Unit 1

Introduction
 Concept of Project
• Does it matter what activities do and do not constitute projects? Almost any activity can be
claimed to be a project. Some put this very simply as: ‘a project is whatever I call a project’.
One step on from this is the most basic of accepted definitions: a project is a task that has a
beginning and an end. This is insufficient.
• Association for Project Management (2004) : Projects are unique, temporary endeavors
undertaken to achieve a desired outcome. A unique set of coordinated activities, with
definite starting and finishing points, undertaken by an individual or organisation to meet
specific performance objectives within defined schedule, cost and performance
parameters.
• British Standard 6079, 2000: A unique set of coordinated activities, with definite starting
and finishing points, undertaken by an individual or organisation to meet specific
performance objectives within defined schedule, cost and performance parameters.
• PRINCE (2009): A management environment that is created for the purpose of delivering
one or more business products according to a specified business case. And: A temporary
organisation that is needed to produce a unique and predefined outcome or result at a
given time using predetermined resources.
Characteristics
of Project
 Volume VS Variety
• Volume: Volume relates to the scale or size of the project in terms of the amount of work
involved, the number of tasks or activities to be completed, & the overall scope of the project.
• Projects with high volume typically involve a large number of tasks, extensive resources, and
significant time commitments. Managing high-volume projects requires careful planning,
coordination, & resource allocation to ensure that all tasks are completed efficiently & on
schedule.
• Variety: Variety refers to the diversity or complexity of the tasks, activities, and components
involved in the project. Projects with high variety may encompass a wide range of different
tasks, technologies, stakeholders, or objectives.
• Managing high-variety projects requires flexibility, adaptability, and expertise in diverse areas to
address the unique challenges and requirements of each component effectively.
• In summary, volume and variety are two dimensions of project complexity that project
managers must consider when planning, organizing, and executing projects. Understanding the
volume and variety of a project helps project managers develop appropriate strategies, allocate
resources effectively, and manage risks to ensure successful project outcomes.
 Management
• Management refers to the process of planning, organizing, leading, and controlling
resources (such as people, finances, materials, and information) to achieve
organizational goals effectively and efficiently.
• It involves making decisions, allocating resources, coordinating activities, and evaluating
performance to ensure that the organization's objectives are met.
• Management is essential for organizing, guiding, and optimizing the efforts of individuals
and groups within organizations to achieve common goals and fulfill the organization's
mission and vision.
• It provides structure, direction, and leadership, enabling organizations to navigate
complexity, overcome challenges, and seize opportunities for growth and success.
 Project Management
• A project must be “managed” to ensure that the goals and objectives are clear; that the
process is well thought out; and that resource limits in terms of people, money, time, raw
materials and equipment are observed and respected.
• Project management is a tool for conducting & completing unique, one-of-a-kind projects
or functions necessary for execution of the strategy of a company without disrupting what
would otherwise be the normal work flow imbedded in the formal organizational
structure.
• Project management involves the application of knowledge, skills, tools, and techniques to
successfully plan, execute, monitor, control, and close projects in order to achieve specific
goals and objectives within defined constraints.
• Project management is a discipline that is applicable across various industries and sectors,
and it plays a crucial role in ensuring that projects are completed on time, within budget,
and to the desired quality standards.
• Project management is a multifaceted discipline that requires a combination of
technical knowledge, interpersonal skills, and organizational abilities to
successfully deliver projects on time, within budget, and to the satisfaction of
stakeholders.

General Management
Vs
Project Management
 Phases of Project Management
• Initiating
• In the initiation phase, you’ll define the project, including:
• Project goals, scope, and resources, Project purpose, What roles are needed on the team,
What stakeholders expect out of the project
• This is a crucial phase to the project’s success, as it gives the team direction. Without
clarity around what needs to be achieved and why, the project runs the risk of not
accomplishing the end goals and meeting stakeholders' expectations.
• Some steps in the initiation phase include:
• Communicating with stakeholders to understand the purpose and desired outcomes of the
project
• Identifying project scope, Determining SMART goals, Clarifying resources like budget
and time constraints, Confirming team size and roles required, Determining how often
and which stakeholders will be involved throughout the project, Compiling a project
proposal and project charter
 • Planning
• In the planning phase, you’ll determine the steps to actually achieve the project goals—
the “how” of completing a project.
• You’ll establish budgets, timelines, and milestones, and source materials and necessary
documents. This step also involves calculating and predicting risk, putting change
processes into place, and outlining communication protocols. If the initiation phase is
assembling your troops, the planning phase is deciding what to do with them.
