Module 1:
Introduction to Project Management
INTENDED LEARNING OUTCOMES:
At the end of the session, students should be able to:
a. Definition and characteristics of a project
b. Differences between projects and operations
c. Examples of IT projects
INTRODUCTION:
Nowadays, there is a growing interest in project management across various
industries and countries. In the past, project management mainly involved providing
schedule and resource data to top management in military, computer, and construction
sectors. However, the scope of project management has expanded significantly. It is
now considered a distinct profession with degree programs, certifications, and
promising career prospects. The advent of new technologies like computer hardware,
software, networks, and global work teams has revolutionized the work environment.
Statistics highlight the importance of project management, particularly in IT
projects:
- Global IT spending reached $3.5 trillion in 2017, with a 2.4 percent increase
from the previous year.
- The Project Management Institute reported nearly 66 million project-related jobs
in 2017, expected to rise to 87.7 million by 2027.
In a real-world scenario, Anne Roberts, the director of the Project Management
Office for Information Technology at a large retail chain, addressed a large audience to
discuss the company's strategies. Despite advancements in information systems, a
recent security breach had caused concern among stakeholders. Anne emphasized the
importance of agility, focusing on computer security, and enhancing online collaboration
tools to overcome challenges and maintain the company's competitiveness.
The field of project management offers promising opportunities:
- IT professionals have a lower unemployment rate, estimated at 2 percent in the
United States.
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- The average annual salary for project management professionals was $112,000
in the US and $130,866 in Switzerland in 2017.
- Employers value project management skills such as teamwork,
decision-making, problem-solving, and communication in new graduates.
- Organizations can save significantly by excelling in project management.
Recognizing the complexity and significance of IT projects involving hardware,
software, and networks, businesses, governments, and nonprofits are increasingly
adopting modern project management practices. Individuals are also acknowledging the
importance of developing project management skills to thrive in the workplace and
enhance their daily interactions with people and technology.
What is a Project?
To discuss project management, it's important to understand what a project is. A
project is a temporary endeavor undertaken to create a unique product, service, or
result.
Operations, on the other hand, are the ongoing activities within an organization to
sustain its business. Operations focus on the continuous production of goods and
services. Projects differ from operations because they have a defined end when their
objectives are achieved or the project is terminated.
It's crucial that those working on operations and projects collaborate for a smooth
transition. For example, DevOps is a recent term in software development that
describes a culture of collaboration between development and operations teams to
build, test, and release reliable software more quickly.
Examples of IT Projects
Projects can vary in size, from involving one person to thousands, and can last
from a single day to years. As mentioned earlier, IT projects utilize hardware, software,
and networks to create a product, service, or result. Here are some examples of IT
projects:
* A large network of healthcare providers updates its information systems and
procedures to reduce hospital-acquired diseases.
* A team of students develops a smartphone application and sells it online.
* A company develops a driverless car.
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* A college upgrades its technology infrastructure to provide wireless internet
access across the campus and online access to academic and student service
information.
* A company implements a new system to increase sales force productivity and
customer relationship management that works on various laptops, smartphones, and
tablets.
* A television network implements a system to allow viewers to vote for
contestants and provide feedback on programs through social media sites.
* A government group develops a system to track child immunizations.
* A large group of volunteers from organizations worldwide develops standards
for environmentally friendly or green IT.
* A global bank acquires other financial institutions and needs to consolidate
systems and procedures.
* Government regulations require monitoring of pollutants in air and water.
* A multinational firm decides to consolidate its information systems into an
integrated enterprise resource management approach.
Gartner, Inc., a respected consulting firm, identified the top 10 strategic
technologies for 2018. Here are a few of these technologies:
* Artificial Intelligence (AI) Foundation: Creating systems that learn, adapt, and
potentially act autonomously can enhance decision-making and improve the customer
experience.
* Intelligent Things: AI is driving advancements for new intelligent things,
including autonomous vehicles, robots, and drones, as well as the Internet of Things like
thermostats, lights, and home appliances.
* Cloud to the Edge: Edge computing pushes data handling to the edge of the
network, closer to the data source. Instead of sending data to the cloud server or central
data center for processing, the device connects through a local gateway device,
enabling faster analytics and reduced network pressure.
