Project Management
BMCF
BMCF
Agenda – Oct. – Dec. 2011
 Instructor Introduction
 Timetable and Syllabus
 Group Setup
 Session 1 : Projects in Contemporary Organizations; The Project Manager; Project Organization;
Introduction; Defining the Project
 Session 2 : Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation;
Scheduling; The Planning Process
 Session 3 : Resource Allocation; Monitoring and Information Systems; Project Control;
Controlling the Project
 Session 4 : Risk Management; Project Auditing; Project Termination; Putting the Discipline to
work
 Session 5 : Future of project Management
 Project/Oral Presentation
 Final Exam
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Instructor Introduction – Eric Abhyankar
 Consultant in Prague – customers include DHL, CSOB, US Hedge Funds
 Teach at UNVA, VSFS, VSM, UJEP
 Investment Banker at Swiss Bank (UBS)
 10 years progressive Management Consulting experience at AT&T, IBM, UBS, DHL
 PM experience in USA, Asia, Europe
 Masters in CS, Masters in PM, MBA
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Overview of Course Activities Assignment and Credit
Overview of Required Assignments
Credit
Class participation and full attendance
30%
Project Presentation in Class
70%
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Sessions
Session 1 : Defining the Project
Projects; The Project Manager; Project Organization; Introduction to Project Planning
Session 2 : The Planning Process
Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling;
Session 3 : Controlling the Project
Resource Allocation; Monitoring and Information Systems; Project Control
Session 4 : Putting the Discipline to work
Project Auditing; Project Termination
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1.1 Projects in Contemporary Organizations
 Why manage projects?
 Need for Management of ever expanding Knowledge
 Growing demand for customized solutions
 Globalization and global competition
 General direct objectives of any project – performance (scope), time (schedule), cost
(under budget), quality
 Indirect objectives – client satisfaction (impact), project efficiency, organizational
improvement, business development (sales opportunities)
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1.2 Project Stakeholders
 Project Manager
 Project Team
 Senior Management
 The Client
 The Client’s End Customers
 Others?
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1.3 Project Management defined
PMI Definition of a Project: A project is a temporary endeavor undertaken to create a unique
product or service. Temporary means that every project has a definite beginning and a definite
end. Unique means that the product or service is different in some distinguishing way from all
similar products or services.
PMI definition of Project Management: Project Management is the application of knowledge, skills,
tools and techniques to project activities in order to exceed or meet stakeholder needs and
expectations from a project.
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1.4 Project Lifecycle
 All projects are divided into phases: A project phase is completed when a verifiable
work product (deliverable) is completed. The completion of a project phase is
marked by reviews to determine a) if project should continue and b) detect and
correct errors cost effectively.
 Collectively, the project phases are known as the project lifecycle.
 Example : See power point slide
Completion
& Closure
Build & Test
System Design
Project
Start up
Eric Abhyankar - Instructor
Approve
Plan
Prototype Review
Architecture and
Design document
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1.4 Project Management Maturity
 Project Management Maturity models are used to allow organizations to benchmark
the best practices of successful project management firms.
 Development of better project management practices is an evolutionary process
involving a systematic commitment to continuous improvement.
 Example CMMI (Capability and Maturity Model)
Level 5
Level 4
Level 3
Level 2
Level 1
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1.5 Project Organization
Pure Project
The project is a self
contained unit with its own
technical staff, own
administration tied to the
parent firm by tenuous
strands of periodic progress
reports and oversight.
Functional
A hierarchy where each
employee has one clear
superior. Staff are
grouped by specialty
such as production,
marketing, engineering
etc.
Matrix
A pure project
organization
overlaid on the
functional divisions
of the parent firm.
Pure functional, pure project
and Matrix co-exist
Mixed
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1.6 Group Exercise
 Student Introductions
 Project Experience/Background
 Identify some typical projects in your company/organization
 If you do not have typical projects in your organization think of a business you would
like to do
 Who are the stakeholders?