• The planning phase can include the following steps:
• Deciding on milestones that lead up to goal completion, Developing a schedule for tasks
and milestones, including time estimates and potential time buffers, Establishing change
processes, Determining how and how often to communicate with team members and
stakeholders
• Creating and signing documents such as non-disclosure agreements (NDAs) or requests
for proposal (RFPs), Assessing and managing risk by creating a risk register, Holding a kick-
off meeting to start project
 • Execute and Complete Tasks
• Executing a project means putting your plan into action and keeping the team on
track. Generally this means tracking and measuring progress, managing quality,
mitigating risk, managing the budget, and using data to inform your decisions.

• Specific steps might include:

• Using tools like GANTT or Burndown Charts to track progress on tasks
• Responding to risks when they visible
• Recording costs
• Keeping team members motivated and on task
• Keeping stakeholders informed of progress
• Incorporating changes via change requests
 • Close Projects
• In the closing phase of the project management lifecycle, you’ll conclude project activities,
turn the finished product or service over to its new owners, and assess the things that went
well and didn’t go so well. It’ll also be a time to celebrate your hard work.
• Steps in the closing phase can include:
• Conducting retrospectives and take notes of changes you can implement in the future
• Communicating to stakeholders of the end of the project and providing an impact report
• Communicating with the new owners of a project, Creating a project closeout report,
Celebrating the end of the project and your successes
• Tools used in the closing phase include:
• Impact report: This report compiles a series of metrics that showcase how your project
made a difference and is presented to your stakeholders.
• Project closeout report: A project closeout report provides a summary of your project’s
accomplishments, and provides key learnings for future project managers to reference.
 7’s of Project Management
• The 7-S framework of management issues was promoted by McKinsey and Co.,
management consultants. Their original 7-S is amended for the project environment,
with a description of each of the elements.
• Four important steps are followed in the implementation of the model. First of all, with
current analysis and structure, identifying deficiencies and ineffective elements in line
studies and processes, internal dynamics, shared values, vision and mission.
• In the second step, the determination of the change and transformation targets that can
be applied to the enterprise. In the third step In line with the objectives that may be
required in the job and making an action plan and the last step is there structuring
according to the plan.
• This model, mainly comprises seven independent factors which are classified as hard
elements (strategy, business structures, systems) and soft elements (management
styles, shared values / corporate culture, human resources and capabilities).
• Strategy: This refers to the organization's plan for achieving its objectives and gaining a
competitive advantage in the market. It involves making decisions about what products or
services to offer, which markets to target, and how to position the organization relative to
competitors.
• Structure: Structure refers to the organization's hierarchical arrangement of roles,
responsibilities, and reporting relationships. It encompasses factors such as the division of
labor, decision-making processes, and communication channels within the organization.
• Systems: Systems are the formal and informal processes and procedures that govern how
work gets done within the organization. This includes both technological systems (such as
information technology infrastructure) and human systems (such as performance
management processes).
• Skills: Skills refer to the competencies, knowledge, and capabilities of the organization's
workforce. This includes both technical skills related to specific job roles and soft skills such
as communication, teamwork, and problem-solving.
• Staff: Staff refers to the organization's employees, including their demographics,
qualifications, and levels of engagement. It encompasses factors such as recruitment,
training, retention, and motivation of employees.
Style: Style refers to the leadership
style and culture within the
organization. It encompasses factors
such as the values, norms, beliefs, and
attitudes that shape behavior and
decision-making within the
organization.

Shared Values: Shared values are the

fundamental beliefs and principles
that guide behavior and decision-
making within the organization.
They represent the organization's
culture and identity and influence how
people interact and work together
towards common goals.
 Project Environment
• The project environment refers to the combination of internal and external factors that
influence the planning, execution, and outcomes of a project. Understanding the project
environment is crucial for project managers to effectively navigate challenges, capitalize on
opportunities, and ensure project success. The project environment can be categorized into
two main components: internal and external.
• Internal Project Environment:
• Organizational Culture: The values, beliefs, norms, & practices within the organization can
significantly impact how projects are managed. A culture that values innovation, collaboration,
and accountability can foster project success, while a culture that is resistant to change or lacks
clear communication channels may hinder project progress.
• Resources: The availability and allocation of resources, including human resources, financial
resources, equipment, and technology, within the organization directly affect project planning
and execution. Adequate resources must be secured and managed effectively to meet project
requirements.
• Organizational Structure: The organizational structure defines the hierarchy, roles, and
responsibilities within the organization. The structure can influence decision-making processes,
communication flows, and project governance mechanisms. Project managers must understand the
organizational structure to effectively coordinate project activities and engage stakeholders.
• Project Management Processes: The project management methodologies, processes, and systems
used within the organization shape how projects are planned, executed, monitored, and controlled.
Consistent application of project management practices helps ensure project consistency and
alignment with organizational goals.
