Project Management for Arts and Technology

1. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I

2. ATEC 4370
Project Management for Arts & Technology - I
Agenda
• The Project Initiation
Group
• The Project Charter
• Stakeholder Management

3. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Initiating the Project

4. ATEC 4370
Project Management for Arts & Technology - I
Understanding the Project Lifecycle
PMP in Depth: Project Management Professional Study Guide for PMP and CAPM Exams
1. Initiating
2. Planning
3. Executing
4. Monitoring and
Controlling
5. Closing

5. ATEC 4370
Project Management for Arts & Technology - I
Project Management Body of Knowledge (PMBOK)

6. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Initiating the Project
Initiating a project means defining the project, getting approval to start it, and
identifying and analyzing project stakeholders. During this stage:
• Initial Scope of the project is defined.
• Initial resources are determined and allocated.
• A project manager with an appropriate authority level is assigned.
• Project Stakeholders are identified.

7. ATEC 4370
Project Management for Arts & Technology - I
Initiating the Project: The Big Picture
Business
Need
Statement of
Work
Business
Case
Develop
Project
Charter
Identify
Stakeholders
Organization’s Business Strategy

8. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Initiating the Project: The Big Picture
• The Business need to be met by the project emerges from the organizations
business strategy.
• Based on the business needs, somebody writes the statement of work (SOW)
and makes the business case
• The business case and SOW are starting points to develop the initial project
scope and thereby determine the initial resources.
• All this information becomes an input to developing the project charter,
which, in turn is an input to the process of identifying stakeholders.

9. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Business Needs and Project Origins
A project may originate as a result of one or more of the following categories of
reasons:
• Business Requirements: includes projects based on a business need. For
example, perhaps a web design company authorizes a project to automate
certain aspects of maintaining websites to increase its efficiency and revenue.
• Legal Requirements: includes projects based on a legal requirements. For
example, consider a building owner authorizing a project to make the building
accessible to physically disabled persons in order to meet the legal
requirements for using the building for a specific business.
• Ecological Impact: For example, a company undertakes a project to lessen the
negative impact that its operations or products may have on the environment

10. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Business Needs and Project Origins (Cont.…)
• Opportunities: includes needs based on market demands, customer requests,
strategic opportunity and technological advancement. For example, a car
manufacturer begins a project to make electric cars based on high oil prices
that the customer cannot afford.
• Problems: Projects are also authorized to offer solutions to certain problems
in a company or a country or to address social needs in a society. For example,
the government might start a project to help victims of a natural disaster, such
as a hurricane.
• Social Needs: Governmental or nongovernmental organizations initiate
projects to satisfy some social needs, such as a project to provide access to
the Internet in an underprivileged community or a project to set up latrines
and a sewer system in a remote community.

11. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Project Selection Methods
• Benefit Measurement Methods
• Scoring models using weighted criteria
• Benefit contributions e.g. cost benefit analysis
• Economic models
• Constrained Optimization Methods
• Linear, Nonlinear, dynamic, integer, multiple objective programming
• Used for complex projects
• Expert Judgment

12. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Scoring Models
• A scoring model evaluates projects by using a set of criteria with a weight
(score) assigned to each criterion. You can assign different weights to different
criteria to represent the varied degree of importance given to various criteria.
• All projects are evaluated (scored) against this set of criteria, and the project
with the maximum score is selected.
• The set of criteria can include both objective and subjective criteria, such as
financial data, organizational expertise, market value, innovation, and fit with
the corporate culture.
• The advantage of a scoring model is that you have the freedom to assign
different weights to different criteria in order to select projects consistent
with the goals, mission, and vision of your corporation.

13. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Scoring Models
• This freedom, however, is also a disadvantage because your selection is only
as good as the criteria with larger weights.
• Furthermore, developing a good scoring model is a difficult task that requires
unbiased cross departmental feedback from different levels of the
organization.

14. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Scoring Models

15. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Benefit Contributions
• These methods are based on comparing the benefit contributions from
different projects.
• These contributions can be estimated by performing a cost-benefit analysis,
which typically calculates the projected cost, revenue, and savings of a
project.
• This method favors the projects that create profit in the shortest time and
ignores the long-term benefits of projects that might not be tangible at the
current time, such as innovation and strategic values.

16. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I

17. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Economic Models
• Return on Investment (ROI)
• Ignoring the time value of money, the percentage of profit from the project
• ROI = (Benefits – Costs) / Costs
• Internal Rate of Return (IRR)
• Translates yearly cost/benefit amounts to an interest rate over the life of the
project
• Excel IRR function
• Net Present Value (NPV)
• The present value of future cash inflows (benefits) minus the present value of
future cash outflows (costs)
• Excel NPV Function

18. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
ROI Analysis Exercise
Your company has 2 game proposals. Game A would cost you $200,000 to
develop and the benefit from first year is estimated to be $250,000. Game B
would cost you $150,000 to develop and the benefit from first year is estimated
to be $175,000. Based on ROI Analysis, which project would your company be
most likely to pursue?

19. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Expert Judgement
It refers to making a decision by relying on expert advice from one or more of
the following sources:
• Senior management
• An appropriate unit within the organization
• The project stakeholders, including customers and sponsors
• Consultants
• Professional and technical associations
• Industry groups
• Subject matter experts from within or outside of the performing organization
• Project management office (PMO)

20. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Developing the Project Charter

21. ATEC 4370
Project Management for Arts & Technology - I
What is a Project Charter?
• The project charter is a document that states the initial requirements to
satisfy the stakeholders’ needs and expectations, and it also formally
authorizes the project.
• In simple words, it officially authorizes the project and identifies a project
manager.
Input
• Business Case
• Statement of Work
• Contract
• Enterprise
Environmental Factors
• Organizational Process
Assets
Tools and
Techniques
• Expert Judgment
Output
• Project Charter

22. ATEC 4370
Project Management for Arts & Technology - I
Project Charter Inputs
• Business Case: Business need and justification. Typically includes a cost
benefit analysis.
• Statement of Work (SOW): The statement of work is a document that
describes the products, services, or results that will be delivered by the
project.
• Contract: A project for a customer who is external to the performing
organization is usually done based on a contract.
• Organizational Process Assets: items such as templates, standard policies and
procedures, knowledge about the organization.
• Enterprise Environmental Factors: It consists of the following –
• Government and industry standards, such as legal requirements, product
standards, and quality standards relevant to the project.
• Performing organization’s infrastructure, such as facilities and equipment
to do the project
• Marketplace conditions relevant to the project

23. ATEC 4370
Project Management for Arts & Technology - I
Output of developing the Project Charter
• Project purpose or justification
• Measurable project objectives and related success criteria
• High-level requirements
• High-level project description
• High-level risks
• Summary milestone schedule
• Summary budget
• Project approval requirements
• Assigned project manager
• Name and authority of the sponsor

24. ATEC 4370
Project Management for Arts & Technology - I
Project Charter Template

25. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Identifying the Project Stakeholder

26. ATEC 4370
Project Management for Arts & Technology - I
Identifying the Project Stakeholders
• Identify individuals and organizations that will influence the project and will
be impacted by the project.
• Document relevant information about the individuals and organizations and
about their interests and involvement in the project.
• Document how these individuals and organizations can influence the project
and how they can be impacted by the project.
• Determine their levels of importance.

27. ATEC 4370
Project Management for Arts & Technology - I
Identifying the Project Stakeholders
Input
• Project Charter
• Procurement
Documents
• Enterprise
Environmental Factors
• Organizational Process
Assets
Tools and
Techniques
• Stakeholder Analysis
• Expert Judgment
Output
• Stakeholder register
• Stakeholder
management strategy

28. ATEC 4370
Project Management for Arts & Technology - I
Identifying the Project Stakeholders
• Project Manager
• Project Management Office
• Project Management Team
• Project Team Members
• Performing Organizations
• Customer/user
• Project Sponsor
• Influencers

29. ATEC 4370
Project Management for Arts & Technology - I
Stakeholder Register
• Document used to store information about stakeholders
• Identification – name, location, title, project role, contact information
• Assessment – list of how the stakeholder will react to different scenarios
• Classification – power/interest grid, power involvement/grid,
involvement/impact grid, salience model

30. ATEC 4370
Project Management for Arts & Technology - I
Stakeholder Management
• The approach developed to deal with the stakeholders in the
best interests of the project
• How will individual stakeholders be managed?
• How ill groups of stakeholders be managed?

31. ATEC 4370
Project Management for Arts & Technology - I
Power/Interest Grid
Monitor Closely Manage with maximum effort
Monitor with Keep informed
Interest Level
AuthorityLevel
Stakeholde
r 9
Stakeholde
r 11
Stakeholde
r 10
Stakeholde
r 6
Stakeholde
r 4
Stakeholde
r 2
Stakeholde
r 8
Stakeholde
r 7
Stakeholde
r 3
Stakeholde
r 1
Stakeholde
r 5

32. ATEC
ARTS & TECHNOLOGY
ATEC 4370
Project Management for Arts & Technology - I
Stakeholder Register Exercise