Project Management Certification Course
Transcript of Project Management Certification Course
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 1
Project Management Certification Course
Project Management Process Groups
Knowledge AreasInitiating Planning Executing M & C Closing
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communication Management
Project Risk Management
Project Procurement Management
Project Stakeholder Management
Why non-ongoing processes?
“The only constant today is change”Volatility of the business environment
Progressive elaboration of projects allows optimised change management
We DO NEED Project Management Skills
Projects are the vehicles by which strategy is delivered
Project management is becoming an increasingly complex aspect of how organizations operate.
1
2
3
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 2
Project Management Certification Course
1.1 & 1.2Introduction &
Foundational Elements
1.2.1 What is a Project?
____________________________________________________________________________________________________________________________________________________________________________________________________________________________
Major Characteristics
Definite Start & End
Every project creates a unique verifiable Product
Service or
Result
Tangible or Intangible outcome
4
5
6
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 3
Project Management Certification Course
A project can create:
A product that can be either a component of another item, an enhancement of an item or an end item in itself
A service or a capability to perform a service
An improvement in the existing product or service lines
A combination all
A result, such as an outcome or document
Product – Service - Result
Projects are undertaken to fulfil objectives by producing deliverables
Deliverable: a unique verifiable product
Objective: an outcome
Benefits
What makes a project unique?
Location
Stakeholders
Environment
Design
Situation
7
8
9
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 4
Project Management Certification Course
What cannot be considered as a Project?
• Ongoing Operations• repetitive process that follows an organization’s existing
procedures
• Production lines
• Supply chain management
Why connect PM with Operations
Project Management is closely tied and in most cases interferes with ongoing business operations
We have to take the concepts that follow and connect them to our business/operations
Operations are there to support strategic business objectives too
Projects drive change
Business Value
Time
Projects
Current StateFuture State of the Organisation
10
11
12
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 5
Project Management Certification Course
Business Value
Business value is a concept that is unique to each organization
Tangible Elements + Intangible Elements = Value
Why Projects for Business Value?
Effective use of project management, provides organizations the ability to:
employ reliable, established processes to meet strategic objectives
& subsequently obtain greater business value from their project investments
13
14
15
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 6
Project Management Certification Course
1.2.2Importance of project Management
What is Project Management?
Project management is the application of knowledge,
skills,
tools, and
techniques
to project activities to meet the project requirements.
Debate & Research
Only a small % of projects was successful
16
17
18
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 7
Project Management Certification Course
The Discipline of Project Management
Frameworks/Standards(Methodologies)
Post graduate degrees in PM
What is a Standard?
A standard is a formal document that describes established norms, methods, processes and practices
It is a methodology which describes the methods that should be used in order to achieve specific goals
Some well known standards
PMI (USA) (ANSI)
PRINCE2 (UK)
IPMA (Swedish)
P2M (Japan)
ISOs (e.g) ISO 21500:2012
…/.
19
20
21
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 8
Project Management Certification Course
Why the Standards?
Its in our nature to make mistakes - so better avoid them
Stop re-inventing the wheelAvoid starting over again with every project
Improve faster (having a base is easier)
Use the standard as a benchmark
PMI BoK (Framework)
Macro and Micro environmentRoles and Responsibilities / SkillsBest PracticesProcesses, Tool and Techniques
PRINCE2ISO (21500 Series)
What, When, Who?
HOW?
1.1The PMI Standard
22
23
24
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 9
Project Management Certification Course
Founded in 1969Not-for-profit professional membership association
Further matures the profession
More than 3 million professionals working in nearly every country
Standards described in the PMBoKs
Supported by the Chapters (pmi-cyprus.org.cy)
1.1.1 PMI standard & the PMBoK
Description of the:Project Life Cycle
Project Management Cycle
The purpose of the standardCommon vocabulary within the project management profession (essential)
Provides guidelines on best practices applicable to most projects
Project Management Institute Code of Ethics and Professional Conduct
25
26
27
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 10
Project Management Certification Course
It provides a structured approach from conceptualisation to realisation and delivery of a project
Allows practitioners to communicate with a common understanding of terminology & concepts regardless of industry or region
So!How the Standard works
A managed project:
According to PMBoKProject Management is accomplished through the appropriate application and integration of the:
49 logically grouped project management processes
Categorized into 5 Process Groups
Separated into Knowledge areas (Constraints)
28
29
30
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 11
Project Management Certification Course
Based on the concept of PDCA
Management method Focusing on control &
Continuous improvement
PLAN
ACT DO
CHECK
Managing a project typically includes:
Managing Stakeholder expectations
Requirements Identification
Balancing the competing Constraints
Project Communications’ needs
meaning…
…lots of Planning
Due to the potential for change, the development of the project management plan is an iterative activity and is progressively elaborated throughout the project’s life cycle.
