PROJECT MANAGEMENT
Phạm Thị Mai Khanh (Ph.D.)
phamthimaikhanh.cs2@[Link]
References
1. Maylor H. (2010), Project Management: with MS Project CD (4th
Edition), FT/Prentice Hall
2. Pinto, J (2016), Project Management Achieving Competitive
Advantage, (4th edition), Pearson
3. Project Management Institute (2016), A Guide to the project
management body of knowledge, 6th edition.
4. JISC Project Management Toolkit,
[Link]
5. CDC Project Management Templates:
[Link]
1
Introduction
Unit Name: Project Management
Main Contents
1. Project: concepts and characteris5cs
2. Project Management: concepts and
evolvement
3. Knowledge Areas of Project Managements
4. Stakeholder Management
2
1. PROJECT
What is a project?
• Projects are unique, transient endeavours undertaken to achieve a
desired outcome. [Association for Project Management, 2004]
• A unique set of coordinated activities, with definite starting and finishing
points, undertaken by an individual or organisation to meet specific
performance objectives with defined schedule, cost and performance
parameters. [British Standard 6079, 2000]
• A management environment that is created for the purpose of delivering one
or more business products according to a specified business case. [Prince2,
2009]
• A temporary organisation that is needed to produce a unique and predefined
outcome or result at a given time using predetermined resources. [Prince2,
2009]
• A project refers to a value creation undertaking based on a specific mission,
which is completed in a given or agreed timeframe and under constraints,
including resources and external circumstances. [Project Management
Association of Japan, 2005]
3
Project - Definition
In the broadest sense, a project is a specific, finite task to be accomplished.
(Meredith and Mantel, 2009, p. 9)
A project is a temporary endeavour undertaken to create a unique product
or service. (PMBOK 2016)
To sovle a problem?
4
Theme
• Unique
– Or aspects of uniqueness
• Temporary
– Organisation, finances
• Focused
– Delivering a result (product or service)
• Emergence
– High level benefits known
– Exact objective and means to achieve them evolve after a certain amount
of work has been done
• Uncertainty
– The future is unpredictable
– Unknowns : achievable objective, costs, durations
Theme
• Change
– Any new system (deliverable) will impact on the way people work
• Social construction
– People and systems of people have complex and dynamic
interactions
• Integration
– People (staff and end users; training and media coverage), systems,
technology, knowledge
• Constraints
– PCTS (Performance – Cost – Time and Scope)
5
Project Boundaries
11
Project vs. Process
Projects Functional Work (Processes)
• Human activities
• Resource-limited
• 3 main phases: planning, execution, control and
monitoring
• Unique and temporary • Routine
Once the end-point is • Tasks that are performed
reach, the project is over over and over again
(one-time events)
12
6
PROJECT VS. PROCESS
13
Project vs. Process
Projects Functional Work (Processes)
• Human activities
• Resource-limited
• 3 main phases: planning, execution, control and
monitoring
• Unique and temporary • Routine
Once the end-point is • Tasks that are performed
reach, the project is over over and over again
(one-time events)
Source: Maylor 2010, p. 11
14
7
Project vs. Process
Projects Functional Work (Processes)
• Human activities
• Resource-limited
• 3 main phases: planning, execution, control and
monitoring
• Unique and temporary • Routine
Once the end-point is • Tasks that are performed
reach, the project is over over and over again
(one-time events)
Source: Maylor 2010, p. 12
15
Project vs. Process
Functional Work (Processes) Projects
• Human activities
• Resource-limited
• 3 main phases: planning, execution, control and
monitoring
• Unique and temporary • Routine
Once the end-point is • Tasks that are performed
reach, the project is over over and over again
(one-time events)
Source: Maylor 2010, p. 8
16
8
Volume Variety
Organising to deliver a project as a process:
• Low volume/high variety process
• First-timers
– Unique
– Allure of the complex, difficult and risky
– Need highly skilled project managers
Other related terms
• Program (encompasses a group of similar projects
oriented toward a specific goals)
– Sub-project
– Project – Tasks – Work Packages
• PorGolio
• InternaIonal Investment Project
18
9
A project is a temporary endeavour undertaken to
create a unique product or service. (PMBOK 2004)
It is
• performed by people
• constrained by limited resources
• planned, executed and controlled
Projects and Organiza5onal
Strategy
Strategic management – the science of formulating,
implementing and evaluating cross-functional decisions
that enable an organization to achieve its objectives.
Consists of:
– Developing vision and mission statements
– Formulating, implementing, and evaluating
– Making cross-functional decisions
– Achieving objectives
Copyright ©2016 Pearson Education, Inc. 2-5
10
OrganiSATIONAL STRATEGY PROCESS
Copyright ©2016 Pearson Education,
2-21
Inc.
