Stakeholders

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P.I.I.M.T
American University of Leadership
Ahmed Hanane, MBA, Eng, CMA, Partner
email: ahanane360@gmail.com
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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What’s a project?
Examples of projects?
Project Life Cycle?
Dimensions of a project success?
Reasons of project failures?
Triple constraints?
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How do we manage?
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Scope
Cost
Issues
Quality
Communications
Risks
Changes
Project Management Maturity (PMM) Models?
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Center for Business Practices
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Kerzner’s Project Management Maturity Model
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ESI International’s Project Framework
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SEI’s Capability Maturity Model Integration
Project manager’s responsibilities
The Organizational Context:
Strategy, Structure, and
Culture
02-04
After completing this chapter, students will be able to:
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2.
3.
4.
02-02
Understand how effective project management
contributes to achieving strategic objectives.
Recognize three components of the corporate
strategy model: formulation, implementation, and
evaluation.
See the importance of identifying critical project
stakeholders and managing them within the
context of project development.
Recognize the strengths and weaknesses of three
basic forms of organizational structure and their
implications for managing projects.
After completing this chapter, students will be able to:
1.
2.
3.
4.
02-03
Understand how companies can change their
structure
into
a
“heavyweight
project
organization” structure to facilitate effective
project management practices.
Identify the characteristics of three forms of
project management office (PMO).
Understand key concepts of corporate culture and
how cultures are formed.
Recognize the positive effects of a supportive
organizational culture on project management
practices versus those of a culture that works
against project management.
Strategic management – the science of
formulating, implementing and
evaluating cross-functional decisions
that enable an organization to achieve
its objectives.
Consists of:
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02-07
Developing vision and mission statements
Formulating, implementing and evaluating
Making cross functional decisions
Achieving objectives
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Why do some firms succeed while others
fail?
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What is strategy?
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An action a company takes to attain superior
performance.
What is the strategic management process?
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1-8
A central objective of strategic management
is to learn why this happens.
The process by which managers choose a set
of strategies for the enterprise to pursue its
vision.
Strategy
Strategic vision
Winning competitive battles through
deciding how to leverage internal
resources, capabilities, and core
competencies.
Strategic Mission
An application of strategic vision in terms
of products to be offered, the way and
markets to be served. What? How? Who?
Example of visions statements
Amazon
"Our [Amazon's] vision is to be earth's most customer centric company; to
build a place where people can come to find and discover anything they
might want to buy online." (Quoted from Amazon.com)
Hair Salon
“Our salon will change the way you think about a haircut. Full service
comfort, friendly staff, a relaxing atmosphere, and the best prices in
town give you an experience that will leave you glowing both inside and
out.”
Example of missions statements
Facebook: Facebook’s mission is to give people the power to share
and make the world more open and connected.
Google: Google’s mission is to organize the world‘s information and
make it universally accessible and useful.
Microsoft: Microsoft’s mission is to enable people and businesses
throughout the world to realize their full potential.
Skype: Skype’s mission is to be the fabric of real-time
communication on the web.
Yahoo!: Yahoo!’s mission is to be the most essential global Internet
service for consumers and businesses
YouTube: YouTube’s mission is to provide fast and easy video access
and the ability to share videos frequently
Basic Strategic Planning Model
Defining the Mission and Setting Top-Level Goals
External Analysis of Opportunities and Threats
Internal Analysis of Strengths and Weaknesses
Selection of Appropriate Strategies
Copyright © 2001
Houghton Mifflin
Company.Implementation
All rights
reserved.
1-12
of Chosen Strategies
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Badouiya is a newly created business that produce and commercialize
Argan products for cosmetic use.
Our argan products are extracted from freshly harvested kernels from the
fruits of the Argane tree. Pressed when cold, the kernels are then filtered
to extract our aromatic oil. As a result, it does not have the nutty aroma
and is almost odourless. It takes 30 kg of fruits and more than 15 hours
work to produce 1 litre (33,40 fl oz) of oil. The task is carried out
exclusively by Berber women.
Argan oil can be used as an aliment or cosmetically. It enriches the skin and
protects its elasticity. It is rich in natural ingredients which play a role of
primary importance in the renewing of cell structure. In traditional
Moroccan medicine, Argan oil was used for the care of body and face to
counteract the effects of age and weather. It works wonderfully on
wrinkles and dry skin, reduces visible scars left by acne, chicken pox, and
spots and other damage like chapped, cracked skin and on burns and
scalds. When used also for the care of the scalp, it restores shine to dull,
lifeless hair and it strengthens brittle nails. Lastly it can relieve the pain
occurring in joints and is very suitable for massage.
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Mission
Vision
Three strategic goals
Projects are stepping stones of corporate strategy
The firm’s strategic development is a driving force
behind project development
Some examples include:
A firm wishing to…
…may have a project
redevelop products or processes
to reengineer products or processes.
changes strategic direction or product
portfolio configuration
to create new product lines.
improve cross-organizational
communication & efficiency
to install an enterprise IT system.
02-015
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
Mission
Objectives
Strategy
02-016
Goals
Programs
Figure 2.2
Mission
“… the business of
supplying system
components to a worldwide nonresidential
air conditioner market.”
FIGURE 2.3 Illustrating
Alignment Between
Strategic Elements and
Projects
Strategies
a.
b.
c.
Existing products in existing
markets with image
maintenance
Existing products in new
markets (foreign, restricted)
New products in existing
markets (significantly improve
image)
Objectives
a.
b.
c.