Prevention Vs. Correction
31
32
33
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 12
Project Management Certification Course
Initiating
Planning
(Plan)
Executing
(Do)
Controlling
(Check)
Closing
Managed Project
The Challenge for PMs
Constraints
An applicable restriction or limitation, either internal or external to the project, that will affect the performance of the project or a process.
34
35
36
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 13
Project Management Certification Course
The Project Manager’s Responsibility
Continuous balancing of the competing Constraints
The competing Constraints
•Scope
•Quality
•Schedule
•Cost
•Resources
•Risks
•…/
The “iron” triangle
EX_01
37
38
39
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 14
Project Management Certification Course
1.2.3Projects Programs Portfolios &
Project Organisational Management (OPM)
Intensity of Projects
Depending on the nature of business & number of projects organisations may:
Classify
Group
their projects to manage them in a coordinated way aiming to increase their business value & achieve strategic goals
Portfolios Vs. Programs Vs. Projects
1.2.3.2 Program: A group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually
1.2.3.3 Portfolio: Set of sub-portfolios, programs or sub-programs that might or might not be related but serve the organisations strategic objectives
40
41
42
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 15
Project Management Certification Course
Organisational Project Management
ORGANISATIONAL PROJECT MANAGEMENTis a strategic framework used to guide Portfolio and
project management to deliver organisational strategy
Portfolio ManagementSelects the best programs or projects to achieve strategic objectives
Program ManagementCoordinates management to achieve specific benefits that support strategic objectives
Project ManagementSupports the program and portfolio objectives and ultimately the organisations strategic objectives
Driven
by o
rganisatio
nal strategy
Alig
ne
d t
o o
rgan
isat
ion
al S
trat
egy
Source: RMC
Operations Management Vs. Project Management
In some cases:Projects’ take advantage of corporate resources and various aspects of ongoing operations
In other cases PM supports ongoing operations in various ways
Ongoing Operations & PM Intersections
At each Closeout Phase
Developing a new product
Upgrading a service/product
Expanding outputs
While improving operations
Until the end of the product life cycle
Operations Projects
43
44
45
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 16
Project Management Certification Course
Operational Stakeholders in PM
They can influence positively or negatively the Project
Project managers who consider and appropriately include operational stakeholders in all phases of projects, gain insight and avoid unnecessary issues that often arise when their input is overlooked.
EX_02C
1.2.4Project (Management) key components
Project key components
Project life cycle
series of phases from start to finish
Project Phase
collection of project activities that deliver an output
Phase Gate/s (Review)
Project Management Processes
Project Management Process Groups
Project Management knowledge Areas
46
47
48
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 17
Project Management Certification Course
1.2.4.1Project & the Development Lifecycle
Basic framework for managing a project
A project life cycle is the series of phases (stages) that a project passes through from its initiation to its closure.
Characteristics of the Project Life Cycle
Risk and uncertainty are greatest at the start
Cost and staffing levels:low at the start
peak as the work is carried out
drop rapidly as the project draws to a close.
Ability to influence the final characteristics of the project’s product, without significantly impacting cost:
highest at the start
decreases as the project progresses towards completion
*Not applicable to adaptive life cycles
49
50
51
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 18
Project Management Certification Course
Influence, Risk & Cost of Changes
Stakeholder influence, risk and uncertainty
Cost of Changes
Time
Low
High
Degre
e
*Not applicable to adaptive life cycles
Generic Project Lifecycle Structure
Starting the Project
Project Charter Project Management Plan
Accepted Deliverables
Archived Project Documents
CO
ST A
ND
STA
FFIN
G L
EVEL
TIME
Carrying out the work
Organising and Preparing
Closing the Project
Project Lifecycles
Can be:
Predictive or
Adaptive
52
53
54
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 19
Project Management Certification Course
Development Lifecycle types
Predictive IterativeIncremental Agile
3
Adaptive Life Cycles
Adaptive methods are also iterative and incremental, iterations are very rapid
They respond to high levels of change
Ongoing stakeholder involvement.
