb luck.



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Why is a Project Management System Necessary?

• Always “class or prestige” gaps between various levels of management.

• Companies are made up of small operational islands that refuse to

communicate for fear of giving up info. may strengthen their opponents.

• Project Manager’s responsibility is to get these islands to communicate

cross-functionally toward common goals and objectives.



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Classical Management

• Planning

• Organizing

• Staffing

• Controlling

• Directing



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Project Management

• Definition

– Project management is the planning, organizing,

directing, and controlling of company resources for a

relatively short-term objective that has been

established to complete specific goals and objectives.

– Furthermore, project management utilizes the systems

approach to management by having functional

personnel (the vertical hierarchy) assigned to a specific

project (the horizontal hierarchy).



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Overview of Project Management

Unit-1: Role of Projects 16

PERFORMANCE/TECHNOLOGY

RESOURCES


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Why Projects Fail?

Only 28% of Projects Succeed! (ref. Standish group)

• Poor communications

• Scope Creep

• Poor planning• Weak business case

• Lack of management direction & involvement

• Incomplete specifications

• Mismanagement of expectations



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Project Stakeholders

• Stakeholders are the people involved in or affected byproject activities – they may also exert influence over

the project and its results

• Stakeholders include

– the project sponsor – project team

– support staff

– customers

– users

– Suppliers and vendors

– opponents to the project


Sponsor

ProjectManager

FunctionalManagers

OtherProjectMembers

Seller/BusinessPartners

Customers/UsersProject

MgmtTeam

OtherStakeholders

PMO Project Team

ProgramManager

Portfolio

Manager


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Stakeholders’ Influence, Risk, and Uncertainty



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PM LM LM LM

PM = Project Manager

APM = Assistant Project Manager

LM = Line or Functional Manager

PM = Project Manager

APM = Assistant Project Manager

LM = Line or Functional Manager

APM

APM

SPONSOR GM

Multiple Boss Reporting

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Project Manager-Functional Manager Interface

Most companies have the following resources:

Functional managers

control resources

1. Money

2. Manpower

3. Equipment

4. Facilities

5. Materials

6. Information Technology

Project managers

control only “ Project Money ”



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Successful Culture

• A good daily working relationship between the project

manager and those line managers who directly assign

resources to projects

• Ability of functional employees (previously: Sub-ordinates,

today: Associates) to report vertically to their line manager at

the same time they report horizontally to project managers

• PM is not designed to be a unity of command methodology. It

is designed to have shared authority and responsibility

between Project and Functional Managers



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Maturity in Project Management

• Is like a THREE-LEGGED STOOL (Tripod)

• Legs represent:

– Project Manager

– Line Manager(s) – Executive Management (including, Project Sponsor)

• Maturity cannot exist without stability

• OPM3: (Organizational Project Management Maturity Model)

– PMI’s model that is designed to help organizations

determine their level of maturity in project management



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Top of the Three-Legged Stool

ORGANIZATIONAL

STRUCTURE

ORGANIZATIONAL

BEHAVIOR

QUANTITATIVE

TOOLS &TECHNIQUES

Effective PM



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Project Manager’s Role

• Project Managers have increasing responsibility, but very little authority

• This lack of authority forces them to negotiate with upper level

management as well as functional management

Interface Management:

• Managing human interrelationships in the project organization

• Maintaining balance between technical and managerial project functions

• Coping with risk associated with project management

• Surviving organizational restraints



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IntegratedProcessesIntegratedProcesses

Integration Management


CapitalMaterials

Equipment

Facilities

Information

Personnel

Resources

Inputs

IntegrationManagement

Products

Services

Profits

Outputs

• As part of interface management, the project manager’s rolealso includes integration management


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Functional Manager’s Role

• The functional manager has the responsibility to

define how the task will be done and where the task

will be done (i.e., the technical criteria)

• The functional manager has the responsibility toprovide sufficient resources to accomplish the

objective within the project’s constraints (i.e., who

will get the job done).



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Functional Manager’s Obstacles

• Unlimited work requests

• Predetermined deadlines

• All requests having a high priority

• Limited number of resources

• Unscheduled changes in the project plan

• Unpredicted lack of progress

• Unplanned absence of resources

•Unplanned loss of resources

• Unplanned turnover of personnel



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Executive’s role

Expected to interface a project in:

• Project planning and objective setting

• Conflict resolution

• Priority setting

• Project sponsor



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RELATIONSHIP

Working with Executives

Project Team

Project

Manager

Project

Sponsor

ProjectManager

Project Sponsor

Lower Middle Management

Project Sponsor

Senior Management

Objective setting

Up-front planning

Project organization

Key staffing

Master planning

Polices

Monitoring execution

Priority Projects

Maintenance Projects



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Promises Made???

Administered by Functional Manager or Project Manager?

• Promotion

• Grade

• Salary

• Bonus

• Overtime

• Responsibility

• Future work assignments



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PM in Non-Project-Driven Org.

• Projects may be few and far between

• Each project has a different requirement, thus they

cannot be managed identically.

• Poor understanding of project management and a

reluctance of companies to invest in proper training.

• Executives do not have sufficient time to manage

projects themselves, yet refuse to delegate authority.



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PM in Non-Project-Driven Org.

• Projects tend to be delayed because approvals most

often follow the vertical chain of command.

• Because project staffing is on a “local” basis, only a

portion of the organization understands projectmanagement and sees the system in action.

• Heavy dependence on subcontractors and outside

agencies for project management expertise.



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DELEGATION

OF AUTHORITY TO

PROJECT MANAGER

EXECUTIVE

MEDDLING

LACK OF UNDERSTANDING OF HOW PROJECT

MANAGEMENT SHOULD WORK

LACK OF TRAINING IN COMMUNICATIONS /

INTERPERSONAL SKILLS

Tip-of-the-Iceberg Syndrome

Many of the problems

associated with project

management will

surface much later in the

project and result in much

higher costs [email protected] 39


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Location of the Project Manager

What salary?

Who to report?President

Vice President

Director

Division

Department

Section

Laborer

• Ideally project managers

should be at the same

pay scale as the people

they negotiate.• Location depends upon:

o Type of organization

o Responsibility

Typical position of aProject Manager



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High-Level Reporting

Project Manager:

• is charged with getting results from the coordinated

efforts of many functions. He should, therefore, report

to the man who directs all those functions

• must have adequate Org. status to do his job effectively.

• needs direct access to an upper echelon of management

to get adequate and timely assistance in solving

• If reports to a high echelon then customer, particularly ina competitive environment, will be favorably impressed



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Low-level Reporting

• Inefficient to have too many projects, especially small

ones, diverting executives from more vital concerns.

• Although giving a small project a high place may create

the illusion of executive attention, its real result is to

foster executive neglect of the project.

• Placing a junior Project Manager too high in the

organization will alienate senior functional executives

on whom the organization must rely for support.



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REFERENCES

•Project Management: A systems Approach

to Planning, Scheduling and Controlling

Harold Kerzner

•Project Management: AchievingCompetitive Advantage

Jeffrey K. Pinto

•Project Management: A Case Study

Harold Kerzner

[email protected]

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