Project Management Concepts and Trends

Project Management Forces

• Three forces combine to require teams for problem-solving: explosion in certified project managers, worldwide acceptance of the Project Management Institute (PMI), and interaction of supply and demand.
• The evolution of worldwide competitive markets for goods and services is not one of the forces identified.
• The overwhelming majority of projects are small.

Project Examples

• A house is not an example of a project and would usually not be considered a project.
• Assembly line manufacturing of automobiles is an example of not usual project.
• Developing computer software and hosting a wedding reception are considered projects.

Project Management Objectives

• Scope, cost, and time are the prime objectives of project management.
• Quality, scope, schedule and customer satisfaction are not the prime objectives.
• Customer satisfaction and budget are not the prime objectives.

Project Dimensions

• Four dimensions of project success are: Project efficiency, business impact on the organization, opening new opportunities for the future and cost to the customer.
• Number of people working on the project is not one of the four dimensions of project success.
• Outcome of a project could change over time but is not a characteristic of all projects.
• All projects have a finite duration.

Non-Project Examples

• The delivery of mail and production of weekly employment reports are not considered projects.

Key Players in Project Management

• The military has played a significant role in the development of project management techniques.
• European navigators, trader community, and brokerage firms are not identified as key players in project development.

Shenhar's Dimensions of Success

• Shenhar defines four dimensions of project success : the iron triangle, impact on the customer, opening new opportunities for the future and the impact on the budget.

Recent Research on Project Management

• Recent research suggests three important measures for managing projects: the iron triangle, project ownership success, and project investment success.
• Project time success is not one of the measures.

Project Management Organization

• The Project Management Institute (PMI) is the organization responsible for maintaining and publishing the PMBOK Guidebook.

Project Types

• A virtual project involves global teams working across different physical locations and time zones.

Project Characteristics

• The "stretched-S" pattern during the project lifecycle is primarily due to changing levels of resources used in successive stages.

Project Effort

• The majority of effort in a project occurs during the planning, scheduling, monitoring, and control phases.

Earned Value

• Earned value is closely correlated with the cost or use of resources.

Agile Approaches

• Agile approaches to projects are generally characterized by dividing the projects into iterations and relying on lean management principles for emphasis on simplicity.

Scrum Roles

• Product owner, developers, and Scrum master are three specific team roles associated with scrum frameworks.
• Scrum lord is not a specific scrum role.

Goal Setting Theory

• Goal setting theory identifies three characteristics of effective goals: specificity, attainability and comprehensive reflection of stakeholder views.
• Requiring "stretching" to meet stakeholder goals is not one of the identified characteristics.

Project Success Measures

• Generic measures of any project's success include outputs meeting the iron triangle specifications, successful completion of business case objectives and successful investments.
• Project was fully funded is not a generic measure for success.

Project Termination

• Project termination may occur when a project exceeds its budget or falls behind schedule or when the project manager is terminated.
• Termination also occurs when the boss feels the project has failed.

Project Selection Criteria

• Criteria for project selection that focuses on how new products fit an existing product line is production line extension.

Project Selection Criteria

• A project selection criteria that focuses on environmental and social issues is sustainability.

Project Evaluation

• Payback period is a numeric model.
• Sacred cow is not a numeric model.

Project Costing Model

• A project with a $12,000 implementation cost and $3,000 annual cash flow has a four-year payback period.

Project Interest Rate

• The minimum acceptable rate of return set by an organization for a project is called a hurdle rate.

Real Options Approach

• The premise of the real options approach is that delaying an investment may lead to potentially greater returns.

Discounted Cash Flow Approach

• The discounted cash flow approach is simple, understands available data, allows for adjustment of project risk, but may have inaccurate data.

Project Selection Models

• A project profitability model, like a discounted cash flow, might not account for risk factors, time value of money, or non-monetary factors and is strongly biased toward short term solutions.
• Project selection models should account for project realism.

Project Success Factors

• Characteristics of highly successful strategic projects include exceptional value for stakeholders, a powerful vision, and qualified project managers unconditionally supported by top management.
• Creating a satisfied project culture is not listed as a characteristic of highly successful strategic projects.

Project Team Development

• The Tuckman ladder describes four stages of team development: Forming, Storming, Norming, and Performing.
• The stages describe how teams go from initial independent work in the forming stage to working together as a cohesive unit for the project's completion in the performing stage.

Project Team Members

• Teams might be comprised of temporary agencies or borrowed/transferred functional departments.

Project Management Characteristics

• Effective project managers possess strong technical skills, handle political sensitivity, and have high self-esteem.

Project Scope Creep

• Scope creep involves changes in the project's scope or requirements after project initiation and is a source of frequent projects crises.

Project Planning Approach

• One planning approach for handling complex projects is to communicate effectively with stakeholders.
• Project leadership includes gaining knowledge of the client to complete the task.

Core Project Management Duties

• Project managers are heavily involved in communicating, overseeing, and motivating staff.

Project Manager Skills

• Essential skills for project managers include negotiation, resolving conflicts, and taking care of budgetary and scheduling issues among varied organizational areas.

Project Management Roles

• A critical project role is to maintain a broad network of communication.

Stakeholder Management

• Identifying stakeholders, creating a stakeholder register that includes project stage interest, and effectively communicating with stakeholders is part of establishing a well-managed project.

Project Methodology

• Expert judgement of project teams, user surveys, and corporate guidelines are common methods for identifying stakeholders.

Standard Project Management Procedures

• Project managers need to develop a project plan, establish a cost baseline, communicate project results, and organize project teams by a clear plan and hierarchical structure.
• Project teams need members from various disciplinary backgrounds, and communication among their members needs to be supported.

Project Lifecycle

• Thamhain suggests project conflict intensity is highest in the early phases of the project concerning priorities or cost versus time. Toward the end of the project lifecycle, conflict increases with scheduling issues.

Project Budgeting and Costing

• In budgeting, the project manager is expected to predict costs, forecast resources, and ensure accuracy.
• A variety of project budgeting strategies are used.

Project Risk Management

• Project managers need to know about all types of risks (preventable and unpreventable).

Project Planning Processes

• Four steps in risk management planning involve determining risks and analyzing responses.

Project Management Tools

• Techniques in quantitative risk analysis include decision tree analysis, Monte Carlo simulation.

Project Management Processes

• Risk identification, response planning, monitoring, and control are critical steps in project risk management.

Project Outcomes

• A Risk Management Register is used to keep track of risks.

Methods for Project Coordination

• Project managers coordinate work and timing of diverse, interdisciplinary teams using methods such as integration management.

Project Budget

• Project budgets are an integral part of project management, setting the limits on the resources used.

Project Management Estimators

• Professional project cost estimators work closely with clients to maintain budget accuracy.

Project Scope

• A project's scope describes the precise work to be completed.
• Scope creep involves ongoing changes to project objectives.

Project Launch Meetings

• Project launch meetings play a key role in aligning stakeholders and clarifying expectations.

Agile Project Management

• Agile principles value customer satisfaction and feedback with continuous delivery of results.
• Agile projects utilize efficient methods of communication and short-term iterations.