NEES
Project Management Workshop
June 16, 2014
June 18, 2014
Segment 1
1
Project Management
• Project Management Institute (PMI)
– Best Practices
– Governing Body
– Think Tank
• Project Management Body of Knowledge
• Project Manager Professional Certifications
Getting started. Some definitions.
What is a Project?
• A temporary endeavor undertaken to create a
unique product, service, or result.
PMI Body of Knowledge, 2008, p434
• “Projects , rather than repetitive tasks, are
now the basis for most value added in
business”
Tom Peters
3
Getting started. Some definitions.
What is a Project?
• They are:
– Unique
– With a beginning and an end
– Of finite duration…………
The BIG DIG
Let’s get into some PM Basics
4
Project Management Institute
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Risk Management
Project Human Resources Management
Project Communications Management
Project Procurement Management
Project Stakeholder Management
5
Project Integration Management
Processes required to ensure that the various elements
of the project are Properly coordinated.
Making tradeoffs among competing Objectives and
alternatives to meet or exceed stakeholder needs and
expectations.
Needs vs. Expectation
•Plan Development
•Plan Execution
•Integrated Change Control
•Project Charter
•Life Cycle and Milestones
•Project Stakeholders
6
Project Scope Management
Processes required to ensure that the project includes
the work requires and only the work requires, to
complete the project successfully.
•Initiation
•Scope Planning, Definition and Verification
•Scope Change Control
•Requirements Definition
•Work Breakdown Structure
•Product Baseline Control
•Project Baseline Control
7
Project Time Management
Processes required to ensure timely completion of the
project.
•Activity Definition
•Activity Sequencing
•Activity Duration Estimating
•Project Schedule Development
•Schedule Control
•Schedule Estimating
•Critical Path Analysis
•Schedule Tracking
8
Project Cost Management
Processes required to ensure that the project is
completed within the approved budget.
•Resource Planning
•Cost Estimating
•Cost Budgeting
•Cost Control
•Cost and Schedule Control System
•Cost Analysis
9
Project Quality Management
Processes required to ensure that the project will
satisfy the needs for which it was undertaken. All
activities of the overall management function that
determine quality policy, objectives and implements
them by means such as quality planning, quality
assurance, quality control, and
quality improvement, within the quality system.
•Quality Assurance Plan
•Quality Management
•Quality Metrics, Measurements and Controls
•Continuous Quality Improvement
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Project Human Resource Management
Processes required to make the most effective use of
the people involved with the project. Includes all of the
project stakeholders – sponsors, customers, and
individual contributors.
•Organizational Planning
•Staff Acquisition and Development
•Project Leadership
•Staffing Plan
•Project Organization
•Project Team Building
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Project Communication Management
Processes required to ensure timely and appropriate
generation, collection, dissemination, storage and
ultimate disposition of project information. It provides
the critical links among people, ideas, and information
that are necessary for success.
•Communications Planning
•Information Distribution
•Program Reviews, Design Reviews and Reporting
•Project Documentation and Records
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Project Risk Management
www.youtube.com/watch?v=J7O7NRV8MMM
Project Risk Management
The systematic process of identifying, analyzing, and
responding to project risk. It includes maximizing the
probability and consequences of positive events and
minimizing the probability and consequences of adverse
events to project Objectives.
•Risk Management Plan
•Risk Identification
•Risk Element Analysis & Metrics
•Risk Avoidance & Mitigation
•Qualitative Risk Analysis
•Quantitative Risk Analysis
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Project Procurement Management
Processes required to acquire goods and services, to
attain project scope, from outside the performing
organization.
•Procurement Planning
•Solicitation Planning
•Solicitation
•Source Selection
•Contract Administration
•Contract Closeout
15
Project Stakeholder Management (added in 2013)
Processes required to identify all individuals or
organizations impacted by the project, analyzing
stakeholder expectations and impact on the project,
and developing the appropriate management
strategies for effectively engaging stakeholders in
project decisions and execution.
