ISE 440 - Ch. 1 - Projects in Contemporary Organizations PDF

Chapter 1: Projects in Contemporary Organizations Project Management: A Managerial Approach, Wiley, 9th Ed. By Meredith, J.R., Mantel, S.J., and Shafer, S.M. Slides are modified by Dr. Yasser Almoghathawi ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 1 Outline ▪ History of Project Manageme...

Chapter 1: Projects in Contemporary Organizations Project Management: A Managerial Approach, Wiley, 9th Ed. By Meredith, J.R., Mantel, S.J., and Shafer, S.M. Slides are modified by Dr. Yasser Almoghathawi ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 1 Outline ▪ History of Project Management ▪ What is a project? ▪ Triple constraints and project success ▪ Why project management? ▪ Recent changes in organizations management ▪ Project management organizations ▪ Project life cycles ▪ Risk involved in projects ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 2 Introduction ▪ Rapid growth in project management • 94% of companies agreed that project management is crucial for business growth (sources: Capterra) • 15.7 million new project management roles expected to be created from 2013 to 2020 • The profession is expected to grow by US$6.61 trillion (source: PMI (2013). Talent Gap: Project Management through 2020) ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 3 Introduction ▪ In the past, most projects were external • Building a new skyscraper • New ad campaign • Launching a rocket ▪ Growth lately is in internal projects • Developing a new product • Opening a new branch • Improving the services provided ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 4 How Project Management Developed ▪ Historical projects • Egyptian pyramids • Great Wall of China ▪ Modern credit for the development of project management goes to the military • The Manhattan Project ▪ the first project to use “modern” project management • Navy’s Polaris program • NASA’s Apollo space program ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 5 How Project Management Developed ▪ Project management has found wide acceptance in different industries ▪ It has many applications outside of construction • Managing new product releases • Software development • Parties • Election campaigns • etc. ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 6 Projects Tend to be Large ▪ Projects tend to be large (and complex) • The Channel Tunnel, or Chunnel • Panama Canal expansion project • Three Gorges Dam, China ▪ Projects are getting larger over time • Flying: balloons → planes → jets → rockets → reusable rockets ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 7 Projects Getting Smaller too ▪ More people are seeing the advantages of project management techniques ▪ The tools have become cheaper ▪ The techniques are becoming more widely taught and written about ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 8 The Definition of a “Project” ▪ A project is “a temporary endeavor undertaken to create a unique product, service, or result” (PMBOK® Guide) ▪ Projects can be large or small and take a short or long time to complete ▪ Projects end when • their objectives have been reached, or • the project has been terminated ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 9 Major Characteristics of a Project ▪ Three main Characteristics: • Unique • One-time occurrence with defined scope against which success is measured • Finite duration ▪ Other Characteristics: • Interdependencies • Limited resources • Conflict • Uncertainty ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 10 Non-projects and Quasi-Projects ▪ Routine tasks are not projects • Ex: production of weekly reports, delivery of mail, etc. Project Business as Usual ▪ New payroll system ▪ Payroll processing each month ▪ New building or extensions ▪ Building maintenance ▪ Designing a new car ▪ The car production line ▪ Developing a new version of software ▪ Supporting the new software version (e.g., answering tickets) ▪ “Quasi-projects” • Scope, schedule, and budget are implied, but ill defined. ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 11 Three Project Objectives: The “Triple Constraint” ▪ Also referred to as the “Iron Triangle” • Time • Cost • Scope ▪ Time, cost, and performance are all related to a project ▪ Scope (PMBOK® Guide) • Specified deliverables • The sum of products, services and results to be provided ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 12 Direct Project Goals: Scope, Cost, Time ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 13 Project Stakeholders ▪ Stakeholders are the people involved in or affected by project activities delineated ▪ Stakeholders include • project sponsor • project manager • project team • support staff • customers • users • suppliers • opponents to the project ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 14 Project Example ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 15 Project Success ▪ Project efficiency • The project met scope, time, and cost goals ▪ Impact on the customer • Client/Sponsor satisfaction ▪ Business impact on the organization • Improving the organization’s project management competency ▪ Opening new opportunities for the future ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 16 What Helps Projects Succeed? 