Topic 1: Project Management PDF

Topic 1: Project Management 1. Overview of Project Management a. Purpose of PMBOK b. The Project Management Institute Code of Ethics and Professional Conduct 2. What is a Project? a. Project Attributes b. Project vs. Program vs. Portfolio c. Project Success 3;...

Topic 1: Project Management 1. Overview of Project Management a. Purpose of PMBOK b. The Project Management Institute Code of Ethics and Professional Conduct 2. What is a Project? a. Project Attributes b. Project vs. Program vs. Portfolio c. Project Success 3; Project Management a. Definition b. Projects and Strategic Planning c. Project Management Office d. Advantages of Using Formal Project Management e. The Need for Project Management I. Overview: Project Management PMBOK® Guide Project Management Body of Knowledge ★ Provides guidelines for managing individual projects and defines project management related concepts ★ Also describes the project management life cycle and its related processes, as well as the project life cycle. ★ Globally recognized as standard and guide for the project management profession ★ As with other professions, the knowledge contained in this standard has evolved from recognized good practices of project management practitioners who have contributed to the development of this standard ★ There is general agreement that applying these practices will increase your chance of success. ★ The PMBOK guide undergoes regular updates to stay abreast of evolving project management practices and integrate new insights and best practices. DO YOU KNOW ANY GOOD PRACTICE? Purpose of PMBOK Guide: ★ PMBOK Guide identifies that subset of the project management body of knowledge that is generally recognized as goo practice. ★ “Generally recognized” means the knowledge and practices described are applicable to most projects most of the tim and there is consensus about their value and usefulness. ★ “ Good Practice” means there is general agreement that the application of the knowledge, skills, tools, and technique can enhance the chances of success over many projects. But does not mean that the knowledge described should alw be applied uniformly to all projects; the organization and/or project management team is responsible for determining what is appropriate for any given project. ★ It provides and promotes a common vocabulary within the project management profession for using and applying pro management concepts. ★ A common vocabulary is essential element of a professional discipline The Project Management Institute Code of Ethics and Professional Conduct ➔ Is specific about the basic obligation of responsibility, respect, fairness, and honesty. ➔ It requires that practitioners demonstrate commitment to ethical and professional conduct. ➔ It carries the obligation to comply with laws, regulations, and organizational and professional policies. ➔ Practitioners come from diverse backgrounds and cultures, and the Project Management Institute Code of Ethics and Professional Conduct applies globally. ➔ When interacting with any stakeholder, practitioners should be committed to honest, responsible, fair practices and respectful dealings. Acceptance of the code is essential for project managers, and is a requirement for the ff: PM exams: ➔ Certified Associate in Project Management (CAPM) ➔ Project Management Professional (PMP) ➔ Program Management Professional (PgMP) ➔ PMI Agile Certified Practitioner (PMI – ACP) SM ➔ PMI Risk Management Professional (PMI – RMP) ➔ PMI Scheduling Professional (PMI – SP) II. What is a PROJECT? is “a temporary endeavor undertaken to create a unique product, service, or result” The temporary nature of projects indicates that a project has a definite beginning and end. The “end” is reached when the project’s objectives have been achieved or when the project no longer exists. a project may also be terminated if the client (customer, sponsor or champion) wishes to terminate the project. Temporary does not necessarily mean the duration of the project is short; it refers to the project’s engagement and its longevity. ➔ Projects can also have social, economic, and environmental impacts that far outlive the projects themselves. ➔ Every project creates a unique product, service , or result. ➔ The outcome of the project may be tangible or intangible. ➔ Because of the unique nature of projects, there may be uncertainties or differences in the products, services, or results that the project creates. ➔ A project can involve a single individual or multiple individuals, a single organizational unit, or multiple organizational units from multiple organizations. A Project can create: ★ A product that can be either a component of another item, an enhancement of an item, or an end item in itself; ★ A service or a capability to perform a service (e.g., a business function that supports production or distribution); ★ An improvement in the existing product or service lines (e.g., A Six Sigma project undertaken to reduce defects) or ★ A result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society).  