• Identification of Stakeholders
• Planning Stakeholder Management
• Managing Stakeholder Engagement
• Controlling Stakeholder Engagement
PROJECTS are composed of Processes
• A series of actions bringing about a result
• Performed by people
• Two major categories
• Project Management Processes describe,
organize and complete the work of the Project
• Product Oriented Processes specify and create
the project’s product
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FIVE PROJECT MANAGEMENT PROCESSES
• Initiating –authorizing the project or phase
• Planning – defining and refining objectives
and selecting the best courses of action
• Executing – coordinating people and other
resources to carry out the plan
• Controlling – regularly monitoring and
measuring to identify variances; so that
corrective action may be taken
• Closing – formal acceptance; orderly end to
the project
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Project Management Processes
INITIATING
PLANNING
EXECUTING
LEVEL
OF
ACTIVITY CONTROLLING
CLOSING
TIME
19
Why do Projects? Projects are the
instruments/vehicle of change
PROJECT
Today’s State
A
Needs
Requirements
Expectations
Constraints
Future State
-Scope
-Schedule
-Cost
-Quality
-Procurement
-Human Resources
-Risk
-Communications
-Integration
B
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Process & Project Work
1.
2.
3.
4.
5.
6.
7.
8.
PROCESS
Repeat process or product
Several objectives
Ongoing
People are homogeneous
Performance, cost, & time
known
Part of the line organization
Bastions of established
practice
Supports status quo
1.
2.
3.
4.
5.
6.
7.
8.
PROJECT
New process or product
One objective
One shot – limited life
More heterogeneous
Performance, cost & time
less certain
Outside of line organization
Violates established
practice
Upsets status quo
21
What then is Project Management?
• A set of principles, practices, and techniques
applied to LEAD project teams and CONTROL
project schedule, cost and performance risks
to result in delighted customers.
Project Management is a discipline. A Behavior!
22
What Project Management is not!
• A collection of elaborate, sophisticated rules,
principles and the like, whose goal is to drive
up your overhead or to require mountains of
paperwork.
• NOTE: Software packages do not manage
projects! People manage Projects!
23
Why are projects (and Project
Management) more important today,
than ever?
•
•
•
•
•
•
Shortened product life cycles
Narrow product launch windows
Increasingly complex and technical products
Emergence of global markets
Economic period marked by low inflation
Resource Constraints
PROJECTS NEED TO BE MANAGED WELL!!!
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What is value of Project
Management? Why should we
practice effective Project
Management
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Completing projects more quickly and at less
cost.
– A benefit of using a common methodology is the
value of reuse.
– Reduced startup time
– Shorter learning curve for project team members
– Time savings…no need to reinvent processes and
templates …
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Being more predictable.
– Better planning results in a better understanding
of the work and associated estimates.
– Predictability is crucial when making decisions
about which projects to execute.
• Saving effort and cost with Proactive Scope
Management.
– Having better (tested, repeatable) processes will
result in being able to manage scope changes
more effectively...
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Better Solution “fit” the first time…through
better planning.
– Using a repeatable, proven methodology provides
the project team and the sponsor an opportunity
to make sure they are in agreement on the major
deliverables to be produced by the project.
• Opportunity to resolve problems more quickly.
– The PM methodology will facilitate a proactive
issues management process to help ensure that
problems are recorder, tracked and resolved as
quickly as possible…
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Addressing and resolving future risks before
they impact the project.
– Sound risk management processes will result in
potential problems being identified and managed
before the problem actually occurs.
• Communicating and managing expectations
with clients, team members and stakeholders
more effectively.
– Having proactive, multifaceted communications …
no surprises…
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Building a higher quality product the first
time.
– Via implementation of quality control and quality
assurance techniques to meet the expectation of
the customer.
• Improved financial management.
– The result of better project definition, better
estimating, and better tracking of actual costs
against the budget results in improved financial
predictability and control…
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Stopping “bad” projects more quickly.
