Project Management

MBA 662
Introduction
 Course objective
Students will be able to

 Have deep knowledge and describe different project

management models

 Understand the importance of management in success

of projects

 Analyze, explain and examine the role of people at

different positions

 Develop and enhance leadership in project

management

 Learn project crafting and evaluation…

 Project defined

 An endeavor in which human, (or machine)

material and financial resources are organized in
a novel way, to
 Unique scope of work,

 Given specification,

 Within constraints of time and cost,

RESULT

deliver beneficial change defined by qualitative and

quantitative objectives. (Turner)
Project defined

 A sequence of unique, complex and

connected activities
 Having one goal or purpose and

 That must be completed by

 A specific time,

 Within budget, and

 According to specification.
(Wysocki)
Project defined
 A unique set of coordinated activities,
 with definite starting and finishing points,
 undertaken by an individual or organization
to meet specific objectives
 within defined schedule, Cost and
performance parameters
 Project is a temporary endeavor undertaken to produce
a unique out come. Projects have series of activities and
tasks that:
 Have specific objective to be completed within
certain specifications; defined start and end time;
Have funding limits;
 Consume human and nonhuman resources (money,
people, equipment)
 Are multifunctional (i,.e, cut across several
functional lines). (kerzner)…
Project properties

• Based on the definitions, a project

 Unique output

 Complex

 Has one goal

 Interconnected activities

 Temporary and short

 Required to be completed within definite time…

 Project Management Defined

• Project management is the process of integrating

everything that needs to be done as the project involves
through its lifecycle (from concept to handover) in
order to meet the project’s objectives (Morris)

• It is the application of knowledge, skills, tools and

techniques to project activities in order to meet
stakeholder’s needs and expectations from a project.
(Burke)
 Summarizing the definitions
 Project management is the application of
 knowledge,

 skills,

 tools and techniques to project activities in order to

meet or exceed customer expectations

 A project management tries to balance competing

demands for
 Project scope

 Time and cost

 Quality level of the out come and requirements

 Managing projects
Management of a project is the interaction
between
Predefined
technique of
accomplishment

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 Why management?

• Because of the scarce resources

• What is expected
 Planning

 Organizing

 Leading

 Controlling..
 Phases of Project Management
• Projects will generally be sub-divided into
several stages or phases to provide better
management control. Each project phase is
marked by completion of one or more
deliverables.
 A deliverable is a tangible, verifiable work product
(such as feasible study, a detail design or working
prototype).
• Collectively, these project phases are called the
Project Life Cycle. Along with the project life
cycle the other special project management
techniques which form part of the project
management integrative process are: Work
Breakdown Structure (WBS), Critical Path
Method (CPM), Resource smoothing, Earned
Value, Configuration Control
Phases of projects
 Phases of a project

1. Scoping the project

• State the
problem/opportunity 2. Planning the project
 Identify project activity
• Establish the project
goal.  Estimate activity
duration.
• Define the project
objectives.  Determine resource
• Identify the success requirements.
criteria.  Construct/ analyze the
• List assumptions, risks, project network.
obstacles
 Prepare the project
proposal.
 Phases of a project

3. Launching the plan

• Recruit and organize 4. Monitoring the progress

project team • Establish progress

reporting system
• Establish team operating
rules. • Install change control
tools/process.
• Level project resources.
• Define problem-escalation
• Schedule work packages.
process.
• Document work packages
• Monitor project progress
versus plan.

• Revise project plans.

5.Close out the project
• Obtain client acceptance,

• Install project deliverables.

• Complete project
documentation.

• Complete post-implementation
audit

• Issue final project report…

Project phase and Deming cycle
 The Deming cycle

• Plan stage:- involves the formulation and revision of

statements intended activity

 Recognize the opportunity for improvement

 Analyze the effect of controllable process

parameters on process performance
 What is the possible relationships among the key
process parameters
 Analyze the gap between the process
performance and the customer needs
 Are there alternative ways of tackling problems?
 The Deming cycle

 Do stage
 Theories and plans are put into action

 Trial runs are conducted and prototypes developed

 Process and customer feedback to be obtained

Check stage
 Analyze the result

 Does the action reduce the gap between customer

requirement and process capability
 Any potential drawbacks of the action on other
parameters
 The Demining cycle

 Act stage

 Make decision about the implementation of

improvement programs

 Plan the adoption process in case the result is

positive

 Plan for an alternative action if the result show no

improvement…
 The 7S frameworks of projects

 Strategy: the high level requirement of the

project and the means to achieve them.

 Structure: the organizational arrangement that

will be used to carry out the project.