 What is the Project Organization like?
 In what part of the Project Lifecycle are they in?
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1.7 Project Selection – What are the criteria for model selection?
 Realism
 Capability
 Flexibility
 Ease of Use
 Cost
EXERCISE: What is your criteria in selecting a project? See Examples on Page 92, 93
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Sessions
Session 1 : Defining the Project
Projects in Contemporary Organizations; The Project Manager; Project Organization
Session 2 : The Planning Process
Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling
Session 3 : Controlling the Project
Resource Allocation; Monitoring and Information Systems; Project Control
Session 4 : Putting the Discipline to work
Risk Management; Project Auditing; Project Termination
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2.1 The Project Planning process
 Also known as Project Scope Management (PMI)
 Initiation or Initial Project Coordination – committing the organization to begin the
next phase of the project.
 Scope planning – developing a written scope statement as the basis for future
project decisions.
 Scope definition – subdividing the major project deliverables into smaller more
manageable components
 Scope Verification – formalizing acceptance of the project scope
 Scope Change Control – controlling changes to project scope
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2.2 Work Breakdown Structure (WBS) *****
 Definition – A WBS is a deliverable oriented grouping of project elements that
organizes and defines the total scope of the project. WORK NOT IN THE WBS IS
OUTSIDE THE SCOPE OF THE PROJECT.
 A WBS is presented in chart form (similar to a spreadsheet) where each descending
level represents an increasingly detailed description of the project elements.
 Each item in the WBS is assigned a unique identifier; these identifiers collectively are
known as code of accounts. The items at the lowest level of the WBS are referred
to as work packages.
 In very complex projects, work element descriptions are often collected in a WBS
dictionary. A WBS dictionary will typically include work package descriptions as well
as other planning information such as schedule dates, cost budgets, staff
assignments.
 EXERCISE: WBS
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2.3.1 Inputs to Initiation
 Product description
 Strategic plan
 Project selection criteria
 Historical information
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2.3.2 Inputs to Scope planning
 Product description
 Project charter
 Constraints
 Assumptions
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2.3.3 Inputs to Scope Definition
 Scope statement
 Constraints
 Assumptions
 Other planning outputs
 Historical information
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2.3.4 Inputs to Scope Verification
 Work results
 Product documentation
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2.3.5 Inputs to Scope Change Control
 Work breakdown structure
 Performance Reports
 Change Requests
 Scope Management plan
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2.4 Project Planning
 What is Project Integration Management? – includes the processes required to
ensure that the various elements of the project are properly coordinated.
 Project plan development
 Project plan execution
 Overall Change control
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2.4.1 Elements of a Project Plan (PMI)
 Project Charter
 A description of the project management approach or strategy (a summary of the individual
management plans from the other knowledge areas).
 Scope statement which includes project deliverables and the project objectives
 Cost estimates, scheduled start dates and responsibility assignments to the level of the WBS at
which control will be exercised.
 Performance measurement baselines for schedule and cost
 Major milestones and target dates for each
 Key or required staff
 Key risks, including constraints and assumptions, planned responses for each management
plans, including scope management plan, schedule management plan, etc.
 Open issues and pending decisions
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2.4.2 Group Exercise
 Each Group should pick one project from the list of typical projects in their
organization or companies
 Write the Project Plan incorporating the elements of the project plan (Assume that
the project has not yet started).
 Hint: Use the WBS you have prepared earlier
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2.4.3 Project Plan Execution
 What are the tools and techniques required for Project plan execution?
 General Management skills
 Product skills and knowledge
 Work authorization system
 Status review meetings
 Project Management information systems
 Organizational procedures
 QUESTION: What percentage of a project’s budget will be expended in Project Plan execution?
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2.4.4 Overall Change Control *****
 Overall Change Control is concerned with (a) influencing the factors which create changes to
ensure that changes are beneficial, (b) determining that a change has occurred and (c) managing
the actual changes when and as they occur.