– Using the milestones, gates, performance metrics,
etc. of effective Project Management allows you
to see these “bad” situations earlier and more
clearly so that you can make better decisions to
re-scope or cancel the project.
• More focus on metrics and fact based decision
making.
– Metrics provide information on how effectively
and efficiently the project team is performing and
the level of quality of deliverables…
Reasons why organizations practice effective
Project Management…The Value Proposition:
• Improved work environment.
– Successful projects yield intangible benefits with
your project team:
• Customers become more involved
• Project team takes on more ownership
• Better morale… people on successful projects feel better
about themselves, their jobs, greater sense of
professionalism and self-confidence……
What is going to be our Approach for the
Project?
• The first decision made on any project is what
methodology/approach is best suited for that
type of project
• One size/type Project Management approach
does not fit all projects…comfortably
What are some choices?
Taxonomy of Project Management Approaches
• Traditional/Waterfall Approach
– In play for 50 years….Origin in engineering / construction
– Projects will follow a very detailed plan that is built before any
work is done on the project…plan is linear
– “Best Practices”…… PMI doctrine
• Traditional Approach works well when:
– The project goal and solution are clearly defined
– You do not expect many scope change requests
– The projects are often routine, repetitive and linear
• NOTE: The completed project can be deployed
incrementally:
– To start harvesting business value
– To deal with the likelihood of some change requests
Linear and Incremental
Define
Plan
Define
Execute
Plan
Partition the
Solution
Execute
Monitor
Control
Monitor
Control
...
..
Monitor
Control
Close
Close
Taxonomy of Project Management Approaches
• Adaptive (Agile) Approach
– What if the goal is clear but the solution is not clear?
– Project will follow a very detailed plan (not built at the
beginning of the project)…the plan is built in stages at the
completion of each project cycle/phase… it is iterative.
– The budget and time line is specified at the outset of the project
• Adaptive Approach works well:
– If you feel the requirements are apt to change
– If you feel you will learn about remaining requirements during
the course of doing the project
– If the project is oriented to new product development or
process improvement
– If the development schedule is tight and you can’t afford rework
or planning
– Requires that empowered individuals are readily available for
input.
Adaptive Approach (Iterative)
Detailed
Planning
Define
High end
Planning
Incorp.
Feedback
Monitor &
Control
Launching
Customer
Feedback
Closing
Taxonomy of Project Management Approaches
• Extreme Approach
– The goal is not clear…solution is not clear
– Projects do not follow a plan in the manner deployed
with the traditional or adaptive approaches
– The project proceeds based on informed, non-specific
“guesses” of what the final goal (or solution) will be
– At the conclusion of each cycle, what was learned or
discovered is factored into a newly specified goal
– Uses an open, elastic, undeterministic approach. Best
fitted for R&D Projects
Measuring and Reporting – Metrics
(Can build trust, communicate progress, expose problems and illustrate
effectiveness of the Process)
Traditional/Waterfall
• Focus is on tracking efforts
on each activity
• GANTT Chart
• Percent complete
• Time per team member per
task
• Actual time versus
estimated time
Adaptive/Agile
• Focus on tracking what has been
incrementally delivered
• Velocity
• Burn Down – what features have
been completed
• Burn Up – what features have
been promised
• Running tested features
• Defect density
• Cycle time
• Code quality
• Earned Business Value
Who/what are Project Stakeholders?
Who are the Project Stakeholders?
• Stakeholders are those individuals or
organizations who are impacted by (or have an
impact on) the project, their perspectives need to
be taken into account in order for a project to be
successful
• Stakeholders can have positive or negative views
regarding a given project….they can gain or lose
from the success or failure of the project
They have Skin in the Game!
42
Stakeholders
• Performing Stakeholder Analysis and Mapping
• Different approaches to grouping stakeholders:
– Ex:
•
•
•
•
•
•
Influence
Interest
Resistance
Support
Commitment
Engagement
• Incorporate stakeholder perspectives into the project
and deliverables
After all, we are talking about change!