 Systems: the methods for work to be designed,

monitored and controlled
 Staff: the selection, recruitment, management
and leadership of those working on the project
 Skills: the managerial and technical tools
available to the project manager & the staff
 The 7S frameworks of projects
 Style/Culture: the underlying way of working
& interrelating within the work team or
organization
 Stakeholders: individuals and groups who
have an interest in the project process or
outcome…
 Complexity of project management
Projects have become more complex

• The simplest ideas have been exploited first- it is

becoming more difficult but more vital to be innovative

• Businesses are becoming more complex

• Projects are moving towards turn-key contracts

• Effective quality management has been shown to be the

basis of many organizations obtaining a competitive
advantage

• Time has become a major source of competitive

advantage

• Rate of change in technology and methods have

increased (continuous & increased speed)
 Complexity of project management

The level of complexity of an activity is

a function of three futures:

1. Organizational complexity…….people

2. Resource complexity……amount of resource

3. Technical complexity….type of technology..

 The concern level in management
• Management satisfied with its technical skills, but
projects are not meeting time, cost and other project
requirements

• There is higher commitment to get project work

done, but great fluctuations in how well performance
specifications are met

• High talented specialists involved in the project feel

exploited and misused

• Particular technical groups or individuals constantly

blame each other for failure to meet specification or
delivery dates

• Projects are on time and to the specification but

groups and individuals are not satisfied with the
achievement..../
 Organization for project management
• The past dectets us that there is a need for
organizational structures of projects to be
dynamic and capable of rapid restructuring

This is needed because

 Increased competetion in the market

 Rapid development in technology

 Higher need of resource control and

 Need of using resources for multiple projects.

 What type of organization fits?

• Because of the dependency of projects on the

situation of the environment, there is no single
structure to fit to different projects

• Must be the one that optimises the firm’s

performance by achieving both the social and
technical requirements

• There is always conflict between organization that

satisfy social needs and the organization that satisfy
technical requirements

• Management judgement needed..

 Questions to be answered
• What aspects of the organization’s activities needed to
be closely integrated if the overall task is to be
achieved?

• What organizational measures can be developed that

will
 provide an appropriate measure of control and
integration of work activities

 at the same time meeting the needs of people and

provide adequate motivation?

• What environmental changes are likely to affect the

future trends of the company operations?

• What organizational measures can be taken to insure

that the company responds to those effects????
 Possible structures
• There are two fundamentally different ways of organizing projects
within the parent organization

• Functional Project Organization:

• The project as part of the Functional Organization
• housed within a functional division; team members
remaining part of the functional units and typically are
not dedicated to the project
• Project Organization:
• The project is a free-standing part of the parent
organization
• A self-contained team works full-time on the project

• A third type, called a Matrix Organization is a hybrid of the two

main types. The project uses people from different function
departments

• Each has advantages and disadvantages

 Possible structures

1. Functional structure: grouping people

into functions
 Functional Project Organization
• Project is a part of one specific functional
department of an organization
• Team members do project next to their regular work
CEO

VP Customer
VP Engineering VP Manufacturing VP IT
Support
Department Department Department
Department

Staff Staff Staff Staff

Project A Project B Project C Project D

 Functional organization

Pros Cons
 Reduce duplication of  Loss of holistic picture
activities  Lack of development of general
 Maximum flexibility in the managerial skill

use of staff  Less coordination and relationships

between different functions
 Logical, scientific and
 Development of conflicts resource
time tested
conflicts
 Facilitates specialization
 Delayed communication and decision
 Easier supervision making

 Easy control for the top  Blame on each other..

managements  Lacks customer focus

 Possible structures

2. Project structure
 Project structure

Advantage Disadvantage
 Give all control to the project  Cost inefficient because of
manager  under utilization of resources,
 There is no conflict with other and
projects over resources or  Duplication of activities and
priorities resources in different projects
 The structure is highly  There is low level of knowledge
responsive to the customer, and transfer among projects
shortened communication line  Team members have no
 Team pride, motivation, and functional area and worry about
commitment are high life after project end
 Organizational goal and policy
might be ignored..
 Matrix organization

– A hybrid structure of the both the

functional and project

– The expertise are of the functional

– Its customer focus is of the project

 Matrix Project Organization
• The matrix organization is a combination of
functional and project
• Staff of several departments is full or partly
assigned to a project manager out of several
departments, but staff remains physically in their
department
• Assigned staff has two bosses, a dedicated project
manager decides which determines and schedules
tasks but the functional manager assigns people
CEO

VP Technical
VP Engineering VP Manufacturing VP IT
Support
Department Department Department
Department

Project Manager Staff Staff Staff Staff

Project A

Project Manager
Project B

Project Manager
Project C

Project C needs: 1½ staff members of Engineering , 2 of Manufacturing, 3 of IT and 1 of Technical

