ORGANIZATIONAL INFLUENCES AND

PROJECT LIFE CYCLES

PROJECT MANAGEMENT

Swapnil Agarwal 80501190005

Likhith Chand 80501190025
Raghav Mathur 80501190030

PGDM 2nd Year

NMIMS Navi Mumbai
TOPICS TO BE COVERED

1. Organizational Influences on Project Management

2. Project Stakeholders and Governance
3. Project Team
4. Project Life Cycle
2.1 Organizational Influences on Project Management
❖ An organization’s culture, style, and structure influence how its projects are performed.

❖ The following sections describe organizational characteristics, factors, and assets within an
enterprise that are likely to influence the project.

• Organizational Cultures and Styles

• Organizational Communications
• Organizational Structures
• Organizational Process Assets
• Enterprise Environmental Factors
2.1.1 Organizational Cultures and Styles

❖Organizations are systematic arrangements of entities (persons and/or departments) aimed at

accomplishing a purpose, which may involve undertaking projects.

❖Organizational culture is shaped by the common experiences of members of the organization and
most organizations have developed unique cultures over time.

❖Cultures and Styles are critical factors for project success and multi-cultural competence is
critical for a Project Management.
2.1.2 Organizational Communications

❖Project management success in an organization is highly dependent on an effective

organizational communication style, especially in the face of globalization of the project
management profession.

❖Project Managers should effectively communicate with all relevant stakeholders within the
organizational structure to facilitate decision making.
2.1.3 Organizational Structures

❖ Organizational structure is an enterprise environmental factor, which can affect the

availability of resources and influence how projects are conducted.

• Functional Organization
• Projectized Organization
• Weak Matrix Organization
• Strong Matrix Organization
• Balanced Matrix Organization
• Composite Organization
Functional Organization

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

Projectized Organization

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

Weak Matrix Organization

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

Strong Matrix Organization

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

Balanced Matrix Organization

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

Composite Organization

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

Source: A Guide to the Project Management Book of Knowledge. Chapter 2
Levels in Organizational Structures
❖ Many organizational structures include strategic, middle management, and operational levels.

❖ The project manager may interact with all three levels.

❖This interaction determines project characteristics such as:

⮚ Project manager’s level of authority
⮚ Resource availability and management
⮚ Project manager’s role
⮚ Project team composition.
 2.1.4 Organizational Process Assets
❖Organizational process assets are the plans, processes, policies, procedures, and knowledge bases
specific to and used by the performing organization.

❖Organizational process assets may be grouped into two categories:

⮚ Processes and Procedures
• Initiating and Planning
• Executing, Monitoring and Controlling
• Closing
⮚ Corporate Knowledge Base
• Configuration management knowledge bases
• Financial databases
• Historical information and lessons learned knowledge bases
• Issue and defect management databases
• Process measurement databases
2.1.4 Enterprise Environmental Factors
❖Enterprise environmental factors refer to conditions, not under the control of the project
team, that influence, constrain, or direct the project.

❖Enterprise environmental factors are considered inputs to most planning processes.

❖They include:
•Organizational culture, structure, and governance
•Geographic distribution of facilities and resources
•Government or industry standards
•Infrastructure
•Existing human resources and Personnel Administration
•Marketplace conditions
•Stakeholder risk tolerances
•Political climate
•Project management information system
2.2 Project Stakeholders and Governance

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.

1. Project Stakeholders
2. Project Governance
3. Project Success
2.2.1 Project Stakeholders
❖The project team identifies various stakeholders in order to determine the project requirements and
the expectations of all parties involved.

❖ Stakeholder identification is a continuous process of identifying stakeholder’s relative degree of

influence on a project, and balancing their demands, needs, and expectations.
For example: late recognition of the legal department as a significant stakeholder.