Copyright ©2016 Pearson Education,
2-22
Inc.
11
Projects Reflect Strategy
(Table 2.1)
2-6
Copyright ©2016 Pearson Education, Inc.
Project and Organiza5on strategy
Maylor, 2010
Copyright ©2016 Pearson Education,
2-24
Inc.
12
TOWS matrix
(Figure 2.2)
2-7
TRADITIONAL VS. STRATEGIC APPROACHES
Maylor, 2010
Copyright ©2016 Pearson Education,
2-26
Inc.
13
2. Project Management
What is project Management
• h]ps://[Link]/watch?
v=9LSnINglkQA
Func5ons of Management
28
14
Project Management-Concepts (1)
• …. a combina5on of management and planning and the management of change.
(Reiss, 1993 )
• … to plan, co-ordinate and control the complex and diverse ac5vi5es of modern
industrial and commercial projects (Lock, 1994)
• …a specialised management technique, to plan and control projects under a strong
single point of responsibility. (Burke, 1993)
29
Project Management – Concept (2)
• … the applica5on of a collec5on of tools and techniques (such as the CPM and
matrix organisa5on) to direct the use of diverse resources toward the
accomplishment of a unique, complex, one-Ime task within Ime, cost and
quality constraints. Each task requires a par5cular mix of theses tools and
techniques structured to fit the task environment and life cycle (from concep5on
to comple5on) of the task. (Oisen, 1971 – reflected the 1950’s view)
• … the planning, organisa5on, monitoring and control of all aspects of a project
and the mo5va5on of all involved to achieve the project objec5ves safely and
within agreed 5me, cost and performance criteria. The project manager is the
single point of responsibility for achieving this. (UK APM)
• … the applica5on of knowledge, skills, tools, and techniques to project ac5vi5es
to meet the project requirements. (PMI)
30
15
Project Management – Concept (3)
Project management is
the art and science of
converting vision into
reality.
(Turner, 1996)
31
Project Management – concept (4)
“The applicaIon of knowledge, skills, tools, and
techniques to meet project requirements.”
Project Management Ins5tute, 2013
16
Project Management-Concept (5)
The applica5on of
Knowledge Skills Tools Techniques
to
Planning Organiza5on/Coordina5on Monitoring and Control
to achieve project objec5ves
Required Ancillary
Time Cost Efficiency
Performance Objec5ves
33
Project Management
Organiza5onal
Planning Staffing Execu5on Control
Structure
34
17
35
Project Management Philosophy
• The “Golden Rule” of Project Management is
three words:
– Plan
– Organize
– Control
18
The Life Cycle of Projects
• All organisms have a life cycle, they are born, grow,
wane, and die
– So do projects
• Some projects follow an S-shaped curve
– They start slowly, develop momentum, and then finish
slowly
• Other project follow a J-shaped curve
– They start slowly , proceed slowly, and then finish rapidly
The Project Life Cycle
Figure 1-2
19
An Alternate Project Life Cycle
Figure 1-3
4-D Project Cycle
Maylor (2010), Project Management, Prentice Hall, p. 32
40
20
4-D Project Cycle
Maylor (2010), Project Management, Prentice Hall, p.33
41
4-D Project Cycle
Maylor (2010), Project Management, Prentice Hall
42
21
4-D Project Cycle
E.g. Supply of a Information Management System to a Hospital
Maylor (2010), Project Management, Prentice Hall
43
4-D Project Cycle
E.g. Supply of a Information Management System to a Hospital
Maylor (2010), Project Management, Prentice Hall
44
22
Potential for changes vs. cost of change in a Project Life Cycle
Concept Design Implement Comm Operation
Pham Thi Mai Khanh-Foreign Trade University
Level of influence
Potential to add values Cost of change
Concept
Design
Implement
Commission
Cost of change -i $1000
IT $1 $10 $100
Game
• Project Stages and Main Ac5vi5es
23
Why the Emphasis on Project
Management?
• Many tasks do not fit neatly into business-as-
usual
• Organiza5ons need to assign responsibility
and authority for the achievement of their
goals
Importance of successful project management to an
organisation
Figure 1.4 Innovation and maintenance activities in project and line management
24
Comparison of Project Management and
General Management
Table 1-1
How projects really work
• [Link]
v=0YBMfTorE6A
25
Vòng đời dự án
51
Negative Side to Project Management
• Greater organizational complexity
• Higher probability organizational policy will
be violated
• Says managers cannot accomplish the
desired outcome
• Conflict
1-52
26
Why Projects Fail
• [Link]
v=OEQWSjWSx4Q
• [Link]
v=huEpQj5FcGI
The Evolution of Project Management
• Historical projects
– Tower of Babel
– Egyptian pyramids
– Great Wall of China
• The Manhattan Project
• Modern credit for the development of project
management goes to the military
– Navy’s Polaris program
– NASA’s Apollo space program
– Development of “smart bombs” and “missiles”
1-54
27
The evolution of PM
• The grandfather of management science– Frederick Winslow Taylor (an
American engineer) – end of 19th century – beginning of 20th century.
