What is Project Management?
Project Management Unit, Lecture 1
LSU 07/02/2004
What is PM?
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What is a project?
• A project is a complex, non-routine, one-time effort limited
by time, budget, resources, and performance specification
designed to meet specific needs.
– Examples include construction of a chemistry department building,
holding a teacher development workshop, creating a new French
dining experience
• Projects generally have a particular set of characteristics in
common
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A clearly stated objective
A specific life span with beginning and end
Multiple departments or people working together
Usually something that has never been done before
Must be done within specific time, cost and performance
requirements
LSU 07/02/2004
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Project Characteristics
• A clearly stated objective
– The scope / goals should be well constrained and definitive,
providing a singular purpose for the project
• A specific life span with beginning and end
– The project life-cycle phases include design, development,
fabrication, testing and operation
• Multiple departments or people working together
– Includes people with different expertise working as a team,
coordinating their effort to address the project needs
• Usually something that has never been done before
– The effort associated with a project is non-routine and, to a greater or
lesser extent, has unique features
• Specific time, cost and performance requirements
– Constraints drive accountability and can force trade-offs
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Two End Points in a Project
Inspiration
Operation
A miracle occurs
How does this miracle occur??
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Why manage a project?
• Accomplish objectives of project within constraints
• Balancing trade-offs between time, cost and performance
– These three constraints can be mutually exclusive
– An effective balance is necessary for project success
• Anticipating, identifying and handling the unexpected
– Unexpected events will happen throughout a project (Murphy’s Law)
– Risk planning is an essential component to project management
• Taking into account unique project features
– As project complexity increases coordination and risk also increase
– New technology development is usually associated with increased
risk and complexity
LSU 07/02/2004
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Basic Management Structures
• Management structured along functional units
– Tasks are allocated across and managed within existing
functional units (i.e. engineering, manufacturing)
• Dedicated project team structure
– Create independent team composed of specialists to focus
exclusively on project
• Matrix structure with project team members drawn
from functional units
– Hybrid form where horizontal project management is
“overlaid” across functional units
– Staff are members of both the project team and function
units
LSU 07/02/2004
What is PM?
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Management Structure Issues
• Functional management structure
– Maximum flexibility in staff use
– Slow response due to communication difficulty
– Appropriate for simple or organizations with few projects
• Project team management structure
– Maximum cohesion and focus provides fast response
– Resistance to “outsiders” and constrained staff expertise
– Appropriate for complex or organizations with many projects
• Matrix management structure
– Improved staff flexibility and team cohesion
– Potential management conflicts where team participants have
multiple bosses
– Effective in many instances
LSU 07/02/2004
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Culture Affects Management
• System of shared beliefs, values & assumptions
• There are 10 primary characteristics
1. Identify with organization as whole rather than individual job or field
2. Activities organized around groups rather than individuals
3. Decisions take into account outcomes on people in organization
4. Units coordinate operations or are independent
5. Degree that rules & policies oversee and control behavior
6. Degree people encouraged to be innovative and risk seeking
7. Rewards based upon performance or factors not related to performance
8. Degree that conflicts and criticisms are aired openly
9. Decisions based upon outcomes or means to achieve those results
10. Degree that external environment changes are taken into account
LSU 07/02/2004
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Culture Supportive of Project Management
• Not at either extreme
• Balance needs of task
and people
• Balance means & ends
• Working in teams
• Identifying with the
overall organization
• High risk and conflict
tolerance
• Loose control
• Performance based
rewards
Figure from “Project Management” by Gray and Larson
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Choice of Management Structure
• The form and details of the project management structure are
highly dependent upon organization culture
• Cultures that encourage cooperation, risk taking and is
tolerant of conflicts
– Need less formal authority and fewer dedicated resources
– Weaker project management structure can be effective
– Functional matrix structure can be used
• Cultures that inhibit collaboration, is risk adverse, and has
low conflict tolerance
– Need stronger authority and more dedicated resources to overcome
difficulties
– Project manager needs central authority & command of resources
– Dedicated project team structure is needed
LSU 07/02/2004
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Project Team Leadership
• Good project managers need to not only cope with the
logistical & technical complexities, but be able to lead the
team through the uncertainties and changes that will occur
during the project
• Understand who the project “stakeholders” are and their
points of view concerning the project.
• Be able to establish influential relationships with team
members and stakeholders.
• Lead by example to show others how to act and respond to
project related issues.
• Exercise influence in a manner that builds and sustains the
trust of others.
LSU 07/02/2004
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Stakeholders
• People inside & outside
of the project have
different views
– Success criteria
– Needs from project
– Contributions to project
Figure from “Project Management” by Gray and Larson
LSU 07/02/2004
• It is necessary to identify
all the stakeholders and
understand their
viewpoint
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Establishing Influence
• In the real world actions by individuals almost always can
not be commanded.
• Influence is a non-monetary currency that can be traded and
used to affect action (i.e. quid pro quo).
• A good leader will naturally build influential relationships
with all stakeholders.
– Providing resources, assistance, cooperation, information
– Acknowledging accomplishments, providing visibility
– Inspiring others with a vision, with standards of excellence and
ethical behavior
– Listening to others’ issues, providing friendship & emotional backing
– Sharing tasks, letting others have ownership, expressing appreciation
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Lead by Example
• By her own actions, a project
manager will demonstrate to
others how they should work
on a project.
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Performance
Ethics
Priorities
Cooperation
Problem solving
Urgency
• Setting the example also
establishes competency and
builds trust
LSU 07/02/2004
What is PM?
Figure from “Project Management” by Gray and Larson
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Stages of Team Development
• Forming: Get acquainted stage when ground rules, roles and
interpersonal relations are established
• Storming: Conflict stage when group control, decision
making, group & project constraints are contested
• Norming: Stage when close relationships develop and the
group demonstrates cohesiveness
• Performing: Established expectations of how to work
together and the group begins channeling energy into
achieving project goals
• Adjourning: Attention is focus on completing the project
and could include conflicting emotions
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Building a Project Team
• Early on establish ground rules such as the following
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How will the project be planned?
What will be the specific roles and responsibilities?
How will progress be assessed and tracked?
How will project changes be documented and instituted?
How, when and where will meetings be scheduled and run?
• Conduct project meetings that are regular, crisp, have a focused
agenda and are time constrained
• Establish a team identify and create a shared vision
• Facilitate group decisions by identifying underlying problems,
generating alternate solutions, fostering a consensus and
following-up on solution implementation
• Accepting, managing and encouraging functional conflict
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Project Team Pitfalls
• Project teams and managers need to be aware of
various pitfalls that can lead to poor decisions.
• A team can become convinced that its decisions are
infallible.
• Fail to examine alternate solutions and problems
that might arise from the current plan.
• Stereotype outsiders negatively so that external
concerns, issues or solutions remain unconsidered.
• Opposition by a member to a particular direction or
solution might be repressed by the team.
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References
“Project Management – The Managerial Process”
by Clifford F. Gray and Erik W. Larson, 2nd
Edition, Published by McGraw-Hill / Irwin,
1221 Avenue of the Americas, New York, NT,
10020, 2003
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