PROJECT MANAGEMENT II!

INTRODUCTION

Engineering with Business Administration (4th semester), 25th March 2011

Dr. Stefan Hagen
LEARNING OBJECTIVES

•  Students know the major concepts, models, and methods in project

management based on international PM standards.

•  Students know how to systematically initiate, plan, execute, control,

and close projects.

•  Students have a solid foundation of PM models and procedures in

the area of New Product Development and Innovation.

•  Students know basic terms in international project management.

© Stefan Hagen, 2011

PROGRAM
When? Who? What?
Fri, 25.3.2011 S. Hagen Introduction, Complexity, Basic Terms &
Concepts
Sat, 2.4.2011 T. Fransilla MS Project
Sat, 16.4.2011 E. Gerlacher Project Management in Research &
Development and New Product
Development, Multi-PM, Process Models ,
Case Study
Fri, 13.5.2011, M. Engelhardt PM Process Groups, Practical Use of PM
Sat, 14.5.2011 Methodologies, Corporate Implementation
of PM, Case Study
Sat, 4.6.2011 E. Gerlacher Simple PM Methodology, PM Approaches,
Key Success Factors in PM, Case Study
Fri, 24.6.2011 S. Hagen Course Summary, Knowledge Map,
Revision
Sat, 2.7.2011 S. Hagen Exam

© Stefan Hagen, 2011

LECTURERS
Tommi Franssila
Lecturer at Jyväskylä University of Applied Sciences

Edgar Gerlacher
Director of the Project Management Office at Nycomed Pharma

Mark Engelhardt
Dynact Management Consulting; President of the PMI
Chapters Austria

© Stefan Hagen, 2011

DIDACTICS OF THE COURSE…

Case Team Work

Studies
Presentations

Reader /
Further
Information

Blog
TEST / EXAMINATION

•  45 Minutes
•  Closed book
•  Application of major course Map
le dge
contents Know
•  PM terminology

© Stefan Hagen, 2011

WHY PROJECT MANAGEMENT?
MAJOR CHALLENGES OF!
TODAY S BUSINESS ENVIRONMENT
-  „Only the fittest will survive. → strategic AND operational excellence
is needed, high performance organizations
-  intensity of competition is increasing – price pressure, innovation
Globalization & pressure, quality pressure, time pressure...
Competition -  effectiveness AND efficiency
-  company s culture, strategy, processes, and structures have to be
aligned to the radical change
-  etc.

-  complexity is rising – time for action is declining

-  radical technological innovations, innovation pressure
-  changes and trends are hardly predictable
Complexity and -  cross-functional collaboration and communication is more and more
discontinuity important
-  high risk projects, increasing uncertainty
-  etc.

-  War for Talents, Human Resource Management as a major challenge

-  inter-cultural management
Rising importance -  long-term business relationships are based on trust and personal
of „soft facts networks
-  etc.
COMPLEXITY UP – TIME & MONEY
DOWN
RISING IMPORTANCE…

Project Management is a major concept

to overcome the radical and dynamic
changes in today‘s business
environment.

Project Management is a concept to

manage complex, unique and risky
problems.
REALITY IN TODAY S
ORGANISZATIONS?

What‘s the reality in

today‘s businesses and
organizations?
THAT S HOW SOME!
ORGANIZATIONS STILL WORK TODAY...

http://www.flickr.com/photos/21734563@N04/2510349902/
... AND THATS HOW THEY SHOULD
WORK!

http://www.flickr.com/photos/mrhappy8/2045726489/
WE NEED FAST, INNOVATIVE!
AND ADAPTIVE ORGANIZATIONS!
PROJECT-ORIENTED INDUSTRIES AND
ORGANIZATIONS
PROJECT-ORIENTED INDUSTRIES

•  automotive industry
•  pharmaceutical industry
•  mechanical engineering and construction
•  space industry
•  arm industry
•  electronic industry
•  aircraft industry
•  ...

© Stefan Hagen, 2011

MOST COMMON PROJECTS
•  construction projects
•  conceptual projects / strategy formulation projects
•  IT projects
•  re-organization projects
•  R&D projects
•  new product development projects
•  feasability studies
•  large events
•  technology projects (machinery)
•  HRM projects
•  Mergers & Acquisitions
•  ...
© Stefan Hagen, 2011
COMPLEXITY
WHAT IS COMPLEXITY?

Difficult Systems
relatively complex system complex system

Changeability / Dynamics
depends on

number of elements
number of
interrelations

Complex Systems
depends on

variety of elements
dynamic chances in simple system difficult system
interrelations
number / variety of system elements
FUNDMENTAL CHALLENGE IN
MANAGEMENT

Business
Environment Complexity

„Reality
>

Management
REDUCING COMPLEXITY
Reducing Complexity

Business
Environment Complexity

„Reality
>

Management

Simplification
KISS – keep it small and simple
Mental Models
Visualizing
...
LIMITS OF REDUCTION OF COMPLEXITY

"Make everything as simple

as possible, but not
simpler."

Albert Einstein
GENERATING COMPLEXITY

Generating Complexity
Business
Environment Complexity

„Reality
>

Management

Empirical Social Research

Market research
Mathematics
INTUITION
...
HOW WE DEAL WITH COMPLEXITY

http://www.youtube.com/watch?v=m3QqDOeSahU
ASHBY'S LAW (OF REQUISITE VARIETY)

„Only variety can destroy variety.“

William Ross Ashby
MANAGEMENT

Complexity is the major

challenge in Management.

Prof. Dr. Fredmund Malik

PROJECT MANAGEMENT FOR !
MANAGING COMPLEXITY

Project Management is a
major concept to manage
complexity.
LINE OR PROJECT MANAGEMENT?

Problem /
requirements

Complex?
Innovative?
Team Work?

Functional Project
Organization Organization
GROUP DISCUSSION

•  Form groups of 4-5 students

•  Find examples for:
–  typical line / process work
–  typical project work
–  can be both

© Stefan Hagen, 2011

KONTAKT

Dr. Stefan Hagen

Hagen Management GmbH
Hintere Achmühlerstraße 1
6850 Dornbirn

stefan.hagen@fhv.at

Blog: http://PM-Blog.com