Pmbok 4th edition chapter 2 - Project Life cycle and Organization


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Pmbok 4th edition chapter 2 - Project Life cycle and Organization

  2. 2. PROJECT LIFE CYCLE AND ORGANIZATION• Projects and project management take place in an environment that is broader than that of the project itself.• Understanding this broader context helps ensure that work is carried out in alignment with the goals of the enterprise and managed in accordance with the established practice methodologies of the organization.• This chapter describes the basic structure of a p j p project as well as other important high-level considerations including how projects impact ongoing operational work, the influence of stakeholders beyond the immediate project team, and how organizational structure affects the way the project is staffed, managed, and executed.
  3. 3. 2.1 The Project Life Cycle-0verview•A project life cycle is a collection of generally sequential andsometimes overlapping project phases whose name and number aredetermined by the management and control needs of the organizationor organizations involved in the project, the nature of the project itself,and its area of application.•While every project has a definite start and a definite end, thespecific deliverables and activities that take place in between will varywidely with the p j y project.•The life cycle provides the basic framework for managing the project,regardless of the specific work involved.
  4. 4. 2.1 The Project Life Cycle-0verview
  5. 5. 2.1 The Project Life Cycle-0verview
  6. 6. 2.1.2 Product vs. Project Life Cycle RelationshipsThe product life cycle consists of generally sequential, non-overlappingproduct phases determined by the manufacturing and control need of theorganization.The last product life cycle phase for a product is generally the productsretirement. Generally, a project life cycle is contained within one ormore product life cycles.Care should be taken to distinguish the project life cycle from the productlife cycle.All projects have a purpose or objective, but in those cases where theobjective is a service or result, there may be a life cycle for the service orresult, not a product life cycle.
  7. 7. 2.1.3 Project Phases•Project phases are divisions within a project where extra control isneeded to effectively manage the completion of a major deliverable .• Project phases are typically completed sequentially, but can overlap insome project situations.•The high level nature of project phases makes them an element of theproject life cycle.• A project phase is not a project management process group. Regardlessof the number of phases comprising a project, all phases have similarcharacteristics:
  8. 8. Project PhasesWhen phases are sequential, the close of a phase ends with some form oftransfer or handoff of the work product produced as the phase deliverable.This phase end represents a natural point to reassess the effort underwayand to change or terminate the project if necessary.These points are referred to as phase exits, milestones, phase gates,decision gates stage gates, or kill points The work has a distinct focus that gates, gates points.differs from any other phase.This often involves different organizations and different skill sets. Theprimary d li i deliverable or objective of the phase requires an extra d bl bj i f h h i degree of fcontrol to be successfully achieved..
  9. 9. Projects vs. Operational Work OrganizationsProjects Operations• Performed by people Performed by people • Performed by people yp p• Constrained by limited  • Constrained by limited  resources resources• Planned executed and Planned, executed and  • Planned executed and Planned, executed and  controlled controlled• Temporary • Ongoing• Unique • Repetitive
  11. 11. 2.3 StakeholdersDefinition:Stakeholders are  persons or organizations who are actively involved in the project  or  whose interests may be positively or negatively affected by the performance or completion of the project.  b h f l i f h jExamples of persons or organizationsExamples of persons or organizations customers sponsors p the performing organization the public
  12. 12. 2.3 Stakeholders Exert influence on the project, its deliverables, and the project  p j , , p j team members.  The project management team must  identify both internal and external stakeholders in order to determine the  in order to determine the project requirements and expectations of all parties involved.  Furthermore, the project manager must  manage the influence of the various stakeholders  in relation to the project requirements to ensure a successful  outcome. 
  13. 13. 2.3 StakeholdersConcepts: p Project Team [Members] Project Management Team Operations Management i Functional Managers Functional Managers
  14. 14. 2.3 StakeholdersStakeholders Responsibility and Authority: p y y Varying levels when participating on a project  Change over the course of the project life cycle.  RANGE from occasional contributions to full project sponsorship Caution! Can have an adverse IMPACT on the project objectives.
  15. 15. 2.3 StakeholdersStakeholder Identification: Stakeholder identification is a continuous process  It can be difficult.  Identifying stakeholders and understanding their relative degree of  influence on a project is critical. Failure to do so can extend the  influence on a project is critical. Failure to do so can extend the timeline and raise costs substantially.  Impact of late recognition of a stakeholder
  17. 17. 2.4 Organizational Influences on Project Management The organizational culture, style, and structure influence how  g , y , projects are performed.  A project manager should understand these as they affect a project.  An organization’s  An organization’s degree of project management maturity and  its project management systems its project management systems can also influence the project.  When a project involves more than one organizations, the project  will be influenced all of them.  The organizational culture is an enterprise environmental factor.
  18. 18. 2.4 Organizational Influences on Project ManagementCultures and styles may have a strong influence on a project’s ability  y y g p j y to meet its objectives. Cultures and styles are typically known as “cultural norms” The “norms” include [Or What do the cultural norms include?]The “norms” include [Or What do the cultural norms include?] a common knowledge regarding how to approach getting the work  done,  what means are considered acceptable for getting the work done,  and  who is influential in facilitating the work getting done. The project manager must know which individuals in the  organization are the decision makers and work with them to  organization are the decision makers and work with them to influence project success.
  19. 19. 2.4 Organizational Influences on Project ManagementMost organizations have developed unique cultures that manifest in  g p q numerous ways including, but not limited to:  • Shared visions, values, norms, beliefs, and expectations, • Policies, methods, and procedures, • View of authority relationships, and • Work ethic and work hours. • Work ethic and work hours Detailed study of  organizational culture is beyond the scope of this Detailed study of ‘organizational culture’ is beyond the scope of this  course. 
