PROJECT MANAGEMENT

Project Management

Why project management is so important practice in business today? And why is it

challenging to manage a project effectively? We see so many projects failing or
getting delayed or completely abandoned? If organizations are using management
practices, then what is the missing element?

Another important point worth considering is to differentiate between project

management practices and the process-oriented business functions

More and more projects are being considered as the most value adding to a business.
Why? Consider today’s business scenario- there are both opportunities and threats.
There is fierce competition from within the domestic market as well as international
competition. There is greater demand for new or modified products and services.
Customers need to be responded to as soon as possible. All this with a short cycle
time to market and at competitive prices. Having just one competitive niche such as a
low-cost strategy or being customer focused or being a product innovator does not
work any more. Organizations are expected to be cost conscious, to be efficient and
to be customer focused all at one time. To deal with this complex situation,
organizations are becoming project-based.
How does a project based work differ from other activities in the organization?

The activities we are referring to are routine activities in an organization which are
repetitive. They follow a set of activities also called processes. Consider for example-
a company orders raw material, makes the product and ships the finished product.
Even if this may be a well established and well understood process, companies look
for ways to do these essential tasks more efficiently in order to stay competitive in
terms of cost, in terms of time to market or a good quality product.

Projects being unique in nature and one time activity i.e. a

temporary endeavour breaks the repetition. They bring
together a team of professionals with different expertise.
We will discuss more about team formation in subsequent
modules. These teams function under uncertainty, and
try to move away from the routine process in order to do
things in a new way or better way. Hence, the need for
project management.

The reasons that make organizations embrace project management are the same
reasons that make successful project management a daunting task. Partly, the
reason is that projects move away from the traditional routine repetitive process, so
they face resistance to the changes required. Which makes it more difficult to
assimilate project management into conventional processes of the organization.

Differences between process and project

Process Project
Repeat process or product or service New process or product or service
Ongoing One shot- limited life
Well established system in place Systems must be created
Greater certainty of performance Greater uncertainty of performance
Supports status quo Upsets status quo

In case of a process, the same set of activities are taken repeatedly. For example an
order fulfillment process that the company has. Same set of activities will be followed
from the time an order was received till the time it was delivered. In case of a project,
the aim is to create a new process or product or service. In the case of order
fulfillment, it may look at a new set of activities or support of technologies, so that this
process becomes better in terms of cost and time.

Another difference is that process is ongoing activity whereas a project is a one time
activity. Process being ongoing by nature has well established system in place which
is not the case for a project. For project, these systems need to be created.

With established systems in place, certainty of performance is higher in case of

process. In case projects, there is a greater uncertainty about performance. There are
multiple reasons for this uncertainty about performance which we will be taken up in
subsequent module.

Projects operate in direct contradiction to the process

oriented practice in a business. Still organizations take
projects and project management to achieve their
strategic goals. Some of the reasons are:

1. Shortened product life cycle i.e. customers expect new product offerings and
upgrades at an increasingly rapid pace. With the fierce market competition, the
optimal launch windows have shortened to say to a few months
2. Complex, technically sophisticated products. Public wants something
different, the next best thing, want the new thing to be better, bigger (or in some
cases smaller), faster than the earlier version. Just consider the launch timing of
the mobile phones and the new features they are offering. The success of these
new mobile phone models will depend on when were they launched in
comparison to their competitors, what are the new features from the previous
version or in comparison to the competitors product, plus the price comparison.
3. Global market- the global market landscape has increased both the customer
base as well as the competitor base. This is the new reality. Globalization of the
economy and operating in different time zones, the geographic spread aided by
the new modes of communication bring both opportunities and challenges.
These are few of the obvious scenarios that the businesses are facing today. And
they are not going to go away. In fact the complexity will increase even more with the
introduction of the disruptive technologies or in other words the industry 4.0 revolution
we are facing today. To deal with the market forces, organizations are becoming
project savvy organization and adopting project management.

