Chapter 1

1. Chapter 1 Modern Project Management

2. Learning Elements 1.1 Understand how projects differ from routine operational work. 1.2 Develop an understanding of the background to project management. 1.3 Understand at a broad level the concept of a project life cycle. 1.4 Make the link between an organisation’s strategy and the need for projects.

3. What is a Project? Characteristics • An established objective • A defined lifespan with a defined beginning and end (temporary) • Usually the involvement of several departments and/or professionals • Typically doing something that has never been done before (unique) • Specific time, cost and performance requirements

4. What is not a Project? • Routine, repetitive work • Ordinary daily work that typically requires doing the same, or similar work, over and over

5. Comparison of Routine Work and Projects Routine, repetitive work • Taking meeting notes • Daily entering sales receipts into the accounting ledger • Responding to a supply-chain request • Practising scales on the piano • Routine manufacture of an Apple iPod Projects • Writing a book. • Setting up a sales kiosk for a professional accounting conference • Developing a supply-chain information system • Writing a new piano piece • Designing a new media player

6. Program versus Project • A program is the application of knowledge, skills, tools and techniques to meet specific requirements. • A program obtains benefits and control not available by managing projects individually.

7. Portfolio versus Program • Portfolios provide an overarching umbrella for an organisation to manage all investment activity. • Portfolios may be managed as a mix of programs and/or major projects.

8. The Project Life Cycle

9. The Project Manager • Marshals resources for the project and relates directly to the customer • Provides direction, coordination and integration to the project team • Is responsible for the performance and success of the project • Must induce the right people at the right time to address issues, make decisions and carry out the project’s activities • Addresses the right issues and makes the right decisions

10. The Importance of Project Management • Compression of the product life cycle • Complexity • Triple bottom line (planet, people, profit) • Corporate downsizing • Increased customer focus • Organisational change management • Small projects represent big problems

11. Project Management Today: A Holistic Approach Integrative approach • The big picture: how organisational resources are being used • An assessment of the risk to their portfolio of projects • A rough metric for measuring the improvement of managing projects relative to others in the industry • Linkages to senior management • Performance management of projects • A clear definition of benefits

12. Alignment of Projects with Organisational Strategy

13. Project Management Today: A Holistic Approach (cont.) Includes: • Project selection • Monitoring aggregate resource levels and skills • Use of best practices • Balancing projects in a portfolio • Improving communication among all stakeholders • An organisational perspective, beyond silo thinking • Improving management of projects over time

14. The Technical and Socio-cultural Dimensions of the Project Management Process

15. Common Pitfalls in Project Management • Not being aligned to organisational strategy • Lack of top management or sponsor support • Political discord or disagreement • Poor or inadequate estimating • Working backwards from a given drop-dead date • Inexperienced project management personnel • Fragmented team and team values

16. Common Pitfalls in Project Management (cont.) • Poorly/vaguely defined requirements (Scope) • Lack of user (customer) involvement • Unrealistic requirements or expectations • Scope creep • Poor communication or lack of communication • Ignoring project warning signs • Poor governance

17. Key Terms • project • program • portfolio • project life cycle • strategic alignment • socio-technical perspective • common pitfalls