 Inputs to Overall Change control System: (a) Project Plan (b) Performance Reports (c) Change
Requests
 Tools and Techniques for overall change control
 Change Control Systems
 Configuration Management
 Performance measurement
 Additional planning
 Project Management Information system
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2.5 Conflicts and Negotiation
 Under what circumstances do conflicts arise on projects?
 When should the PM use negotiation to resolve conflicts?
 Project Team conflicts
 Customer conflicts – Scope creep
 Change Control conflicts
 Vendor/Sub contractor conflicts
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2.5.1 Categories of Conflict
 Groups working on projects may have different goals and expectations
 There is considerable uncertainty about who has the authority to make decisions
 There are interpersonal conflicts between people who are parties-at-interest in the
project
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2.5.2 Conflicts in the Project Team
 Dynamics of team formation
 Forming
 Storming
 Norming
 Performing
 Adjourning
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2.5.3 Principled Negotiation
 Separate the people from the problem
 Focus on interests, not positions
 Before trying to reach agreement, invent options for mutual gain
 Insist on objective criteria
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2.5.4 Why do Project Teams fail?
 Poorly developed or Unclear goals
 Poorly defined Project Team roles and interdependencies
 Lack of Project Team motivation
 Poor communication
 Poor Leadership
 Turnover Among Project Team Members
 Dysfunctional behavior
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2.5.4 Group Exercise
 Group A - Customer
 Group B – Project Team
 Group C – Sub contractor
 Identify areas of potential conflict. How will you use Principled Negotiation to resolve
conflicts?
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2.6 Project Cost Estimation
 Project Cost Estimation and Management includes the processes required to ensure
that the project is completed within the approved budget.
 Resource Planning – determining what resources (people, equipment, materials) and
what quantities of each should be used to perform project activities.
 Cost Estimating – developing an approximation (estimate) of the costs of the
resources needed to complete project activities.
 Cost Control – controlling changes to the project budget
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2.6.1 Inputs to Resource Planning
 Work breakdown structure
 Historical information
 Scope statement
 Resource pool description
 Organizational policies
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2.6.2 Inputs to Cost Estimating
 Work breakdown structure
 Resource Requirements
 Resource Rates
 Activity duration estimates
 Historical information
 Chart of accounts
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2.6.3 Inputs to Cost Budgeting
 Cost Estimates
 Work breakdown structure
 Project schedule
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2.6.4 Inputs to Cost Control
 Cost Baseline
 Performance Reports
 Change requests
 Cost management plan
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2.7 Scheduling
 Also known as Project Time Management. What does Scheduling consist of?
 Activity Definition – identifying the specific activities that must be performed to
produce the various project deliverables
 Activity sequencing – identifying and documenting interactivity dependencies.
 Activity Duration Estimating – estimating the number of work periods which will be
needed to complete individual activities
 Schedule Development – analyzing activity sequences, activity durations and
resource requirements to create the project schedule
 Schedule control – controlling changes to the project schedule.
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2.7.1 Inputs to Activity Definition
 Work Breakdown structure
 Scope statement
 Historical information
 Constraints
 Assumptions
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2.7.2 Inputs to Activity Sequencing
 Activity List
 Product description
 Mandatory dependencies
 Discretionary dependencies
 External dependencies
 Constraints
 Assumptions
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2.7.3 Inputs to Activity Duration Estimating
 Activity List
 Constraints
 Assumptions
 Resource requirements
 Resource capabilities
 Historical information
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2.7.4 Project Network Diagrams - Homework
 Find the Network, expected activity time and critical path
 Modern PM software such as Microsoft Project can automatically generate CPM
networks
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2.7.5 Inputs to Schedule Development
 Project Network Diagram
 Activity duration estimates
 Resource requirements
 Resource pool description
 Calendars
 Constraints
 Assumptions
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2.7.6 Inputs to Schedule Control
 Project Schedule
 Performance reports
 Change requests
 Schedule management plan
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2.7.7 Group Exercise
 Develop a project schedule and project network diagram for the Project you have
chosen for earlier exercises.
