Project Management

15 July 2010 Lecture 3 1

 Case….
• Bogue Generation Expansion Project

15 July 2010 Lecture 3 2

 3 Gorges Dam (The Largest Dam of
the World)

Idea in 1920

15 July 2010 Lecture 3 3

 Project Specifications

Length 2385 Meters

Height 185 Meters
Width (base) 115Meters
Width (Crest) 40Meters
Construction Began Dec. 1994
Opening 2011
Construction Cost 26 Billion USD
Power Capacity 22500 MW
Annual Generation 100,000 GWh
15 July 2010 Lecture 3 4
 Project Success Rates

• Average success of business-critical application

development projects is 35%.
• Software & hardware projects fail at a 65% rate

• Over half of all IT projects become runaways

• Up to 75% of all software projects are cancelled

• Only 2.5% of global businesses achieve 100%

project success

15 July 2010 Lecture 3 5

 Project Management Maturity Models
• Project Management Maturity Models are
used to allow organizations to benchmark the
best practices of successful project
management firms.
– Boeing (Aircraft and Defense Systems) or Fluor -
Daniel (construction) to be much more advanced
in the project management practices
• Maturity Models offer a template for defining
and then achieving a progressive
improvement in the project management
practices.
15 July 2010 Lecture 3 6
 Developing Project Management Maturity

Project management maturity models

– Center for business practices
– Kerzner’s project management maturity model
– ESI International’s project framework
– SEI’s capability maturity model integration

15 July 2010 Lecture 3 7

 Developing Project Management Maturity

Project management maturity models

– Center for business practices
– Kerzner’s project management maturity model
– ESI International’s project framework
– SEI’s capability maturity model integration

15 July 2010 Lecture 3 8

 Simplest Example
• Spider Web Methodology
– A set of significant project management
practices have been identified for organizations
in the specific industry
– E.g. There are 8 components of PM practices
for the success in a particular industry and they
have been rated on a scale 0-3

15 July 2010 Lecture 3 9

 0 Not defined or poor
1 Defined but substandard
2 Standardized
3 Industry leader or cutting edge

15 July 2010 Lecture 3 10

 Spider Web Diagram
Project Scheduling
3
Personnel Development for 2.5 Structural Support for
Projects 2 Project Management
1.5
1
0.5
Networking Between
0 Portfolio Management
Projects

Project Stakeholder Coaching, Auditing and

Management Evaluating Proejcts

Control Practices

15 July 2010 Lecture 3 11

 Project Management Maturity
Generic Model
High
Maturity
Institutionalized,
seeks continuous
improvement

Moderate Maturity
Defined practices, training programs,
organizational support

Low Maturity
Ad hoc process, no common language, little support

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 Successful project management
• Contextual --- organization itself matters
– Must reconcile with
• Organizational Strategy
• Stakeholders
• Organizational Structure
• Culture

2-13
15 July 2010 Lecture 3 13
Projects and Organizational Strategy

15 July 2010 Lecture 3 14

Projects and Organizational Strategy
Strategic management – the science of
formulating, implementing and evaluating
cross-functional decisions that enable an
organization to achieve its objectives.

Consists of:
– Developing vision and mission statements
– Formulating, implementing and evaluating
– Making cross functional decisions
– Achieving objectives
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