The overall scope of the project will be decomposed into a set of requirements and work to be performed, (product backlog)
Types of Agile Methods
Scrum
RAD
Lean & Kanban Software Development
Extreme Programming (XP)
Crystal
Dynamic Systems Development Method (DSDM)
55
56
57
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 20
Project Management Certification Course
Adaptive (Agile) Life Cycle
Agile methods break tasks into small increments with minimal planning
Targeted at complex systems and projects with dynamic, un-deterministic and non-linear characteristics
Daily communication is essential
Agile Manifesto
Individuals & interactions over Processes & tools
Working software over Comprehensive documentation
Customer collaboration over Contract negotiation
Responding to change over Following a plan
What the Agile guide suggests
Agile Agile Agile Predictive Predictive
Agile Agile Agile Agile Agile Agile Agile
Predictive Predictive Predictive Predictive
Predictive Predictive Predictive
Agile Agile Agile
Agile Agile Agile
Predictive Predictive
58
59
60
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 21
Project Management Certification Course
The factors that help select the management lifecycle?
Definable Vs non-definable work
*Responsibilities
The PM Team has the responsibility to determine the best life cycle for each project:
Identify the processes needed to be performed in each phase
Perform the processes identified
Adjust the attributes of a phase (name, duration, entry/exit criteria)
Independent from the Product Life Cycle
Development
Maturity
Decline
SALE
S V
OLU
MES
TIME
Introduction
Growth
Project Management
Project Management
61
62
63
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 22
Project Management Certification Course
1.2.4.2Project Phase
Project Phases
A project may be divided into any number of phases
It is a collection of logically related project activities that culminates in the completion of one or more deliverables
Phase 1 Deliverable 1
Phase 2Deliverable
2
Phase 3Major
Specific Deliverable
Project Phase
A collection of logically relate project activities
Project phases evolve through the life cycle in a series of phase sequences called
Handoffs,
or Technical Transfers
64
65
66
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 23
Project Management Certification Course
Phase Attributes
Name
(e.g. Phase A, Feasibility, Design, Prototype etc.)
Number
(four phase project)
Duration
Resource
Requirements
Entrance/exit criteria (specific approvals, documents completed etc.)
Remember*
Phase CompletionYou will recognize phase completion because each phase has a specific deliverable, or multiple deliverables that mark the end of the phase.
Stage Gate
Milestone
Phase Review
Phase Gate
Kill Point
Technical Handoff
Handoff
Phase entrance
Phase exit
Phase Gate
End of the phase to assess progress and performance against:
Business Case
Project Charter
Project Management Plan
Benefits Management Plan
67
68
69
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 24
Project Management Certification Course
Phase Gate decisions
Continue to the next
Continue to the next with modifications
End the Project
Remain in the Phase
Repeat the Phase or elements of it
(Sequential)
(Overlapping)
(Iterative)
1.2.4.4Project Management Processes
70
71
72
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 25
Project Management Certification Course
What is a Process?
A process is a set of interrelated actions and activities performed to create a pre-specified product, service or result.
An input to another process
A deliverable of the project or phase
Every project management process produces one or more outputs from one or more inputs using appropriate project management tools and techniques
Activity Attributes
Diagramming Tools &
Techniques
Project Schedule
73
74
75
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 26
Project Management Certification Course
Process Categories
Used once or at predefined points in the project
Performed periodically as needed
Performed continuously throughout the project
Why Project Management Processes?
Ensure the effective flow of the project throughout its life cycle.
Encompass the tools & techniques involved in applying the skills and capabilities described in the Knowledge Areas
Process Categories
Project Oriented ProcessesCovered by the PMBoK
Product Oriented ProcessesDo you remember that “area specific skills” are important in project management?
*Project Management Processes & Product-
oriented Processes overlap & interact
throughout the life of a project.
76
77
78
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 27
Project Management Certification Course
Product Oriented Processes
Specify and create the project’s product.
