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Project Management 6e 12/30/2017

Chapter One

Modern Project Management

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An Overview of Project Management 7th ed

Learning Objectives

1. Understand why project management is

crucial in today’s world

2. Distinguish a project from routine operations

3. Identify the different stages of project life cycle

4. Understand the importance of projects in

implementing organization strategy

5. Understand that managing projects involves

balancing the technical and sociocultural

dimensions of the project

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Project Management 6e 12/30/2017

Chapter Outline

1.1 What Is a Project?

1.2 Current Drivers of Project Management

1.3 Project Governance

1.4 Project Management Today—A Socio-

Technical Approach

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What Is a Project?

• Project Defined (according to PMI)

–A temporary endeavor undertaken to create a unique

product, service, or result

• Major Characteristics of a Project

–Has an established objective

–Has a defined life span with a beginning and an end

–Requires across-the-organizational participation

–Involves doing something never been done before

–Has specific time, cost, and performance requirements

Program versus Project

• Program Defined

–A group of related projects designed to accomplish a

common goal over an extended period of time

• Program Management

–A process of managing a group of ongoing,

interdependent, related projects in a coordinated way

to achieve strategic objectives

–Examples:

• Project: completion of a required course in project management.

• Program: completion of all courses required for a business major.

Project Management 6e 12/30/2017

Comparison of Routine Work with Projects

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TABLE 1.1

Routine, Repetitive Work

Taking class notes

Daily entering sales receipts into

the accounting ledger

Responding to a supply-chain

request

Practicing scales on the piano

Routine manufacture of an Apple

iPod

Attaching tags on a manufactured

product

Projects

Writing a term paper

Setting up a sales kiosk for a

professional accounting meeting

Developing a supply-chain

information system

Writing a new piano piece

Designing an iPod that is

approximately 2 X 4 inches,

interfaces with PC, and

stores 10,000 songs

Wire-tag projects for GE and

Wal-Mart

Project Life Cycle

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FIGURE 1.1

The Challenge of Project Management

• The Project Manager

–Manages temporary, non-repetitive activities and

frequently acts independently of the formal

organization.

• Marshals resources for the project.

• Is linked directly to the customer interface.

• Provides direction, coordination, and integration to the project team.

• Is responsible for performance and success of the project.

–Must induce the right people at the right time to

address the right issues and make the right decisions.

Project Management 6e 12/30/2017

Current Drivers of Project Management

• Factors leading to the increased use

of project management:

–Compression of the product life cycle

–Knowledge explosion

–Triple bottom line (planet, people, profit)

–Increased customer focus

–Small projects represent big problems

Project Governance

• Integration (or centralization) of project

management provides senior management with:

–An overview of all project management activities

–A big picture of how organizational resources are used

–A risk assessment of their portfolio of projects

–A rough metric of the firm’s improvement in managing

projects relative to others in the industry

–Linkages of senior management with actual project

execution management

Integrated Management of Projects

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FIGURE 1.2

Project Management 6e 12/30/2017

Alignment of Projects with

Organizational Strategy

• Problems resulting from the uncoordinated

project management systems include:

–Projects that do not support the organization’s overall

strategic plan and goals.

–Independent managerial decisions that create internal

imbalances, conflicts and confusion resulting in

dissatisfied customers.

–Failure to prioritize projects results in the waste of

resources on non-value-added activities/projects.

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A Project Management Today:

A Socio-Technical Approach

• The Technical Dimension (The “Science”)

–Consists of the formal, disciplined, purely logical parts

of the process.

–Includes planning, scheduling, and controlling projects.

• The Sociocultural Dimension (The “Art”)

–Involves contradictory and paradoxical world of

implementation.

–Centers on creating a temporary social system within a

larger organizational environment that combines the

talents of a divergent set of professionals working to

complete the project.

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A Socio-Technical

Approach to Project

Management

FIGURE 1.3

Project Management 6e 12/30/2017

Key Terms

Program

Project

Project life cycle

Project Management Professional (PMP)