* Immersive Experience: Virtual, augmented, and mixed reality are transforming
how people perceive and interact with the digital world. "The virtual reality (VR) and
augmented reality (AR) market is currently adolescent and fragmented. Interest is high,
resulting in many novelty VR applications that deliver little real business value outside of
advanced entertainment, such as video games and 360-degree spherical videos. To
drive real tangible business benefit, enterprises must examine specific real-life
scenarios where VR and AR can be applied to make employees more productive and
enhance the design, training, and visualization processes."
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Balancing Project Constraints
In project management, it's common for projects to deviate from their original
scope, time, and cost goals due to uncertainties and limited resources. Setting a range
for goals, like spending between $45,000 and $50,000 and producing a 40- to 50-page
report, allows for more flexibility in achieving objectives.
Managing the triple constraint involves making trade-offs between scope, time,
and cost goals. For instance, increasing the budget might be necessary to meet scope
and time goals, or reducing the scope to meet time and cost targets. Experienced
project managers prioritize which aspect of the triple constraint is most crucial.
Adjustments are often needed to ensure project success.
When generating project ideas, flexibility is key. If initial methods like email
surveys yield limited results, incorporating new strategies like focus groups or interviews
can enhance the project's outcomes, even if not initially planned. Good ideas are
essential for project success, prompting adjustments to meet evolving requirements and
stakeholder expectations.
Understanding Project Management
Project management involves applying knowledge, skills, tools, and techniques
to meet project requirements. Project managers must not only achieve specific scope,
time, cost, and quality goals but also ensure that the project process aligns with the
needs and expectations of all involved stakeholders.
Stakeholders are vital in project activities, encompassing project sponsors, the
project team, support staff, customers, users, suppliers, and opponents. Understanding
and meeting stakeholders' diverse needs and expectations are fundamental for
successful project management.
Project management knowledge areas encompass ten key competencies that
project managers must master:
- Project scope management
- Project schedule management
- Project cost management
- Project quality management
- Project resource management
- Project communications management
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- Project risk management
- Project procurement management
- Project stakeholder management
- Project integration management
Utilizing project management tools and techniques is crucial for effective project
execution across all knowledge areas. Tools like Gantt charts, project network
diagrams, and critical path analysis aid in managing various aspects of projects,
ensuring successful outcomes.
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- Data Representation: Affinity diagrams, cause-and-effect diagrams, control
charts, flow charts, hierarchical charts, histograms, logical data models, matrix
diagrams, matrix-based charts, mind mapping, probability and impact matrix, scatter
diagrams, stakeholder engagement assessment matrix, stakeholder
mapping/representation, and text-oriented formats.
- Decision Making: Multi-criteria decision analysis and voting.
- Communication: Feedback and presentations.
- Interpersonal and Team Skills: Active listening, communication styles
assessment, conflict management, cultural awareness, decision making, emotional
intelligence, facilitation, influencing, leadership, meeting management, motivation,
negotiation, networking, nominal group, observation/conversation, political awareness,
team building.
- Ungrouped: Several other tools fit in this category.
The extensive lists of tools and techniques may seem overwhelming. This text
will concentrate on the most frequently used tools with the highest potential, offering
detailed examples and context for their application. It's essential for project managers
and team members to assess which tools are best suited for their specific projects.
Selecting the right tools and techniques, along with processes, inputs, outputs, and life
cycle phases (discussed later in this book), is part of project tailoring. Project
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management should be customized to meet the distinct needs of projects,
organizations, and, most importantly, individuals. After all, projects are executed by and
for people.
While project management offers numerous benefits, it is not a guaranteed
solution for success on all projects. Projects involving new technologies, for example,
can present higher levels of uncertainty, making it challenging to meet scope, schedule,
and cost objectives. Project management is a broad and often intricate discipline. What
proves effective on one project may not necessarily work on another, underscoring the
importance for project managers to continuously enhance their knowledge and skills in
project management. Learning from both the failures and achievements of past projects
is equally crucial.
Project Success Criteria
Defining the success or failure of a project involves various criteria. Let's explore
some common benchmarks for measuring project success, exemplified by upgrading
500 desktop computers within three months for $300,000:
1. Meeting Scope, Time, and Cost Goals: If the upgrade of all 500 computers
fulfilled scope requirements, was completed within three months, and cost $300,000 or
less, the project could be deemed successful. While this definition aligns with the
Standish Group studies, there are debates about the simplicity of this definition and the
data collection methods used.
2. Customer/Sponsor Satisfaction: Even if the project met initial goals but left
users dissatisfied due to disruptions or poor interactions, the project could be
considered a failure. Conversely, a project might exceed time and cost estimates but still
satisfy customers through excellent service.
