Project Management Overview

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Questions and Answers

What is one key aspect that differentiates project management from just a fun activity?

The enjoyment of team collaboration

The ability to work independently

Expectation of financial return to justify the cost (correct)

The need for creativity and innovation

Which of these is NOT considered a financial implication of project management?

Increased turnover

Improved employee morale (correct)

Efficiency

Reduced people costs

Which type of project is defined as lasting between 6 to 18 months?

Short-term Projects

Complex Projects

Traditional Projects (correct)

Mini or Minor Projects

Which role does project management play in corporate strategy?

Bridges strategy and implementation Signup and view all the answers

What is a common characteristic of projects categorized as 'Complex'?

They last 18 months or longer Signup and view all the answers

Which aspect is included in project justification?

What is costs Signup and view all the answers

What does the term 'the eternal triangle' in project management refer to?

The balance of time, cost, and scope Signup and view all the answers

Which activity is NOT typically involved in project management?

Personal relationship counseling Signup and view all the answers

What can be a consequence of project's complexity regarding KPI decision-making?

More careful consideration needed Signup and view all the answers

Who primarily judges the success of a project within the organization?

Management Signup and view all the answers

Which of the following statements about stakeholder value in projects is true?

Missing stakeholder value can lead to project failure Signup and view all the answers

What does the quote from the vice president suggest about definitions of success?

Success definitions differ across stakeholders Signup and view all the answers

What is one of the recommendations for handling project KPI?

Design a dashboard for each stakeholder Signup and view all the answers

How should project managers adapt their mindset when competing globally?

Embrace diverse cultural perspectives Signup and view all the answers

According to the content, what can affect the ease of KPI determination over time?

The complexity of the project Signup and view all the answers

Why is it important to consider areas beyond scope in project benefit analysis?

Other areas may provide opportunities for initiatives Signup and view all the answers

Which characteristic is primarily associated with complex projects?

Fundamental implications and long-term nature Signup and view all the answers

What assumption typically holds true for projects lasting less than 18 months?

Objectives are well defined and stable Signup and view all the answers

Which of the following is NOT a common factor that creates complexity in projects?

Fixed project timelines Signup and view all the answers

What is a key driver for complex projects?

Value and company standing Signup and view all the answers

Which statement best describes traditional projects?

They usually involve known assumptions and can address crises. Signup and view all the answers

How does the duration of a project affect its assumptions?

Longer projects are prone to faulty assumptions based on changing factors. Signup and view all the answers

Which of the following is a potential issue when projects exceed 18 months?

Rising costs and changing procurement parameters Signup and view all the answers

Why is flexibility important in project management?

It increases the need for additional KPIs related to critical issues. Signup and view all the answers

Which of the following is NOT considered one of the triple constraints of project management?

Customer satisfaction Signup and view all the answers

What is a necessary aspect to measure alongside the triple constraints to determine project success?

Customer satisfaction Signup and view all the answers

Which of the following can be considered a secondary factor in measuring project success?

Strategic alignment Signup and view all the answers

Which statement reflects a viewpoint on the relationship between price and value?

Price is what you pay; value is what you get. Signup and view all the answers

What is included in the definition of success for Orange Switzerland?

Delivery within scope, time, cost, and quality Signup and view all the answers

Why might a project still be considered a failure despite meeting the triple constraints?

Failure to achieve customer satisfaction Signup and view all the answers

What does ROI stand for in the context of project evaluation?

Return on Investment Signup and view all the answers

Which of the following could be considered a 'hot button' for clients?

Specific project requirements Signup and view all the answers

What must be agreed upon between the sponsor and the Project Leader?

The definition of success Signup and view all the answers

Which of the following is NOT part of the Triple Constraints in project management?

Efficiency Signup and view all the answers

Why is it important to meet with stakeholders at the beginning of a project?

To agree on the definition of project success Signup and view all the answers

Which statement reflects the concept that completing a project on time and within budget does not guarantee success?

The wrong project can result in no value despite meeting constraints. Signup and view all the answers

According to the postulates, what do customers primarily pay for?

Value Signup and view all the answers

How can project management improve future projects?

By using project learning points Signup and view all the answers

Which of the following best describes the relationship between quality and value?