Examples of projects include, but are not limited to: ★ Developing a new product, service, or result; ★ Effecting a change in the structure, processes, staffing, or style of an organization; ★ Developing or acquiring a new or modified information system (hardware or software); ★ Conducting a research effort whose outcome will be aptly recorded; ★ Implementing, improving, or enhancing existing business processes and procedures Project Attributes : ★ Has a unique purpose ★ Is temporary ★ Is developed using progressive elaboration ★ Requires resources, often from various areas ★ Projects can be large or small and take a short or long time to complete ★ Should have a primary customer or sponsor ★ Involves uncertainty Project vs. Program vs. Portfolio  PROJECT: ○ Project is relatively isolated effort with predetermined goal, scope, time and budget. ○ Projects end when their objectives have been reached or the project has been terminated 14 PROGRAM: A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Program is bigger and is successful if it achieves the objective PORTFOLIO: Collections of projects or programs grouped together to facilitate effective management to meet strategic business objective. Portfolio is driven by strategic objectives of the organization.  Project vs. Program vs. Portfolio Whereas a program is a collection of related projects, a project can exist without any program and can be independent of any program and simply form part of the portfolio. Portfolios focuses on investments related to projects, operations and programs. Portfolios are investment tools that align with the strategy of the organization. 17 Relationship among Portfolio Management, Program Management, Project Management and Organizational Project Management ➔ Portfolio Management aligns with organizational strategies by selecting the right programs and projects, prioritizing the work, and providing the needed resources, whereas; ➔ Program Management harmonizes its projects and program components and controls interdependencies in order to realize specified benefits. ➔ Project Management develops and implements plans to achieve 18 a specific scope that is driven by the objectives of the program or portfolio it is subjected to and ultimately, to organizational strategies.  Comparative Overview of Project, Program, and Portfolio Management Organizational Project Management Projects Programs Portfolios Scope Projects have defined Programs have a larger Portfolios have an objectives. Scope is scope and provide more organizational scope that progressively elaborated significant benefits. changes with the strategic throughout the project life objectives of the cycle. organization. Change Project Manages expect Program Managers expect Portfolio managers change and implement change from both inside continuously monitor processes to keep change and outside the program changes in the broader managed and controlled. and are prepared to internal and external manage it. environment. Planning Project Managers Program Managers develop Portfolio Managers create progressively elaborate the overall program plan and maintain necessary high-level information into and create high-level plans processes and detailed plans throughout to guide detailed planning communication relative to the project life cycle. at the component level. the aggregate portfolio.  Organizational Project Management Projects Programs Portfolios Management Project Managers manage the Program Managers manage the Portfolio Managers may manage project team to meet the project program staff and the project or coordinate portfolio objectives. managers; they provide vision management staff, or program and overall leadership. and project staff that may have reporting responsibilities into the aggregate portfolio. Success Success is measured by product Success is measured by the Success is measured in terms in and project quality, timeliness, degree to which the program terms of the aggregate budget compliance, and degree satisfies the needs and benefits investment performance and of customer satisfaction. for which it was undertaken. benefit realization of the portfolio. Monitoring Project Managers monitor and Program Managers monitor the Portfolio Managers monitor control the work of producing progress of program components strategic changes and aggregate the products, services, or results to ensure the overall goals, resource allocation, performance that the project was undertaken schedules, budget, and benefits results, and risk of the portfolio. to produce. of the program will be met. What is Project Success? ★ The project met scope, time and cost goals ★ The project satisfied the customer/sponsor ★ The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment or simply making the sponsors happy. What helps Project Succeed? Success Criteria Relative Importance User Involvement 19 Executive Management Support 16 Clear Statement of Requirements 15 Proper Planning 11 Realistic Expectations 10 Smaller Project Milestone 9 Competent Staff 8 Ownership 6 Clear vision and objectives 3 Hard working focused staff 3 TOTAL: 100% III. WHAT IS PROJECT MANAGEMENT?  