Support for Change
The Change Process
Support
Denial
Exploration
Resistance
Resistance
TIME
Projects are the instruments/vehicle of change.
Change need not always be painful!
Degree of
support for the
project
The Road to COMMITMENT
Stakeholder Commitment
BUY-IN
Involvement
aborted
UNDERSTANDING
AWARENESS
Unaware
Decision to
not get involved
Confusion
Negative
Perception
Time
Stakeholder Analysis can measure the degree
the Stakeholder embraces change in terms of:
• Influence – Power the stakeholders have that can
affect project outcomes as measured by:
– Formal Influence – Administrative authority conferred
by the organization
– Informal Influence – Unofficial leadership conferred by
peers or other affected parties
• Support – Approve or agree with the change as
measures by:
– Commitment – Degree to which stakeholders are
available to participate during the project
– Engagement – Willingness stakeholders have to
participate in the change
You heard it here:
Pay a great deal or attention to your
Stakeholders.
Regardless of the size/scope of the project,
often the biggest obstacle to an IT Project’s
success may not be the technology, but one,
project teams have to make an extra effort to
control: The Human element.
There are Project Requirements, and
then there are EXPECTATIONS!
• Different stakeholders may have different
expectations -- they may compete:
•
•
•
•
Sales
Marketing
Production
Finance
• To be successful, the PM must be able to
manage all expectations
48
Project Requirements vs. Project
expectations
• Requirements* usually more tangible, traceable,
measurable, less open to interpretation.
Examples
• Expectations less tangible, more open to
interpretation, less measurable. Examples
• The project Manager is responsible for managing
both.
• Instructor Example
* - Beware of opposing requirements
EXPECTATIONS Model
Set, Monitor, Influence
• SET
– How are Expectation Set?
– Sample Dialogue
• Customer: “Will it take much effort to change
the sequence and content of the Income
Statement produced by the End of Month
Process?”
• Consultant: “Not a problem!”
• Customers expectation takeaway??????
EXPECTATIONS Model
Set, Monitor, Influence
• MONITOR
• Monitoring Captured Expectations
– Actively search for expectations
– Testing
– Listen to your clients (and stakeholders), hear
them, understand them…talking to you….talking
to someone else (don’t eavesdrop)
• What did they say?…What didn’t they say?
• What are their favorite topics?
• What do they do…action speaks louder than words..
EXPECTATIONS Model
Set, Monitor, Influence
• INFLUENCE
• Influencing Expectations
– Shaping
• Process:
– Determine the expectation
– Determine the source
– Go to work..communicate
Expectations beyond the Product or
Deliverables
1. To be taken seriously
2. Competent, efficient service
3. Anticipation of my needs
4. Explanation in my terms
5. Basic Courtesies
6. To be informed of the options
7. Not to be passed around
8. To be listened to and heard
9. Dedicated attention
53
Expectations beyond the Product or
Deliverables
10. Knowledgeable help
11. Friendliness
12. To be kept informed
13. Follow-through
14. Honesty
15. Feedback
16. Professional Service
17. Empathy
18. Respect
54
What are some sources for Project
Failure?
• Trying to put 10 pounds of project through a 5
pound pipeline
• Expecting Perfection
• Mistaking 1 + 1 for 2
• Forgetting Something
• Micromanaging trees while the forest burns
55
What are some sources for Project
Failure?
• Creating a Parkinson’s Law environment…
“Work expands to fill the time available for its completion.”
• Not using “good enough” resources
• Overusing great resources……..….generating
hidden costs (ERP example)
• Working on the wrong project
• Multi-tasking, multi-tasking, multi-tasking, etc.
56
A few words about the Project
Environment?