 Develop a budget for your project keeping in mind the resource requirements and
the Project schedule.
 Hint: Use the Project Plan and WBS you developed earlier
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Sessions
Session 1 : Defining the Project
Projects in Contemporary Organizations; The Project Manager; Project Organization
Session 2 : The Planning Process
Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling;
Session 3 : Controlling the Project
Resource Allocation; Monitoring and Information Systems; Project Control
Session 4 : Putting the Discipline to work
Risk Management; Project Auditing; Project Termination
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3.1 Resource Allocation
 The Resource Allocation problem – The problem of managing the trade offs among
time, performance and cost utilizing the available resources.
 The extreme points of relationship between time use and resource use are:
– Time Limited – The project must be finished by a certain time, using as few
resources as possible. It is time, not resource usage that is critical.
– Resource limited – The project must be finished as soon as possible, but without
exceeding some specific level of resource usage or some general resource
constraint.
 The points between these two extremes represent time/resource use trade offs
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3.1.1 Critical Path Method - Definitions
 Crashing definition – Taking action to decrease the total project duration after
analyzing a number of alternatives to determine how to get the maximum duration
compression for the least cost.
 Critical Path definition – In a scheduling diagram, the series of activities which
determines the earliest completion of projects.
 Critical Path method definition - A technique used to predict project duration by
analyzing which sequence of activities (or path) has the least amount of scheduling
flexibility. Early dates are calculated by means of a forward pass using a specified
start date. Late dates are calculated by means of a backward pass starting from a
specified completion date.
 Critical activities in real world projects typically constitute less than 10% of the total
activities
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3.1.2 Resource loading and Resource levelling - definitions
 Resource loading describes the amounts of individual resources an existing
schedule requires during specific time periods. It gives the demands a project or a
set of projects will make on a firm’s resources.
 Resource levelling aims to minimize the period by period variations in resource
loading by shifting tasks within allowances.
 Homework - Solved problem on Page 443 of the text
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3.2 Monitoring and Information Systems
 Planning, Monitoring, Controlling cycle – key things to be planned, monitored and
controlled are time (schedule), cost (budget) and performance/quality (specifications)
 PM must examine the project plan in order to extract performance, time and cost
goals
 These goals should relate in some fashion to each of the different levels of detail e.g.
activities, tasks, work packages etc.
 Data must be identified that measure achievement against these goals and
mechanisms designed that gather and store such data.
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3.2.1 How should Data be Collected?
 Frequency counts – For example, number of missed milestones (project is delayed), number of
defects in the project per week etc. Reported as events per unit time or events as a percent of a
standard number.
 Raw Numbers – Actual project data such as dates, dollars spent, hours worked on activities,
physical amount of resources used etc. These numbers are reported in a wide variety of ways but
often as direct comparisons with an expected or standard number. Variances are reported either
as the difference between actual and standard or as ratio of actual to standard.
 Subjective numeric ratings – These numbers are subjective estimates usually of a quality such as
risk made by knowledgeable individuals or groups.
 Indicators – When the PM cannot measure some aspect of system performance directly, it may
be possible to find an indirect measure or indicator. For example, the speed with which change
orders are processed and changes are incorporated into the project is an indicator of team
efficiency.
 Verbal measures – Measures for such performance characteristics such as “quality of team
member cooperation”, “morale of team members” or “quality of interaction with the client” take the
form of verbal characterizations. They may sometimes be measured by surveys.
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3.2.2 Project Reporting
 Communications Planning – determining the information and communications needs
of the stakeholders: who needs what information, when will they need it, and how will
it be given to them.
 Information Distribution – making needed information available to project
stakeholders in a timely manner.
 Performance Reporting – collecting and disseminating performance information. This
includes status reporting, progress measurement and forecasting.