14.5% ROI
Non-decreasing dividends
Socially-conscious image
Goals
Programs
Year 1: 8% ROI, $1 dividend,
maintain image, unit cost
down 5%
Year 2: 9% ROI, $1 dividend,
improve image
Year 3: 12% ROI, $1 dividend,
improve image
Year 4: 14% ROI, $1.10 dividend
1. Product Cost Improvement
Program (PCIP)
2. Image Assessment Program
(IAP)
3. Product Redesign Program
(PRP)
4. Product Development Program
(PDP)
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
02-07
Using the same strategic goals you worked on
before, make a list of three possible projects and
discuss them with your calssmates
Stakeholders are all individuals or groups who have an
active stake in the project and can potentially impact,
either positively or negatively, its development. Sets of
project stakeholders include:
Internal Stakeholders
• Top management
• Accountant
• Other functional
managers
• Project team
members
02-019
External Stakeholders
• Clients
• Competitors
• Suppliers
• Environmental,
political, consumer,
and other intervener
groups
Stakeholders:
Groups who are affected by a firm’s performance
and who have claims on its wealth
The firm must maintain
performance at an adequate
level in order to maintain the
participation of key
stakeholders
Firm
Product Market
Primary Customers
Suppliers
Capital Market
Stock market/Investors
Debt suppliers/Banks
Organizational
Employees
Managers
Non-Managers
Stakeholder Involvement
Each of the key
stakeholders wants a piece
of the same pie
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How do you divide the pie in order
to keep all of the stakeholders
involved?
2
How do you increase the size of the
pie so that there is more to go
around?
Stakeholders assessment
Figure 2.4
02-023
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2.
Assess the environment
Identify the goals of the principal
actors
3.
Assess your own capabilities
4.
Define the problem
5.
Develop solutions
6.
Test and refine the solutions
02-24
1. Identify
Stakeholders
7. Implement
stakeholder
management
strategy
2. Gather information
on stakeholders
6. Predict
stakeholder
behavior
3. Identify
stakeholders’
mission
5. Identify
stakeholder
strategy
4. Determine
stakeholder
strengths and
weaknesses
Figure 2.5
02-25
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Use stakeholder template to identify
internal and external stakeholders for
our small business of Argan products
and your involvement strategy
Consists of three key elements:
1.
Designates formal reporting relationships
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Identifies groupings of:
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3.
number of levels in the hierarchy
span of control
individuals into departments
departments into the total organization
Design of systems for
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effective communication
coordination
integration across departments
02-27
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02-28
Functional organizations – group people
performing similar activities into
departments
Project organizations – group people into
project teams on temporary assignments
Matrix organizations – create a dual
hierarchy in which functions and projects
have equal prominence
02-29
Figure 2.6
Strengths
Weaknesses
1. Firm’s design maintained 1. Functional siloing
2. Fosters development of
in-depth knowledge
2. Lack of customer focus
3. Standard career paths
3. Projects may take longer
4. Project team members
remain connected with
their functional group
4. Projects may be suboptimized
02-30
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
02-31
Figure 2.7
02-32
Figure 2.8
Strengths
1. Project manager sole
authority
Weaknesses
1. Expensive to set up and
maintain teams
2. Improved communication 2. Chance of loyalty to the
project rather than the
firm
3. Effective decision-making
4. Creation of project
management experts
3. No pool of specific
knowledge
5. Rapid response
4. Workers unassigned at
project end
02-33
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
Figure 2.9
02-34
Strengths
Weaknesses
1. Suited to dynamic
1. Dual hierarchies mean
environments
two bosses
2. Equal emphasis on
2. Negotiation required in
project management and
order to share resources
functional efficiency
3. Workers caught between
3. Promotes coordination
competing project &
across functional units
functional demands
4. Maximizes scarce
resources
02-35
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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It has been three years, our small business grew
and currently have customers in USA, Canada,
Europe and Morocco. Its sales exceed 1M dhs. It has
three projects alinged with its strategy:
Launch of hair products
Set up a distribution office in North America
Expand its manufacturing capabilities in Agadir
In a team of two, propose a project structure and
share with us your arguments ………………… 10 min
Organizations can sometimes gain
tremendous benefit from creating a fullydedicated project organization
Lockheed Corporation’s “Skunkworks”
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02-37
Project manager authority expanded
Functional alignment abandoned in favor
of market opportunism
Focus on external customer
02-38
Figure 2.10
Centralized units that oversee or improve
the management of projects
Resource centers for:
o Technical details
o Expertise
o Repository
o Center for excellence
02-39
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02-40
Weather station – monitoring and
tracking
Control tower – project management is a
skill to be protected and supported
Resource pool – maintain and provide a
cadre of skilled project professionals
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Performs four functions:
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Establishes standards for managing
projects
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Consults on how to follow these
standards
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Enforces the standards
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Improves the standards
02-42
Figure 2.11
The unwritten rules of behavior, or norms that are used to
shape and guide behavior, is shared by some subset of
organization members and is taught to all new members
of the company.
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Unwritten
Rules of behavior
Held by some subset of the organization
Taught to all new members
02-43
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02-45
Technology
Environment
Geographical location
Reward systems
Rules and procedures
Key organizational members
Critical incidents
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Departmental interaction
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Employee commitment to goals
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Project planning
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Performance evaluation
02-46
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02-47
Understand how effective project management
contributes to achieving strategic objectives.
Recognize three components of the corporate
strategy model: formulation, implementation,
and evaluation.
See the importance of identifying critical
project stakeholders and managing them within
the context of project development.
Recognize the strengths and weaknesses of
three basic forms of organizational structure
and their implications for managing projects.
o
o
o
o
02-48
Understand how companies can change their
structure into a “heavyweight project
organization” structure to facilitate effective
project management practices.
Identify the characteristics of three forms of
project management office (PMO).
Understand key concepts of corporate culture
and how cultures are formed.
Recognize the positive effects of a supportive
organizational culture on project management
practices versus those of a culture that works
against project management.
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