• Spectrum of Project Organizations
– Strong / weak
– Maturity level
– Logical form vs. Physical form
– Roles, Responsibilities, Authority, Accountability
– Global/Virtual teams & organizations
• Company Culture
57
Functional Organization
58
Projects - Functional Organization
•
•
Advantages
•
•
•
•
•
•
•
A team member can work on several projects within his/her
area
The functional area is a “home” after the project is
completed
Critical mass of specialized knowledge
Efficient use of collaborative experience and facilities
Institutional framework for Planning and Control
All activities receive the benefit from the most advanced
technology. Technical expertise is maintained within the
functional area
Allocates resources in anticipation of future business
Career opportunity and growth for personnel
Well suited for mass production of items
59
Projects - Functional Organization
Disadvantages
• Aspects of the project that are not directly related to the
functional area not done well enough
• Motivation of team members is often weak
• Needs of the client are secondary and are responded to
slowly…..Weak interface with the customer
• Often project planning and reporting suffers
• Tendency for decisions to favor the functional group…act
on their own best interests
• Decisions can take more time if they need to go through
levels within the organization
60
Matrix Organization
President
Research and
Development
Engineering
Manufacturing
Marketing
Manager
Project A
Manager
Project B
Manager
Project C
61
Matrix Organization
Advantages
• Enhanced inter functional communications
• Pinpointed responsibility
• Effective use of company resources….. Duplication
of resources is minimized
• Functional “home” for team members
• Policies of the parent organization are followed
• Effective accumulation of know how
• Career continuity and professional growth
• Perpetuates technology
President
Research and
Development
Engineering
Manufacturing
Marketing
Manager
Project A
Manager
Project B
Manager
Project C
62
Matrix Organization
Disadvantages
• Too many bosses. Dual accountability of personnel
• Conflicts arise between project and functional managers
Depends on project manager’s negotiating skills
• Potential for sub optimization
• Profit and loss accountability difficult
President
Research and
Development
Engineering
Manufacturing
Marketing
Manager
Project A
Manager
Project B
Manager
Project C
63
Projectized Organization
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Projectized Organization
Advantages
• The project manager has full authority over the project
Means strong control. Clear authority and responsibility
• Team members report to one boss. Loyalty to one activity
• Shortened/improved communication lines
• Team pride, motivation, and commitment are high
• Strong interface with the customer
• Encourages performance, cost and schedule tradeoffs
• High level of integration
65
Projectized Organization
Disadvantages
• Inefficient and Duplication of resources
• Organizational goals and policies are ignored….. Can be
isolated on what is going on in the rest of the
organization
• Often does not develop technology with an eye on the
future
• Lack of technology transfer
• Team members have no functional area "home"
• Minimal career continuity for project personnel
• Difficulty in balancing workloads as projects phase in
and phase out
66
Heavyweight Project Organizations
• Project manager authority expanded
• Functional alignment abandoned in favor of market
opportunism
• Focus on external customer
• A Mature Organization
• Project Management Office (PMO)
67
Project Management Offices (PMO)
• Centralized units that oversee or improve the
management of projects
• Resource centers for:
–
–
–
–
Technical details
Expertise
Repository
Center for excellence
Forms of PMOs
• 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
Factors/Tips in Selecting a Structure
• The number of projects and their relative
importance….low-> functional…high-> matrix
• The level of uncertainty in projects….the more
uncertainty (cost, schedule, scope) ,strong PM
can react quicker, exercise tighter control
therefore a Project Oriented structure is
preferred
• Type of technology used.
– With several/changing technologies Matrix
– New product, high uncertainty -> Project Oriented
Factors/Tips in Selecting a Structure
• The Project Complexity….low complexity->
functional…high- complexity-> Project oriented
structure
• Duration of projects….short projects ->
matrix…Long projects -> project oriented
• Resources used by the Projects.
– If common resources are shared by 2 or more projects
-> Matrix with a functional bias
– If number of common resources being shared are low
-> Project oriented structure
Factors/Tips in Selecting a Structure
Remember: Organizational structure can have a
major impact on project performance
What about the Organizational
Culture?
