Chapter 1 Projects in Contemporary

Organizations

Copyright 2021 John Wiley & Sons, Inc.

Introduction

• Rapid growth in project management

• In the past, most projects were external
• Building a new skyscraper
• New ad campaign
• Launching a rocket
• Growth lately is in internal projects
• Developing a new product
• Opening a new branch
• Improving the services provided

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How Project Management
Developed
• Historical projects
• Tower of Babel
• Egyptian pyramids
• Great Wall of China
• The Manhattan Project
• Modern credit for the development of project
management goes to the military
• Navy’s Polaris program
• NASA’s Apollo space program
• Development of “smart bombs” and “missiles”

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How Project Management
Developed
• Project management has found wide acceptance in
industry
• It has many applications outside of construction
• Managing legal cases
• Managing new product releases

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Projects Tend to be Large

• Projects tend to be large

• The Channel Tunnel, or Chunnel
• Denver International Airport
• Panama Canal expansion project
• Three Gorges Dam, China
• Projects are getting larger over time
• Flying: balloons  planes  jets  rockets  reusable
rockets
• The more we can do, the more we try to do

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Project Management Also
Getting Smaller
• More people are seeing the advantages of project
management techniques
• The tools have become cheaper
• The techniques are becoming more widely taught and
written about

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Three Project Objectives: The
“Triple Constraint”
• Also referred to as the “Iron Triangle”
• Time
• Cost
• Scope

• Time, cost, and performance are all related to a project

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Direct Project Goals: Scope,
Cost, Time

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The Definition of a “Project”

• A temporary endeavor undertaken to create a unique

product, service, or result
• Modern project management began with the
Manhattan Project
• In its early days, project management was used mainly
for large complex projects
• As the tools and techniques were developed, the use of
project organization began to spread

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Major Characteristics of a
Project
• Three main
• Unique
• One-time occurrence
• Finite duration
• Other
• Interdependencies
• Limited resources
• Conflict

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Nonprojects and Quasi-
Projects
• Routine tasks are not projects
• Ex: production of weekly reports, delivery of mail, etc
• Quasi-projects
• Scope, schedule, and budget are implied

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Project Success

• Project efficiency
• Impact on the customer
• Business impact on the organization
• Opening new opportunities for the future

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Project Manager

• Project manager is the key individual on a project

• Project manager is like a mini-CEO

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Why Project Management?

• The main purpose for initiating a project is to

accomplish some goal
• Project management increases the likelihood of
accomplishing that goal
• Project management gives us someone (the project
manager) to spearhead the project and to hold
accountable for its completion

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Negative Side to Project
Management
• Greater organizational complexity
• Higher probability organizational policy will be violated
• Says managers cannot accomplish the desired outcome
• Conflict

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Forces Fostering Project
Management
• Main forces in driving the acceptance of project
management:
• Exponential growth of human knowledge
• Growing demand for a broad range of complex goods and services
• Increased worldwide competition
• All of these contribute to the need for organizations to
do more and to do it faster

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Recent Changes in Managing
Organizations
• Consensual management
• Systems approach
• Projects are established in order to accomplish set
goals

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Project Management
Organizations
• The Project Management Institute, founded in 1969, is
the major project management organization
• Grew from 7,500 members in 1990 to over 450,000 in
more than 190 countries by 2017
• Other organizations
• Association for Project Management
• International Project Management Association

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PMI Certifications

• Project Management Professional

• Program Management Professional
• Portfolio Management Professional
• Certified Associate in Project Management
• PMI Professional in Business Analysis
• PMI Agile Certified Practitioner
• PMI Risk Management Professional
• PMI Scheduling Professional

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Trends in Project Management

• Achieving strategic goals

• Achieving routine goals
• Improving project effectiveness
• Virtual projects
• Agile Project Management

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The Project Life Cycle

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Time Distribution of Project
Effort

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Another Possible Project Life
Cycle

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 Risk

• Uncertainty about our ability to meet project goals

due to various factors in the project life cycle

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Risk During at the Start of the Life Cycle

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Risk During the Life Cycle

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Agile Project Management

Manifesto for Agile Software Development

• Individuals and interactions over processes and
tools
• Working software over comprehensive
documentation
• Customer collaboration over contract negotiation
• Responding to change over following a plan

Foundations of Project Management

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Agile Principles
1. Our highest priority is to satisfy the customer through early and
continuous delivery of valuable software.
2. Welcome changing requirements, even late in development.
Agile processes harness change for the customer's competitive
advantage.
3. Deliver working software frequently, from a couple of weeks to a
couple of months, with a preference to the shorter timescale.
4. Businesspeople and developers must work together daily
throughout the project.
5. Build projects around motivated individuals. Give them the
environment and support they need, and trust them to get the
job done.
6. The most efficient and effective method of conveying
information to and within a development team is face-to-face
conversation.

Foundations of Project Management

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Agile Principles continued

7. Working software is the primary measure of progress.

8. Agile processes promote sustainable development. The
sponsors, developers, and users should be able to maintain a
constant pace indefinitely.
9. Continuous attention to technical excellence and good design
enhances agility.
10. Simplicity--the art of maximizing the amount of work not done--
is essential.
11. The best architectures, requirements, and designs emerge from
self-organizing teams.
12. At regular intervals, the team reflects on how to become more
effective, then tunes and adjusts its behavior accordingly.

Foundations of Project Management

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Characteristics of Agile
Approaches and Scrum
 The project is divided into iterations called
sprints
 Based on its roots in lean management, there
is an emphasis on simplicity
 Project teams are self-managing
 Progress on the project is measured in terms
of working product functionality

Foundations of Project Management

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Benefits of Agile

 Higher customer satisfaction as a result of receiving customer

input and feedback throughout the project
 Increased flexibility to incorporate changing requirements
 Less waste on non-productive work
 Faster delivery of products with working functionality
 Higher quality and faster problem detection
 Reduced risk of project failure
 Increased collaboration among stakeholders and team members
 Higher team morale resulting from the use of self-managed
teams
 Enhanced performance visibility
 Improved predictability of key project outcomes

Foundations of Project Management

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Why Agile

• Agile may be complimentary to traditional

approaches
• Developed specifically to deal with projects
that have high levels of uncertainty

Foundations of Project Management

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Implementing Agile

• Organizational sponsored book clubs

• Establish a Center of Excellence
• Organization sponsored workshops and training
• Networking with other professionals

Foundations of Project Management

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The Structure of this Text

• Follows the project life cycle

• Some topics stand-alone
• Other topics incorporated throughout

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Part I: Project Initiation

• Projects in Contemporary Organizations

• Project Strategy and Selection
• The Project Manager
• Managing for Stakeholders and Resolving Conflict
• The Project in the Organizational Structure

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Part II: Project Planning

• Activity Planning: Traditional and Agile

• Budgeting and Risk Management
• Scheduling
• Resource Allocation

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Part III: Project Execution

• Monitoring and Information Systems

• Project Control
• Project Auditing
• Project Closure and Benefits Realization

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Copyright
Copyright © 2021 John Wiley & Sons, Inc.
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