Chapter 1
Projects in Contemporary
Organizations
Copyright 2009 John Wiley & Sons, Inc.
Introduction
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Much of project management developed by the
military
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Navy’s Polaris program
NASA’s space program
Strategic defense initiative
Project management has found wide acceptance in
industry
It has many applications outside of construction
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Managing legal cases
Managing new product releases
Introduction

Main forces in driving the acceptance of
project and other forms of management:
1.
2.
3.

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Continued
The exponential growth of human knowledge
The 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
Project management is one way to do more
faster
Projects Tend to be Large
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Projects tend to be large
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Projects are getting larger over time
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The Channel Tunnel, or Chunnel
Denver International Airport
Panama Canal expansion project
Three Gorges Dam, China
Flying: balloons  planes  jets  rockets 
reusable rockets
The more we can do, the more we try to do
Project Management Also Getting
Smaller
1.
2.
3.
More people are seeing the
advantages of project management
techniques
The tools are become cheaper
The techniques are becoming more
widely taught and written about
Main Goals of Project Management
1.
2.
3.

Time
Cost
Performance
Time, cost, and performance are all related
on a project
Direct Project Goals: Performance,
Cost, Time
Figure 1-1
Project Management Institute (PMI)

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The Project Management Institute is the
major project management organization
Founded in 1969
Grew from 7,500 members in 1990 to over
260,000 in 2007
The Project Management Journal and PM
Network are the leading project management
journals
Project Manager
Project manager is the key individual
on a project
 Project manager is like a mini-CEO
 While project manager always has
responsibility, may not have necessary
authority

Trends in Project Management
Achieving strategic goals
 Achieving routine goals
 Improving project effectiveness
 Virtual projects
 Quasi-projects

Recent Changes in Managing
Organizations
1.
2.
3.
Consensual management
Systems approach
Projects as preferred way to
accomplish goals
The Definition of a “Project”
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Modern project management began with the
Manhattan Project
In the early days, project management was
used mainly for very complex projects
As the tools became better understood, they
began to “trickle down” to smaller projects
It has also moved out of just manufacturing
to services
Major Characteristics of a Project
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Importance
Performance
Life cycle with a finite due date
Interdependencies
Uniqueness
Resources
Conflict
Why Project Management?


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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
Negative Side to Project Management
Greater organizational complexity
 Higher probability organizational policy
will be violated
 Says managers cannot accomplish the
desired outcome
 Conflict

The Project Life Cycle
Figure 1-3
Time Distribution of Project Effort
Figure 1-4
Another Possible Project Life Cycle
Figure 1-5
Risk During at the Start of the Life
Cycle
Figure 1-6
Risk During the Life Cycle
Figure 1-7
The Structure of this Text
Follows the project life cycle
 Some topics stand-alone
 Other topics incorporated throughout

Part I: Project Initiation
1.
2.
3.
4.
5.
Projects in Contemporary Organizations
Strategic Management and Project
Selection
The Project Manager
Negotiation and the Management of Conflict
The Project in the Organizational Structure
Part II: Project Planning
6.
7.
8.
9.
Project Activity Planning
Budgeting and Cost Estimation
Scheduling
Resource Allocation
Part III: Project Execution
10.
11.
12.
13.
Monitoring and Information Systems
Project Control
Project Auditing
Project Termination