Project Management Disscussions.
1.
You and Project Management
Based upon the course readings and lecture material, please respond to the following prompts in your initial posting:
Why you are studying Project Management? For example, I am studying Project Management to further shape my career goals and to accomplish them more effectively and efficiently in a planned manner. I hope project management will shape my career path and tune me into perfection.
Identify three areas of knowledge that you would like to improve in terms of your Project Management skill set. For example, would you like to know more about influencing others, negotiation, risk management?
How will this program enable you to achieve you Professional goals: For example, I believe that the Project Management Practices, Scope Management, Risk Management and Negotiation skills will entirely nurture me into a professional aiming for a better Strategies for Development Projects in a Medical device or a Pharmaceutical Industry.
Please note: I expect a minimum of 2 -3 paragraphs for your initial post complete with external references. Your response postings are expected to be at least a full paragraph using cited material.
2.
In this week’s readings and course materials, we have focused on project initiation processes, and we have specifically talked about where projects come from and how they may be generated.
Thinking of either the organization you work within or an organization that you hope to work within someday, I want you to identify at least four sources of projects. Select at least one internal driver of a project and at least one driver of a project from an external source.
In addition to identifying these four sources, provide an overview of the path these ideas may take until they arrive as being chartered projects assigned to a project managers. What type of evaluation or pre-assessment may be taking place? Provide some insight into who are the major stakeholders and influencers as these ideas transition into actual projects.
Please note: I expect a minimum of 2 -3 paragraphs for your initial post complete with external references. Your response postings are expected to be at least a full paragraph using cited material.
PJM6000
Project Management Practices
Week Two
Deb Cote, MS, Professor Al Grusby, MBA, PMP®
Review
2
➢ PMI definitions: project, program, portfolio
➢ What is work effort if it’s NOT a project?
➢ Examples of each
➢ Progressive elaboration – new?
➢ Five process groups of PMI lifecycle
➢ Waterfall vs agile
➢ Framework vs methodology – new?
➢ Project management knowledge areas
➢ Organizational structures – functional, projectized,
matrixed (weak, strong, balanced)
➢ PM knowledge/skills, characteristics, certifications
Agenda – Week 2
• Discuss the beginning phases of a project and how
they link to the overall successful outcomes of the
initiative.
• Analyze what a business case is and how it supports
the sponsor’s decision making process
• Calculate
Net Present Value (NPV)
• Apply Project Selection and Prioritization Techniques
• Review Organizational Structure and Culture
• Discuss the Concentrations within the Curriculum
• Discuss the PMI Talent Triangle
3
Birth of a Project
Projects start at initiation. But how do they get there?
4
5
Project Management Processes
Initiating Planning Executing Monitoring and Controlling Closing
Develop Project Charter Develop Project Management Plan Direct and Manage Project Work
Manage Project Knowledge
Monitor and Control Project Work
Perform Integrated Change Control
Close Project or Phase
Plan Scope Management
Collect
Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
Plan Schedule Mgmt.
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule
Control Schedule
Plan Cost Mgmt.
Estimate Costs
Determine Budget
Control Costs
Plan Quality Management Manage Quality Control Quality
Plan Resource Management
Estimate Activity Resources
Acquire Resources
Develop Project Team
Manage Project Team
Control Resources
Plan Communications Manage Communications Monitor Communications
Plan Risk Management Implement Risk Responses Control Risks
ID Stakeholde
rs
Plan Procurement Conduct Procurements Control Procurements
Plan Stakeholder Mgmt. Manage Stakeholder Engagement Control Stakeholder Engagement
P
ro
je
c
t
S
e
le
c
ti
o
n
Project Lifecycle
• Process Group I: Initiation
• Process Group II: Planning
• Process Group III: Execution
• Process Group IV: Monitoring and Controlling
• Process Group V: Closure
What happens BEFORE initiation?
How does the idea become a project?
6
6
PMI Initiation Planning Execution, Monitoring, & Controlling Closure
How do you justify a project?
• Do projects just begin in an ad hoc (random) fashion within
the organization or should they be approved?
• If they should be approved, what types of information would
you want to have in order to approve the project?
– Return on Investment?
– How does it align with our strategy?
– What is the estimated cost, or budget, needed to support the project?
– What are the risks?
– What is the scope?