Quality is just one aspect of perceived value. Signup and view all the answers

What kind of metrics should be agreed upon with stakeholders to track project success?

Key Performance Indicators (KPIs) Signup and view all the answers

What is a consequence of not implementing necessary business-related changes?

Following the plan may not bring success Signup and view all the answers

Which of the following options best describes the Peter Principle?

People tend to rise to their level of incompetence. Signup and view all the answers

Which of the following is considered an ineffective value?

Mistrust Signup and view all the answers

What is one of the easiest value metrics to measure?

Profitability Signup and view all the answers

Which of the following presents a challenge in measuring value metrics?

Subjectivity in measurement Signup and view all the answers

What effect do business assumptions have on decision making?

They can affect decision-making negatively. Signup and view all the answers

Which of the following is NOT an example of a value metric?

Employee workload analysis Signup and view all the answers

What role does time play in measuring value attributes?

Importance of attributes varies with time. Signup and view all the answers

Which of the following is a characteristic of effective values?

Collaboration Signup and view all the answers

Which of the following best describes the concept of value-based compliance?

Promoting improvement of quality across all functions. Signup and view all the answers

Study Notes

Measuring Benefits

Project completion is relatively easy except for expectations, time constraints, cost limitations, and the need for a significant financial return.
Complex expectations can make project management challenging.
Project management isn't simple; it involves more than just completing tasks.

Project Justification - Business Cases

What is desired (goals & objectives)
Costs involved
Timeline for project
Expectations set

Financial Implications

Increased turnover / reduced costs are financial implications.
Performance and productivity improvements.
Reduced employee costs.
Efficiency improvements (e.g., mergers & acquisitions (M&As)).
Innovation and R&D investment.
Training and staff development.
Mix of variable and fixed costs.
Other benefits potentially have financial implications.

The Executive View - PM as a Career Path

Project management (PM) is crucial for company growth and survival.
Understanding project management and corporate issues is essential.
Involvement in strategic planning, project selection, and capacity planning is required.
Bridging strategy and implementation is a core PM function.
PMs make vital decisions affecting both projects and the business.

Different Types of Project

Mini or Minor Projects: Less than three months.
Traditional Projects: 6 to 18 months.
Complex Projects: 18 months or longer.
Examples include AUKUS submarines (started as standard project, then expanded).

What Is the Difference Between Project Types?

Minor projects: Technical, design, administrative tasks. Operational and strategic changes are not needed.
Traditional projects: Business implications (crises, new products, etc.) and productivity are anticipated. Assumptions are generally clear.
Complex projects: Long-term projects with substantial implications; expectations and everything can change.

Projects Less Than 18 Months? - Assumptions

Technology will remain stable; minimal change.
Assumed conditions remain constant.
Project team composition will be consistent.
Objectives are well-defined.
Target metrics remain unchanged.
Key Performance Indicators (KPIs) are known.

18 Months or More - Faulty Assumptions

Cost of borrowing may shift.
Procurement costs may increase.
Timing of innovation is unknown.
Necessary skills might not be available.
Market dynamics may change.
Customer loyalty may wane.
Disruptive changes may occur.
Risks may fluctuate or not be manageable.
Political conditions may shift.

As Business Needs Shift

KPIs are needed for those critical issues that influence project success.
Flexibility in project processes needs corresponding changes in KPIs.

What Creates Complexity?

Interacting functional units.
Various factors leading to "complexity."
Possibility of changes.
Large/Complex projects tend to lead to cost overruns and schedule slippages.
Global perspectives and cultural differences.
Degree of technology involved.
Size/length of project.

Tips Measuring Benefits

A few simple KPIs may be inadequate for measuring comprehensive project success.
Including factors such as time, cost, and performance with a missing value from stakeholders can reduce project success.
Complex projects demand more careful consideration of KPIs.
Long projects are more complex to create universally applicable KPIs.
Global competition requires different perspectives for project managers.

Who Judges Success?

Success is evaluated by various stakeholders:
- Other stakeholders
- Client
- Business vs. organization
- Employees
- Company

Quote from Kerzner

The definition of success often involves meeting profitability targets.
The company's definition of success may not line up with the client's definition.

