Pinto pm5 Inppt 01

Project Management: Achieving
Competitive Advantage
Fifth Edition
Chapter 1
Introduction: Why Project
Management?
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
1.1 Understand why project management is becoming such
a powerful and popular practice in business.
1.2 Recognize the basic properties of projects, including
their definition.
1.3 Understand why effective project management is such
a challenge.
1.4 Understand and explain the project life cycle, its stages,
and the activities that typically occur at each stage in the
project.
Learning Objectives (2 of 2)
1.5 Understand the concept of project “success,” including
various definitions of success, as well as the alternative
models of success.
1.6 Understand the purpose of project management
maturity models and the process of benchmarking in
organizations.
1.7 Recognize how mastery of the discipline of project
management enhances critical employability skills for
university graduates.
PMBoK Core Concepts
Project Management Body of Knowledge (PMBoK) covered
in this chapter includes:
1. Definition of a Project (PMBoK 1.2)
2. Definition of Project Management (PMBoK 1.3)
3. Relationship to Other Management Disciplines (PMBoK
1.4)
4. Project Phases and the Project Life Cycle (PMBoK 2.1)
What Is a Project?
• Projects are complex, one-time processes.
• Projects are limited by budget, schedule, and resources.
• Projects are developed to resolve a clear goal or set of
goals.
• Projects are customer-focused.
A project is a temporary endeavor undertaken to create a

unique product, service, or result.
PMBoK 5th edition
General Project Characteristics (1 of 2)
• Projects are ad hoc endeavors with a clear life cycle.
• Projects are building blocks in the design and execution
of organizational strategies.
• Projects are responsible for the newest and most
improved products, services, and organizational
processes.
• Projects provide a philosophy and strategy for the
management of change.
• Project management entails crossing functional and
organizational boundaries.
General Project Characteristics (2 of 2)
• Traditional management functions of planning,
organizing, motivation, directing, and controlling apply to
project management.
• Principal outcomes of a project are the satisfaction of
customer requirements within the constraints of
technical, cost, and schedule objectives.
• Projects are terminated upon successful completion of
performance objectives.
Process and Project Management
Table 1.1 Differences Between Process and Project Management
Process Project
Repeat process or product New process or product
Several objectives One objective
Ongoing One-shot-limited life
Processes are homogenous More heterogeneous
Well-established systems Integrated system efforts
Greater certainty Greater uncertainty
Part of line organization Outside of line organization
Established practices Violates established practice
Supports status quo Upsets status quo
Project Success Rates
• Software and hardware projects fail at a 65% rate.
• Over half of all IT projects become runaways.
• Only 30% of technology-based projects and programs are a
success.
• Ten major government contracts have over $16 billion in cost
overruns and are a combined 38 years behind schedule.
• One out of six IT projects has an average cost overrun of 200% and
a schedule overrun of 70%.
• More than one-third of the $110 billion in costs spent on the post-
war reconstruction projects in Afghanistan, total $110 billion was lost
due to fraud, waste, and abuse.
Why Are Projects Important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
4. Emergence of global markets
5. An economic period marked by low inflation
Figure 1.4 Project Life Cycle Stages
Project Life Cycles
A project life cycle refers to the stages in a project’s
development and are divided into four distinct phases:
• Conceptualization—development of the initial goal and
technical specifications of the project. Key stakeholders
are identified and signed on at this phase.
• Planning—all detailed specifications, schedules,
schematics, and plans are developed.
• Execution—the actual “work” of the project is performed.
• Termination—project is transferred to the customer,
resources reassigned, project is closed out.
Change During Project Life Cycle
Figure 1.5 Project Life Cycles and Their
Effects
Quadruple Constraint of Project Success
Figure 1.7 The New Quadruple Constraint
Figure 1.8 Four Dimensions of Project
Success Importance
Table 1.2 Understanding Success Criteria
Iron Triangle Information Benefits Benefits

System (Organization) (Stakeholders)
Cost Maintainability Improved efficiency Satisfied users
Quality Reliability Improved effectiveness Social and
environmental impact
Time Validity Increased profits Personal development
Blank Information quality Strategic goals Professional learning,
contractors’ profits
Blank Use Organization learning Capital suppliers,
content
Blank Blank Reduced waste Project team,
economic impact to
surrounding
community
Six Criteria for IT Project Success
• System Quality
• Information Quality
• Use
• User Satisfaction
• Individual Impact
• Organizational Impact
Project Management Maturity
• Project management maturity (PMM) models are used
to allow organizations to benchmark the best practices of
successful project management firms.
• Benchmarking is the practice of systematically
managing the process improvements of project delivery
by a single organization of a period of time.
Figure 1.9 Spider Web Diagram for
Measuring Project Maturity
Figure 1.10 Spider Web Diagram with
Embedded Organizational Evaluation
Figure 1.11 Project Management Maturity
—A Generic Model
Developing Project Management Maturity
PMM models
• Center for Business Practices
• Kerzner’s Project Management Maturity Model
• ESI International’s Project Framework
• SEI’s Capability Maturity Model Integration
Center for Business Practices PMM
• Level 1: Initial Phase
• Level 2: Structure, Process, and Standards
• Level 3: Institutionalized Project Management
• Level 4: Managed
• Level 5: Optimizing
Kerzner’s PMM Model
• Level 1: Common Language
• Level 2: Common Processes
• Level 3: Singular Methodology
• Level 4: Benchmarking
• Level 5: Continuous Improvement
ESI International’s Project Framework
• Level 1: Ad Hoc
• Level 2: Consistent
• Level 3: Integrated
• Level 4: Comprehensive
SEI’s Capability Maturity Model
Integration
• Level 1: Initial
• Level 2: Managed
• Level 3: Defined
• Level 4: Quantitative Management
Project Elements and Text Organization
Figure 1.12 Organization of Text
Project Management Employability Skills
1. Communication
2. Critical Thinking
3. Collaboration
4. Knowledge Application and Analysis
5. Business Ethics and Social Responsibility
6. Information Technology Application and Computing
Skills
7. Data Literacy
Project Manager Responsibilities
1. Selecting a team
2. Developing project objectives and a plan for execution
3. Performing risk management activities
4. Cost estimating and budgeting
5. Scheduling
6. Managing resources
Figure 1.13 Overview of the Project Management
Institute’s PMBoK Knowledge Areas
Summary (1 of 2)
1. Understand why project management is becoming such
a powerful and popular practice in business.
2. Recognize the basic properties of projects, including
their definition.
3. Understand why effective project management is such a
challenge.
4. Understand and explain the project life cycle, its stages,
and the activities that typically occur at each stage in the
project.
Summary (2 of 2)
5. Understand the concept of project “success,” including
various definitions of success, as well as the alternative
models of success.
6. Understand the purpose of project management
maturity models and the process of benchmarking in
organizations.
7. Recognize how mastery of the discipline of project
management enhances critical employability skills for
university graduates.
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Project Management: Achieving

A project is a temporary endeavor undertaken to create a

Iron Triangle Information Benefits Benefits

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