Source: Google

A project has two processes (PMI, 2000)- project management process and product
process

1. Project management processes describe, organize and complete project

work. This includes management of cost, scope, quality, risk, human
resources and communication
2. Product processes are the technical processes to create the product. These
require a detailed understanding of the technical processes and provide
expert assistance to the technical team to manage technical aspects of the
project.

Projects create business value. And we have also seen the difference between
process and project. Since, firms are better at managing processes they may tend to
resist the temporary endeavour that is the project. So, firms are turning to better
management of projects as a competitive strategy and adopting practices to improve
their competitive position. As we all know; investments are cost, time and resource
intensive (Jugdev, & Thomas, 2002).

Project Management Institute (PMI) defines project management as “the

application of knowledge, skills, tools, and techniques to project activities to meet
project requirements” (PMI, 2004). Project Management is planning, directing and
controlling resources to achieve specific goals (Fan, Lin, & Sheu, 2008). Managing a
project not only needs managing technical aspects but also the behavioural aspects.
Technical side of managing a project requires the project manager to be skilled at
project selection, planning, budgeting, scoping, resource management, and tracking
the project progress. They need to be proficient with project management tools and
techniques. Along with managing the technical aspects of the project they are
required to manage the people side of the project.

A project has multiple stakeholders- the senior

management from the user organization, the project
manager, and the development team members. It
requires intense collaboration, sharing and
integrating knowledge between users, project
managers, and developers to achieve the set goals.

Knowledge sharing among these key stakeholders assists in effectively

understanding the project objective and carve the path ahead. All these stakeholders
have different criteria for satisfaction from project outcomes.

For the project manager, delivering within time and budget may be a top priority while
project owner’s concern will be contribution to the company’s goals and strategies.
Also their perspectives on risks associated with the project differ based on their level
of experience, their motivation and interests. On the one hand, the domain
knowledge or the expertise of stakeholders helps in achieving the project objectives.
On the other hand, it may create a perception gap about system scope or
requirements among them. This is because, they construct their own cognition about
the project planning and requirements on the basis of their observations, social
actions, interactions and information sharing.
The project manager is required to bring together all these individuals from across the
organization, or from multiple organizations, bind them together as an effective team,
manage any conflict arising and provide leadership.

I will address these behavioral aspects or people side of the project later on. But we
need to understand that the project manager should not choose or emphasize only on
one aspect and ignore the other. To be successful they need to be experts at both
and this becomes their testing ground. Their testing and training ground to be
effective leaders in business. Their effective management of the projects create the
value that businesses need to compete and survive.

Project management is becoming a powerful and popular practice in business today

as it offers the organization the competitive advantage and makes it efficient with use
of organizational resources.

In subsequent lectures, we will see- What are the key processes in project
management? what defines success of a project? And what role does a project
manager play?

PROJECT MANAGEMENT PROCESSES, LIFE CYCLE AND KNOWLEDGE

AREAS

Some concepts about project management. They are

1. Project management processes
2. Project management life cycle
3. Project management knowledge areas
4. And project management methodology

The project goes through a life cycle i.e. initiation to producing an outcome when the
project is finally terminated i.e. the project is closed when the objectives are met or
can not be met. In order to keep project on track, it is managed by executing a series
of project management activities known as project management processes. Each of
these processes produce one or more outputs which then becomes input to the next
process. Appropriate project management tools and techniques are used to produce
outputs from the inputs.
These processes are logically linked by the outputs they produce. Many a times,
processes may contain overlapping activities that occur throughout the project. So in
short, each process produces an output which may be input to another process, or a
deliverable of the project or project phase.
Some of these processes are performed iteratively. The number of process iterations
varies based on the needs of the project. Processes generally fall into one of three
categories: processes used once, or periodically through the project or continuously
throughout the project.
1. There are few processes that are used once or at predefined points in the
project. For example, The processes Develop Project Charter is only once at
the beginning of the project and the process Close Project is at the time of
project closure.
2. There are Processes that are performed periodically as and when needed. For
example- the process- Acquire Resources will be performed as and resources
will be needed.
3. Then there are Processes that are performed continuously throughout the
project. For example, the monitoring and control processes are ongoing from
the start of the project, until it is closed out.
Project management Body of Knowledge groups these processes into five categories
called the Process Groups.