'New' Thinking

Success metrics must be agreed upon.
Governance involving supervisory decisions for changes during the project.
Individual dashboards with relevant KPIs and updated real-time data by project managers.
Project managers are responsible for ensuring team members understand the H2 measures.

What Does This Tell About Motivation and Judging Success

Motivation and judging success are linked to the information presented.

Do You Need to Restrict "Scope" to Find Benefits?

Seeking benefits from outside traditional scope might be beneficial.
Projects can generate benefits beyond initial scope.

A New Look at Defining Project Success

A perspective on defining and measuring project success that extends beyond traditional approaches.

Triple Constraints

Time, cost, and performance are essential project constraints.
Even with timely and within-budget completion, deliverables may fail to meet desired outcomes, requiring further evaluation.

Customer Satisfaction

Addressing the triple constraints and ensuring customer satisfaction are essential to project success.
Assessing customer satisfaction can vary based on business cases, additional work, ROI, hot buttons (client concerns), and overall agreement.

Other (Secondary/Internal) Factors

Additional factors like references, reputation, strategic alignment, technical excellence, ethical behavior, "buying" projects, and the "foot in the door" approach should be considered.

Example of a 'Business Component'

Deliverables (time, scope, budget, and quality), change management, team management, and meeting product criteria (ROI and adoption rates) during project initiation can be components of success.

Success Must Include Value

Authentic value is crucial for successful projects.
Value involves aspects beyond time and costs, possibly qualitative in nature.
Agreeing on a success definition with sponsors and project leaders is essential.

'Triple' to 'Competing' Constraints

Traditional projects emphasizing time, cost, and scope constraints compared to complex projects with competing constraints featuring value, quality, image, and reputation.
Consider additional factors beyond the basic triple constraints in complex projects.

So What of the Future?

Adapting project management to better meet clients' needs and expectations.
Agreement on metrics to assess initial project success.

Meeting Stakeholders, KPIs, Dashboards

Meeting with stakeholders and agreeing on metrics.
Using real-time KPIs for monitoring and project improvement.
Learning from completed projects for future improvements.

8 Postulates

Project success depends on working on the right project, regardless of meeting the initial criteria.
Timeliness and budgeting don't guarantee value if the project is wrong.
Triple constraints do not automatically lead to project success.
Effective project management does not guarantee attaining positive value.

Postulates (continued)

Customers are motivated by paying for deliverables—a focus on value.
Customer value includes the perceived worth of the product/service.
Achievement of business value is crucial for project success.
Success isn't assured by blindly following a plan if needed changes are not implemented despite necessary adjustments.

2 Considerations

Managers manage, and leaders lead.
Leaders and managers face difficulties balancing these roles.
Modern organizations struggle with applying the Peter Principle—the idea that employees rise to their level of incompetence.

Leadership & Values

Contrast ineffective and effective values regarding factors like trust, competency, teamwork, flexibility, innovation, collaboration, strategic thinking, commitment, continuous improvement, job descriptions, power, authority, conformity, predictability, and internal competition.

Measuring Value

Ranking value metrics based on difficulty (easy to very hard) in measuring. Includes factors like performance, productivity, profitability, customer satisfaction, goodwill, penetrating new markets, innovation, technology transfer, reputation, workforce motivation, and capacity utilization.

Measuring Value Metrics Issues

Subjectivity in business assumptions impacting decisions.
Subjectivity inherent to value measurements.
Difficulty identifying/capturing meaningful data.
Subjective attributes influencing value.
Measurement biases introduced by the person measuring value.
Attribute relevance changes over time.
Circumstantial influences on value.
Value judgment influenced by unrelated factors.

Business Model Format

Framework for visualizing a business, explaining components like key business partners, key activities, key resources, value propositions, customer relationships, channels, and customer segments to understand revenue generation.

Growing Importance of Value

The importance of value-based aspects has increased from traditional focus on cost and quality.
Customer perception of quality and value, Total Quality Management (TQM), ISO 9000 standards, and Customer Relationship Management (CRM) are all relevant to achieving quality and value-based criteria.

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Description

This quiz explores the essential aspects of project management, including project justification, financial implications, and the career path within project management. Learn about the challenges and considerations that come with managing projects effectively.