❖Types of Stakeholders:
•Sponsors
•Customers and Users
•Sellers
•Business Partners
•Organizational groups
•Functional Managers
•Other Stakeholders
Source: A Guide to the Project Management Book of Knowledge. Chapter 2
2.2.2 Project Governance
❖Project governance is an oversight function that is aligned with the organization’s governance
model and that encompasses the project life cycle.

❖It provides a comprehensive, consistent method of controlling the project and ensuring its success
by defining and documenting and communicating reliable, repeatable project practices, processes,
decision-making models and tools for managing the project.

❖It includes a framework for making project decisions; defines roles, responsibilities, and
accountabilities for the success of the project; and determines the effectiveness of the project
manager.

❖Project governance is a critical element of any project, especially on complex and risky projects.
2.2.3 Project Success

❖The success of the project 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 (such as soft launch in
services) can be part of the total project time before handing it over to the permanent operations.

❖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.
2.3 Project Team
❖The 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.

❖Project teams include roles such as:

• Project management staff
• Project staff
• Supporting experts
• User or Customer Representatives
• Sellers
• Business partner members
• Business partners
2.3.1 Composition of Project Teams

❖The composition of project teams varies based on factors such as organizational

culture, scope, and location.

❖Team composition could be based on:

⮚ Basic Composition
• Dedicated
• Part-Time

⮚ Organizational Structure
• Partnership based projects

⮚ Geographical location of team members

• Virtual Project Teams
2.4 Project Life Cycle
❖ A project life cycle is the series of phases that a project passes through from its initiation to its
closure.
❖ Phases are generally time bounded, with a start and ending or control point.

❖ The project life cycle can be shaped by the unique aspects of the organization, industry, or
technology employed.
❖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
Source: A Guide to the Project Management Book of Knowledge. Chapter 2
2.4.1 Characteristics of the Project Life Cycle
❖ Cost and staffing levels are low at the start, peak as the work is

carried out, and drop rapidly as the project draws to a close.

❖ Risk and uncertainty are greatest at the start of the project. These

factors decrease over the life of the project as decisions are

reached and as deliverables are accepted.

❖ The ability to influence the final characteristics of the project’s

product, without significantly impacting cost, is highest at the start

of the project and decreases as the project progresses towards

completion.
Source: A Guide to the Project Management Book of
Knowledge. Chapter 2
2.4.2 Project Phases
❖ A project may be divided into any number of phases. A project phase is a collection of logically
related project activities that culminates in the completion of one or more deliverables.

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

 2.4.2.1 Phase-to-Phase Relationships
❖ When projects have more than one phase, the phases are part of a generally sequential process designed to ensure
proper control of the project and attain the desired product, service, or result.

• Sequential relationship.

• Overlapping relationship.

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

 2.4.2.2 Predictive Life Cycles
 Predictive life cycles (also known as fully plan-driven) are ones in  which the   project scope, and the time and cost
required to deliver  that scope, are determined as early in the project life cycle as  practically possible.

Source: A Guide to the Project Management Book of Knowledge. Chapter 2

2.4.2.3 Iterative and Incremental Life Cycles
• Iterative and incremental life cycles are ones in which project phases (also called iterations)
intentionally repeat one or more project
activities as the project team’s understanding of the product increases.
• Iterations develop the product through a series of repeated cycles, while
increments successively add to the functionality of the product. These life cycles
develop the product both iteratively and incrementally.
• Large and complex projects are frequently executed in an iterative fashion to
reduce risk by allowing the team to incorporate feedback and lessons learned
between iterations.
2.4.2.4 Adaptive Life Cycles
• Adaptive life cycles (also known as change-driven or agile methods) are
intended to respond to high levels of change and ongoing stakeholder
involvement.

• Adaptive methods are also iterative and incremental, but differ in that
iterations are very rapid (usually with a duration of 2 to 4 weeks) and are fixed
in time and cost.

• Adaptive methods are generally preferred when dealing with a rapidly

changing environment and perform several processes in each iteration,
although early iterations may concentrate more on planning activities.