Chapter 1-Projects

in Contemporary
Organizations
Most. Sadia Akter
Lecturer
Department of Management Information
Systems,
Faculty of Business Studies
University of Dhaka
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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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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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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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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
• Dynamic and quasi-projects

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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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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
• Strategic Management and Project Selection
• The Project Manager
• Managing Conflict and the Art of Negotiation
• The Project in the Organizational Structure

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Part II: Project Planning
• Project Activity and Risk Planning
• Budgeting: Estimating Costs and Risks
• Scheduling
• Resource Allocation

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Part III: Project Execution
• Monitoring and Information Systems
• Project Control
• Project Auditing
• Project Closing Out

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