1. Initiating Process Group

2. Planning Process Group
3. Executing Process Group
4. Monitoring and Controlling Process Group
5. And finally the Closing Process Group.
PROJECT AND DEVELOPMENT LIFE CYCLES
A project life cycle is the series of phases that a project passes through from its start
to its completion. These phases are- Pre-Project Work, Starting the Project,
Organizing and Preparing, Carrying Out the Work and completing the Project.
Going through these phases, develops a product, service, or result. These are called
a development life cycle.
Development life cycles can be predictive, iterative, incremental, adaptive, or a hybrid
model:
 1. In a predictive life cycle, the project scope, time, and cost are determined in
the early phases of the life cycle. Predictive life cycles may also be referred to
as waterfall life cycles.
2. In an iterative life cycle, the project scope is generally determined early in the
project life cycle, but time and cost estimates are routinely modified as the
project team’s understanding of the product increases.
3. In an incremental life cycle, the deliverable is produced through a series of
iterations These iterations add functionality within a predetermined time frame.
The project Is considered to be complete only after the final iteration.
4. Adaptive life cycles are agile, iterative, or incremental. The detailed scope is
defined and approved before the start of an iteration. Adaptive life cycles are
also referred to as agile or change-driven life cycles.
5. A hybrid life cycle is a combination of a predictive and an adaptive life cycle.

The project manager in collaboration with the project team and other stakeholders
determines and uses the appropriate combination of processes, inputs, tools,
techniques, outputs and life cycle phases to manage a project.

PROJECT MANAGEMENT KNOWLEDGE AREAS

In addition to the Process Groups, processes are

also categorized by Knowledge Areas. A
Knowledge Area is defined by its knowledge
requirements.
Project management Body of Knowledge has
identified ten Knowledge Areas . They are:

1) Project Integration Management. Includes the processes and activities to

identify, define, combine, unify, and coordinate the various processes and project
management activities within the Project Management Process Groups.
2) Project Scope Management. Includes the processes required to ensure the
project includes all the work required, to complete the project successfully.
3) Project Schedule Management. Includes the processes required to manage the
timely completion of the project.
4) Project Cost Management. Includes the processes involved in planning,
estimating, budgeting, financing, funding, managing, and controlling costs so the
project can be completed within the approved budget.
5) Project Quality Management. Includes the processes for incorporating the
organization’s quality policy in order to meet stakeholders’ expectations.
6) Project Resource Management. Includes the processes to identify, acquire, and
manage the resources needed for the successful completion of the project.
7) Project Communications Management. Includes the processes required to
ensure timely and ultimate dissemination of project information.
8) Project Risk Management. Includes the processes of conducting risk
management on a project.
9) Project Procurement Management. Includes the processes necessary to
purchase or acquire products, services from outside the project team.
10) Project Stakeholder Management. Includes the processes required to identify
the people, groups, or organizations that could impact or be impacted by the
project
Usually, project managers apply a project management methodology to their work. A
methodology is a combination of practices, techniques, procedures, and rules. These
can not always be applied uniformly to all projects. Each project is unique; not every
process, tool, technique, input, or output will work on every project.

Project management methodologies that

organizations use are either Developed by
experts within the organization, or Purchased
from vendors, or Obtained from professional
associations, or Acquired from government
agencies.

Whatever may be the case, do a due diligence while selecting processes, inputs,
tools, techniques, outputs, and life cycle phases to manage the project
As a project manager, collaborate with the project team, sponsor, organizational
management, and choose a methodology. In some cases, organization may already
have these combinations and expecting all projects to use that methodology.
Some points to consider while developing a methodology to be used for the project
1. Each project has constraints of scope, schedule, cost, resources, quality, and
risk. The importance of each constraint is different for each project. So, the
approach for managing these constraints should be based on the project
environment, organizational culture, stakeholder needs, and other variables.
2. Another point to consider is the varying levels of governance that may be
required and within which the project will operate, culture of the organization.
3. Additional consideration would be whether the customer of the project is
internal or external to the organization this may affect project management
tailoring decisions.
PROJECT SUCCESS

When do you say that a project is successful? Is it when it becomes profitable? Is it

called successful if it finishes within the stipulated budget or stipulated time? Or when
it contributes towards organization’s long term goals?

