PMP Preparation Training

Project Management Environment

Chapter 2

Objectives
To be able to describe:
Project life cycle Characteristics of the project phases Key project stakeholders Organizational and socioeconomic influences on the project Key management skills used in managing a project
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-2

Project Life Cycle

Defines the beginning and end of the project Divides the project into phases that provide better management control and the appropriate links to the ongoing operations of the organization

Source: pmbok guide 2000

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Phase Characteristics
Tangible, verifiable work products Evaluation of deliverables and project performance Phase Exit Criteria Measurements used to determine if project should go into next phase Deliverables Reviews

Source: pmbok guide 2000

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Characteristics of Life Cycle

Defines the beginning and end of the project Deliverables usually approved before work starts on the next phase Sometimes a subsequent phase is begun prior to approval of the previous phase. This is called fast tracking.

Defines technical work and implementers

Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-5

Characteristics of Life Cycle

(cont.)

Cost and staffing levels are low at the start, higher towards the end, and drop as project closes Probability of project success is low at the start of the project and gets progressively higher as the project continues Cost of changes and of error correction generally increases as the project continues
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-6

Phases and Resources Usage

Concept Development Implement Close Out

5% 20% 60% 15%

2002 Robbins-Gioia, Inc. 2-7

Source: pmbok guide 2000

Project Stakeholders
Individuals and organizations who are actively involved in the project and whose interests may be positively or negatively affected by the project success or failure
Key Stakeholders Project manager Customer Performing organization Sponsor
Source: pmbok guide 2000

Manages the project Uses the product or service Enterprise that does the project work Provides financial resources
2002 Robbins-Gioia, Inc. 2-8

Organizational Influences
Organizational systems
Project-based
Derive income by performing projects for others Treat on-going operations as projects (management by projects)

Non-Project-based
No project-oriented systems in place to support project needs efficiently and effectively
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-9

Organizational Cultures & Styles

Shared values, norms, beliefs, and expectations Reflected in policies and procedures, view of authority relationships, etc. Directly influences the project

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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Organizational Structure
Functional organization Hierarchy where each employee has one clear superior Projectized organization Most of organizations resources are involved in project work and report to the project manager Matrix organization Blend of both
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-11

Organizational Structure
Project Office
Provides services ranging from support functions to project managers, such as training, software, templates, etc. to actually being responsible for the results of the project

Source: pmbok guide 2000

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Organizational Planning

Functional Organization
Specialists grouped by function Difficult to cross functional lines Barriers exist on horizontal information flow Functional emphasis loyalties may impede completion

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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Organizational Planning

Matrix Organization
Multiple-command system Individuals from functional areas assigned on temporary basis to PM Individuals return to functional organization Careful plans and procedures needed to minimize effects of dual reporting

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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Organizational Planning

Matrix Organization
Advantages
Visible objectives Efficient utilization of resources Better co-ordination Better information flow Retention of home after project

Disadvantages

Source: pmbok guide 2000

More than one boss Complex structure to control Differing priorities of PM and FM Duplication of effort Conflict
2002 Robbins-Gioia, Inc. 2-15

Organizational Planning

Projectized Organization
Emerges from functional when latter impedes progress Line of authority is the PM Uncertainty where to go on completion of project Tendency to retain assigned personnel too long FMs feel threatened as people are removed from their areas
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-16

Organizational Planning

Organizational Structures
Type Functional Project Expediter Project Coordinator Weak Matrix Strong Matrix Projectized PM Authority None Low Low Low > Medium Medium > High High

Source: pmbok guide 2000

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General Management Skills

Leading
Establishing direction, aligning people, motivating, and inspiring

Communicating
Reporting project performance; deciding how, when, in what form, and to whom

Negotiating
Conferring with others in order to come to terms or reach an agreement
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-18

Management Skills (cont.)

Problem solving
Defining the causes of problems, analyzing the problems to identify viable solutions, and selecting the best one

Influencing the organization

Understanding the formal and informal structures and the mechanics of power and politics and using this knowledge to get things done
Source: pmbok guide 2000 2002 Robbins-Gioia, Inc. 2-19

Social-Economic-Environmental Influences
Projects have positive or negative impacts on people, economics, and the environment Organizations are accountable for these impacts

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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Social-Economic-Environmental Influences
Standards and regulations
Project plan should reflect how standards and regulations affect the project

Internationalization
Consider the effect of time-zone differences, national holidays, travel requirements, teleconferencing, and political differences

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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Social-Economic-Environmental Influences
Cultural influences
Projects operate within a context of cultural norms that affect the way people and organizations interact

Social-Economic-Environmental Sustainability
Projects have unintended positive and negative impacts on people, the economy and the environment Organizations are increasingly accountable for project impacts

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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Summary
Review Questions

Source: pmbok guide 2000

2002 Robbins-Gioia, Inc.

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