Copyright (C) Amir Ghanbaripour 2023 PROJECT MANAGEMENT COMPETENCIES SSUD71-103: Principles of Project Management Module 1 Professor Craig Langston Dr Amir Ghanbaripour, PMP 1 in this lecture … project management competencies knowledge areas PMBOK body of knowledge 2 project management (PM) D D D D PMBOK Guide 7th Edition: “The application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management refers to guiding the project work to deliver the intended outcomes. Project teams can achieve the outcomes using a broad range of approaches (e.g., predictive, hybrid, and adaptive).” the profession is described as generic, and while construction remains a major instance of the tools and competencies for PM, it is a discipline that can be practiced globally by people with no knowledge of building in various sectors such as health, IT, etc. PM is quite distinct from operations or production management which are ongoing activities a project manager is a senior client advisor, leader of the project team, and spokesperson for the project status 3 what is a project? PMBOK 7th Edition: D D D D D D projects are goal-oriented – each project has the objective of creating some new entity which did not exist before projects have a defined beginning and finish, with a clear project life cycle projects are made up of a large number of separate but independent tasks projects are unique (what does it mean?). project tasks make demands on a range of resources, usually on an intermittent or varying basis projects may be ‘soft’ (virtual or paper-based) or ‘hard’ (leading to physical outputs or assets) 4 a system for value delivery D D D the integrated implementation of business strategies with the intent of establishing, sustaining, and growing a business. There are many components that might make up a company's system for delivering value, including portfolios, programs, projects, products, and operations. Value is the worth, importance, or usefulness of something (The Standard for Project Management). in the context of project management, the value of a project can be subjective and can vary depending on the perspective of stakeholders. Therefore, project managers must work with stakeholders to understand their needs and expectations and ensure that the project delivers value that aligns with those needs. project managers must ensure that the project is aligned with the organization's strategic objectives, and by managing the project in a way that maximizes its value. 5 project context D D D D D the project context refers to the immediate surroundings of the project, which are critical to successful delivery this includes the primary intention for the project, contractual arrangements, other legal and financial relationships, and the particular people and organisations involved these will differ from one project to another, even though they may be in similar locations at the same time also known as ‘project environment’, it includes the economic climate during the project, keenness of competition, availability of services and key resources, statutory requirements, client constraints and objectives. it can also embody what is increasing known as enterprise environmental factors 6 basic management principle plan control execute 7 project life cycle D D D D D projects have a defined life-cycle this may be broken down into stages, each with one or more defined deliverables, that are characterised as having sequential, overlapping or iterative relationships between them for example, most projects have stages comprising feasibility, planning and design, production, and turnover and start-up while project content must take account of the life cycle of its existence, the ‘project’ in a PM context is more limited and therefore excludes matters of operations management in most project life cycles there is a progressive increase in activity towards the middle of the project and then a gradual reduction until completion 8 example: construction life cycle activity handover commissioning construction design feasibility 9 project stakeholders D D D D D stakeholders are individuals or groups of people with a vested interest in the project normally these will include the project manager, customer, sponsor (client), and performing organisation other stakeholders may comprise financiers, suppliers, contractors, team members, controlling agencies and community action groups or representatives managing stakeholder expectations may be difficult because stakeholders often have very different objectives that may come into conflict it is important that the project manager takes responsibility for the interface between project decisions and stakeholders 10 project management qualities D D D D D a project manager needs to be, simultaneously, a leader, a negotiator, a problem solver, a communicator and a manager of project stakeholders and resources leadership involves establishing direction (vision), aligning people (team building), and motivating and inspiring them to perform at their best (empowerment) project managers need a broad understanding of all aspects of the project, but in most cases require a cohesive team with clear delegated responsibilities in any team environment conflicts will arise and these need to be managed as well knowledge of key business and law principles is valuable 11 body of knowledge D D D D D D there is a well developed body of knowledge for project management perhaps the most well known version of this is the PMBOK™ Guide (1996 – 2021), produced and maintained by the Project Management Institute (PMI) this is a default global standard, and in its previous edition (6th) had strong similarities with ISO 21500:2016 PMBOK 6th Edition has ten generic knowledge areas that can be applied to projects of various types, size and discipline field using standardised procedures. there are also five process group phases: namely initiating, planning, executing, monitoring and controlling, and closing Both PMBOK 6th (mainly waterfall) and 7th (more agile) editions are being used by various organisations standard reference for project management based on their specific needs and requirements. 