• The grandfathers of PM: beginning of 20th century
– Henry Gantt (US): Gantt Chart (1910).
– Henri Fayol (French): the introduction of the
5 functions of project management.
• Widely used during 1950 – 1960: PERT – Program Evaluation and Review
Technique) and CPM – Critical Path Method)
55
The Evolution of Project Management
• 1969: The formation of Project Management Institution (PMI) in
the USA, grew from 7,500 members in 1990 to over 440,000 in 190
countries by mid-2013
• 1981: PMI published “A Guide to the Project Management Body of
Knowledge” (PMBOK® Guide) , which is recognized throughout
the world as a standard for managing projects in today’s
marketplace. The PMBOK® Guide is approved as an American
National Standard (ANS) by the American National Standards
Institute (ANSI).
• Other organizations
– Association for Project Management (APM – UK)
– International Project Management Association (IPMA)
1-56
28
The Evolution of Project Management
• Since 1990s, project management has found
wide acceptance in industry
• It has many applications outside of construction
– Managing legal cases
– Managing new product releases
1-57
3. Knowledge Areas of PM
58
29
Knowledge Areas of PM
1. Project Integration Management
2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
[Link]’ Management
59
OVERVIEW OF THE PMI’S PMBOK
KNOWLEDGE AREAS
1-30
30
PM and other areas of knowlege
Management Professional
Knowledge
Project
Management
Complement
Knowledge
61
The 7 S of Project Management
31
4. STAKEHOLDER MANAGEMENT
Stakeholders
32
Stakeholder Analysis
• Stakeholders are individuals, work groups and
organizations that are actively involved in the project, or
whose interests can be positively or negatively affected
as the result of project execution or project completion.
• Stakeholder analysis serves two purposes:
– to determine the information needs of the
various stakeholders.
– to devise a communication strategy that will
best serve the project.
An example of a “Stakeholder Analysis”
that went wrong
66
33
Typical Roles and Responsibilities
of Stakeholders
• Project Sponsor
– the one with the money
• Senior Management
– e.g. priorities between projects, project charter
• Team
– Does Planning and Execution
• Functional Manager:
– “owns” resources (IT, marketing, etc.)
• Project Manager
– The individual responsible for the project
• Other Stakeholders
– Customer, external experts, …
34
STAKEHOLDER MANAGEMENT
PROCESSES
1. Iden5fy stakeholders
2. Plan Stakeholder Management
3. Manage Stakeholder Engagement
4. Control Stakeholder Engagement
4.1. IDENTIFY STAKEHOLDERS
• The process of identifying the people, groups, or organizations that
could impact or be impacted by a decision, activity, or outcome of
the project, analyzing and documenting relevant information
regarding their interests, involvement, interdependencies, influence,
and potential impact on project success.
• Key benefit: it allows the project manager to identify the appropriate
focus for each stakeholder or group of stakeholders.
35
The stakeholder register should be consulted and updated on a
regular basis, as stakeholders may change—or new ones
72
identified—throughout the life cycle of the project.
36
Iden5fy Stakeholders
Name PosiIon Internal/ Project Role Contact
External InformaIon
Stephen VP of Opera5ons Internal Project stephen@globaloi
sponsor [Link]
Betsy CFO Internal Senior betsy@globaloil.c
manager, om
approves
funds
Chien CIO Internal Senior chien@globaloil.c
manager, om
PM’s boss
Ryan IT analyst Internal Team member ryan@[Link]
m
Sample stakeholder
Lori Director,
register
Internal Senior lori@[Link]
Accoun5ng manager m
Sanjay Director, Internal Senior sanjay@globaloil.c
Refineries manager om
of largest
refinery
Debra Consultant External Project debra@[Link]
manager
Suppliers Suppliers External Supply suppliers@gmail.c
sotware om
Iden5fy Stakeholders
37
Stakeholder Analysis
Stakeholders Stake in PotenIal ExpectaIons Perceived Stakeholder Responsibility
the project Impact on/ APtude Management
Interest in Strategy
the Project
Supporter
/Neutral
/Resister
75
Iden5fy Stakeholders
• Stakeholder engagement levels
– Unaware: unaware of the project and its poten5al
impacts on them
– Resistant: aware of the project yet resistant to change
– Neutral: aware of the project yet neither suppor5ve
nor resistant
– Suppor5ve: aware of the project and suppor5ve of
change
– Leading: aware of the project and its potential
impacts and actively engaged in helping it
succeed
38
39
Stakeholder Management Strategy Grid
79
Stakeholder Management Strategy Grid
80
40
Stakeholder Analysis
Stakeholders Stake in PotenIal ExpectaIons Perceived Stakeholder Responsibility
the project Impact on/ APtude Management
Interest in Strategy
the Project
H/L Supporter Keep Sa5sfied
H/H /Neutral Managed Closely
L/H /Resister Keep informed
L/L Monitor
81
Managing stakeholders
You can’t please all of the people, all of the time …
41
4.2. PLAN STAKEHOLDER
MANAGEMENT
• The process of developing appropriate management strategies to
effectively engage stakeholders throughout the project life cycle,
based on the analysis of their needs, interests, and potential impact
on project success.
