Modern Project Management - A Landscape

1–1
What is a Project?What is a Project?What is a Project?What is a Project?
• Project Defined
–A complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.
• 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.
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1–2
Programs versus ProjectsPrograms versus ProjectsPrograms versus ProjectsPrograms versus Projects
• Program Defined
–A series of coordinated, related, multiple
projects that continue over an extended
time and are intended to achieve a goal.
–A higher level group of projects targeted
at a common goal.
–Example:
• Project: completion of a required course
in project management.
• Program: completion of all courses required
for a business major.

1–3
Comparison of Routine Work with ProjectsComparison of Routine Work with ProjectsComparison of Routine Work with ProjectsComparison of Routine Work with Projects
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

1–4
Project Life CycleProject Life CycleProject Life CycleProject Life Cycle
FIGURE 1.1

1–5
The Challenge of Project ManagementThe Challenge of Project ManagementThe Challenge of Project ManagementThe 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.

1–6
The Importance of Project ManagementThe Importance of Project ManagementThe Importance of Project ManagementThe Importance 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)
–Corporate downsizing
–Increased customer focus
–Small projects represent big problems

1–7
Benefits of an Integrative ApproachBenefits of an Integrative Approach
to Project Managementto Project Management
Benefits of an Integrative ApproachBenefits of an Integrative Approach
to Project Managementto Project Management
• 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

1–8
Integrated Project Management SystemsIntegrated Project Management SystemsIntegrated Project Management SystemsIntegrated Project Management Systems
• Problems resulting from the use of piecemeal
project management systems:
–Do not tie together the overall strategies of the firm.
–Fail to prioritize selection of projects by their
importance of their contribution to the firm.
–Are not integrated throughout the project life cycle.
–Do not match project planning and controls with
organizational culture to make appropriate
adjustments in support of project endeavors.

1–9
Integrated Management of ProjectsIntegrated Management of ProjectsIntegrated Management of ProjectsIntegrated Management of Projects
FIGURE 1.2

1–10
Major Functions of Portfolio ManagementMajor Functions of Portfolio ManagementMajor Functions of Portfolio ManagementMajor Functions of Portfolio Management
• Oversee project selection.
• Monitor aggregate resource levels and skills.
• Encourage use of best practices.
• Balance projects in the portfolio in order to represent
a risk level appropriate to the organization.
• Improve communication among all stakeholders.
• Create a total organization perspective that goes
beyond silo thinking.
• Improve overall management of projects over time.

1–11
The TechnicalThe Technical
and Socioculturaland Sociocultural
DimensionsDimensions
of the Projectof the Project
ManagementManagement
ProcessProcess
The TechnicalThe Technical
and Socioculturaland Sociocultural
DimensionsDimensions
of the Projectof the Project
ManagementManagement
ProcessProcess
FIGURE 1.3

1–12
An Overview of Project Management 5e.An Overview of Project Management 5e.An Overview of Project Management 5e.An Overview of Project Management 5e.

1–13
Key TermsKey TermsKey TermsKey Terms
ISO 9000
Program
Project
Project life cycle
Project Management Professional (PMP)
Sociotechnical perspective

PROJECT MANAGEMENT 641PROJECT MANAGEMENT 641PROJECT MANAGEMENT 641PROJECT MANAGEMENT 641
PAPER 4
MODERN PROJECT
MANAGEMENT
A BRIEF HISTORY

MODERN PROJECT MANAGEMENT The 1940sMODERN PROJECT MANAGEMENT The 1940sMODERN PROJECT MANAGEMENT The 1940sMODERN PROJECT MANAGEMENT The 1940s
• The Manhattan Project - first evidence of modern PM.

MODERN PROJECT MANAGEMENT The 1950sMODERN PROJECT MANAGEMENT The 1950sMODERN PROJECT MANAGEMENT The 1950sMODERN PROJECT MANAGEMENT The 1950s
• 2 major developments:
–Network planning/control techniques -
PERT/CPM/PDM
–Systems engineering and management.
• Modern PM in early 1950s by US Air Force & Navy.
–Large number of planes & rockets projects.
–Engineering & Production offices combined
–Atlas ICBMs used systems approach - managed as 1
entity.