1. Executive support 2. User involvement 3. Clear business objectives 4. Emotional maturity 5. Optimizing scope 6. Agile process 7. Project management expertise 8. Skilled resources 9. Execution 10. Tools and infrastructure (source: The Standish Group, “CHAOS Manifesto 2013: Think Big, Act Small”, 2013) ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 17 What is Project Management? ▪ Project management is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide) ▪ Project managers strive to meet the triple constraint (scope, time, and cost goals) and facilitate the entire process to meet the needs and expectations of project stakeholders ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 18 Why Project Management? ▪ Exponential expansion of human knowledge ▪ Growing demand for a broad range of complex goods and services ▪ Increased worldwide competition ▪ Project management increases the likelihood of accomplishing the desired goals ▪ Project management gives us someone (PM) to spearhead the project and to hold accountable for its completion ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 19 Negative Side to Project Management ▪ Greater organizational complexity ▪ Higher probability organizational policy will be violated ▪ Mere creation of project indirectly means that functional managers cannot accomplish the desired outcome ▪ Conflict ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 20 Recent Changes in Managing Organizations ▪ Consensual management ▪ Systems approach ▪ Achieving Strategic Goals ▪ Virtual Projects ▪ Projects are established in order to accomplish set goals ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 21 Project Manager ▪ Project manager is the key individual on a project ▪ Project manager is like a mini-CEO ▪ Job descriptions vary, but most include responsibilities like planning, scheduling, coordinating, and working with people to achieve project goals ▪ 97% of successful projects were led by experienced project managers, who can often help influence success factors ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 22 Project Manager ▪ Ten Most Important Skills and Competencies for Project Managers: 1. People skills 2. Leadership 3. Listening 4. Integrity, ethical behavior, consistent 5. Strong at building trust 6. Verbal communication 7. Strong at building teams 8. Conflict resolution, conflict management 9. Critical thinking, problem solving 10. Understands, balances priorities ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM (Source: Information Technology Project Management, 8th Ed.) 23 Project Manager ▪ Different skills needed in different situations • Large projects: ▪ Leadership, relevant prior experience, planning, people skills, verbal communication, and team-building skills were most important • High uncertainty projects: ▪ Risk management, expectation management, leadership, people skills, and planning skills were most important • Very novel projects: ▪ Leadership, people skills, having vision and goals, self confidence, expectations management, and listening skills were most important ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM (Source: Information Technology Project Management, 8th Ed.) 24 Project Manager ▪ Importance of Leadership Skills • Effective project managers provide leadership by example • A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals • A manager deals with the day-to-day details of meeting specific goals • Project managers often take on the role of both leader and manager ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 25 Project Management Organizations ▪ The Project Management Institute (PMI), founded in 1969, is the major project management organization ▪ Grew from 7,500 members in 1990 to over 450,000 in more than 190 countries by 2017 ▪ Other organizations • Association for Project Management • International Project Management Association ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 26 PMI Certifications ▪ Project Management Professional ▪ Program Management Professional ▪ Portfolio Management Professional ▪ Certified Associate in Project Management ▪ PMI Professional in Business Analysis ▪ PMI Agile Certified Practitioner ▪ PMI Risk Management Professional ▪ PMI Scheduling Professional ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 27 Certifications ▪ (Starkweather and Stevens, 2011, pp. 36, 38, 39): “There is no correlation between a good PM and certification based on my 15 years of experience”. ▪ “I’ve seen very little correlation between having a PMP® and having a deep understanding of how to apply the methodology, how to tailor it for a specific situation.” ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 28 Typical Project Life Cycle ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 29 Time Distribution of Project Effort ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 30 Another Possible Project Life Cycle ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 31 Risk ▪ Uncertainty about the ability to meet project goals due to various factors in the project life cycle ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 32 Risk During at the Start of the Life Cycle ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 33 Risk During the Life Cycle ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 34 The Structure of The Textbook ISE 440 - Term 231 Dr. Yasser Almoghathawi, KFUPM 35