Session 2 mod 2 proj mgt

PROJECT LIFE CYCLE

PRODUCT LIFE CYCLE

• It refers to stages in project’s development• Life cycles are important because they

demonstrate the logic that governs a project• They also help in developing our plans that

help us to carry out the project

PROJECT LIFE CYCLE

• PLC

MANHOURS

CONCEPTUALIZATION PLANNING EXECUTION TERMINATION

PROJECT LIFE CYCLE

• Conceptualization. refers to development of initial goals and technical specifications of a project. The scope of work is determined , necessary resources identified and stakeholders signed in

• Planning. All detailed specifications , schematics, schedules and other plans are developed.– Individual pieces of project , often called work

packages, are broken down, individual assignments and process for completion delineated

PROJECT LIFE CYCLE

• Execution. The actual work is performed, the system developed or the product created. In this phase bulk of project team labor is performed. Costs ramp up rapidly during this phase.

• Termination. This occurs when the project is transformed to customer.– As specific sub activities are completed the project

shrinks in scope and costs decline rapidly

PROJECT LIFE CYCLE

• The stages in PLC are the way points at which project teams can evaluate both in performance and project’s overall status

• The life cycle model serves the two fold function of project timing (schedule)and project requirement (resources) allowing team members to better focus on what and when resources are needed

PROJECT LIFE CYCLE

• Some components of project may change over a period of time over the course of the project

• Client Interest. The level of enthusiasm or concern expressed by the project’s intended customer ( could be internal or external)

• Project Stake. The amount of corporate investment in the project. The longer the life , the greater the investment

PROJECT LIFE CYCLE• Resources. The commitment of financial, human

and technical resources over the life of the project• Creativity. The degree of innovation required by

the project especially during development phase.• Uncertainty. The degree associated with the

project. Uncertainty is highest at the beginning because many challenges have yet to be identified, let alone addressed.

PROJECT LIFE CYCLES & THEIR EFFECTS

• PLC

INTENSITYLEVEL

CONCEPTUALIZATION PLANNING EXECUTION TERMINATION

CLIENT INTEREST

PROJECT STAKE

RESOURCES

CREATIVITY

UNCERTAINTY

PROJECT LIFE CYCLES & THEIR EFFECTS

• The information supplied in previous figure is useful for developing a sense of competing issues and challenges that a project team is likely to face over the life cycle

• Over time we see that certain characteristics begin to decrease while some begin to increase

• Balancing the requirements of these elements across the life cycle is just one of the many demands place d upon a project team

DETERMINANTS OF PROJECT SUCCESS


• This aspect can be very confusing• The definition of project success must take

into consideration the elements the elements that define the very nature of project – Time– Budget– Functionality– Customer satisfaction


• Three criteria for project success• Time. Projects are constrained by the time. They

cannot continue indefinitely. Therefore the first determinant can be classified as ‘Time’. The projects should come up within the allotted time frame

• Cost. The projects have a limited budget. It is always a challenge to ensure that projects are completed within allotted cost to ensure efficient use of resources. This is the second determinant


• Performance. All projects are initially developed to adhere to some technical specification. The projects clients do expect the performance of the end result as expected. This aspect can be called as ‘quality check’.


• A fourth criteria has been added• Client Acceptance. This principle argues that

projects are developed with customers in mind. If client acceptance is a key variable, then we also must ask whether is acceptable to the customer for whom it was intended


• We can think of criteria for project success in terms of internal vs external conditions

• When PM was practiced primarily by construction and other heavy industries, its chief value was in maintaining internal organizational control over money and time.

• The triple constraint made perfect sense

DETERMINANTS OF PROJECT SUCCESS• More recently the traditional triple constraint has come

under increasing criticism as a measure of project success.• The final product could be a failure , but if it has been

delivered in time and on budget and satisfies original specifications ( however flawed) the project could itself be declared a success.

• Adding external criteria of client acceptance corrects such shortcomings – It refocuses org attention outside towards the

customer– It recognizes that the final arbiter is marketplace


• Another approach is taking into consideration the promise that delivered product can generate future opportunities , whether commercial or technical for the org .The relevant dimensions are:-

• Proper Efficiency. Meeting budget and scheduled expectations

• Impact on the customer. Meeting technical specifications, addressing customer’s needs


• Business Success. Determining whether the project achieved significant commercial success

• Future Potential. Determining whether project opened new markets or new product lines.

• This approach challenges the conventional triple constraint principle for assessing project success. Corporations expect projects not only to run efficiently but be developed to meet customer’s needs, achieve commercial success and serve as a conduit to new business opportunities.

