Chapter 1:

Project Management Framework

Eglinton Learning Center

PMI, PMP and PMBOK are registered marks of the Project Management Institute, Inc.

Chapter 1: Project Management Framework

Outline
Statistical figures of projects
 What is a Project?

 What is Project Management?

 Project Management Office

 Operations and Project Management

 Organizations and Project Management

 Business Value

 Role of the Project Manager

 Project Management Body of Knowledge

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Statistical figures of projects

 64% of projects successfully met their original goals and business

intent in 2011. Which means...over one third did not. What

differentiates those organizations with higher success rates from
those with lower success rates?

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Statistical figures of projects
.

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Statistical figures of projects

 The world is spending 1/5 of its GDP (US $12 trillion) on projects this

year - and organizations that range from global businesses to

governments and NGOs have identified project management and skilled
project managers as the key to their success.

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Statistical figures of projects

 The demand for project professionals is staggering, with an average of

1.2 million projected new jobs needing to be filled each year for the next
decade. This demand far exceeds supply - and has precipitated a global
education crisis that, if uncorrected, will put U.S. $4.5 trillion of the
global GDP at risk by 2016.

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Statistical figures of projects
According to the PMO and portfolio management
leaders we surveyed, the most critical project success
factors include:
 Talent: Staffing the team with appropriately skilled people.
 Project Management Basics: Taking time to create a realistic
implementation plan.
 Executive Sponsorship: Ensuring top-level management support for the
project.
 Focus on Benefits: Clearly defining the expected benefits from the
project.
 Change Management: Effectively managing change associated with the
project.

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What is a Project?
 A project is a temporary endeavor undertaken to create a unique

product, service, or result.

 The temporary nature of projects indicates that a project has a definite

beginning and end.

 Every project creates a unique product, service, or result.

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What is a Project?
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 (e.g., a business function

that supports production or distribution);

 An improvement in the existing product or service lines (e.g., A Six

Sigma project undertaken to reduce defects); or

 A result, such as an outcome or document (e.g., a research project that

develops knowledge that can be used to determine whether a trend

exists or a new process will benefit society).

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What is a Project?
Examples of projects include, but are not limited to:
 Developing a new product, service, or result;

 Effecting a change in the structure, processes, staffing, or style of an

organization;

 Developing or acquiring a new or modified information system

(hardware or software);

 Conducting a research effort whose outcome will be aptly recorded;

 Constructing a building, industrial plant, or infrastructure; or

 Implementing, improving, or enhancing existing business processes and

procedures .

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Program
What is a Program?
 Is defined as a group of related projects managed in coordinated way.

What is a Program Management?

 Is defined as the centralized coordinated management of a program to
achieve the program’s strategic objectives and benefits. Program
management focuses on the project interdependencies, determine the
optimal approach for managing them, such as:

 Resolving resource constraints/ conflicts, issues, change

management.

 Aligning strategic direction.

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Portfolio
What is a Portfolio?
 collection of an organization's projects or programs to facilitate effective

management.

What is a Portfolio Management?

 refers to centralized management of one or more portfolios to achieve

specific strategic business objectives. Portfolio management focuses on

ensuring that projects, programs are reviewed for priority resource
allocation so that is consistent with organizational strategies.

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Project / Program Portfolio
 .

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What is Project Management?
Project Management
 is the application of knowledge, skills, tools, and techniques to project

activities to meet the project requirements.

Managing a project

 typically includes, but is not limited to:

 Identify requirements

 Balance competing project constraints

 Monitor and tend to stakeholders expectations

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What is Project Management?
 Identify Project Requirements (cont.)

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What is Project Management?
 Balance competing project constraints

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What is Project Management?
 Monitor and tend to stakeholders expectations

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Project Management Office(PMO)
 A project management office (PMO) is a management

 structure that standardizes the project-related governance processes

and facilitates the sharing of resources, methodologies, tools, and

techniques.

 3 types of PMOs:

 Supportive

 Controlling

 Directive

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Project Management Office(PMO)
Supportive PMOs
 provide a consultative role to projects by supplying templates, best

practices, training, access to information and lessons learned from other

projects. This type of PMO serves as a project repository.

