Introduction to Project
Management
Project Management
Certificate Series – Day 3
Organizational Influences and
Project Life Cycle
Understanding Organizational
Structures
 Organizational structures are unique
just like projects
 Each has its own style and culture
 They influence how projects are
performed
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Organizational Culture and
Styles
 Organizations are made of people aimed
at accomplishing a purpose which may
involve undertaking projects
 Culture and style affect how it conducts
projects (i.e. gets work done)
 Culture and styles are group phenomena
known as cultural norms which develop
over time and include the way we
initiate and plan projects
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Organizational Culture and
Styles
 Norms include the acceptable ways
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We get work done
Recognized authorities who make and influence decisions
 Organizational culture is shaped by common experiences
of members like
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Shared visions, mission, values, beliefs, expectations
Regulations, policies, methods and procedures
Motivation and reward systems
Risk tolerance
View of leadership, hierarchy and authority relationships
Code of conduct, work ethic, and work hours
Operating environments
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Organizational Culture and
Styles
 Project Managers must understand the
different organizational styles and
cultures that may affect a project
 Project Managers must know which
individuals in the organization are the
decision makers or influencers and work
with them to increase the probability of
project success
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Organizational Structures
 Organizational structure is an enterprise
environmental factor, which can affect
the availability of resources and
influence how projects are conducted
 Organizational structures range from
functional to projectized, with a variety
of matrix structures in between
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Organizational Structures Types
 Functional Organizations
 Projectized Organizations
 Matrix Organizations
 Weak
 Balanced
 Strong
Functional
Projectized
Weak
Matrix
Balanced
Matrix
Strong
Matrix
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Organizational structure of a project
influences how the project is managed. It
suggests:
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Project manager’s authority
Resource availability to the project
Project budget control
Project manager’s role
Project management administrative
staff
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Functional Organization
 Enduring organization
 PM has little or no formal authority
 Clear career path with separation of functions
allowing specialty skills to flourish
 Multiple projects compete for limited
resources and priority
 One boss with clear chain of command
 Team members loyal to functional manager
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Functional Organization
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Projectized Organizations
 Project managers have ultimate authority
over the project
 The focus of the organization is the project
 The organization’s resources are focused on
projects and project work
 Team members are collocated
 Loyalties are formed to the project, not to a
functional manager
 Project teams are dissolved at the
conclusion of the project
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Projectized Organization
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Matrix Organizations
 A blend of functional and projectized
characteristics
 Multiple bosses
 Functional managers are responsible for
administrative duties and resource
commitments
 Project managers are more in a coordinator
role
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Focus in Matrix Organizations
 Project managers and project team
focus on project work
 Project managers should review
activity estimates for team members
with functional manager to gain
commitment
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Balance of Power in Matrix
Organizations
 Strong Matrix - project manager has
the power
 Weak Matrix – functional manager
has the power
 Balanced Matrix – the power is
balanced between the functional and
project manager
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Weak Matrix Organization
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Balanced Matrix Organization
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Strong Matrix Organization
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Organizational Structure Type
Characteristics
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Composite Organization
 All organizational structures at
various levels
 A fundamentally functional organization may
create a special project team – like
projectized to handle a critical project
 An organization may manage most of its
projects in a strong matrix, but allow small
projects to be managed by functional
departments
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Composite Organization
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Class Exercise
 In groups of 2 discuss whether
your immediate team:
 Is considered functional, projectized, weak
matrix, balanced matrix, or strong matrix?
 List the characteristics of your that justifies
your answer to the question above
 Discuss what titles project managers have in
your organization.
