THE VALUE OFPROJECT

MANAGEMENTProject Management Workshop

Brandon Olson, PhD

Purpose

•Define projects and project management

•Describe the project management phases and activities

•Determine the organizational value of effective project management practices

•Develop a plan to create a formalized project management practice

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Definitions of Project Management

• "...a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs(Gray & Larson, 2008)

• "...a temporary endeavor undertaken to create a unique product, service, or result.“ (PMI, 2008)

UniqueTemporary

One-Time

Project Characteristics

Kerzner, 2009

PROJECT

Specific Objective withDefined Specifications

Defined Startand End Dates

Funding Limitations

Consume Human andNonhuman Resources

Multiple Disciplines

Operations vs. Projects

Operations Projects

Taking notes in class Writing a research paper

Recording sales into ledger Setting up sales kiosk for convention

Practicing a musical instrument Writing a new piece of music

Manufacturing the iPhone Designing the new OS

Attaching sales tags to merchandise Implementing a new RFID system

Adapted from Gray & Larson, 2008

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Projects Enable Change

PROJECTA

B

Project Sources

Increase Revenue(expand services)

Reduce Expenses

Directive

New product/servicesMarket ExpansionIncreased Scalability

Process ImprovementDecision Making

Government ComplianceSelf-ImposedCompetitive Standards

Increased Demand for Projects

•Compression of the Product Life Cycle•Global Competition•Knowledge Explosion•Corporate Downsizing•Increased Customer Focus

Why Projects?

Kerzner, 2009

Top Mgt Policy

Middle Mgt Planning

Supervisor Scheduling

Laborers Operations

Management Gaps Functional Gaps

Why Projects

Operational Islands

Why Projects?

Increase in Projects

•Between 2010 and 2020 there will be 15.5 million new project management jobs globally with 2,348,830 of these located in the US (PMI, 2013a)

Austra

lia

Brazil

Canad

a

China

Germ

any

India

Japa

n

Saud

i Ara

bia

UAE UK US0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

74,900347,820120,070

8,153,340

153,230

3,975,650

387,56012,670 18,000177,120

2,348,830

New Openings

Value of Project Management

•2012 Price WaterhouseCoopers Survey (PMI, 2013b)•97% consider project management critical to business performance

•94% believe project management enables growth•54% feel their organization fully understands the value of project management

•6% have a project management-relatedrole at the C-level

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Project Team and Stakeholders

ProjectChampion

ProjectOwner/Sponsor

(client)

ProjectManager

Project Team(Multidisciplinary Specialists)

Customers(Recipients of Outcomes)

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Project Management

Scope

TimeCost

ProjectManager

Project Success

•Delivered 100% functionality

•On time

•Within Budget

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Project Maturity – Chaos Report

Successful Challenged Failed0%

10%

20%

30%

40%

50%

60%

199419961998200420092011

Gale (2011)

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

Project Management ProcessInitiate

Plan

Execute

Monitor & Control

Close

Time

PMI (2008)

Project Management Process

Initiate

Plan

Execute

Monitor & Control

Close

Time PMI (2008)

Agenda

•Definitions

•Purpose of Projects

•Project Teams

•Purpose of Project Management

•Project Management Maturity

•Project Management Process

•Tools for Project Management Practice

ToolsInitiate

Plan

Execute

Monitor & Control

Close

Time

Project Charter

Work Schedule

Issue Log

Risk Register

Project Survey

Progress Report

References• Gale, S. (2011). Failure rates finally drop. PM Network, 25(8), 10-11.

• Gray, C.F., & Larson, E.W. (2008). Project management: The managerial process (4th ed.). Boston, MA: McGraw Hill.

• Kerzner, H. (2009). Project management: A systems approach to planning, scheduling, and controlling. New York, NY: Wiley.

• Project Management Institute (2008). A guide to the project management body of knowledge (4th ed.). Newtown Square: PA: Author.

• Project Management Institute (2013a). Project management talent gap report. Newtown Square, PA: Author.

• Project Management Institute (2013b). Pulse of the profession: The high cost of low performance. Newtown Square, PA: Author.