Generally, the project success should take into consideration all the elements that
defined the project itself- time, budget, functionality, quality, customer satisfaction.

At one time, projects were considered successful on three criteria

1. Time (adherence to schedule)- projects have a specified time frame within

which they need to be completed. Thus the first constraint that governs project
management is that it should complete on or before the agreed upon time
2. Cost (the allocated budget)- each project is allocated a budget within which it
should utilize the resources as efficiently as possible.
3. Performance- projects are initiated to produce some artefact that adheres to
the initially determined technical specifications. Thus, measuring performance
would mean whether the product or service so developed meets the
specifications established at the project onset. This criteria is often referred to
as meeting the quality.

Earlier, this triple constraint for projects was used to assess the project performance.
Nowadays, another criteria is added called the client acceptance. This is now gaining
importance as projects are developed with customers in mind, and to meet their
needs.
Another way to look at the project success is in terms of “internal” and “external”
conditions. The control over expenditures of money and time are internal to the
organization.

The triple constraint of success mentioned above has received criticism as a measure
of success, why?

Will you consider a project a success if it has been delivered on time and within
budget but does not meet the original specifications or meets the specifications but
has some flaws.

The other scenario- a project which was delayed and overrun its budget met its
specifications and is of very good quality. It will be labelled a failure if we judge it from
the lens of the triple constraints.

Adding the client acceptance or satisfaction on the project outcome corrects this
shortcoming in the assessment process.

Considering this, Shenhar, Levy & Dvir proposed success in four dimensions. The
four dimensions of success are proposed as

1. Project efficiency- i.e. meeting budget and schedule expectations

2. Impact on the customer- i.e. meeting technical specifications, creating a
project that satisfies the client’s needs.
3. Business success- whether the project achieved significant potential success
4. Future potential- whether the project opened new market or opportunity for
new product line

Another way to look at project success is in terms of product and process

performance Product performance refers to successfulness of the system that was
developed and process performance refers to the successfulness of the development
process.
Another model that is gaining importance to assess the project success is that the
project stakeholders should have a say in assessing the project success. When
specifying the criteria to assess a project’s success or failure, it is important to
consider the context and type of project. The means by which the project will be
measured or the criteria that will be used to assess the success or failure of the
project needs to be specified before the project is undertaken. If project team
members understand that standards to which the project is being held or the
measures of success, they will focus efforts more strongly on those aspects.

Project success

Project success may include additional criteria linked to

the organizational strategy and to the delivery of
business results such as

1. Completing the project benefits management

plan;
2. Meeting the agreed-upon financial measures
documented in the business case such as Net
present value (NPV), Return on investment (ROI),
Internal rate of return (IRR), Payback period
(PBP) etc.

Businesses have nonfinancial objectives as well that need to be met such as

- Completing movement of an organization from its current state to the desired future
state

- Fulfilling contract terms and conditions;

- Meeting organizational strategy, goals, and objectives;

- Achieving stakeholder satisfaction;

- Acceptable customer/end-user adoption;

- Achieving agreed-upon quality of delivery;

- Meeting governance criteria;

The project team needs to be able to assess the project situation, balance the
demands, and maintain proactive communication with stakeholders in order to deliver
a successful project.

Over the years, view on project success has changed from limiting it to
implementation phase to aligning project activities with organizational goals. Study by
Jugdev, and Muller (2005) has shown the change in view from metrics to stakeholder
involvement to impact of organizational support and external environment.