They are typically defined by the project life cycle &
Vary by application area as well as the phase of the product life cycle
1.2.4.5Project Management Process Group
Project Management Process Group
Logical grouping of project management processes to achieve specific project objectives
Independent of Project Phases
79
80
81
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 28
Project Management Certification Course
Initiating
Planning
(Plan)
Executing
(Do)
Controlling
(Check)
Closing
Initiating: Justification, Authorization
Planning: Establish scope, refine objectives, define the course of action
Executing: Put the plan in action
Monitoring and Controlling: Understand your variances, performance and forecast
Closing: Formally close the project or phase
Link between process
Project management processes are linked by specific inputs and outputs
Not necessarily within the same process group
82
83
84
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 29
Project Management Certification Course
Attention*:
Processes are presented as discreet elements in the PMBoK guide
Processes Interact & Overlap
Iterative (Back and Forth)
Remember: Plan-Do-Check-Act
Initiating
Project Phase (Feasibility Study)
Planning
Plan
Executing
Project Management
Process Groups
Act Check
Do
Monitoring &Controlling
Monitoring &Controlling
Closing
Initiating
Project Phase(Requirements)
1.2.4.6Project Management Knowledge Areas
Knowledge Areas
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resource Management
Communication Management
Risk Management
Procurement Management
Stakeholder Management
85
86
87
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 30
Project Management Certification Course
Other knowledge areas
Specific sectors may require additional knowledge areas to be added
e.g. Health & Safety in construction
EX_Proc
1.2.4.7Project Data & Information
Project Management Data & Info
Work Performance Data: Raw observations
Work Performance Information: Meaningful combination of raw data
Work Performance Reports: Representation of project information that guide decision making
88
89
90
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 31
Project Management Certification Course
Project Communications
Project Change Control
Various Project
Processes
Controlling Processes
Executing Processes
Overall Project Control
Work Performance Data
Work Performance Information
Work Performance Reports
Approved Change Requests
Project Team Members
Project Stakeholders
Project Management Plan and Project Documents updates
1.2.5Tailoring
Tailoring
The method used to identify which process and its inputs or outputs are applicable for managing a specific project is called Tailoring
91
92
93
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 32
Project Management Certification Course
PM Methodologies & Best Practice
No methodology can be fully and consistently (uniformly) applied to all projects and succeed.
Responsibility for applying the Processes
Project Managers & their teams in collaboration with project stakeholders should carefully address each process and its inputs and outputs and determine which are applicable to the project they are working on.
Trade-offs
Project and Product processes interact inevitably
ExampleScope Change (Product oriented process) will most probably affect Project Cost (Defined by the Project Processes).
In this case a trade-off between project requirements and project objectives (targets) should be considered
specific performance trade-offs will vary from project to project and organization to organization
94
95
96
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 33
Project Management Certification Course
Tailoring
Should address the competing constraints of Scope, Schedule, Cost, Resources and Risks as each of this is different for each project
Should be done based on the project environment, organizational culture, stakeholder needs, organizational governance, customer (internal or external)
Tailoring considerations in a nutshell
The importance of each constraint
Project Environment
Organisational Culture
Stakeholder’s needs
Varying levels of governance required
The customer (internal or external)
1.2.6PM Documents
97
98
99
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 34
Project Management Certification Course
Projects have:
Output
Outcome
Benefits
Business Documents
Business Case
Benefits Management Plan
Projects and Strategy
There is a strong relationship between Strategy & Projects
The relationship: Organizations sometimes change their operations, products, or systems by creating strategic business initiatives that are developed and implemented through projects
100
101
102
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 35
Project Management Certification Course
Strategy & Projects
Projects should be aligned with business strategic direction.
Business strategic directions often change*
Projects Managers should always be ready to realign with the strategic directions of the organisations
The Risk for Project Managers
If the project does not support corporate objectives
Looses support and consequently looses:
Recourses
Assistance
Attention
So…what is Strategy after all?
________________________________________________________________________________________________________________________________________________________________________________
103
104
105
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 36
Project Management Certification Course
Feasibility study
A feasibility study is used to analyse a project or idea in order to assess what the likely outcomes will be, or to test alternative options
Focuses also on a variety of factors including political, regulatory, demographic, geographic, socio-economic etc.