Support Department
 Matrix organization
• Advantage
 Efficient utilization of resources, duplication or resources is
minimized
 Functional expertise available for all projects

 Increase learning and knowledge transfer

 Improve communication

 More customer focus

• Disadvantage
 Dual reporting relationships/ project team members has two
bosses/ conflicting obligation may be surfaced
 Need for balance of power
 Matrix Project Organization

• A matrix organization can take on a wide variety

of specific forms
1. The ”strong” matrix organization most resembles
the project organization
2. The ”weak” matrix organization most resembles
the functional form
3. The ”balanced” matrix organization lies in between
the others
• Different forms defines:
 The position of the Project Manager and the
Functional Manager
 which responsibilities and authorities the Project
Manager and the Functional Manager have
 Matrix Project Organization
1. ”Weak” matrix organization
 PM is only a coordinator / spokesperson to higher management
 Functional managers have authority and responsibility for staff
 Responsibility for success of project is shared between the
departments

2. ”Balanced” matrix organization

• Balance power of project manager with that of functional manager
• Managers work closely together to balance resources
• Both have project responsibility

3. ”Strong” matrix organization

 Project manager is principal authority and responsibility
 Controls of schedule, budget
 Acquires personnel, performs reviews….
Poor project organization
• Sever communication channels that may
take months or years to cultivate,

• Causing restructuring of informal

organizations

• Creating new power statues and political

structure and

• Eliminate job satisfaction and motivation

of individuals and groups.../
People and project management
• Factors that help us to uderstand the staffing
 The project environment,

 Project management process and

 The project manager

• The project environment has two problems

 Personnel performance problem

Problem to adapt the environment...change and flexibility

We have two people
Those who appriciate challenging environment
Those who need to have short term assignment
 Personnel policy problem
 Project effectiveness
• Projects are successful as long as management give
full delegation to the prpoject manager
• Along this, the team dedication to the final objective is
important
• The project manager should have both managerial and
technical skills and
 Acquire the best available resources and try to
improve its team members
 Provide good working environment for all
personnel and
 Make sure that all resources are applied
effectively so that all constraints are met, if
possible
 Levels of participation

vicious circle good circle

top Management Top Management
lack confidence Inspection and has confidence Delegate
control of details Responsibility

Inferior Improved
Employees lose Employees
results Results
motivation motivated
 Delegation problems

Management problem
 Need to control all  Obstacles from
subordinates
aspects of the
organization  Feel that decision
making is the boss’s
 Lack confidence on job
their subordinates  Fear criticism for
 Fear of the making bad decision
consquences of  Don’t have enough
decision made by the factual information to
deligated base their decisions
 They are overworked
 Lack of incentive
 The project manager
SELECTION
 Who should be, What are the internal and external
sources?
 What should be the procedure of selection?

 How to provide career development in project

management?
 How to develop project management skills

 How should be the evaluation of project

management performance?
 Role of Project Manager
Attitudes desirable for project managers:
• A desire just not to satisfy but delight customers &
stakeholders alike
• Accepting both challenges & responsibility
• Being focused on action-getting the job done rather
than avoiding critical or difficult issues
• A desire to make the best use of all resources-
minimize waste in all activities
• Does not lose sight of the light at the tunnel-is goal
focused
• Has personal integrity-people find it very difficult to
respect & take the authority of a person who has low
integrity
 Role of Project Manager

•Is flexible about the route that must be taken to

achieve the stated end-goals
•Has personal goals that are consistent with those
of the project organization-the project team
perceives that the project manager & the
organization are going the same way….
Responsibilities of project manager

– Ensuring the satisfaction of the customer

– To produce the end item with the

» available resources and

» within the constraints of time, money and

performance

– To meet contractual profit objectives

– To make all required decisions whether be for

alternative or termination
 Responsibility of project manager

– To act as the customer and upper level

management communication focal point

– To negotiate with all functional disciplines for

accomplishment of the necessary work
package within constraints

– To resolve conflicts
 As a project manager
– Understand (SWOT)

 the problems

 opportunities and

 expectations of the total project

– Recognize that project teams will have conflicts, but this is the natural part
of group development

– Understand who the stakeholders are and their agenda

– Realize that organizations are very political and use that politics to your
advantage

– Realize that Project management is ‘’leader intensive’’ but that you must
be flexible
 As a project manager
 Understand that the project success is a measure of four
components:

 The budget,

 Schedule,

 Performance and

 The overall customer satisfaction

 Realize that you have to build a cohesive team by being a

motivator, coach, and peacemaker and conflict handler solver.