 Administrative Closure – generating, gathering and disseminating information to
formalize phase or project completion.
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3.2.3 Common Reporting Problems
 Too much detail – Unnecessary and too much detail both in the reports themselves
and in the input being solicited from workers usually results in the reports not being
read.
 Poor interface between the Project information system and the parent system – The
parent organization’s information system must serve as a definitional prototype for
the project’s information system. Reports should be built from standard and system
available data as much as possible.
 Poor correspondence between the planning and the monitoring systems – If the
monitoring system is not tracking information directly related to the projects’ plans,
control is meaningless.
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3.2.4 Earned Value Analysis
An aggregate performance measure for measuring the overall performance of the project.Earned
Value Analysis is important in PMI examinations but in actual practice used in highly technical
organizations such as Airbus or Boeing.
Formulae:
EV – AC = CV (Cost Variance, Cost overrun is negative)
EV – PV = SV (Schedule Variance, Behind Schedule is negative)
ST – AT = TV (Time Variance, Delay is negative)
EV = Earned Value
AC = Actual Cost
PV = Planned Value
ST = Scheduled Time
AT = Time Variance
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3.3 Project Control
 Fundamental objectives:
– The regulation of results through the alteration of activities
– The stewardship of organizational assets
 Physical Asset Control – Project assets must be controlled
 Human Resource Control - Controlling and maintaining the growth and development
of project staff
 Financial Resource Control – Project budget and capital investment control
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3.3.1 Types of Project Control Processes
 Cybernetic Control – Automatic negative feedback system to prevent deviation from
standard.
 Go/No-go control – To determine if next activity can be started based on current
information. Often represented by Traffic Lights.
 Postcontrol - Also known as “lessons learned”. Also reported through project
performance analysis of Milestones, checkpoints, budgets, Final report on project
results and concludes with recommendations for performance and process
improvement.
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3.3.2 Critical Ratio Control Charts
 The Critical Ratio is made up of two parts : Ratio of actual progress to scheduled
progress and the ratio of budgeted cost to actual cost:
 Critical Ratio = (Actual Progress/Scheduled Progress) X (Budgeted Cost/Actual
Cost)
 A Critical Ratio of > 1 usually indicates no problems but a Critical Ratio < 1 usually
predicts trouble in the project
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3.3.3 Formal Change Control System
 To review all requested changes to the project (both content and procedures)
 Identify all task impacts
 Translate these impacts into project performance, cost and schedule
 Evaluate the benefits and costs of the requested changes
 Identify alternative changes that might accomplish the same ends
 Accept or reject the requested changes
 Communicate the changes to all concerned parties
 Ensure that the changes are implemented properly
 Prepare monthly reports that summarize all changes to date and their project
impacts
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3.3.4 Implementation of Change Control Systems *****
 All project contracts or agreements must include a description of how requests for a change in
the project’s plan, budget, schedule, and/or deliverables will be introduced and processed.
 Once a project is approved, any change in the project will be in the form of a change order that
will include a description of the agreed upon change together with any changes in the plan,
budget, schedule and/or deliverables that result from the change. For any but the most minor
changes, a risk identification and analysis study should be performed. In order to study the
potential impact of change, a simulation study may be conducted.
 Changes must be approved in writing by the clients agent as well as by an appropriate
representative of senior management of the firm responsible for carrying out the project.
 The project manager must be consulted on all desired changes prior to the preparation and
approval of change order. The project manager’s approval is not required.
 Once the change order has been completed and approved, the project master plan should be
amended to reflect the change, and change order becomes a part of the master plan.