It usually weighs up the cost of the project against the expected benefits (i.e. cost / benefit analysis)
Results in “Go” / “No Go” decisions
Business Case
A documented economic feasibility study to establish the validity of the benefits of a selected component lacking sufficient definition and the is used as a basis for authorization of further project management activities
Responsibilities: Development and maintenance: Project Sponsor
Recommendations and oversight: Project Manager
Business Case
Lists the objectives or reasons for Project Initiation
It helps measure the project success at the end of the project against the project objectives
106
107
108
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 37
Project Management Certification Course
Business Case
Used throughout the project life cycle
Lists objectives and reasons for project initiation
May result in go/no go decisions
A needs assessment precedes the Business Case
Benefits Management Plan
Complements the Business Case
Documented explanation defining the processes for creating, maximizing and sustaining the benefits provided by the project
Responsibilities:
Keep everything aligned: Project Manager (works with the Sponsor)
Benefits Management Plan
DescribesHow &
When
The benefits will be delivered and
Describes the mechanisms that should be in place to measure those benefits
109
110
111
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 38
Project Management Certification Course
1.2.6.3Project Success Measures
Project Success
Project success should be referred to the last baselines approved by the authorized stakeholders
The project manager is responsible and accountable for setting realistic and achievable boundaries for the project and to accomplish the project within the approved baselines.
Select measurable project objectives
Should be documented
Metrics could include:
Payback Period
Benefit Cost Ratio
ROI
NPV
IRR
Non financial
112
113
114
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 39
Project Management Certification Course
Before initiating a Project
Project Selection MethodsThe project manager is not typically involved but has to know how the project ended up with him/her and how it relates to organisational strategy
Organisations typically use more that one method/model when selecting among projects
Selection Method Categories
Benefit Measurement Methods (Comparative Approach)
Economic Models*
Scoring Models*
Murder Board
Peer Review
Constraint Optimisation Methods (Mathematical Approach)
Linear ProgrammingInteger ProgrammingDynamic ProgrammingMulti-Objective Programming
Murder Board
A group of people (e.g. senior management) asking exhausting questions about the project
115
116
117
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 40
Project Management Certification Course
Peer Review
Person or group of experts having the same skills as the person suggesting the project are reviewing the project objectives and make a decision
Economic Models
Cost-Benefit Analysis
Payback Period
Present Value
Net Present Value
Internal Rate of Return
Scoring Models
Benefit-Cost Analysis
The relationship between benefits (revenues) and cost expressed as a decimal or ratio (benefit-cost ratio):
118
119
120
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 41
Project Management Certification Course
Payback Period
Payback calculation uses cash flows, not net income.
The payback calculation does not address a project's total profitability.
Rather, the payback period simply computes how fast a company will recover its cash investment.
Does not take into account the time value of money!
The time value of Money!
If €1 allows the purchase of an item today, it is possible that €1 will not be enough to purchase the same item in 5 years
𝐹𝑉 = 𝑃𝑉 × (1 + 𝑟)𝑛
Present Value:
𝑃𝑉 =𝐹𝑉
(1 + 𝑟)𝑛
121
122
123
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 42
Project Management Certification Course
NPV
It is the most valid method of investment appraisal
It takes into account the discounted price (value) of money.
Companies should (only) go ahead with projects that have a positive NPV
If we have to choose between a number of projects, we choose the one with the highest positive NPV
IRR
IRR is an investment estimation process
Percentages are easier to understand
IRR can give us an NPV close to 0
Projects with an IRR higher that the Required Rate Of Return should be chosen
Scoring Models
Use a factor that denotes the weight of each criterion:
CriteriaWeight
Factor
Score
Project 1
Project 1
Totals
Score
Project 2
Project 2
Totals
Score
Project 3
Project 3
Totals
Profit Potential 5 5 5 3
Marketability 3 4 3 4
Easy to develop 1 4 3 2
Weighted score
*Scoring scale 0 to 5
124
125
126
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 43
Project Management Certification Course
Opportunity Cost
The loss of potential gain from other alternatives when one alternative is chosen
Sunk Costs
Sunk costs are costs which have occurred and cannot be recovered.
Economic theory advises us not to consider sunk costs in making future decisions
This is where bad decisions are taken
Working Capital
Money available for day-to-day operations
Working capital is one of the basic metrics used to evaluate a company's financial health.