12 PMBOK history 1987 first edition (8 knowledge areas) 1996 second edition (9 knowledge areas) major update in 2000 2004 third edition 2008 fourth edition ISO 21500 released in 2012 2013 fifth edition (10 knowledge areas) 2017 sixth edition (Agile added) 2021 seventh edition (restructured and more focus on agile) 13 knowledge areas (PMBOK 6th Edition) D D D D D D D D D D D project integration management project scope management project schedule management (formerly ‘time’) project cost management project quality management project resource management (formerly ‘human resource’) project communications management project risk management project procurement management project stakeholder management project environmental management (proposed) 14 integration D D D D D D project integration management is the coordination of all aspects of the project into a coherent plan this is commonly known as the project management plan it can be characterised as a combination of good planning, execution and control (no nasty surprises) project success is a function of getting this integration right setting of performance benchmarks such as delivering the project on time, within budget and at the required quality (and safety) standard is important successful projects not only deliver on these benchmarks but aim to exceed them, this adding value to the project sponsor and other stakeholders 15 example: time-cost-quality triangle Q higher standards take more time T better quality costs more balance point crashing time adds costs C 16 scope D D D D D D D scope management is the definition of the project and the method of handling changes this involves a clear statement of what is included and what is specifically excluded from the project a briefing document is used to understand stakeholder requirements and objectives scope needs to be defined and agreed, as time, cost and quality decisions are immediately affected by a change in scope a work breakdown structure underpins the definition of project scope the management of change, and how this impacts on other aspects of the project, is a key activity for the project manager scope ‘creep’ needs to be carefully watched 17 example: work breakdown structure phases locations (major components) (summary tasks) trades within trades, activity costs/resources can be managed & monitored 18 schedule D D D D D D timely completion of the project is a primary goal this is achieved by defining the activities to be undertaken, their sequence and durations this leads to a schedule normally presented in two forms: one is a precedence diagram (network analysis) showing activity duration, earliest and latest start/finish dates, float and the logic of activity sequencing, while the second is a bar chart (Gantt chart) assigning these activities to a calendar grid the critical path method (CPM) is used to identify the activities that determine the total project duration (i.e. paths of no float) control of planned to actual performance is an ongoing task time management takes into account available resources 19 example: network analysis critical path 20 example: Gantt chart activity a activity b activity c activity d activity e activity f activity g activity h activity i activity j activity k 21 cost D D D D D D cost is also a primary goal, and is about ensuring that the project is delivered within an agreed budget each activity in the project schedule needs to be estimated and resources (labour, material, equipment, etc) allocated resource levelling takes place to ensure that times of intensive activity and potential resource conflict are minimised actual costs can be compared against estimated values to monitor performance and initiate remedial action if necessary performance is summarised via an s-curve graph which highlights the project cash flow and timing using a calendar grid the management of contingencies helps offset unexpected activity overruns 22 example: expenditure analysis planned cost actual 23 quality D D D D D quality management is a technique used to ensure that the project meets or exceeds the required quality standards it comprises quality planning (strategies for achievement), quality assurance (monitoring performance) and quality control (compliance with standards) over the project life issues of occupational health and safety form an integral part of quality management continuous quality improvement should be the underpinning philosophy on all projects, and is commonly known as total quality management (TQM) minimisation of defects and costly rectification work is a priority on most projects 24 example: the improvement cycle Plan Review (act) Execute (do) Control (check) 25 resource D D D D D D resources commonly include material, labour and equipment, although human resources and the most important complex projects require a team of people who take on a range of roles, all coordinated by the project manager a hierarchy of human resources is established and responsibilities delegated down to individuals who are assigned particular sub-tasks teamwork thus becomes critical roles, responsibilities and reporting protocols need to be clearly defined at the outset key activities therefore comprise selection of the right people, development of their skills and management of their interaction within the project team 26 example: organisational structures chief executive project managers project teams 27 communications D D D D D D communications is about information management this requires processes to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposal or transfer of project information communications planning is required to determine who needs what information, when they need it and how it will be provided information distribution will require systems to ensure that proper records and audit trails are established communications also include performance reporting so that up-to-date information on a project’s status is available plans for administrative closure and handover are also required 28 example: communications strategy project manager project team 29 risk D D D D D risk management plans are used to identify, analyse and respond to potential project risks risk identification determines which risks are likely to affect the project and documents the characteristics of each risk analysis involves evaluating risks and risk interactions, either quantitatively or qualitatively, to assess the range of possible project outcomes risk response comprises the planning of strategies