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3.3.5 Group Discussion
 Homework – Airbus A380 – read up on what is the latest on Airbus A380
 Each Group has developed the WBS, Project and Budget cost estimate
 Class discussion on:
– How the Project Resources will be allocated
– How will the Project be controlled
– What type of Project Reports should be generated
– How will Project Change Control be implement
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Sessions
Session 1 : Defining the Project
Projects in Contemporary Organizations; The Project Manager; Project Organization
Session 2 : The Planning Process
Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling
Session 3 : Controlling the Project
Resource Allocation; Monitoring and Information Systems; Project Control
Session 4 : Putting the Discipline to work
Risk Management; Project Auditing; Project Termination
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4.0 Risk Management
 Projects have uncertainty regarding project funding, the availability of necessary resources,
potential technical problems, etc.
 Project Risk can be defined as any possible event that can negatively affect the viability of a
project.
– Risk = (Probability of event) (Consequences of Event)
 Risk Management is the art and science of identifying, analyzing and responding to risk factors
throughout the life of a project and in the best interest of its objectives.
 Risk management consists of anticipating at the beginning of the project, unexpected situations
that may arise that are beyond the project manager’s control.
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4.0.1 Risk Management - Process
 Risk Management comprises of four distinct process:
– Risk Identification – process of determining the specific risk factors that can reasonably be
expected to affect your project.
– Analysis of probability and consequences – the potential impact of these risk factors,
determined by how likely they are to occur and the effect they would have on the project if
they did occur.
– Risk mitigation strategies – steps taken to minimize the potential impact of those risk factors
deemed sufficiently threatening to the project.
– Control and documentation – creating a knowledge base for future projects based on
lessons learned.
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4.0.2 Risk Identification
 Financial risk
 Technical risk
 Commercial risk
 Execution risk
 Contractual or legal risk
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4.0.3 Analysis of probability and consequences
 Reasonable estimate of the likelihood of each of these risk events occurring
 Probability combined with consequences provides a sense of overall project risk
 Risks classified as having both high likelihood of occurring (probability) and high potential for
harming the project (impact) are most relevant to project planning
 Risks that fall into this category require detailed contingency planning in order to adequately
protect the project’s development cycle.
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4.0.4 Risk mitigation strategies
 Accept Risk – in situations where we either have no alternative or we consider the risk small
enough to be acceptable.
 Minimize risk – lower exposure to risk through partnerships or joint ventures
 Share risk – with stakeholders or other organizations
 Transfer risk – to other project stakeholders
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4.1 Project Auditing
 The project audit is a thorough examination of the management of a project, its methodology and
procedures, its records, its properties, its budgets and expenditures, and its degree of completion
 The minimum six parts of a Project Audit Report:
– Current Status of the project: Does the work actually completed match the planned level of
completion?
– Future status: Are significant schedule changes likely? What are the likely changes?
– Status of crucial tasks: What progress has been made on tasks that could decide the
success or failure of the project?
– Risk assessment: What is the potential for project failure or monetary loss?
– Information pertinent to other projects: What lessons learned from the project being audited
can be applied to other projects being undertaken by the organization?
– Conclusion: What assumptions or limitations affect the data in the audit?
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4.2 The Project Audit Life Cycle
 Project Audit Initiation: Starting the audit process, defining the purpose and scope of
the audit, gathering information to determine proper audit methodology.
 Project Baseline Definition: Identifying performance areas to be evaluated,
determining standards for each area and determining management performance
expectations.
 Establishing an Audit database: Note: The required database for project audits
should be specified in the project plan.
 Preliminary Analysis of the project: The auditor must analyze the data and then
present the analysis to Senior managers. The auditors duty is to brief the PM on all
findings and judgments before releasing the audit reports.
 Audit Report Preparation: The audit report as discussed in last slide.
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4.3 Project Termination
 Why is Project Termination important?
 How are projects typically terminated?
– Termination by Extinction – normal completion of the project
– Termination by Addition – when projects are spun off as independent new sub
projects
– Termination by Integration – When projects are successfully completed, the
resources and project output is returned to the parent organization.
– Termination by Starvation – Project closes on its own due to lack of funding,
disinterested Senior Management etc.
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4.4 How should Project Termination be handled?