DEVELOPING PROJECT MANAGEMENT MATURITY

PM MATURITY MODELS

• PM maturity models are used by org to bench mark the best practices of successful PM firms

• PM maturity models recognize that different organizations are currently at different levels of sophistication in their best practices for managing projects

• Purpose of benchmarking. is to systematically manage the process improvement of project delivery by a single organization over a period of time

PM MATURITY MODELS

• Because there are many diverse dimensions of PM practice , for a new org that is just starting to introduce PM to their operations , it is common to ask the question, ’Where do we start”?

• This is which of the multiple PM processes should we investigate, model and apply to our org.

• Maturity models provide the necessary framework to first analyze and critically evaluate the current practices as they pertain to managing projects.

PM MATURITY MODELS

• Secondly compare these practices against those of chief competitors or some general industry standard

• Thirdly define a systematic route for improving these practices

PM MATURITY MODELS

• Spider web Diagram for measuring project maturity – Here a set of significant project management practices have first been identified for organizations within a specified industry.

• The rings in the diagram represents a critical evaluation of the manner in which the org matches with the industry standards

SPIDER WEB DIAGRAM WITH EMBEDDED ORGANIZATIONAL EVALUATION

PROJECT SCHEDULING

STRUCTURAL SUPPORT FOR PM

PORTFOLIO MANAGEMENT

COACHING AUDITING &EVALUATING PROJECTS

CONTROL PRACTICES

PROJECT STAKEHOLDER MANAGEMENT

NETWORKING BETWEEN PROJECTS

PERSONNEL DEVELOPMENTFOR PROJECTS

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PROJECT STAKEHOLDERS

STAKEHOLDER MANAGEMENT

• Organizational research tells us that org and projects teams cannot operate in ways that ignore the external effects of their decisions

• One way to understand the relationship of project managers and their projects to rest of the organization is through employing stakeholders analysis.

• Stakeholders Analysis. Is a tool for demonstrating some of the seemingly irresolvable conflicts that occur through the planned creation and introduction of new projects


• Project stakeholders are defined as all individuals or groups who have an active stake in the project and can potentially impact either positively or negatively its development

• Project Stakeholders Analysis, consists of formulating strategies to identify and if necessary manage for the positive results the impact of stakeholders on the project


• Stakeholder analysis is helpful to the degree that it compels firms to acknowledge the potentially wide ranging effect that their actions can have , both intended and unintended, on various stakeholder groups.

STAKEHOLDER MANAGEMENT• Internal Stakeholders– Top Management– Accountant– Other functional Managers– Project team member

• External Stakeholders– Clients– Competitors– Suppliers– Environmental, political, consumer and other

intervenor groups

STAKEHOLDER MANAGEMENT• Clients– Clients are concerned with receiving the project as quickly as

possible because longer the delay , the money invested sits without generating any returns

– Many projects start well before the clients needs are fully defined.– Customers usually feel that that they have a right to make

suggestions , alterations in the project features/schedules as finally the project is as good as it is acceptable and useful

– Client term does not always refer to entire organization and because of different conflicting reasons between groups the stakeholders analysis of a customer organization can be a complex undertaking

STAKEHOLDER MANAGEMENT• Competitors. –Are important because they are affected by successful

completion of project – Likewise should a rival company bring a new product

to market , the project team’s parent org could be forced to alter, delay or even abandon the project– In assessing competitor as a project

stakeholder ,project manager should try to uncover any information which could bring out certain lessons


• Suppliers.– Project manager needs to ensure steps that would

ensure steady deliveries of externally purchased items

– Also project manager needs to ensure that each supplier receives the input information necessary to implement their part of project in timely way.

– Secondly project manager must monitor that deliveries take place as intended

STAKEHOLDER MANAGEMENT• Intervenor group.–Any environmental, political, social or community

group that can have a positive or negative effect on the project’s development & successful launch are referred to as intervenor groups–They have the capacity to intervene in the project

development and force their concern to be included in the equation for project implementation

STAKEHOLDER MANAGEMENT• Top Management.– In most org the top management hold a great deal of control

over managers and in position to regulate their freedom of action– Top management requires that the project be timely, cost

efficient and minimal disruptive• Accounting. – They work towards maintaining cost efficiency of project team–Hence are sometime perceived as enemies of the projects


• Functional Managers.– In many case the project members are on

loan from various departments.– The functional members still expect a lot of

work from each member in performing their functional responsibilities–Project managers need to appreciate the

power of the organizational functional managers as a stakeholders group

STAKEHOLDER MANAGEMENT• Project Team Members– The team members have a tremendous stake in project’s

outcome–Although some may have a divided sense of loyalty

between the project and functional group, in most case they are handpicked or may be volunteers for work which can throw challenges and oppurtunities for growth.–Project managers must understand that product’s success

will depend upon the commitment and productivity of each member

MANAGING STAKEHOLDERS


• Assess Your Own Capability. Does the Project manager and the team members have the political savvy and sufficiently strong bargaining power to gain support from each of the stakeholders group?