• Not an all inclusive list of questions, but need to justify the
request to support a project
7
Business Case
• Answers to many of the questions on the previous
slide would be content to be presented in what’s
known as the business case
• Generally results in a go/no-go decision for the
project
• The business case is an input to the project charter
and defines the expected outcomes the project will
achieve, like a new product, along with the
requested investment needed to support the project
8
Business Case Process
Business
Case
A need has been
identified perhaps
for a new product
Investment
Needed
Some sort of
investment is
needed by the
initiating
organization
Output
The output will
generate some
type of benefit for
the organization
9
A business
case generates
key information
elements
Business Approval Gained or Denied
Business Case Structure
10
Business Problem: Describe problem the project will address
Strategic Case: How does proposed project align w/ strategy?
Project Overview: High-level description of the project
Expected Benefits: How will the business benefit?
Financial Aspects: Financial benefits of the project
(cost/benefit analysis); Net Present Value (NPV)
Risks: Any risks of solution not addressing business problem?
Timeline: High-level timeline (milestones)
Recommendation(s): Next steps based on analysis
Net Present Value (NPV)
• NPV = sum of the present value of cash flows
– Can calculate by hand or using Excel (Plug “NPV” into the Help function for tutorial). Be
careful! The initial investment is NOT part of the formula if using Excel)
– Formula:
NPV = “ Year N CF + Year N CF + Year N CF “
(1 + DR)N (1 + DR)N (1 + DR)N ………
CF = CASH FLOW
DR = DISCOUNT RATE
N = YEAR CF IS BEING DISCOUNTED
• What is generally the YEAR “0” CASH FLOW?
• What is a good value project?
– NPV > 0 &
– Project IRR > Expected IRR “Hurdle Rate”
– Project IRR = Solve NPV equal to zero (trial and error)
11
Class Exercise
• Work in teams to determine if the following is a good
value project:
– Initial Investment = $70,000
– CF (year 1) = $16,000
– CF (year 2) = $18,000
– CF (year 3) = $22,000
– CF (year 4) = $
28
,000
– Discount Rate = 5%
– Expected IRR = 8%
• What is the NPV?
• Is this a good project?
12
Project Sources
13
Projects can start from:
• Operational needs
• Strategic initiatives (growth)
• Capability gaps
• Scalability requirements
• Mergers and acquisitions
Oversized Project Portfolios
14
Business Case and Project Selection
• Many organizations have formal teams to
review the business case:
– Finance (labor rates/validate assumptions)
– EPMO
– Department PMO’s
– P&L Leaders
– Steering Committee’s
– Project & Portfolio Management Review Board
(PPMRB)
15
Factors that influence Project Success
Government or
Industry
Standards
Legal or
Regulatory
Requirements
16
E
n
v
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n
m
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n
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F
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Class Exercise
17
You are CEO of an organization that is implementing a more rigorous approach
to approving projects. In the past, no formal process for approving projects was
in place, leading to inconsistent outcomes and misuse of investment funds. A
manager has approached you to approve a project that she believes will lead to
a 6% revenue growth for the organization. The project involves developing a
new prototype for a product that will revolutionize the drone market. The
manager is not sure yet of all of the requirements, but has approached you to
approve her moving forward with prototype development. This seems to be
the perfect opportunity for you as CEO to implement your new process of
approving projects.
• What guidance will you give her in terms of information you will need in
order to approve the prototype?
• What validation process would you have once she submits the documents?
• Work on your own – 15 minutes
• Discuss in your groups – 15 minutes
Project Charter
• Once the business case is approved, a project charter will be created.
Retaining your perspective as the business owner:
– Why would you want a project charter?
– How will the organization benefit from the creation of the project
charter?
18
Creates a formal
approval document
Process driven
agreement
between requestor
and sponsor.
Serves as a
foundational
artifact for the
project team
Project Charter
• The Project Charter is critical as it outlines the
following:
– Provides alignment between the project outcomes and the
strategic objectives of the organization
– Creates a formal artifact of the project goals
– Underscores the support by the organization for the
project based upon the sponsors approval and
engagement
– A charter can be a document between internal operating
units or can be used between an internal performing
organization and external customer.
19
Project Charter
• The business case is an important input to the
charter
• Enterprise Environmental Factors must be
considered and risk analysis conducted to
ensure the charter is properly reflective of the
desired outputs
• A sponsor will want absolute transparency in
both the business case and charter document
20
Project Charter Structure
• Project Purpose:
– Reason for the project – tied to the business case
• Project Objectives:
– Measurable (SMART)
• Project Scope:
– What are the deliverables?