3. Achieving Main Objectives: A project can be successful if it achieves its
primary objective, such as generating profit or satisfying sponsors. Even if costs and
timelines exceed estimates, user satisfaction and meeting business goals can define
project success.
Factors Influencing IS Project Success
Examining the 2015 CHAOS study results sheds light on the key factors
contributing to IS project success. Executive sponsorship and organizational emotional
maturity top the list, emphasizing the significance of good scope management and
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project management expertise. Experienced project managers played pivotal roles in
leading successful projects, highlighting the importance of their influence on project
outcomes.
Program and Project Portfolio Management
In managing projects, enterprises often utilize programs and project portfolio
management to align with strategic goals. Programs group related projects for
coordinated benefits, led by program managers who oversee project teams and ensure
optimal implementation. On the other hand, project portfolio management focuses on
selecting and analyzing projects strategically to contribute to the organization's success.
Portfolio managers aid in making informed investment decisions aligned with the
enterprise's strategic objectives.
By integrating project management techniques, growing project leaders,
streamlining project delivery processes, and measuring project health using metrics,
organizations can enhance project performance and ensure successful project delivery
aligned with strategic goals. Through effective program and portfolio management,
enterprises can optimize project investments and achieve long-term success.
Organizational Project Management
Organizations strategically group projects into portfolios to enhance investment
decision-making. By analyzing financial performance, risks, resource utilization, and
other factors, organizations can optimize their project mix. For instance, a construction
company favoring apartment building projects over single-family homes due to higher
profit margins can adjust its portfolio to align with profitability goals. Diversifying the
project portfolio, akin to a personal financial portfolio, helps mitigate risks and supports
strategic objectives.
Project portfolio management streamlines the alignment of projects with strategic goals,
enabling organizations to effectively manage human resources to support project
execution. By hiring, training, and retaining skilled workers tailored to the organization's
portfolio needs, companies can enhance project outcomes and achieve strategic
objectives successfully.
Project portfolio management presents a complex task, requiring strategic organization
and oversight. A systematic approach to portfolio management involves an overarching
portfolio for the organization, enabling top management to oversee all projects
enterprise-wide. This structure allows for better management of projects within specific
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sectors, such as marketing, materials, IT, and HR. By categorizing projects into
ventures, growth initiatives, and core business projects, companies can effectively
allocate resources and prioritize projects in alignment with strategic objectives.
The Role of the Project Manager
Project managers play a crucial role in project success by collaborating closely with
stakeholders like sponsors and project teams. Their effectiveness is enhanced by
familiarity with the 10 project management knowledge areas and related tools and
techniques. Experienced project managers are instrumental in driving project success.
Let's delve deeper into the specifics of a project manager's responsibilities and required
skills.
Project Manager Job Description
A project manager's job description can vary widely based on the organization and
project requirements. PMI describes project managers as organized, passionate,
goal-oriented individuals who drive business results through project leadership. They
are viewed as change agents who thrive in challenging environments and work
effectively under pressure.
Suggested Skills for Project Managers
Project managers require a diverse set of skills and must adapt to varying situations.
PMBOK® Guide introduces the project manager as an orchestra conductor, needing a
blend of project management and IT knowledge, general management, and human
relations skills. Soft skills, including effective communication, leadership, motivation,
negotiation, conflict management, and problem-solving, are essential for project
managers to navigate stakeholder needs and expectations successfully.
PMI Talent Triangle® and Importance of Leadership Skills
PMI's talent triangle highlights the skills project managers should develop continuously:
1. Technical Project Management Skills: Understanding knowledge areas, process
groups, and project management tools.
2. Strategic and Business Management Skills: Emphasizing strategic planning, financial
management, marketing, and other business-related areas.
3. Leadership Skills: Focusing on inspiring and guiding teams toward long-term goals,
navigating change, and influencing organizational success.
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Leadership skills play a pivotal role in project management, encompassing diverse
styles like visionary, coaching, democratic, pacesetting, or commanding. Leaders adapt
their leadership style based on the situation's demands to achieve project success
effectively.
In essence, successful project, program, and portfolio managers exhibit a blend of
leadership and management traits, being visionary yet goal-oriented, and prioritizing
positive project outcomes above all else. Their focus on achieving results and fostering
teamwork contributes significantly to project success.
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