• External Project Environment (Immediate plus PESTLE)
• Stakeholders: Stakeholders are individuals or groups who have an interest or stake in the
project and can influence or be influenced by its outcomes. Stakeholders may include clients,
customers, suppliers, regulatory agencies, and community members. Managing stakeholder
expectations and engagement is critical for project success.
• Market Conditions: Economic, social, political, and technological factors in the external market
environment can impact project feasibility, demand, and risks. Project managers must monitor
market trends and anticipate changes that may affect project outcomes.
 • Legal and Regulatory Requirements: Projects must comply with relevant laws,
regulations, and industry standards. Legal and regulatory requirements may vary
depending on the project scope, location, and industry. Failure to comply with these
requirements can result in delays, fines, or legal liabilities.
• Competitive Landscape: Projects may face competition from other organizations or
projects vying for similar resources or market share. Understanding the competitive
landscape helps project managers identify potential risks and opportunities and
develop strategies to differentiate their project.
• Environmental Factors: Environmental factors, such as weather conditions, natural
disasters, and environmental regulations, can impact project operations and
timelines. Project managers must assess and mitigate environmental risks to
minimize disruptions and ensure project continuity.
• Overall, the project environment is dynamic and multifaceted, requiring project
managers to continuously monitor, adapt, and respond to changes in both internal and
external factors to achieve project objectives effectively. A thorough understanding of
the project environment enables project managers to make informed decisions, mitigate
risks, and optimize project performance.
 5 Cs of Project Environment
• The environment in which projects operate
may be summarized by the 5 Cs. These are:
• Context – the external general influences on
the organisation in which the project is taking
place;
• Completeness – how much of the end
requirement a project will deliver;
• Competitiveness – how many other
organisations will be competing to deliver that
work;
• Customer focus – the expectation that
customers will have their needs met by the
project.
• Complexity – the level of difficulty or
complication of a piece of work called ‘a
project’
 Complexity of Project
• There is a lack of agreement on what complexity really is in project contexts. Even, there
does not seem to be a single definition of project complexity that can capture the whole
concept. In fact, definitions of complexity continues to be ambiguous. It can be understood
not only in different fields but has also different connotations within the same field.
• Complexity is the sum of the following components:
• The differentiation of functions in a project between clients, contractors,
subcontractors, suppliers, banks, etc., or the internal differentiation of the contractor’s
organization (degree of manifoldness);
• The dependencies between super systems, systems, and the different subsystems or
among the latter ones (interrelatedness); and the consequential impact or processes of
a decision field.
• Large projects are generally treated as complex projects because of the number of
components that must interact. This includes factors related to component budgeting, legal
issues, political issues, and contractor coordination efforts. It is very difficult to predict with
any degree of certainty how all these components would interface with each other and
interact over time.
Element of complexity
 Organizational Strategy and Project
• Organizational strategy refers to the overall plan that an organization uses to achieve its
goals and objectives. It involves setting goals, determining the actions needed to achieve
those goals, and allocating resources effectively. Projects, on the other hand, are
temporary endeavors undertaken to create a unique product, service, or result.
• When it comes to organizational strategy and projects, it is important for organizations to
align their project management practices with their overall strategic goals. This ensures
that projects are completed successfully and contribute to the organization's long-term
success.
• Organizational strategy and project management are fundamentally linked, with the
former providing the direction and goals that projects aim to achieve. An organization's
strategy defines its long-term objectives, competitive positioning, and approach to value
creation. Projects, on the other hand, are the vehicles through which organizations
execute their strategies by delivering specific outcomes or changes.
• Aligning projects with organizational strategy is crucial for ensuring that resources are
allocated effectively and that projects contribute to the organization's overall objectives.
This alignment requires a thorough understanding of the strategic priorities and goals of
the organization, as well as clear communication and coordination between strategic
planners and project managers.
• Projects should be selected and prioritized based on their alignment with the
organization's strategic objectives, potential impact on the bottom line, and ability to
deliver value to stakeholders.
• Additionally, project managers must ensure that project plans and deliverables remain
aligned with the growing needs of the organization and its strategy throughout the
project lifecycle.
• Effective project management practices, such as stakeholder engagement, risk
management, and performance measurement, play a critical role in supporting the
execution of the organization's strategy.
• By effectively managing projects, organizations can enhance their ability to adapt to
changing market conditions, exploit new opportunities, and achieve their strategic goals.
 Project Management as a Strategic Capability
• Project management, when viewed as a strategic capability, becomes an essential driver
of organizational success and competitive advantage.
• It go beyond the traditional perception of project management as merely a tactical tool
for delivering projects on time and within budget. Instead, it emphasizes the strategic
importance of effective project management practices in achieving broader
organizational goals and objectives.