for minimising, treating (or accepting) and avoiding risk, including contingency and disaster recovery plans often overlooked is the need to continually review changes to project risk profiles arising from new external threats 30 example: risk sensitivity value cost quality time change (-%) change (+%) 31 procurement D D D D D procurement management is the process of acquiring goods and services from outside the performing organisation this involves planning (determining what to procure and when), solicitation (obtaining quotes for work), source selection (evaluating and engaging), contract administration (managing the relationship, including variations and progress payments), and contract finalisation (closing the transaction) the type of project delivery method (e.g. lump sum, cost plus, public private partnership, etc) is a critical upfront decision project financing strategy may form part of the overall procurement process costly or time-sensitive contracts require specific attention 32 example: modern building projects client organisation facilities manager development manager project manager design manager construction manager design team subcontractors 33 stakeholder D D D D D stakeholder management was originally considered to be part of communication management the PMBOK 5th edition (published in 2017) was the first on to elevate stakeholder management to its own discrete knowledge area PMBOK 7th edition focuses more on stakeholder engagement and active participation compared to the previous ones. nevertheless, many practitioners consider stakeholder management to still be part of their ‘communication’ strategy the key processes involved in the new knowledge area comprise identification of the relevant stakeholders, development of an effective stakeholder plan, managing engagement and controlling outcomes to benefit the project 34 example: stakeholder relationships end user project sponsor outwards outwards environment upwards opportunities and threats backwards project manager forwards experience downwards industry outwards project team outwards society 35 environmental D D D D D perhaps project management needs to be extended to take better account of the increasing requirement for environmentally sustainable development (ESD) strategies that minimise waste, use non-renewable resources sparingly, limit impact on the surrounding environment, recycle used materials, and reduce energy demands and greenhouse gas emissions through better design and production are contemporary goals the importance of these matters may require specific plans to be developed in excess of conventional quality and scope management activities a triple bottom line approach should be applied to all projects this is something to consider in future editions of PMBOK 36 example: triple bottom line environmental financial social 37 event management D D D D events are no more than specific types of projects the discipline of project management applies equally well to the management of events, such as public concerts and exhibitions, introduction of new products or services, or the relocation of business operations to a new facility event management underscores the generic nature of project management while events may not lead to the creation of a permanent physical asset, they usually involve the integration of all core PM knowledge areas and are ultimately judged using similar criteria such as delivery on time, within budget and up to the agreed standard 38 agile projects D D D D D agile project management is a new area of development for the profession (bundled with PMBOK 6th Edition and included in the 7th Edition) they may be described as change-driven and are intended to respond to high levels of change and ongoing stakeholder involvement they are of interest because standards like PMBOK have been criticised in the past for being too oriented towards upfront planning, when in many cases a more nimble approach is necessary a good example of this is responding to an emergency or natural disaster, and although disaster contingency plans are prepared well in advance, their execution needs to be aligned to daily events and priorities agile projects conform to a manifesto that outlines core principles 39 project portfolio and program management D D D D D D portfolios are defined as collections of projects (see next page) portfolio management therefore is the administration of a number of concurrent projects programs are subsets of portfolios involving common objectives and organisational control interactions occur between portfolios, programs and projects at a number of levels organisational planning impacts projects due to prioritisation based on high level considerations such as risk exposure, financing and overall strategic direction project portfolio managers are a new breed of project managers that are an integral part of the organisational hierarchy 40 PMBOK™ Guide (Seventh Edition), p.10 – The Standard for Project Management organisational setting 41 the future of project management D D D D D D D project managers will always be in demand (2.5 million new jobs per year by 2023 according to PMI (2023)). Australia is a leading country in top salaries for the project managers. they are well paid professional advisors with significant responsibility the profession arose from a necessity to deal with the increased complexity of projects and to coordinate teams some organisations now use a ‘manage by project’ philosophy the role of project management in disaster recovery is also an emerging area of concentration the role of artificial intelligence (AI) will be to augment human capabilities, automate routine tasks, and provide insights for better decision-making. 42 education implications D D D D D D project management is a discipline that can be taught as an undergraduate or postgraduate course nevertheless, it requires considerable industry experience to practice at a senior level for this reason, most project managers start out in another field, such as construction management, and move up through their organisations over time interestingly, much the same applies to facilities managers and development managers educational requirements are therefore a relevant starting degree, plus continuous professional life-long learning industry certification is common 43