is “the application of knowledge, skills, tools and techniques to project activities to meet project requirements” Management means that you are not supposed to build the house, but use your skills to organize others. Project Management is accomplished through the appropriate application and integration of the 47 logically grouped project management process, which are categorized into five (5) Process Groups : 1. Initiating 2. Planning 3. Executing 4. Monitoring and Controlling 5. Closing Managing a project typically includes, but is not limited to: ➔ Identifying requirements; ➔ Addressing the various needs, concerns, and expectations of the stakeholders in planning an executing the project; ➔ Setting up, maintaining, and carrying out communications among stakeholders that are active, effective, and collaborative in nature; ➔ Managing stakeholders towards meeting project requirements and creating project deliverables; ➔ Balancing the competing project constraints, which include, but are not limited to: ◆ Scope ◆ Quality ◆ Schedule ◆ Budget ◆ Resources ◆ Risks Sample Scenarios: Example: If the schedule is shortened, often the budget needs to be increased to add additional resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or targeted quality may be reduced to deliver the project’s end result in less time within the same budget amount.  The specific project characteristics and circumstances can influence the constraints on which the project management team needs to focus. The relationship among these factors is such that if any one factor changes, at least one other factor is likely to be affected. Project Stakeholders may have differing ideas as to which factors are the most important, creating an even greater challenge. Changing the project requirements or objectives may create additional risks. The Project team needs to be able to assess the situation, balance the demands, and maintain proactive communication with stakeholders in order to deliver a successful project. Due to the potential for change, the development of the project management plan is a iterative activity and is progressively elaborated throughout the project’s life cycle. Progressive elaboration involves continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available. It allows a project management team to define work and manage it to greater level of detail as the project evolves.  Increase efficiency Reduce costs Increase profit The Need for Project Management 29  Advantages of Using Formal Project Management ★ Better control of financial, physical and human resources ★ Improved customer relations ★ Shorter development times ★ Lower costs ★ Higher quality and increased reliability ★ Higher profit margins ★ Improved productivity ★ Better internal coordination ★ Higher worker morale (less stress)  Projects and Strategic Planning Projects are often utilized as a means of directly or indirectly achieving objectives within an organization’s strategic plan. Projects are typically authorized as a result of one or more of the ff: strategic considerations: ○ Market demand ○ Strategic opportunity/business need ○ Social Need ○ Environmental Considerations ○ Customer Request ○ Technological Advance ○ Legal Requirement Project Management Office ★ A Project Management Office (PMO) is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques. ★ The responsibilities of a PMO can range from providing Project Management support functions to actually being responsible for the direct management of one or more projects. ★ The PMO integrates data and information from corporate strategic projects and evaluates how higher level strategic objectives are being fulfilled. ★The PMO is the ultimate liaison between the organization’s portfolios, programs, projects, and the corporate measurement systems (e.g balanced scorecard). ★The projects supported and administered by the PMO may not be related, other than by being managed together. The specific form, function, and structure of a PMO are dependent upon the needs of the organization that it supports. ★ A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout the life of each project, to make recommendations, or to terminate projects or take other actions, as required, to remain aligned with the business objectives. ★They are involved in the selection, management, and deployment of shared or dedicated project resources.  A primary function of a PMO is to support project managers in a variety of ways which may include, but are not limited to: ➔ Managing shared resources across all projects administered by the PMO; ➔ Identifying and developing project management methodology, best practices, and standards; ➔ Coaching, mentoring, training and oversight; ➔ Monitoring compliance with project management standards, policies, procedures, and templates by means of project audits; ➔ Developing and Managing project policies, procedures, templates and other shared documentation (organizational process assets); and coordinating communications across projects. ★ Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMP is low. ★ Controlling. Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate. ★ Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high. Project Managers and PMOs pursue different objectives and, as such, are driven by different requirements. All of these efforts are aligned with the strategic needs of organization. Difference between the role of project managers and a PMO include the ff: ★The Project Manager focuses on the specified project objectives, while the PMO manages major program scope changes, which may be seen as potential opportunities to better achieve business objectives. ★The Project manager controls the assigned project resources to best meet project objectives, while the PMO optimizes the use of shared organizational resources across all projects. ★The Project Manager manages the constraints (scope, schedule, cost, quality, etc.) of the individual projects while the PMO manages the methodologies, standards, overall risks/opportunities, metrics and interdependencies among projects at the enterprise level. ★