• Milestone Schedule:
– High-level; points in time (dates); not a full schedule!
• Budget:
– High-level summary budget
• Requirements
– How do we know the project is successful?
• Project Manager
– Name, level of responsibility and authority
• Approval
– Authorizing names, titles and signatures 21
PM Warnings
22
Rough estimates
can become
anchors
Business Cases and
Charters can end
up in the drawer –
they should be
referenced
As a PM you should
completely
understand the
‘why…’
23
Each environment and its structure may require
additional customization of your stakeholder
register
Organizational Structures
Adaptive Projectized Functional Matrix
Project Managers As Change Agents
24
Project managers
help shepherd
change
through the
organization
By nature of the
projects you lead,
you are introducing
change in some
fashion to the
organization
Change Initiatives
often encounter
resistance
It is important to be
a champion for
change
The Talent Triangle
25
Source: https://www.pmi.org/learning/training-development/talent-triangle
Do project managers need to be subject matter
experts of the product, service, or result they are
delivering?
Northeastern PJM Concentrations
26
For more information, talk with your advisor or go to:
https://cps.northeastern.edu/academics/program/master-science-project-
management-online
https://cps.northeastern.edu/academics/program/master-science-project-management-online
Lecture Review
27
✓ Look at the beginning stages of a project and how
they link to overall successful outcomes
✓ Analyze what a business case is and how it supports
the sponsor’s decision-making process
✓ Calculate Net Present Value (NPV)
✓ The Project Charter
✓ Review organizational structures and culture
✓ Discuss the concentrations within the CPS curriculum
✓ Discuss the PMI Talent Triangle
What’s Next
• Reading
• Business Case articles (links) *Important!
• Net Present Value refresher (link)
• Instructor Perspective video
• Discussion Board question – responses due by
Saturday, 11:59pm
• Individual Assignment Wk2: due by Sunday, 12:00pm
(Noon)
– Preparing a Business Case
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1
PJM6000 Week 1
Project Management Practices
Professor Al Grusby, MBA, PMP®
Notes:
• Attendance
• Format of the class
• Discussion Boards
– Introduce Yourself
• Intro to Course
2
Lecture Overview
1. What is Project, Program & Portfolio
Management?
2. Discuss the Importance of Project
Management
3
. Where Does the PMI Framework fit in?
4. The
Project Management Profession
5. How Does Organizational Structure Impact
Project Management?
3
Program & Portfolio Management
4
Project, Program & Portfolio Management consists of three main areas
Portfolio
Management
(PfM)
Program
Management
(PgM)
Project
Management
(PjM)
Focus of this class
Project vs. General Management
• General Management and Project Management
have much in common, but also have significant
differences
– General Business Operations:
• repetitive activities, generate the same product or service, go on
indefinitely (considered daily business)
– Projects:
• Not necessarily defined by Size or Duration
• May involve a single person or many thousands
• May take 100 hours to complete or 10 million hours
• Have a beginning and end
• Manage project activities through the use of project
management Knowledge and Methods 5
What Is a Project ?
“A project is a temporary endeavor undertaken
to create a unique product, service, or result.”
6
— Project Management Institute
(PMI®) “PMBOK© Guide”
What Is Project Management ?
“The application of knowledge, skills, tools, and
techniques to project activities to meet the project
requirements.”
7
— Project Management Institute
(PMI®) “PMBOK© Guide”
Project Management
• Purpose: Organize & get work done
– Work gets done in a company through projects
– Determine what to do
• Do the first things first
• Determine best order to complete all the elements
involved in the project
8
Project Management Thought Process
• Walk through a project mentally before starting the work –
Visualization (Example: Athletes)
– “Begin with the end in mind” – Stephen R. Covey
» What is the “product, service, or result” desired at the END of the
project?
» Get a clear picture of this first
– Then work backwards
9
School of Hard Knocks Lesson Learned
All too often people want to start the work
on a project before planning the work
resulting in making the project more
difficult, costing more and taking longer to
complete.
Class Activity
• Individually, identify what you consider to be the
greatest achievements of mankind in the last five
decades – 10 minutes.
• Get together with your groups and,
– Agree on the top 3 achievements.