• Key benefit: it provides a clear, actionable plan to interact with project
stakeholders to support the project’s interests
42
Plan Stakeholder Management
• Ater iden5fying and analyzing stakeholders, project
teams should develop a plan for management them
– May be formal or informal, based on the needs of the
project
• The stakeholder management plan can include:
– Current and desired engagement levels
– Interrela5onships between stakeholders
– Communica5on requirements
– Poten5al management strategies for each stakeholders
– Methods for upda5ng the stakeholder management plan
Plan Stakeholder Management
• Because a stakeholder management plan oten
includes sensi5ve informa5on, it should not be
part of the official project documents, which are
normally available for all stakeholders to review
– In many cases, only project managers and a few other
team members should prepare the stakeholder
management plan
– Parts of the stakeholder management plan are not
wri]en down, and if they are, distribu5on is strictly
limited
43
4.3. MANAGE STAKEHOLER
ENGAGEMENT
• The process of communicating and working with stakeholders to
meet their needs/expectations, address issues as they occur,
and foster appropriate stakeholder engagement in project
activities throughout the project life cycle.
• Key benefit: it allows the project manager to increase support
and minimize resistance from stakeholders, significantly
increasing the chances to achieve project success
44
Communica5on Management Plan
Provides guidance and informa5on on managing
stakeholder expecta5ons, a communica5on
management plan includes (but is not limited to):
• Stakeholder communica5ons requirements;
• Informa5on to be communicated, including
language, format, content, and level of detail;
• Reason for distribu5on of informa5on;
• Person or groups who will receive informa5on; and
• Escala5on process.
Stakeholder Communica5on Plan
Stakeholders Interest/Power Key Desired Message AcIons CommunicaIon
Mgt Strategy Interests/ Impact/ Needed Desired Vehicles/Channel
Issues Roles
90
45
Manage Stakeholder Engagement
• Project success is oten measured in terms of
customer/sponsor sa5sfac5on
– Project sponsors oten rank scope, 5me, and cost
goals in order of importance and provide
guidelines on how to balance the triple constraint
• This ranking can be shown in an expecta5ons
management matrix to help clarify expecta5ons
e.
Manage Stakeholder Engagement
• Understanding the stakeholders’ expecta5ons
can help in managing issues
– Issues should be documented in an issue log, a
tool used to document, monitor, and track issues
that need resolu5on
– Unresolved issues can be a major source of
conflict and result in stakeholder expecta5ons not
being met
– Issue logs can address other knowledge areas as
well
Information Technology Project
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Cengage. May not be copied, scanned, or
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use as permitted in a license distributed with
a certain product or service or otherwise on
a password-protected website for classroom
use.
46
Manage Stakeholder Engagement
Issue # DescripIon Impact Date Reported Assigned Priority (H/ Due Date Status Comments
Reported By to M/L)
1 Need Cannot Feb. 4 Ryan Stephen H Feb. 8 Closed Requirements
requirements do much clearly
categorized without it labeled
as mandatory
and
op5onal
2 Need shorter Will delay Feb. 6 Debra Ryan H Feb. 12 Open Almost finished;
list of evalua5on needed
poten5al without it requirements
suppliers categorized
—no more first
than 10
Etc.
Table 13-4 Sample issue log
Best Prac5ce
• Project managers are oten faced with
challenges, especially in managing stakeholders
– Some5mes they simply cannot meet requests from
important stakeholders
• Sugges5ons for handling these situa5ons
– Be clear from the start
– Explain the consequences
– Have a con5ngency plan
– Avoid surprises
– Take a stand
47
4.4 CONTROL STAKEHOLDER ENGAGEMENT
• The process of monitoring overall project stakeholder relationships
and adjusting strategies and plans for engaging stakeholders.
• Key benefit: it will maintain or increase the efficiency and
effectiveness of stakeholder engagement activities as the project
evolves and its environment changes.
48