MODERN PROJECT MANAGEMENT - TheMODERN PROJECT MANAGEMENT - The
1950s [cont’d]1950s [cont’d]
1956 USAF report:
Projects organised on product not functional basis
General elevation of the project management function
Polaris :
Elevated authority of 'Project' within organisation
Led to development of PERT
Gaddis - Article broaden the focus of PM

1960s1960s
1960s1960s
Growth in systems integration, & plan/control tools.
Major theme - theoretical organisational basis for PM
US Defence introduced core PM tools (esp. Apollo). eg: life-
cycle costing, C/SCSC, work breakdown structure.
Construction industry began to use modern PM tools
Emergence of an intellectual interest in PM
Growing use of matrix in many organisations
PM tools overemphasied, integration overlooked

MODERN PROJECT MANAGEMENTMODERN PROJECT MANAGEMENT
The 1970sThe 1970s
The 1970sThe 1970s
Project-based firms use PM as permanent function.
Growing influence of external factors upon projects.
Growth of matrix as PM tools used for special tasks
Perceptions of PM: middle-management, intra-
organisational skill. But real projects indicate a fuller
view - ie impact of external factors
PMI & Internet established - focus on techniques used
by intra-project middle management.

MODERN PROJECT MANAGEMENT TheMODERN PROJECT MANAGEMENT The
1980s1980s
1980s1980s
PM a mature management discipline.
creation of PM degree courses
proliferation of publications on PM
increasing use of PM PC-based tools.
focus on top-down strategic management of projects:
attention to defining project success criteria
importance of effects of external factors
importance of managing project as soon as an idea
involvement of client & end users of project's product

application of quality assurance to project activities
sophisticated procurement & financing
IT - faciliated PM, & created a class of projects
Writings on PM : risk management; expert systems;
project success; strategic project management.
Gareis (1989) - "Management by Projects"

SUMMARYSUMMARY
SUMMARYSUMMARY
• 50S
– - MPM by USAF
• Organisational integration
• Systems management
• CPM/PERT
• 60s
–Matrix
–WBS,, earned value, PDM

SUMMARYSUMMARY
SUMMARYSUMMARY
• 70s
–heavy focus on TCQ
–Growing importance of external factors
–Focus on middle-PM
• 80s
–becomes mature & broadens
–eg risk, TQM, partnering, project success
–PC-based “PM” software
–Pmbok published
–“Management by Projects”

Why did modern PM emerged ?Why did modern PM emerged ?Why did modern PM emerged ?Why did modern PM emerged ?
COMPLEXITY
Growing complexity of tasks performed by
organisations.
This required specialisation - multi-disciplinary inputs
This required a high level of coordination
Project management provided this INTEGRATION.

Why did modern PM emerged ?Why did modern PM emerged ?Why did modern PM emerged ?Why did modern PM emerged ?
CHANGE
Organisations work in increasingly dynamic world
Constantly under pressure to implement change
And changes occurring at an accelerating pace.
Changes implemented by projects and PM
TIME
Intense competition -products made asap
Tight time and cost constraints - well suited for PM

1990s and the future1990s and the future1990s and the future1990s and the future
PM to be recognised as an individual discipline
“PM will become an expected professional skill”
Corporate Strategies
Organisations respond to rapid change by right CS.
PM seen as appropriate for implementing CS
PM as Mainstream
“change from perceiving PM unique towards seeing PM methods
as elements in management in general”
Broader Management Input
PM not mainly task of PMs, but all management needed, top
managers & project participants

Concurrent Engineering
CE aims for shorter product life cycles.
CE = requires multi-disciplinary teams.
This process lends itself to the application of PM
Stakeholder Management
More projects dealing with many influential SHs.
Interface management will be significant focus for PM.
Quality
TQM in projects will grow - ISO/CD 10006
Collaborative Arrangements
Strategic alliances & partnering to grow in popularity

Information Technology
Computer-based developments in projects to grow
- better PM software; expert systems, risk analysis, EDI
Multi-project Management
Manage network of projects. Integration needed
Certification
Process to verify PM’s competencies to others
PMI - PMP APM UK AIPM - RegPM

Front-End Management
Greater emphasis in starting up projects- Verification of objectives,
value management, risk management;
Team Building
Team processes will grow, eg - team empowerment, consensus
decision-making
Beyond Technical Expertise
Require PMs whose competency is PM - not technical
Skills in business, risk, integration - not technical
Virtual teams
Project teams to be geographically dispersed

The Professionalism of PMThe Professionalism of PMThe Professionalism of PMThe Professionalism of PM
• Project Management Institute
–1969. 44,000. 1998 budget -$12m
–Developed PmBok. Annual Conference
–PM Journal (4) & PM Network (12)
• International Project Management Association
–1985. 22 European bodies. 10,000. UK - 4,000
–International Journal of PM (6)
• Australian Institute of Project Management
–1976.2000.Australian Project Manager (12)

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