  21. 21. 2.4 Organizational Influences on Project ManagementOrganizational structure is an enterprise environmental factorWhy it is important to by understood?It affect the availability of resources and influence how projects are conducted. conductedWhat are the different types of structures?What are the different types of structures?Organizational structures range from functional to projectized, with a variety of matrix structures between them.  Functional Structure Matrix Structures [Weak, Balanced, and Strong] Projectized Structure P j i dS
  22. 22. 2.4 Organizational Influences on Project Management
  23. 23. 2.4 Organizational Influences on Project ManagementFunctional Organization: Key Points g y Each employee has one clear superior [Unity of Command] Employees are grouped by specialty [Finance, HR, Marketing etc] Each department will do its project work independent of other  department. 
  24. 24. 2.4 Organizational Influences on Project Management
  25. 25. 2.4 Organizational Influences on Project ManagementProjectized Organization: Key Points j g y Team members are co‐located Most of the organization’s resources are involved in project work Project Managers have great deal of independence and authority j h d l fi d d d h i Projectized organizations often have organizational units called  Projectized organizations often have organizational units called departments, but these groups either report directly to the project  manager or provide support services to the various projects. 
  26. 26. 2.4 Organizational Influences on Project ManagementProjectized Organization: Key Points j g y
  27. 27. 2.4 Organizational Influences on Project ManagementMatrix Organizations: Advantages and Disadvantages g g gMatrix Organizations are a blend of functional and projectized characteristics. Advantages DisadvantagesHighly visible project objectives g y p j j Extra administration is required qImproved project manager control  More than one boss for project teamsover resourcesMore support from functional areas f f i l More complex to monitor and control l i d lMaximum utilization of scarce  Tougher problems with resource resources allocationBetter coordination Need extensive policies and proceduresBetter horizontal and vertical  Functional manager may have different dissemination of information f f priorities than project managersTeam members maintain a “home” Higher potential for conflict
  28. 28. 2.4 Organizational Influences on Project Management
  29. 29. 2.4 Organizational Influences on Project ManagementWeak Matrix Organization: Key Points g y Maintain many of the characteristics of a functional organization Project Manager’s role is more of a coordinator or expediter than  that of a true project manager.
  30. 30. 2.4 Organizational Influences on Project Management
  31. 31. 2.4 Organizational Influences on Project ManagementBalanced Matrix Organization: Key Points g y Balanced Matrix organization recognizes the need for a project  manager. But it does not provide the project manager with the full  authority over the project and project funding.  th it th j t d j t f di
  32. 32. 2.4 Organizational Influences on Project Management
  33. 33. 2.4 Organizational Influences on Project ManagementStrong Matrix Organization: Key Points g g y Have many of the characteristics of the projectized organization Can have a full‐time project managers with considerable authority Can have full‐time project administrative staff
  34. 34. 2.4 Organizational Influences on Project ManagementProject Expeditor  j p Act primarily as staff assistant and communication coordinator  Cannot personally make or enforce decision 
  35. 35. 2.4 Organizational Influences on Project ManagementProject Coordinator  j Has some power make decision, some authority  Report to a high level manager
  36. 36. 2.4 Organizational Influences on Project Management
  37. 37. 2.4 Organizational Influences on Project Management
  39. 39. 2.4 Organizational Influences on Project ManagementDefinition:  Organizational process assets include any or all process related  assets, from any or all of the organizations involved in the project  that can be used to influence the project’s success.  th t b d t i fl th j t’Examples:  formal and informal plans, policies, procedures, and guidelines.  formal and informal plans policies procedures and guidelines organization’s knowledge bases such as lessons learned and  historical information.  completed schedules, risk data, and earned value data. Key Points: Updating and adding to the organizational process assets is  necessary throughout the project  necessary throughout the project Generally, is the responsibility of the project team members. 
  40. 40. 2.4 Organizational Influences on Project ManagementCategorization:  gOrganizational process assets may be grouped into two categories: 1. Processes and Procedures  >> for conducting work2. Corporate Knowledge Base  >> for storing and retrieving information  >> for storing and retrieving information
  41. 41. 2.4 Organizational Influences on Project ManagementProcesses and Procedures Organizational standard processes such as  standards policies [safety and health, ethics, and project management]  standard product and project life cycles  quality policies and procedures [ li li i d d [process audits, improvement  di i targets, checklists, and standardized process definitions for  g use in the organization]] Standardized guidelines, work instructions, proposal evaluation   criteria, and performance measurement criteria Templates [risk, work breakdown structure, project schedule  Templates [risk work breakdown structure project schedule network diagram, and contract templates]
  42. 42. 2.4 Organizational Influences on Project ManagementProcesses and Procedures Guidelines and criteria for tailoring the organization’s set of  standard processes to satisfy the specific needs of the project; Organization communication requirements  Project closure guidelines or requirements  Financial controls procedures  Financial controls procedures Issue and defect management procedures Change control procedures Change control procedures Risk control procedures Procedures for prioritizing, approving, and issuing work  authorizations.
  43. 43. 2.4 Organizational Influences on Project ManagementCorporate Knowledge Base p g Process measurement databases used to collect and make available  measurement data on processes and products, Project files Historical information and lessons learned knowledge bases Issue and defect management databases Issue and defect management databases Configuration management knowledge bases  Financial databases Financial databases
  44. 44. For more information do not hesitate to contact me.Ahmad H. Maharma ‐ PMP®Ramallah, Palestine Phone: + (972) (2) 2968644Phone: + (972) (2) 2968644Mobile: + (972) (599) 001155E‐Mail: