Professional Diploma in

Project Management
Unit 2

Project Environments
 In This Unit

• Introduction to Lexicon of Project

Management Terms

• Understand Characteristics of project

lifecycles & System development lifecycles

• Appreciate Recurring Vocabulary (Project

Management Data / EEFs / OPAs)

• Understand organisational structures and

how they influence project management

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Lexicon of Project Management Terms
• https://www.pmi.org/Lexiconterms

• The PMI Lexicon of Project Management Terms offers clear and

concise definitions for nearly 200 of the profession’s frequently
used terms.

• For anyone involved in project, program, and portfolio

management, the Lexicon is an essential resource to foster
understanding and consistent usage of terminology. Use of
standardized language promotes better communications
among project teams and is an essential component of any
profession.

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 Activity
Project vs. Operations
Describe a few of the differences
between Project Management and
Operations Management using
keywords (no full sentences)

4
Operations v Projects
•
Operations Projects
Maintains Changes
Routine & Predictable Uncertain
Existing Cross Functional or New Cross Functional Support
Within Function
Ongoing Timebound
Permanent Resources Temporary Resources
Ongoing Owner Once Off Owner
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Life Cycle
Performance Domain

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Project Life Cycles
A project life cycle is the series of phases that a project
passes through from its start to its completion.

It provides the basic framework for managing the project.

This basic framework applies regardless of the specific project

work involved.

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Development Approach and Life Cycle
Performance Domain
• The development approach and life cycle of a project can
be:
• Single Delivery, where there is just one final delivery at
the end of the project.
• Multiple Delivery, where there are multiple components
delivery at different time throughout the project.
• Periodic Delivery, where there are multiple deliveries
that are on a fixed schedule.
• Continuous Delivery, where feature increments are
delivered immediately to the customer
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Project Lifecycle Example
• Understanding organisational strategy
Feasibility • Identifying stakeholders’ needs
• Making decisions regarding project objectives

• Project kickoff
Conceptual • Agreeing objectives with stakeholders.
• Identifying requirements and scope of project

• Delivering a project management plan that includes schedules,

Definition budgets and other plans.
• Identifying and analysing all risks

• Performing the work of the project

Implementation • Communication project status
• Understanding project performance

• Verifying successful completion of project

Closeout • Achieving and understanding lessons learned
• Celebrating with the team
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Characteristics of Project Lifecycles
EXAMPLES -
a) Percentage Completion

b) Resources Engaged

c) Influence of Stakeholders

d) Cost of Changes

e) Conflict

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Graph of a lifecycle

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The graph of a lifecycle

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Project v Product Lifecycle

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Development Approaches

Predictive Hybrid Adaptive

Waterfall Agile
Some elements of both
Predictive and Adaptive
Used when requirements can are used. Useful when Useful when there are
be defined, collected and there is uncertainty with high levels of uncertainty
analysed at the start of the requirement or parts of or high levels of change
the scope can be expected
project managed by different
teams

Increasingly Iterative and Incremental

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Development Approaches
Predictive life cycle
In a predictive life cycle, the project scope, time, and cost are
determined in the early phases of the life cycle. Any changes to
the scope are carefully managed. Predictive life cycles may also
be referred to as waterfall life cycles.
• Advantages : Clearly defined stages. Assures delivery of initial
requirements. Well documented process and results.
• Disadvantages : Lack of measurable progress within stages.
Cannot accommodate changing requirements. Resistant to time
and/or budget compression.

• Example - Requirements Capture, Design, Construction,

Integration, Testing and debugging, Installation, Maintenance

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Example of Predictive Life Cycle

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Development Approaches
Iterative Life Cycle
Using an iterative approach, the project scope is generally
determined early in the project life cycle, but time and cost
estimates are routinely modified as the project team’s
understanding of the product increases. Iterations develop the
product through a series of repeated cycles, while increments
successively add to the functionality of the product.
• Advantages: Supports changing requirements. Minimises time
to initial operating capability (IOC). Achieves economies of scale
for enhancements.
• Disadvantages: Increases management complexity. IOC only
partially satisfies requirements and does not have complete
functionality. Risk of not knowing when to end the project.
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Iterative Life Cycle

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Development Approaches
Incremental Life Cycle
Using an incremental approach, the deliverable is produced
through a series of iterations that successively add
functionality within a predetermined time frame. The
deliverable contains the necessary and sufficient capability
to be considered complete only after the final iteration.
• Advantages : Early and periodic results. Measurable
progress. Supports parallel development efforts.
• Disadvantages : Demands increased management
attention. Can increase resource requirements. No support
for changing requirements
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Incremental Approach

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Development Approach
Hybrid Life Cycle
Hybrid development approaches can be iterative or
incremental.

• With an iterative approach you try different ways to clarify

the scope approach and requirements.

• With an incremental approach you progressively develop

features and functions.

Both approaches involve high levels of stakeholder

involvement, feedback and adapting.
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Example of Hybrid Life Cycle

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Development Approaches
Adaptive Life Cycle
Adaptive life cycles are agile, iterative, or incremental. The
detailed scope is defined and approved before the start of an
iteration. Adaptive life cycles are also referred to as agile or
change-driven life cycles.
• Advantages: Rapid demonstrable functionality. Minimal
resource requirements. Supports fixed or changing
requirements.
• Disadvantages: Not conducive to handling complex
dependencies. Creates quality assurance (QA) risks.
Increased risk of sustainability, maintainability, and
extensibility.
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Example Adaptive Life Cycle

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Product Life Cycles
Project life cycles are independent of product life cycles,
which may be produced by a project.

A product life cycle is the series of phases that represent the

evolution of a product, from concept through delivery,
growth, maturity, and to retirement.

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Project Phase
A project phase is a collection of logically related project activities
that culminates in the completion of one or more deliverables.
The phases in a life cycle can be described by a variety of
attributes. Attributes may be measurable and unique to a specific
phase.
Projects may be separated into distinct phases or subcomponents.
These phases or subcomponents are generally given names that
indicate the type of work done in that phase.
Using multiple phases may provide better insight to managing the
project. It also provides an opportunity to assess the project
performance and take necessary corrective or preventive actions
in subsequent phases.
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Phase Gate
A phase gate, is held at the end of a phase.

The project’s performance and progress are compared to

project and business documents.

A decision is made (e.g., go/no-go decision)

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Defining Project Activity

Management
You and some friends decide to paint
your living room.

In order to complete this as a project

what do you need to plan in order for
this project to be successful?

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Defining Project Management
• You and some friends decide to paint your living room.
• In order to complete this as a project what do you need to do?
• Project Scope Management.…….colour, ceiling, woodwork….
• Project Schedule Management…….buy the paint, set up, paint, reinstate
room
• Project Cost Management…….what is budget, painting materials,
food/drink?
• Project Quality Management……type of paint, quality of application?
• Project Resource Management……how many friends, storage for
furniture?
• Project Communications Management……WET PAINT!
• Project Risk Management……spills, friends don’t show up!
• Project Procurement Management……credit card, cash, deals?
• Project Stakeholder Management……occupants, friends….

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Course Vocabulary

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Some Recurring Course Vocabulary
• Project Management Data
• Work performance data
• Work performance information
• Work performance reports
• Enterprise environmental factors (EEFs)
• organisational process assets (OPAs)
• Organisational systems

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Project Management Data
• Work performance data.
The raw observations and measurements identified during activities
performed to carry out the project work.
Examples include reported percent of work physically completed,
quality and technical performance measures, start and finish dates of
schedule activities, number of change requests, number of defects,
actual costs, actual durations, etc.
Project data are usually recorded in a Project Management Information
System (PMIS) and in project documents.

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Project Management Data
• Work performance information.
The performance data collected from various controlling processes,
analyzed context and integrated based on relationships across areas.
Examples of performance information are status of deliverables,
implementation status for change requests, and forecast estimates to
complete.

• Work performance reports.

The physical or electronic representation of work performance
information compiled in project documents, which is intended to
generate decisions or raise issues, actions, or awareness. Examples
include status reports, memos, justifications, information notes,
electronic dashboards, recommendations, and updates.
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Enterprise environmental factors
(EEFs)
• EEFs originate from the environment outside of the project
and often outside of the enterprise.
• EEFs may have an impact at the organisational, portfolio,
program, or project level.
• EEFs refer to conditions, not under the control of the project
team, that influence, constrain, or direct the project.
• EEFs are considered as inputs to many project management
processes, specifically for most planning processes.
• EEFs can be internal or external to the organisation

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EEFs Internal to the organisation
• organisational culture, structure, and governance.
• Geographic distribution of facilities and resources.
• Infrastructure.
• information technology software.
• Resource availability.
• Employee capability

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EEFs External to the Organisation
• Marketplace conditions
• Social and cultural influences and issues
• Legal restrictions
• Commercial databases
• Academic research
• Government or industry standards
• Financial considerations
• Physical environmental elements

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Organisational process assets (OPAs)
• OPAs are internal to the organisation.
• These may arise from the organisation itself, a portfolio, a program,
another project, or a combination of these.
• OPAs are the plans, processes, policies, procedures, and knowledge
bases specific to and used by the performing organisation.
• OPAs are inputs to many project management processes.
• Since OPAs are internal to the organisation, the project team members
may be able to update and add to the organisational process assets as
necessary throughout the project.

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Organisational Process Asset Examples
• Organisation’s lessons learned from previous projects and
historical information.
• Completed schedules
• Organisational risk data
• Earned value data
• Budgets
Etc….

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Organisational Systems
• Projects operate within the constraints imposed by the organisation
through their structure and governance framework.
• To operate effectively and efficiently, the project manager needs to
understand where responsibility, accountability, and authority reside
within the organisation.
• This understanding will help the project manager effectively use his
or her power, influence, competence, leadership, and political
capabilities to successfully complete the project.
• System factors include:
• Management elements
• Governance frameworks
• Organizational structure types

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 Management elements
• Division of work using specialised skills and availability to perform work;
• Authority given to perform work;
• Responsibility to perform work appropriately assigned based on such
attributes as skill and experience;
• Discipline of action (e.g., respect for authority, people, and rules);
• Unity of command (e.g., only one person gives orders for any action or
activity to an individual);
• Unity of direction (e.g., one plan and one head for a group of activities
with the same objective);
• General goals of the organisation take precedence over individual goals;

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Management elements
• Paid fairly for work performed;
• Optimal use of resources;
• Clear communication channels;
• Right materials to the right person for the right job at the right
time;
• Fair and equal treatment of people in the workplace;
• Clear security of work positions;
• Safety of people in the workplace;
• Open contribution to planning and execution by each person;
• Optimal morale.

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Governance frameworks
• Rules
• Policies
• Procedures
• Norms
• Relationships
• Systems
• Processes
• This framework influences how:
• Objectives of the organisation are set and achieved,
• Risk is monitored and assessed, and
• Performance is optimised.

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Factors in Org Structure Selection
• Degree of alignment with • Delegation capabilities,
organisational objectives,
• Specialisation capabilities, • Accountability assignment,
• Span of control, efficiency, and • Responsibility assignment,
effectiveness, • Adaptability of design,
• Clear path for escalation of
decisions, • Simplicity of design,
• Clear line and scope of authority, • Efficiency of performance,
• Physical locations (e.g., colocated, • Cost considerations,
regional, and virtual), and
• Clear communication (e.g., policies,
status of work, and organisation’s
vision).

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Organisational Structure
Key success factors for an Organisational Model
• Clear lines of authority
• Good understanding of individual roles and responsibilities
• Clear communication of objectives
• Good feedback routes across the organisation.

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Organisational Structures

• Traditional Functional organisation

• Fully Projectized organisation
• Variants or matrix structures.

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Functional Organisation

Marketing
Staff 1

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Project coordinator has some authority to make project decisions.
Advantages of Functional Org
• Internal flexibility
• Simplicity
• Good use of scare expert skills
• Good perceived stability and promotion for participants

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Disadvantages of Functional Org
• No single point of responsibility
• No defined lines of communication
• Lack of focus on the client / Lack of client facing flexibility
• Clients prefer to deal with one person on a project
• Fragmented approach to the project
• Priority of departmental work over team work
• Low team motivation

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Weak Matrix Organisation
Structure

Project expeditor acts primarily as staff assistant and communication coordinator 49

Balanced-Matrix Org Structure

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Strong Matrix

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Advantages of Matrix Structures
• Flexibility Deployment of Resources
• Good use of scarce expert skills
• Good perceived stability for participants
• Good perceived promotional opportunities
• Project is point of emphasis (especially on stronger
matrices)
• Flexible range of matrix options to suit the organisation

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Disadvantages of Matrix Structures
The Two Boss problem – Project workers have reporting lines
to their project manager and to their functional manager
leading to split loyalties
Delicate balance of power between project and function
possibly leading to conflict (depending on the balance)
Projectitis (in strong matrix) – addiction to the project leading
to an inability to close it down.
Strong negotiating skills are required
Securing and maintaining resources

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Projectised Organisation

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Advantages of Projectised
Structure
• The project manager has full line authority over the project
• The Two Boss problem is solved
• Greater focus on the objective and on the client
• The Lines of communication are shorter (and mostly within
the team)
• Valuable Skills Pool - Completion of a sequence of similar
projects by one team, can lead to creation of a valuable high
skills pool to be used to attract more valuable contracts
• Simple command and control structure
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Disadvantages of
Projectised Structure
● Duplication of effort when the company takes on a number
of similar projects.

● Stockpiling of skills and resources – Project manager tries

to ring fence resources to ensure immediate availability.
Such resources can be under-utilised.

● Danger of maverick approaches to project solutions.

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Disadvantages of
Projectised Structure

● Projectitis – Members form strong attachment to the

project which can result undesired alienation from the
main organisation and artificial prolonging of project
lifespan.

● Isolation of specialists – Specialist skilled resources are

deprived of exposure to the learning and promotional
opportunities provided by a larger specialist area.

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 Summary
• Introduction to Lexicon of Project
Management Terms

• Understand Characteristics of project

lifecycles & System development lifecycles

• Appreciate Recurring Vocabulary (Project

Management Data / EEFs / OPAs)

• Understand organisational structures and

how they influence project management

58