 The degree of control provided by the PMO is low.

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Project Management Office(PMO)
Controlling PMOs
 Provide support and require compliance through various means.

Compliance may involve adopting project management frameworks or

methodologies, using specific templates, forms and tools, or
conformance to governance.

 The degree of control provided by the PMO is moderate.

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Project Management Office(PMO)
Directive PMOs
 Take control of the projects by directly managing the projects

 The degree of control provided by the PMO is moderate.

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Project Management Office (PMO)
6 primary functions of a PMO (1/2):

 Managing shared resources across all projects administered by the PMO;

 Identifying and developing project management methodology, best

practices, and standards;

 Coaching, mentoring, training, and oversight;

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Project Management Office (PMO)
6 primary functions of a PMO (2/2):

 Monitoring compliance with project management standards, policies,

procedures, and templates by means of project audits;

 Developing and managing project policies, procedures, templates, and

other shared documentation (organizational process assets); and

 Coordinating communication across projects.

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Operations and Project Management
 Changes in business operations may be the focus of a dedicated project -

especially if there are substantial changes to business operations as a

result of a new product or service delivery.

 Ongoing operations are outside of the scope of a project; however, there

are intersecting points where the two areas cross. Projects can intersect
with operations at various points during the product life cycle, such as:

 At each closeout phase;

 When developing a new product, upgrading a product, or

expanding outputs;

 While improving operations or the product development process; or

 Until the end of the product life cycle.

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Organizations and Project Management
 Project management activities should be aligned with top-level business

direction in organization, and if there is a change, then project objectives

need to be realigned.

 In a project environment, changes to project objectives affect project

efficiency and success. When the business alignment for a project is

constant, the chance for project success greatly increases because the
project remains aligned with the strategic direction of the organization.
Should something change, projects should change accordingly.

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Business Value
 Business value is a concept that is unique to each organization. Business

value is defined as the entire value of the business; the total sum of all
tangible and intangible elements.

 Examples of tangible elements include monetary assets, fixtures,

stockholder equity, and utility.

 Examples of intangible elements include good will, brand recognition,

public benefit, and trademarks.

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Business Value
Business value and project management:
 Successful business value realization begins with comprehensive strategic

planning and management. Organizational strategy can be expressed through

the organization’s mission and vision, including orientation to markets,
competition, and other environmental factors. Identifying and developing
project management methodology, best practices, and standards;
 Effective organizational strategy provides defined directions for development

and growth, in addition to performance metrics for success. In order to bridge

the gap between organizational strategy and successful business value
realization, the use of portfolio, program, and project management techniques
is essential.

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Role of Project Manager
 The project manager is the person assigned by the performing

organization to lead the team that is responsible for achieving the project
objectives.

 The role of a project manager is distinct from a functional manager or

operations manager. Typically the functional manager is focused on

providing management oversight for a functional or a business unit, and
operations managers are responsible for ensuring that business
operations are efficient.

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Role of Project Manager
Responsibilities and Competencies of the Project Manager:

 Project managers have the responsibility to satisfy 3 needs:

 task need,

 team needs

 individual needs

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Role of Project Manager
Responsibilities and Competencies of the Project Manager:
 Effective project management requires that the project manager possess

the 3 following competencies:

 Knowledge—Refers to what the project manager knows about project

management.
 Performance—Refers to what the project manager is able to do or

accomplish while applying his or her project management knowledge.

 Personal—Refers to how the project manager behaves when performing the

project or related activity. Personal effectiveness encompasses attitudes,

core personality characteristics, and leadership, which provides the ability to
guide the project team while achieving project objectives and balancing the
project constraints.

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Role of Project Manager
Interpersonal Skills of a Project Manager:
 Leadership
 Team building
 Motivation
 Communication
 Influencing
 Decision making
 Political and cultural awareness
 Negotiation
 Trust building
 Conflict management and
 Coaching

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Project Management Body of Knowledge
 The PMBOK® Guide contains the standard for managing most projects

most of the time across many types of industries.