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
EX04A
127
128
129
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 44
Project Management Certification Course
2Project Environment
2.1 Overview
Projects and project management take place in an environment that is broader than that of the project itself
Organisational Cultures and Styles and Macro-environment
Organization’s established practices (Micro-environment)
*Projects’ Interact with Organisations and their Environments
Influences
Negative or Positive
Enterprise Environmental Factors
Organizational Process Assets
Influences
EEFs
External Internal
OPAs
Processes, Policies and Procedures
Corporate Knowledge
Base
130
131
132
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 45
Project Management Certification Course
2.2.1 EEFs - Internal
Organizational Culture, Structure and Governance
Geographic Distribution of facilities and resources
Infrastructure
Information technology software
Resource availability
Employ capability
EEFs – Internal example
Cultures and styles are group phenomena known as cultural norms, which develop over time
Shared visions, mission, values, beliefs & expectations
Regulations, policies, methods & procedures
Motivation and reward systems
Risk tolerance
View of leadership, hierarchy & authority relationships
Code of conduct, work ethic & work hours
Operating environments
EEFs – Internal Example
Organizational Communications:
Project management success in an organization is highly dependent on an effective organizational communication style
Information systems & processes
Projects managers knowledge about communication barriers
Communications define how a project is conducted & facilitate decision making
Speed of information
Remote teams
133
134
135
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 46
Project Management Certification Course
2.2.2 EEFs - External
Market place conditions
Social and cultural influences and issues
Legal restrictions
Commercial databases
Academic research
Government and industry standards
Financial considerations
Physical environmental elements
2.3 Processes & Procedures
Specific to the organization
Plans
Processes
Policies
Procedures
Knowledge base
OPA: Initiating - Planning
Project Selection Methods
Tailoring
Organisational StandardsHuman Resource Policies
Health & safety
Product & Project Life cycle
Quality Policies & ProceduresProcess Audits
Checklists
Improvement policy
136
137
138
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 47
Project Management Certification Course
OPA: Initiating & Planning
Templates
Definitions & Standardized procedures (e.g. Quality audits)
Human Resource Policies
Health & safety procedures
Security and confidentiality policies
Environmental policies
OPA: Executing, M & C
Change control procedures
Financial controls procedures
Issue and defect management procedures
Organizational communication requirements
Procedures for issuing work authorizations
Risk control procedures
KPI’s
OPA: Closing
Project closure guidelines or requirementsProject evaluations
Product validations
Acceptance criteria
Final project audits
Lessons learned
139
140
141
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 48
Project Management Certification Course
OPA: Corporate Knowledge Repositories
Configuration management knowledge bases containing the versions & baselines of all performing organization:
Standards,
Policies,
Procedures, and
any project documents
Financial databases containing information such as labour hours, incurred costs, budgets
Historical Information
2.4Organizational Systems
Organizational Systems’ Factors
Governance Frameworks
Management Elements
Organizational Structure Types
System dynamics are defined by the interaction between the components
142
143
144
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 49
Project Management Certification Course
A project manager
needs to understand where the following reside within the organization:
Responsibility
Accountability
Authority
Their understanding will enable him/her to use his/her capabilities to successfully manage and deliver a project
2.4.2 Organizational Governance Frameworks
Governance is the Frameworks within which authority is exercised in organizations
Rules
Policies
Procedures
Norms
Relationships
Systems
Processes
2.4.3 Management Elements
Division of work
Authority levels
Responsibility distribution
Respect for authority
Unity of Command (Authority concentration)
Unity of direction (One plan, one commander)
Compensation (salary)
Resource capacity management
145
146
147
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 50
Project Management Certification Course
2.4.4Organizational Structure Types
Organizational Structures (EEF)
Dictates the authority of the project manager
It can affect the availability of resources & influence how projects are conducted
oOrganic or SimpleoMultidivisional (non centralised/replication)oFunctional (centralised)oProjectizedoMatrixoCompositeoHybridoVirtualoPMO (mixed)
Organic or Simple
Flexible – people working side by side
PM Authority: Little or None
Part time
Budget managed by owner or operator
148
149
150
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 51
Project Management Certification Course
Functional Organisations
AdvantagesClear chain of command
Career path within specific functional areas that allows for speciality skills to reach high levels
DisadvantagesLimited authority of the Project Manager
Multiple projects compete for limited resources
Project team members are loyal to functional managers
Multi-divisional
Each division has its own functions
Little or no authority
Part-time
Project Oriented Organisation
AdvantagesProject managers have ultimate authority over the project.
The focus of the organization is the project.
The organization’s resources are focused on projects and project work.
Team members are co-located (usually).