Period 1- Project implementation and handover (1960s to 1980s) simple metrics

such as time, cost and specifications were used to rate project success
Period 2- CSF lists (1980s – 1990s) emphasized developing critical success factors
(CSF)
Period 3- CSF frameworks (1990s- 2000s) emergence of integrated frameworks
that addressed stakeholder involvement
Period 4- Strategic project management (21st century) - relating project success to
organization and external environment.

The current shift towards strategic project management comes from the fact that
when the business alignment for a project is constant, the chance for project success
greatly increases because the project remains aligned with the strategic direction of
the organization.

It is possible for a project to be successful from a scope/schedule/budget viewpoint,

and to be unsuccessful from a business viewpoint. This can occur when there is a
change in the business needs or the market environment before the project is
completed.

Both short term view of budget, cost and quality and long terms view of customer
satisfaction are important considerations that the project manager should take into
account For the project management team, delivering within time and budget may be
top priority while company’s goals and strategies of importance to project owner.

We have seen a lot of different measures for project success. In collaboration with
the stakeholders, the project manager needs to clearly identify the success measures
against which the project outcome will be measured.

PROJECT MANAGER
A project has multiple stakeholders- there are people from the user organization, the
project sponsors, project manager and other team members from the functional and
business side. Projects face the complexity and uncertainty from the external
environment, at the same time, multiple stakeholders also add to that complexity.
This happens because they all have different perspectives and expectations from the
project outcome.

While the project management team would like

to deliver within time and budget, the project
owner or the user organization would want a
quality product. It is the leader of the project
team that is the project manager who interacts
with a number of networks, identifies the central
problem to solve and with input from the
sponsor and stakeholders determines the project’s objectives and scope and the
activities that will deliver the desired results (Barber & Warn, 2005).

It is the project manager who is responsible to communicate with different

stakeholder, identify the objectives and manage their conflicting expectations and
lead the team to deliver the set objectives.
Today we are going to look at the role a project manager plays and skills required to
play those roles effectively and efficiently.

As I mentioned, the project manager plays a very crucial role in leading the project
team in order to achieve the project’s objectives. They may be involved in a project
from its initiation through closing. Or, in some organizations, they may be involved in
evaluation and analysis activities prior to project initiation. The role of a project
manager may vary from organization to organization. They may be expected to
consult with business leaders on ideas for advancing the strategic objectives, for
improving organizational performance, or meeting customer needs.

During the course of the project, generally a project manager interacts with multiple
stakeholders- suppliers, customers, end users, sponsors, steering committee, PMO,
project teams, resource managers etc. Project managers fulfil numerous roles within
their sphere of influence- provide the project team with leadership, planning, and
coordination; communicates with them in real time using both verbal or nonverbal
cues.

Although, the project manager is not expected to perform every role on the project,
but should possess project management knowledge, technical knowledge, and
experience.

So, what are these roles that project managers are expected to perform. We have
already established that they lead the project team to meet the project’s objectives
and stakeholders’ expectations.

Lets divide this at the project level, the organization level and the team level.

At the project level, the project manager is required to

 - balance the competing constraints on the project with the resources available.
- and perform communication roles between the project sponsor, team
members, and other stakeholders.

To manage this, they use soft skills, interpersonal skills to balance the conflicting and
competing goals of the project stakeholders in order to achieve consensus. Here,
consensus means getting stakeholders support to project decisions and actions even
when there is not 100% agreement. What works here is the relationship and
communication skills while displaying a positive attitude.

Project manager’s role at organization level. Here the role is that of strong
advocacy within the organization.

- The project manager proactively interacts with other project managers. Other
independent projects or projects that are part of the same program as they
demand same resources, priorities of funding. This interaction with other
project managers helps to create a positive influence for fulfilling the various
needs of the project.
- The project manager also works with the project sponsor to address internal
political and strategic issues that may impact the team or the viability or quality
of the project.
- The project manager also works closely and in collaboration with other roles,
such as organizational managers, subject matter experts, and those involved
with business analysis.
- The project manager may work toward increasing the project management
competency and capability within the organization- demonstrate the value of
project management, Increase acceptance of project management in the
organization, and Advance the efficacy of the PMO when one exists in the
organization. These will be discussed in detail at a later stage.