– Write down how each of these achievements conform to
the definition of a project – be specific.
– Explain the importance of project management based on
your review. – 10 minutes
10Larson, Gray, Project Management; the Managerial Process
11
What is Program Management?
What Is a Program ?
“A group of related projects, other programs, and program
activities managed in a coordinated manner to obtain
benefits not available from managing them individually.”
12
— Project Management Institute
(PMI®) “PMBOK© Guide”
PgM & Organizations
• A program is a temporary thing
• Used to manage organizational change
• Creates a business-supporting strategic focus
• Programs take a systemic view of planning &
reporting
• Programs deal with links between projects
• Programs concentrate on business benefits
13
Real World Examples of Programs
• New airplane
• New computing enterprise architecture
• Olympics
• Learner Experience Enhancements
14
How can you tell a Project from a Program?
15
Unique Elements
• Operates at an strategic level
• Manages multiple Projects and/or
Programs
• Coordinates interrelated projects
– Same goal/objective
– Dependent on one another
• Measure of value from
responsiveness
• Operates at a tactical level
• Manages multiple tasks
• Coordinates tasks & activities to
meet project requirements
• Efficiency & reliability are key
Program
Management
Project
Management
Projects and Programs have commonality and uniqueness
What Is a Portfolio ?
“Projects, programs, subsidiary portfolios, and operations
managed as a group to achieve strategic objectives.”
16
— Project Management Institute
(PMI®) “PMBOK© Guide”
Why Is Project Management Important?
• Projects are initiated at all levels of the
organization. They provide:
– Strategic outputs
– Unique products
– A new service
– And other assets that the organization will benefit
from as measured by revenue, ROI, NPV, or other
indicators of success.
17
Why Use the Project Management
Framework?
Initiation
Planning
Execution
Monitor &
Control
Closing
18
19
— Project Management Institute
(PMI®) “PMBOK© Guide”
Project Management Profession
20
Project Management Profession
• What skills do you need to be a successful Project Manager?
– Master the Project Management Knowledge Areas
– Your organization will look to you for project plans, status
reports, kickoff meetings, etc.
– Know the application area
– Domain, industry, markets, your organization’s role
– Project environment
– Your organization’s ideas about project management, culture,
processes, goals
– General management
– Financial management, strategic planning, etc.
– Leadership
– People skills: negotiations, motivation, conflict resolution, etc.
21
Project Management Profession
• What skills do you need to be a successful Project
Manager & Team Member?
22
Project Management
Knowledge
Subject Matter
Expertise
Leadership Skills
Project Management Profession
• Effective Project Managers:
– Lead by example
– Are visionaries
– Are technically competent
– Are decisive
– Are good communicators
– Are good motivators
23
Project Management Profession
• Project Management Certification
– Important factor in ensuring quality and consistency in project
management
– PMP® (Project Management Professional) issued by PMI (Project
Management Institute
– Education & Training
– Hands-on Work
– Standardized Examination
• PMI – Project Management Institute
– http://pmi.org
24
PMP is a registered mark of the Project Management Institute, Inc.
Project Management Profession
• Ethics in Project Management
– Because Project Management uses resources, produces critical
deliverables for the organization, directs the work of the organization’s
staff, it deals on a daily basis with ethical questions
– PMI – Code of Ethics
– Decisions based on best interests of society, safety,
environment
– Accept assignments consistent with background and skills
– Fulfill our commitments
– Demonstrate transparency in our decision making
– Constantly examine impartiality & objectivity
– Fully disclose any conflict of interest
– Are truthful in our communications
25
Organizational Structures
Functional Weak
Matrix
Projectized
Strong
Matrix
26
Lecture Review
1. What is the difference between project,
program, and portfolio management?
2. Why is Project Management Important?
3. Describe the PMI Framework
4. Assess how the organizational structure can
impact projects?
27
Class Activity
• Name that P_M!!!
• Use PjM, PgM, PfM
– PjM – Project
– PgM – Program
– PfM – Portfolio
28
What’s Next?
• The project initiation process
– Business Case, Charter, Stakeholder Analysis
• Academic Honesty and Integrity module – complete
right away!
• Introduce yourself Discussion Post
• Week 1 Discussion posts – 2 responses (different days!)
due by Saturday, 11:59pm.
• Individual Assignment Wk1 Paper – due by Sunday,
12:00PM (Noon).
29