DisadvantagesNo career path
Project team members might be released after the project
151
152
153
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 52
Project Management Certification Course
Matrix Organisations
Minimize the differences between functional and projectized organizations
Take advantage of each ones strengths and
Aim to minimise each structures weaknesses
Balanced Matrix
Each manager has responsibility for their parts of the project or organization,
Employees get assigned to projects based on the needs of the project, (not the strength or weakness of
the manager’s position)
Virtual
Network Structure with nodes at point of contact with other people
154
155
156
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 53
Project Management Certification Course
PMO
Mix of other types
Organisation structure influence
Depending on the organisational structure, the Project Manager interacts with all levels of authority:
Strategic Management Level
Middle Management
Operational Management Level
Project Management Office (PMO)
It is a management structure that:Standardizes the project-related governance processes
Facilitates the sharing of resources, methodologies, tools and techniques.
157
158
159
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 54
Project Management Certification Course
PMOs & their Strategic Role
It the is the natural liaison between the organization’s portfolios, programs, projects, and the corporate measurement systems (e.g. balanced scorecard).
Types of PMOs
Determined by the degree of control and influence they have on projects within the organization:
Supportive
Controlling
Directing
EX02- ONLINE
3The Project Manager
160
161
162
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 55
Project Management Certification Course
The role of the Project Manager
Show the path to results.
Drive the team down the path.
Achieve those results together.
The role of the Project Manager
Functional Manager Provides management oversight for a functional or a business unit
Operations Manager Responsible for ensuring that business operations are efficient
Project Manager
Depending on the organisational structureHe/She might have full authority over resources
Reports to a functional manager
Be one of several Project Managers that report to Program or Portfolio Manager
163
164
165
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 56
Project Management Certification Course
Sphere of InfluenceProject Manager
Project Team
PPP Managers
Resource Managers
Sponsors
Governing Bodies
Steering Committees
PMOs
Stakeholders
Suppliers
Customers
End Users
Project Manager Profile
Threshold competencies:General Management Proficiencies
Area Specific Knowledge
Project Management Knowledge
(Knowledge = Project management skills)
Performance (Capabilities to accomplish using his/her skills)
Personal (attitudes, core personality characteristics & leadership skills)
Ranking order of PM’s Skills
Interpersonal (Communication) SkillsWritten, Oral (Backbone of successful projects)
Organisational skillsBeing able to track tons of information (Reports, Requirements, Project documentation, memos …)
Budgeting SkillsKnowledge of finance & accounting principals
166
167
168
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 57
Project Management Certification Course
Interpersonal Skills (EQ)
Leadership
Team building
Motivation
Influencing
Trust buildingConflict management
Negotiation Skills
Coaching
Decision making
Political & cultural awareness
EX02B
“Project Management is not just a career path. It is a strategic competency necessary for the growth and future of a company”.
Part 2
1.6 Project Stakeholders & Governance
169
170
171
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 58
Project Management Certification Course
Project Stakeholders and Governance
A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project
Stakeholders may be actively involved in the project or have interests that may be positively or negatively affected by the performance or completion of the project
The Project
Project Team
PM Team
Project Manager
Other PM team
Members
Sponsor
Customer / User
Sellers / Business Partners
Other Stakeholders
Portfolio Manager
Program Manager
PMO
Functional Managers
Operations Management
Project Stakeholders
Stakeholders’ Management
It is the project manager’s responsibility to manage the influences of these various stakeholders in relation to the project requirements to ensure a successful outcome
1. Project team members
2. Interested entities internal or external to the performing organisation
172
173
174
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 59
Project Management Certification Course
Continuous effort
Stakeholder identification is a continuous process throughout the entire project life cycle
Failure to do so can lead to delays, cost increases, unexpected issues and other negative consequences including project cancellation
The project Sponsor
A sponsor is the person or group who provides resources and support for the project
Accountable for enabling success
Project Champion
It is usually someone with a great deal of technical expertise or industry knowledgeregarding the project, and
helps focus attention on the project from a technical perspective.
175
176
177
Andreas Solomou PMP® PRINCE2 MCTS® MCT® MCP® CTP® 60
Project Management Certification Course
Project Team
Project management staff
Project staff
Supporting experts
User or Customer Representatives.
Sellers
Business partner members
Business partners
Project team composition
Dedicated (simplest composition)Co-located or Virtual
Report directly to Project Manager
Clear lines of authority
Part-timeFunctional managers retain the control over the teams (usually)
Project team composition based on org. structures
Partnerships or Joint venturesOffer flexibility and lower cost to the project
Less control to the project manager
Geographic location of the team membersVirtual Teams
Rely on online workspaces and other communication and information technology
The project managers need to accommodate differences in the culture, working hours, time zones, local conditions, and languages
178
179
180