 Notice that your team will develop attitudes based on the

emotions you exhibit—both positive and negative…
 Management skill

 Leadership ability: vision, decision

 Ability to develop people
 Communication skills: listening persuading and share info
 Interpersonal skills:
 Stress handling ability
 Problem solving skills
 Organizational skill: planning, goal setting anlyzing, creative
 Technological skill: Project exprienc, domain knowledge
 Coping skill: flexbility, creativity, patience, persistance...
 The project team
Teams are small groups of dedicated individuals
associated with performance
– Committed to the same and common goal
– Combine different and complementing
capabilities
– Have mutual responsible for each other
– As a unit, feels responsible for success
– The second determiners of success/failure of
projects
– A group of highly motivated individuals across
all necessary disciplines and functions..
 Nature of the project team
1. Cross functional
 The project personnel is a cross-functional team that
need dynamic leader

 The formal management system associated with rewads

or punishment will not have result in managing projects
rather the project manager should
 Build trust, respect and credibility among project
members
 Create a simulating working environment

 Demonstrate sound decision making

 Nature of the project team
2. Willing to make decisions -
Consist of decision makers - either hierarchical or
people who are willing to take risks.
3. Highly motivated –
The members of the team peg their career to the
results of the team
4. Dedicated to results –
The members want to be measured by the results of
their work..!
 Project and personnel development

• Consists four components

 Forming

 Storming/Norming

 Sorting

 performing
 project and personnel development

 Forming
 The first stage The project manager
 Transformation of  the make up of the project team,
individuals into teams  project constraints regarding the
 Individuals are eager to be work scope, the expected quality
part of the team and to level, the budget and the schedule
start tasks of the project
 reasons of selection in the way
 Only little work is done
performed because of  their complementary skills and
anxiety expertise
 Team members are not  each person’s role in
sure about their roles and accomplishing the common goal
responsibilities  the management style to be
followed through out the project
duration and
 Define clearly the objective of the
project responsibilities of each
expert
 Project and personnel
development

• Storming/Norming

 Project objective is clear

 Project members start to apply The project manager
their skills and expertise
 Be directive, but less
 characterized by directive as compared to the
 feelings of frustration, forming stage
 anger and hostility.  Give clarification and better
 Members will have more definition of individual
questions about their role responsibilities
and the role of others in
the team.  Clarify the interface activities
 More questions about the among members
operation procedures/  Start to empower the
their existance and members
importance
 Project and personnel
development

• Sorting

 Settled relations between Generally

Individuals  The project team has accepted the
Teams operating environment
 Project management procedures
Teams and the are improved and streamlined
project manager  Control and decision making are
 Reduced level of transferred from the project
Conflicts manager to the project team
Individual  Individuals feel accepted and they
dissatisfaction accept others as part of the team
 Trust begins to be developed
 The project manager plays
supportive role
 Project and personnel
development

• Preforming:-In this stage,

 The team is highly committed and eager to

achieve the project objective

 There is higher level of communication

 The project manager fully delegates his

responsibilities

 Give more credit to people progress report...

 Secretes of high team
performance
 Clarity in goals, sense of mission that is understood, important,
personally and collectively challenging
 Established ground rules
 Selection of team members according to capabilities
 Clear communication and interactions
 Beneficial behavior
 Quick wins, Creative, innovative, problem-driven solution finding
 Continuous information
 Appreciation, External support and recognition of team members
 Awareness of group thinking
 Spending time with each other
 Competent project members (personal and technical)
 Unified commitment and group-thinking
 Collaborate climate (reliance in the team)..
 Project team empowerment

• Should be empowered
 Teams need power to compete with the
hierarchy
 Power speeds up decisions

 Empowerment is a clear signal to the rest

of the organization about the importance
of the team
 Empowerment is a sign of trust in the team

 Empowerment strengthens the Esprit dé

Corps
 Project team empowerment

• Two rules
#1 As much power as possible - high
performance team are responsible in using power.
Empowerment increases the flexibility of the
teams
#2 Sponsorship - the direct access to top
management and the personal sponsorship of
managers is an effective way to empower teams…
 Managing team breakdowns

• What is that?

• Situations which cause uncertainties, confusion, and difficulties

• Interruptions on the way to the goals

• Situations and events which collide with our commitments

• Leads to

• Playing down problems

• Ignoring problems

• Blaming each other

• Hushing up

• Hope that nobody will recognize it..

 Alternative scenarios
Something
Happened

ALTERNATIVES

Evaluation
Reaction

Declaring
Problem statues quo breakdowns

Discuss on what is possible

What happen with...?

Blaming each other Possibilities for breakthough

 The new concept
 Breakdowns are bases for breakthroughs
 Breakdowns can be initiated purposely by high
performance teams to test the team and to create
breakthroughs
 All members are foucussing their work to
overcome the breakdowns and to create effective
and efficient solutions..//!!
THANK
YOU !!