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Another Aspect to Understanding
the Project Environment
 Environment is made up of internal
and external factors that influence it
 PM must consider more than just the
project itself
 Proactive management involves
understanding the environment in
which the project must function
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Organizational Process Assets
 Plans, processes, policies, procedures,
and knowledge bases specific to and
used by the performing organization
 PMBOK 2.1.4, 2.1.4.1, 2.1.4.2
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Enterprise Environmental Factors
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May enhance or constrain project management options and may
have a positive or negative influence on the outcome of the
project
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Organizational culture, structure and processes
Gov’t/industry standards (regulatory, codes of conduct, product
standards, quality standards, workmanship standards)
Infrastructure (existing facilities, capital equipment)
Existing human resources (skills, disciplines, knowledge)
Personnel administration (staffing and retention guidelines,
employee performance reviews, training records, overtime policy)
Company work authorization systems
Market place conditions
Stakeholder risk tolerances
Political climate
Organization’s established communications channels
Project Management Information Systems (PMIS)
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Project Stakeholders
 A stakeholder is an individual, group, or
organization who may affect, be affected
by, or perceive itself to be affected by a
decision, activity, or outcome of a project
 Stakeholders include all members of the
project team as well as all interested
entities that are internal or external to the
organization
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Project Stakeholders
 The project team identifies internal and external,
positive and negative, and performing and
advising stakeholders in order to determine the
project requirements and the expectations of all
parties involved
 The project manager should manage the
influences of these various stakeholders in
relation to the project requirements to ensure a
successful outcome
 When there are conflicts between stakeholders
Project Managers should resolve the conflict in
favor of the project’s key or main customer
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The Relationship Between
Stakeholders and the Project
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Project Stakeholder Levels
 Stakeholders have varying levels of
responsibility and authority
 Levels change the project’s life cycle
 Involvement may range from occasional to full
project sponsorship
 Some stakeholders may also detract from the
success of the project, either passively or
actively and these require the project
manager’s attention throughout the project’s
life cycle, as well as planning to address any
issues they may raise
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Project Stakeholder Identification
 Is a continuous process throughout the entire
project life cycle
 Identifying stakeholders, understanding their
relative degree of influence on a project, and
balancing their demands, needs, and
expectations are critical to the success of the
project
 If you fail to identify and plan it may lead to
delays, cost increases, unexpected issues, and
other negative consequences including project
cancellation
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Managing Stakeholder Expectations
 The Project Manager must manage stakeholder
expectations, which can be difficult because
stakeholders often have very different or
conflicting objectives
 Project Managers must balance these interests
and ensure that the project team interacts with
stakeholders in a professional and cooperative
manner
 Project managers may involve the project’s
sponsor or other team members from different
locations to identify and manage stakeholders
that could be dispersed around the world
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Project Governance
 An oversight function that is aligned with the
organization’s governance model and that encompasses
the project life cycle
 Framework provides the project manager and team with
structure, processes, decision-making models and tools
for managing the project, while supporting and
controlling the project for successful delivery
 Critical element of any project, especially on complex
and risky projects
 It provides a comprehensive, consistent method of
controlling the project and ensuring its success by
defining and documenting and communicating reliable,
repeatable project practices
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Project Success
 Should be measured in terms of completing the project
within the constraints of scope, time, cost, quality,
resources, and risk as approved between the project
managers and senior management
 To ensure realization of benefits for the undertaken
project, a test period can be part of the total project
time before handing it over to the permanent operations
 Project success should be referred to the last baselines
approved by the authorized stakeholders
 The project manager is responsible and accountable for
setting realistic and achievable boundaries for the
project and to accomplish the project within the
approved baselines
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Project Team
 Includes the project manager and the group of individuals
who act together in performing the work of the project to
achieve its objectives
 The project team includes the project manager, project
management staff, and other team members who carry
out the work but who are not necessarily involved with
management of the project
 This team is comprised of individuals from different
groups with specific subject matter knowledge or with a
specific skill set to carry out the work of the project
 Structure and characteristics of a project team can vary
widely, but one constant is the project manager’s role as
the leader of the team, regardless of what authority the
project manager may have over its members
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Project Team Roles
 Project management staff – Perform project
management activities like scheduling,
budgeting, reporting and control,
communications, risk management and
administrative support
 Project staff - Carry out the work of creating
the project deliverables
 Supporting experts – Perform activities
required to develop or execute the project
management plan. These can include such roles
as contracting, financial management, logistics,
legal, safety, engineering, test, or quality control
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Project Team Roles
 User or Customer Representatives - Accept the
deliverables or products of the project may be
assigned to act as representatives or liaisons to
ensure proper coordination, advise on requirements,
or validate the acceptability of the project’s results
 Sellers – Also called vendors, suppliers, or
contractors, are external companies that enter into a
contractual agreement to provide components or
services necessary for the project
 Business partner members - Members of business
partners’ organizations may be assigned as
members of the project team to ensure proper
coordination
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Project Team Roles
 Business partners - External companies, but
they have a special relationship with the
enterprise, sometimes attained through a
certification process. Provide specialized
expertise or fill a specified role such as
installation, customization, training, or support
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Project Life Cycle
 The steps an organization performs to
build the product, service or result
 A series of phases a project passes
through from its initiation to its
closure