Depending on the organizational structure, a project manager may report to a

functional manager, to a PMO or a portfolio or program manager. In some situations,
the project manager may be an external consultant placed in a temporary
management

So, a project manager needs to stay informed about current industry trends, product
and technology development; changing market conditions; project management
standards, Technical support tools; Economic forces. As all of these have an impact
on the project, whether positive or negative.

Since, a project manager is expected to perform multiple

and diverse set of roles depending on the organisation
structure and the size of the project, he or she requires
three key skill sets: technical, leadership and strategic
management

Technical project management skills i.e. The technical aspects of performing one’s
role- The knowledge, and skills related to specific domains of project, program, and
portfolio management.

They need leadership skills i.e. the knowledge, skills, and behaviors to guide,
motivate, and direct a team from diverse backgrounds, experience, expertise and
domain knowledge to achieve the set goals.

They need strategic and business management skills i.e. the knowledge of and
expertise in the industry and organizational goals to better delivers business
outcomes.

While technical project management skills are core to program and project
management, research indicates that they are not enough in today’s increasingly
complicated and competitive global marketplace.

TECHNICAL PROJECT MANAGEMENT SKILLS

Technical project management skills are skills

required to effectively apply project management
knowledge to deliver the desired outcomes for
programs or projects.
Some of these are :

Understanding of the critical technical project management elements for each project
they manage- Critical success factors for the project, Schedule, Budgeting, financial
reports, usage of tools to track progress. It also includes the ability to tailor both
traditional and agile tools, techniques, and methods for each project. plan thoroughly
and prioritize diligently

STRATEGIC AND BUSINESS MANAGEMENT SKILLS

Strategic and business management skills involve

the ability to see the high-level overview of the
organization and effectively negotiate and
implement decisions and actions-

- To be able to Explain to others the essential business aspects of a project;

- Be able to develop an appropriate project delivery strategy in collaboration with
the project sponsor, team, and subject matter experts
- and Implement that strategy in a way that maximizes the business value of the
project.
- Risks and issues; Financial implications; Cost versus benefits analysis, uu
Business value, Benefits realization expectations and strategies.

This ability may include domain knowledge and a working knowledge of other
functions such as finance, marketing, and operations.

Take for example a situation where project manager is required to seek out the
expertise of the operational managers who run the business in their organization. So,
the manager should know the work performed in their organization and how project
plans will affect that work. This knowledge would help them explain to others

Strategic and business skills help the project manager to determine which business
factors should be considered for their project and how these business and strategic
factors could affect the project.

As conditions change, the project manager should be continuously working with the
project sponsor to keep the business and the project strategically aligned
LEADERSHIP SKILLS

Leadership skills involve the ability to guide, motivate, and direct a team. Project
management is more than just working with numbers, templates, charts, graphs, and
computing systems. A common denominator in all projects is people. A large part of
the project manager’s role involves dealing with people. A project manager applies
leadership skills and qualities when working with all project stakeholders, including
the project team, the steering team, and project sponsors.

The words leadership and management are often used interchangeably. However,
they are not synonymous. The word management is more closely associated with
directing another person to get the job done. In contrast, leadership involves working
with others in order to guide them from one point to another.

To summarize, the project manager is expected to integrate all aspects of the project,
ensure that the proper knowledge and resources are available when and where
needed, and above all, ensure that the expected results are produced in a timely,
cost-effective manner.

The project manager’s job is not without problems. There is the ever-present
frustration of being responsible for outcomes while lacking full authority to command
the requisite resources or personnel. There are the constant problems of dealing with
the parties involved in any project—senior management, user organization, project
team, vendors, end users or customers- all of whom have different objectives.

Despite these challenges and risks, most project managers take a considerable
amount of pleasure and job satisfaction from their occupation. These are the people
who can stomach the risks and enjoy practicing the arts of conflict resolution.