 Project management standards are limited to individual projects and the

project management processes that are generally recognized as good

practice. 3 other standards may be consulted for additional information on
the broader context in which projects are accomplished, such as:
 The Standard for Program Management: addresses the management of
programs
 The Standard for Portfolio Management: addresses the management of
portfolios, –
 Organizational Project Management Maturity Model (OPM3®):
examines an enterprise’s project management process capabilities.

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Questions?
1. Understanding the culture, policies, and procedures of the organization

in which the project is being performed is most challenging in :

a) Global organizations

b) Manufacturing organizations

c) Small organizations

d) Agile organizations

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Questions? ...(contd)
2. A project manager is trying to complete a software development

project, but cannot get enough attention for the project. Resources are
focused on completing process-related work, and the project manager
has little authority to assign resources. What form of organization must
the project manager be working in?

a) Functional

b) Matrix

c) Expediter

d) Coordinator

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Questions? ...(contd)
3. A project team member is talking to another team member and
complaining that many people are asking him to do things. If he works
in a functional organization, who has the power to give direction to the
team member?

a) The project manage

b) The functional manager

c) The team

d) The PMO

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Questions? ...(contd)
4. Who has the most power in a project-oriented organization?

a) The project manager

b) The functional manager

c) The team

d) They all share power

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Questions? ...(contd)
5. A framework for keeping an organization focused on its overall strategy
is:

a) Organizational project management

b) The PMBOK" Guide

c) Project governance

d) Portfolio management

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Questions? ...(contd)
6. If a project manager is concerned with gathering, integrating and
disseminating the outputs of all project management processes, she
should concentrate on improving the:

a) Work breakdown structure (WBS)

b) Communications management plan

c) Project management information system (PMIS)

d) Scope management plan

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Questions? ...(contd)
7. To obtain support for the project throughout the performing
organization, it's best if the project manager:

a) Ensures there is a communications management plan

b) Correlates the need for the project to the organization's strategic

plan
c) Connects the project lo the personal objectives of the sponsor

d) Confirms that the management plan includes the management of

team members

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Questions? ...(contd)
8. As a project manager, you ha\'e had to develop skills to help plan and
manage projects successfully. Which skills would best help you
encourage project teams to reach levels of high cooperation and
achievement, promote a positive relationship with sellers on a project,
and involve stakeholders appropriately through all aspects of the
project?

a) Active listening, negotiating, and political awareness

b) Networking, communication models, and SWOT
c) Sensitivity analysis, active listening, and leadership
d) Communication methods, team building, and claims administration

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Questions? ...(contd)
9. One of your team members informs you that he does not know which of
the many projects he is working on is the most important. Who should
determine the priorities between projects in a company?

a) The project manager

b) The project management team

c) The project management office (PMO)

d) The project team

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10. Operational work is different from project work m that operational work
is:

a) Unique

b) Temporary

c) Ongoing and repetitive

d) A part of every project activity

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Questions? ...(contd)
11. Consideration of ongoing operations and maintenance is crucially
important to products of projects. Ongoing operations and maintenance
should:

a) Be included as activities to be performed during project closure

b) Be a separate phase in the project life cycle because a large portion

of life cycle costs is devoted to maintenance and operations

c) Not be viewed as part of a project

d) Be viewed as a separate project

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Questions? ...(contd)
12. What is a program?

a) An initiative set up by management

b) A means to gain benefits and control of related projects

c) A group of unrelated projects managed in a coordinated way

d) A government regulation

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Questions? ...(contd)
13. A project manager has little project experience, but she has been
assigned as the project manager of a new project. Because she will be
working in a matrix organization to complete her project, she can
expect communications to be:

a) Simple

b) Open and accurate

c) Complex

d) Hard to automate

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Questions? ...(contd)
14. All the following are characteristics of a project except:

a) It is temporary.

b) It has a definite beginning and end.

c) It has interrelated activities.

d) It repeats itself every month.

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Questions? ...(contd)
15. A project team is working on manufacturing a new product, but they are
having difficulty creating a project charter. What is the best description
of the real problem?

a) They have not identified the project objectives

b) They are working on a process and not a project

c) The end date has not been set

d) They have not identified the product of the project

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 End of Chapter 1.

Thank You!

Chapter 1: Project Management Framework