• Define the Problem. Be able to very clearly have a foresight on the nature of problem to bring in clarity.


• Six steps as suggested by Block• Assess The Environment. It is very important

to recognize the environmental state before embarking on a project

• Identify the goals of Principal Actors. Project manager should attempt to understand and paint an accurate portrait of stakeholder concern.


• Develop Solutions.– It means to creating action plan to address as

much as possible the needs of various stakeholders in relation to other stakeholders groups.

– Do our political homework. This stage is a result of perpetual firefighting during which the project manager is a virtual pendulum swinging from crisis to crisis


• Test and Refine the Solutions.– In testing and refining solutions the project

manager and team should realize that solution implementation is an iterative process

– Project Team to make guesses on stakeholders reaction and reshape strategies accordingly.

– Along the way the notions are refined


• The six steps form an important method of acknowledging the role the stakeholders play in successful project implementation

• They allow project managers to approach ‘political stakeholders management ‘ much as they would any form of problem solving, recognizing it as a multivariate problem as various stakeholders interact with the project and with each other

• Solution to political stakeholder management can be richer more comprehensive and more accurate.

FORMS OF ORGANIZATIONAL STRUCTURE

THREE ELEMENTS OF ORGANIZATIONAL STRUCTURE

• Org structure designates formal reporting relationships including the number of level in the hierarchy and the span of control of managers and supervisors

• Org structure identifies the grouping together of individuals into departments and departments into total organization

• Org structure includes the design of systems to ensure effective communication, coordination and integrating of effort across departments

COMMON FORM OF ORGANIZATIONAL STRUCTURES

• Functional Organizations – companies are structured by grouping people performing similar activities into departments

• Project Organizations – Companies are structured by grouping people into project teams on temporary assignments

• Matrix Organizations – companies are structured by creating a dual hierarchy in which functional and projects have equal prominence

BOARD OF DIRECTORS

CHIEF EXECUTIVE

VP MARKETING VP PRODUCTION VP FINANCE VP RESEARCH

MARKET RESEARCH

SALES

AFTER MARKET SUPPORT

ADVERTISING

LOGISTICS

OUTSOURCING

DISTRIBUTION

WAREHOUSING

MANUFACTURING

ACCOUNTING SERVICES

CONTRACTING

INVESTMENTS

EMPLOYEE BENEFITS

NEW PRODUCTS

TESTING

RESEARCH LABS

QUALITY

FUNCTIONAL STRUCTURES

Strengths and Weaknesses of Functional Structures

Strengths for PM• Projects are developed

within the basic functional structure of the org requiring no disruption & change to the firm’s design

• Enables the development of in depth knowledge & intellectual capital

• Allows for standard career paths. PM members only perform their duties as needed while maintaining maximum connection with their functional group

Weaknesses for PM• Functional siloing makes it

difficult to achieve cross functional cooperation

• Lack of customer focus• Projects generally take longer

to complete due to structural problem , slower communication, lack of direct ownership of project and competing priorities among the functional departments

• Projects may be sub optimized due to varying interest or commitment across functional boundaries

Matrix Oriented Organizational Structure

STRENGTHS AND WEAKNESSES OF MATRIX STRUCTURE

Strengths for Project Management

• Suited to dynamic environment

• Emphasizes the dual importance of project management and functional efficiency

• Promotes coordination across functional units

• Maximizes scarce resources between competing project and functional responsibilities

Weaknesses for Project Management

• Dual hierarchies mean two bosses

• Requires significant time to be spent negotiating the sharing of critical resources between projects and departments

• Can be frustrating for workers caught between competing project and functional demand

Project Oriented Organizational Structure

Strengths and weakness of Project Structure

Strengths for PM• Assigns authority solely to the

Project manager• Leads to improved

communication across the org and among functional groups

• Promotes effective and speedy decision making

• Promote the creation of cadres of project management experts

• Encourages rapid response to market opportunities

Weaknesses for Project Management

• Setting up and maintaining teams can be expensive

• Potential for project team members to develop loyalty to the project rather than to the overall organization

• Difficult to maintain a pooled supply of intellectual capital

• Concern among project team members about their future once the project ends

THANK YOU

Session 2 mod 2 proj mgt

Data & Analytics

Transcript of Session 2 mod 2 proj mgt