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
73
Organizational Culture
• A system of shared norms, beliefs, values and
assumptions which bind people together,
thereby creating shared meanings
• The “personality” of the organization that sets
it apart from other organizations
- provides a sense of identity to its members
- Helps legitimize the management system of
the organization
- Clarifies and reinforces standards of behavior
74
Organizational Culture
Key factors that affect and or influence (shaping)
culture development:
– Technology (leading, bleeding, laggards, “early
adopters”, etc.)
– Environment
– Geographical location
– Reward systems
– Rules, regulations and procedures
– Key organizational members
– Critical incidents / Reaction to crises (i.e. McNeil
Labs with Tylenol)
– Ownership (private, public, government, etc.)
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Culture Affects Project Management
•
•
•
•
•
•
Departmental interaction
Employee commitment to goals
Project planning
Performance evaluation
Acceptance & Support of Change
Bottom Line:
Organizational Culture can have a
major impact on project performance
76
Project Management
• Project Management Institute (PMI)
– Best Practices
– Governing Body
– Think Tank
• Project Management Body of Knowledge
• Project Manager Professional Certifications
Project Manager Professional
Certifications
• Certified Associate in Project Management
(CAPM)
• Project Management Professional (PMP)
• Program Management Professional (PgMP)
• PMI Agile Certified Practitioner (PMI-ACP)
• PMI Risk Management Professional (PMI-RMP)
• PMI Scheduling Professional (PMI-SP)
78
Project Manager Professional
Certifications
• To apply for the Certified Associate in Project
Management (CAPM):
A secondary degree (high school diploma or the global
equivalent)
AND
At least 1500 hours of project experience
OR
23 hours of Project Management education by the time
you sit for the exam
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Project Manager Professional
Certifications
• To apply for the Project Management Professional
(PMP):
A secondary degree (high school diploma, associates degree
or the global equivalent) with at least five years of project
management experience, with 7500 hours leading and
directing projects and 35 hours of project management
education
OR
A four-year degree (bachelor’s degree or the global
equivalent) and at least three years of Project Management
experience, with 4500 hours leading and directing projects
and 35 hours of project management education.
80
Project Manager Professional
Certifications
• To apply for the Program Management Professional
(PgMP):
A secondary degree (high school diploma, associates degree
or the global equivalent) with at least four years (6000 hours)
of project management experience and seven years (10,500
hours) of program management experience
OR
A four-year degree (bachelor’s degree or the global
equivalent) and at least four years (6000 hours) of Project
Management experience and four years (6000 hours) of
program management experience.
81
Project Manager Professional
Certifications
• To apply for the PMI Agile Certified Practitioner (PMIACP):
– General Project experience
• 2000 hours working on project teams
• These hours must be earned within the last 5 years
• Active PMP or PgMP will satisfy this requirement
– Agile Project experience
• 1500 hours working on agile project teams or with agile
methodologies
• These hours are in addition to the 2000 hours required in “General
Project experience”
• These hours must be earned within the last three years
– Training in Agile Practices
• 21 contact hours
• Hours must be earned in agile practices
82
Project Manager Professional
Certifications
• To apply for the PMI Risk Management Professional
(PMI-RMP):
A secondary degree (high school diploma, associates degree
or the global equivalent) with at least 4500 hours of Project
Risk Management experience and 40 hours of project risk
management education
OR
A four-year degree (bachelor’s degree or the global
equivalent) and at least 3000 hours of Project Risk
Management experience and 30 hours of project risk
management education.
83
Project Manager Professional
Certifications
• To apply for the PMI Scheduling Professional (PMI-
SP):
A secondary degree (high school diploma, associates degree
or the global equivalent) with at least 5000 hours of Project
Scheduling experience and 40 hours of project scheduling
education
OR
A four-year degree (bachelor’s degree or the global
equivalent) and at least 3500 hours of Project Scheduling
experience and 30 hours of project scheduling education
84