• Project management as a strategic capability entails leveraging project management
principles, methodologies, and best practices to align project outcomes with the
organization's strategic priorities.
• This involves integrating project management into the overall strategic planning process,
ensuring that projects are selected, prioritized, and executed in a manner that supports
the organization's strategic objectives.
• Strategic project management requires a proactive approach to project selection and
prioritization, focusing on initiatives that deliver the greatest value and contribute most
significantly to the organization's long-term success.
• Project management as a strategic capability involves fostering a culture of project
management excellence within the organization. By establishing standardized project
management processes and methodologies, and promoting a collaborative and results-
oriented approach to project execution.
• Effective strategic project management also entails incorporating project management
practices with other key organizational functions, such as strategic planning, portfolio
management, and performance measurement.
• In summary, project management as a strategic capability enables organizations to
effectively transform strategic goals into actionable projects and initiatives, while also
ensuring that projects are accomplished in a manner that capitalize on their contribution
to organizational success.
 Resource Coordination
• Resources are people, equipment, place, money, or anything else that you need in order
to do the project that you planned for. Every activity in your activity list needs to have
resources assigned to it. Before you can assign resources to your project, you need to
know their availability.
• Resource availability includes information about what resources you can use on your
project, when they’re available to you, and the conditions of their availability. Don’t forget
that some resources, like consultants or training rooms, have to be scheduled in advance,
and they might only be available at certain times.
• Resource coordination is the strategic management and organization of all available
resources—such as human, financial, material, and equipment—in a project to ensure
optimal utilization, alignment with project goals, and efficient execution of tasks.
• It involves the systematic allocation of resources to specific project activities, considering
factors such as availability, expertise, and timing. Resource coordination aims to
harmonize the deployment of resources across different tasks, teams, and phases of the
project, while also addressing any conflicts, constraints, or uncertainties that may arise.
• What is the best way to identify resources for project coordination?
• Assess the project scope and requirements
• Estimate the resource demand and supply
• Prioritize and allocate the resources
• Monitor and control the resources
• https://
www.linkedin.com/advice/1/what-best-way-identify-resources-project-coordinati
on-w88ne
 Project and Organizational Goal
• The relationship between projects and organizational goals is fundamental to
understanding how projects contribute to the overall success of an organization.
• Projects should be aligned with organizational goals. This means that the objectives of
each project should directly contribute to the achievement of the broader goals set by the
organization.
• For example, if an organizational goal is to increase market share by launching new
products, projects may be initiated to develop and launch those products.
• Projects serve as a means to achieve organizational goals. They are specific activities or
initiatives designed to deliver particular outcomes that advance the organization towards
its objectives.
• For instance, if an organizational goal is to improve customer satisfaction, projects may be
launched to enhance customer service processes, develop new products based on
customer feedback, or implement a customer relationship management system.
• Organizational goals guide the prioritization of projects. Projects that are closely aligned
with strategic objectives are typically given higher priority and allocated more resources.
• Conversely, projects that do not align with organizational goals may be deprioritized or
discontinued to focus resources on initiatives that better support the organization's
objectives.
• Organizational goals influence resource allocation for projects. Budgets, personnel, and
other resources are allocated based on the strategic importance of projects in relation to
organizational goals.
• Projects that are essential for achieving critical organizational goals may receive greater
funding and support compared to projects with less strategic significance.
• Organizational goals may evolve over time, requiring projects to adapt accordingly.
Projects should be flexible and responsive to changes in organizational priorities and
strategic direction.
• If organizational goals shift or new priorities emerge, projects may need to be adjusted,
reprioritized, or realigned to ensure they continue to contribute effectively to the
organization's success.
 Project and Performance Management
• Project performance management is the process of creating, implementing, and
managing projects that contribute to the performance of an organization and its
strategy.
• project performance management refers to the systematic process of evaluating and
improving the effectiveness of project management processes and procedures
throughout the project lifecycle.
• It involves assessing how well project managers deploy resources such as time, funds,
and employees to achieve project objectives and deliver successful outcomes.
• Project performance management focuses on the internal mechanisms and strategies
employed within the project management framework to ensure successful project
delivery.
• Linking your projects to your strategy. Taking the time
to identify the project’s specific benefits before you start
lays the foundation for everything else going forward.
Many projects will link naturally to your strategy; others,
however, may be executives’ pet projects that won’t
move the company forward. These projects should be
avoided.
• Tracking the performance of your projects over
time. Projects are executed by carrying out a variety of
tasks, across departments and all organizational levels.
It’s crucial to not only stay on top of the traditional
components of time, scope, and budget, but also to
manage whether project activities are actually
producing the results you intend.
• Reviewing your project completions for
improvements. When a project is complete it’s
imperative to review whether project goals were
achieved, as well as which tasks went well and which
could be improved.