 Phases are generally sequential
 Their names and numbers are
determined by the management and
control needs of the organization and its
area of application
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Project Life Cycle or Phases
 May be divided by functional or partial
objectives, intermediate results or
deliverables, specific milestones within
the overall scope of work or financial
availability
 Are generally time bounded with a start
and ending or control point
 A life cycle can be documented within a
methodology
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Project Life Cycle or Phases
 The project life cycle may be shaped by
the unique aspects of the organization,
industry or technology employed
 While every project has a definite start
and end, the specific deliverables and
activities in between will vary widely
with the project
 The life cycle provides the basic
framework for managing the project
regardless of the work involved
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Project Life Cycle or Phases
 Can range along a continuum from predictive
or plan driven approaches at one end to
adaptive or change driven at the other
 In a predictive life cycle the product and
deliverables are defined at the beginning of the
project and any changes to scope are carefully
managed
 In an adaptive life cycle the project is
developed over multiple iterations and the
detailed scope is defined for each iteration only
as the iteration begins
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Characteristics of the Project
Life Cycle
 Projects vary in size and complexity
 All projects can be mapped to the
following generic life cycle structure
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Starting the project
Organizing and preparing
Carrying out the project work
Closing the project
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Characteristics of the Project
Life Cycle
 The generic life cycle structure is often
referred to when reporting to upper
management or others less familiar with
the details of the project
 This should not be confused with Project
Management Process Groups because
the processes in a Process Group may
be performed and recur within each
phase of a project as well as for the
project as a whole
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Project Life Cycle Examples
 Pharmaceutical Development Phases
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Drug Discovery
Pre-formulation
Pharmacokinetics
Toxicology
Pharma/clinical development
Clinical Trials 1-3
Go to Market
 Regulatory Approval
 Regulated Production
 Clinical Trials 4
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Project Life Cycle Examples
 System Development Life Cycle Phases
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Problem Definition
Requirements Gathering
Analysis
Design
Development
Testing
Deployment
Maintenance
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Project Life Cycle Examples
 Medical Device Development Project Phases
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Concept Phase
Program Planning
Preliminary Design
Detail Design
Drug Discovery
Pilot Production
Clinicals / FDS
Production Release
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The characteristics of each
process group reflects:
 The level of a project’s costs, staffing,
chances of successful completion,
stakeholder influence and probability
of risk
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Project Life Cycle Characteristics
Generic Life Cycle Structure
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Project Life Cycle Characteristics
In the beginning of the
Project Life Cycle
As project progresses
through project life cycle
Cost are low
Costs increase and taper off at
the closing phase
Few team members are assigned Staffing increases
Potential for project success is
lowest
Project risk is highest
Stakeholders have the greatest
chance of influencing the project
and the characteristics of the
product
Potential for success increases
Project risk decreases
Stakeholders have less and less
influences as the project
progresses
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Project Life Cycle Characteristics
Cost of changes/correcting errors increases significantly over time
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Project Phases
 A project may be divided into any
number of phases
 A project phase is a collection of a
logically related project activities that
end in the completion of one or more
deliverables
 Project phases are used when the
nature of the work to be performed is
unique to a portion of the project
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Project Phases
 A phase may emphasize processes
from a particular Project Management
Process Group
 Project phases typically are
completed sequentially, but can
overlap in some project situations
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Project Phases and Key Terms
 At the beginning of a phase a
feasibility study may be performed
 At the end of a phase a phase end
review of the completed deliverables
may be performed before handoff to
the next phase can occur
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Feasibility Studies
 Typically incorporated in the beginning
phase of the project
 Are completed prior to the beginning of
the next phase
 Determines whether a project is worth
undertaking and whether it will be
profitable to the organization
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Handoffs
 When a project progresses from one
phase to the next
 Phase deliverables must be reviewed for
accuracy and approved
 It is handed off to the next phase
 Handoffs are technical transfers or
phase sequences that signal the end
of one phase and typically mark the
beginning of the next
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Phase End Reviews
 A review that takes place
 To determine whether the project should
continue onto the next phase
 Identify and address errors discovered
during the phase
 Also know as:
 Phase exits or gates (stage gates,
decision gates)
 Milestones
 Kill points
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Phase to Phase Relationships –
2 Types
 Sequential
 Where one phase must end before the
next phase begins
 Overlapping
 Where one phase starts before the
previous phase completes
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Project Governance
Across the Life Cycle
 Regardless of the number of phases,
project governance is required
 Method of controlling project ensuring success
 Described in project management plan
 PM and team decides how project is managed
 What resources, how work will be completed, how
many phases will be used
 Management review used to assess accuracy of
deliverable, determine phase end and if project
continues
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Product Life Cycle
 Is a collection of product phases
 Generally sequential
 Sometimes overlapping
 Created to provide better
management control
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Product Life Cycle
 Introduction
 Market size, sales volumes and sales growth
are small
 Growth
 When brand loyalty is built and market
share increased
 Maturity
 When the market makes the most profit
 Decline
 When sales and profit start to fall
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Product vs. Project Life Cycle
Relationships
Product Phase
 New product
 Existing product
requires new
feature/function
 Feasibility study
 Market research
 Advertising campaign
 …
Project Life Cycles
 New project to create
product
 New project to add
feature function
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New
New
New
New
project
project
project
projects…
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Product vs. Project Life Cycle
Relationships
Project
Project
Project
Project
Project
Project
Project
Project
Conception
Growth
Maturity
Time
Decline
Withdrawal
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