 Ensure completion of the work, including tasks performed by subcontractors.
 Notify the client of project completion and ensure that delivery is accomplished.
Acceptance of the project must be acknowledged by the client.
 Ensure that ALL documentation is complete including project Final Report.
 Clear for final billings and oversee preparation of final invoices sent to the client.
 Redistribute personnel, materials, equipment, and any other resources to the
appropriate places.
 Clear project with legal counsel or consultant. File for patents and record NDAs.
 Ascertain product support requirements, decide how such support will be delivered
and assign responsibility.
 Oversee the closing of the project’s books.
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4.5 Why do Projects fail?
 A Project based organization is not required.
 Insufficient support from Senior Management.
 Appointing the wrong person as Project Manager.
 Poor planning.
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Sessions
Session 5 : The Future of Project Management (Extra)
Types of Roles; Portfolio Management; Knowledge Management; Oral Presentations
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5.1 Current Project Management methodologies
 Project Management Institute (PMI) – www.pmi.org
 PRINCE (PRojects IN Controlled Environments) www.prince2.org.uk
.
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5.2 Tool Set
 What are some of the tools used in Project management?
 Microsoft Project (universal)
 Planview (Portfolio Management Tool)
 Project Work Bench (PWB)
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5.2 Project Portfolio Management ****
 Project portfolio management groups projects so they can be managed as a
portfolio, much as an investor would manage his stocks, bonds and mutual funds
 It gives executives a bird's-eye view of projects so they can spot redundancies,
spread resources appropriately and keep close tabs on progress
 Previously, projects were approved and then managed independently. They were
evaluated as a whole at the executive level only when it came time to put together
annual reports. A company needs that overall view so it can keep an eye on projects
in real time to make sure that all of them are working together to meet core business
goals
 Focus on projects as a portfolio of investments - how much a project will cost, its
anticipated risks and returns in relation to other projects. This way, entire portfolios
can be managed to produce the highest returns based on current conditions
 Managed by a Portfolio Manager or Program Manager
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5.3 Knowledge Management Anecdotes
”I call my field knowledge management but you can’t really
manage knowledge. What a company can do is manage the
environment that optimizes knowledge.”
(Larry Prusak, Managing Partner, IBM Global Services)
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5.4 What is Knowledge Management?
 Knowledge is the information that adds value and helps make the right
choices
 Knowledge Management is the management of this added value information.
 We define added value information as industry info, competitor info, IT-info,
experience, individual and departmental specific information
Wisdom
Knowledge
Information
Data
Eric Abhyankar - Instructor
Add
context
Add
understanding
Add judgment
(values)
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5.5 Types of Knowledge
Explicit:
Tacit:
 Formal and systematic
 Insights, intuitions, and hunches
 Knowledge of rationality (mind)
 Knowledge of experience
 Can be expressed in words and numbers
 Not easily visible and expressible numbers
 Easily communicated and shared in form
of hard data,
 Highly personal, hard to formalize, difficult
to communicate or share with others
 formula, codified procedures, or universal
principles
 Rooted in individual’s actions and
experiences, including ideals, values, or
emotions
 Can be expressed in computer code,
chemical formula, sets of
 general principles
Managed by tools
Eric Abhyankar - Instructor
Managed by Mentoring,
Q&A and practises
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5.6 Knowledge management implementation strategy
Processes
Are the implemented
processes supporting the
accumulation and
preparation of data as well
as the distribution and use
of explicit knowledge?
Culture
Are the people in the
organization enabled
and motivated to share
knowledge? Is the
management exemplary
in sharing knowledge?
Do the experts have the
feeling of transparent
decisions?
MGT systems
What is measured?
Does it really
match to the
managements
expectations?
How does the organization
support their
knowledge workers
with IT-Infrastructure?
TECHNOLOGY
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Best Wishes
Many thanks for your participation and Good Luck !
Eric Abhyankar - Instructor
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