Project Management

CT050-3-3-PRMGT

01: An Introduction to
Project, Program, and
Portfolio Management
 Topic & Structure of The Lesson

Knowledge area Planning process Outputs

CT050-3-3-PRMGT (Project Management) Planning Projects

 Learning Objectives
• Understand the growing need for better project,
program, and portfolio management
• Explain what a project is, provide examples of
projects, list various attributes of projects, and
describe project constraints
• Describe project management and discuss key
elements of the project management framework,
including project stakeholders, the project
management knowledge areas, common tools
and techniques, project success factors, and
project benefits measurement

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 Learning Objectives (continued)
• Discuss the relationship between project, program,
and portfolio management and their contributions to
enterprise success
• Describe the project management profession,
including the role of project managers and suggested
skills for project management careers.

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 Key Terms You Must Be Able To
Use
• If you have mastered this topic, you should be able to use the following
terms correctly in your assignments and exams:
– Xxxxxx
– yyyyyyy

CT050-3-3-PRMGT (Project Management) Planning Projects

 Introduction
Many organizations today have a new or renewed
interest in project management (PM). Why?
• Demand for projects continues to increase, with GDP
contributions from project-oriented industries forecasted to
be US$20.2 trillion by 2017. Employers will need 87.7
million individuals working in project management-
oriented roles by 2027.”
• The job market is good for college graduates who
demonstrate the most important attribute employers want:
the ability to work as part of a team.
• Organizations waste $97 million for every $1 billion spent
on projects.

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 What Went Wrong?

A 1995 Standish Group study (The CHAOS

Report) found that only 16.2 percent of
information technology (IT) application
development projects were successful in meeting
scope, time, and cost goals. Over 31 percent of
the projects were canceled before completion,
costing over $81 billion in the U.S. alone
• A PriceWaterhouseCoopers study of 200
companies from 30 different countries found that
over half of all projects fail

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 Advantages of Using Formal
Project Management
• Better control of financial, physical, and
human resources
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale
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 What Is a Project?
• A project is “a temporary endeavor
undertaken to create a unique product,
service, or result”*
• Operations is work done to sustain the
business
• Projects end when their objectives have
been reached, or the project has been
terminated
*Project Management Institute, Inc., A Guide to the Project Management
Body of Knowledge (PMBOK® Guide – Sixth Edition) (2017).

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 Examples of Projects
• A young couple hires a firm to design and build them a new
house
• A medical technology firm develops a device that connects to
smart phones
• A group of musicians starts a company to help children
develop their musical talents
• A pharmaceutical company launches a new drug
• A television network develops a system to allow viewers to
vote for contestants and provide other feedback on programs
• The automobile industry develops standards for electric cars
• A government group develops a program to track child
immunizations

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 Project Attributes
• A project:
– Has a unique purpose
– Is temporary
– Drives change and enables value creation
– Is developed using progressive elaboration or
in an iterative fashion
– Requires resources, often from various areas
– Should have a primary customer or sponsor
• The project sponsor usually provides the direction
and funding for the project
– Involves uncertainty
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 Project Constraints
• Every project is constrained in different ways. Some
project managers focus on the triple constraint (meeting
scope, time, and cost goals)
– Scope: What work will be done as part of the project? What unique
product, service, or result does the customer or sponsor expect
from the project?
– Time: How long should it take to complete the project? What is the
timeline?
– Cost: What should it cost to complete the project? What is the
project’s budget? What resources are needed?
• Other constraints include quality, risk, and resources

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 Figure 1-2. Typical Project
Constraints

CT050-3-3-PRMGT (Project Management) Planning Projects 1

 What is Project Management?

• Project management is “the application

of knowledge, skills, tools and techniques
to project activities to meet project
requirements.”*

*Project Management Institute, Inc., A Guide to the Project

Management Body of Knowledge (PMBOK® Guide, Sixh Edition)
(2017).
CT050-3-3-PRMGT (Project Management) Planning Projects 1
 Figure 1-3. Project Management
Framework

CT050-3-3-PRMGT (Project Management) Planning Projects 1

 Project Stakeholders

• Stakeholders are the people involved in

or affected by project activities
• Stakeholders include:
– The project sponsor
– The project manager
– The project team
– Support staff
– Customers
– Suppliers
– Opponents to the project
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 Project Management Knowledge
Areas
• Project integration management is an overarching function that
coordinates the work of all other knowledge areas. It affects and is
affected by all of the other knowledge areas.
• Project scope management involves working with all appropriate
stakeholders to define, gain written agreement for, and manage all
the work required to complete the project successfully.
• Project time management includes estimating how long it will take to
complete the work, developing an acceptable project schedule given
cost-effective use of available resources, and ensuring timely
completion of the project.
• Project cost management consists of preparing and managing the
budget for the project.
• Project quality management ensures that the project will satisfy the
stated or implied needs for which it was undertaken.

CT050-3-3-PRMGT (Project Management) Planning Projects 1

 Project Management Knowledge Areas
(continued)
• Project resource management is concerned with making
effective use of the people and physical resources needed for
the project.
• Project communications management involves generating,
collecting, disseminating, and storing project information.
• Project risk management includes identifying, analyzing, and
responding to risks related to the project.
• Project procurement management involves acquiring or
procuring goods and services for a project from outside the
performing organization.
• Project stakeholder management focuses on identifying project
stakeholders, understanding their needs and expectations, and
engaging them appropriately throughout the project.

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 Project Management Tools and Techniques

• Project management tools and techniques assist project

managers and their teams in various aspects of project
management.
• Note that a tool or technique is more than just a software
package.
• Specific tools and techniques include:
– Project charters, scope statements, and WBS (scope)
– Gantt charts, network diagrams, critical path analyses (time)
– Net present value, cost estimates, and earned value
management (cost)
– See Figure 1-4 for more examples

19
CT050-3-3-PRMGT (Project Management) Planning Projects
 Figure 1-4. Common Project Management
Tools and Techniques by Knowledge Areas
Knowledge Area/Category Tools and Techniques

Integration management Project selection methods, project management

methodologies, project charters, project
management plans, project management
software, change requests, change control
boards, project review meetings, lessons-learned
reports
Scope management Scope statements, work breakdown structures,
mind maps, statements of work, requirements
analyses, scope management plans, scope
verification techniques, and scope change
controls
Schedule management Gantt charts, project network diagrams, critical-
path analyses, crashing, fast tracking, schedule
performance measurements

Cost management Net present value, return on investment, payback

analyses, earned value management, project
portfolio management, cost estimates, cost
management plans, cost baselines

Quality management Quality metrics, checklists, quality control

charts, Pareto diagrams, fishbone diagrams,
maturity models, statistical methods

CT050-3-3-PRMGT (Project Management) Planning Projects 2

 Figure 1-4. Common Project Management Tools
and Techniques by Knowledge Areas (continued)
Knowledge Area/Category Tools and Techniques

Resource management Motivation techniques, empathic listening,

responsibility assignment matrices, project
organizational charts, resource histograms, team
building exercises
Communications Communications management plans, kickoff
management meetings, conflict management, communications
media selection, status and progress reports,
virtual communications, templates, project
websites

Risk management Risk management plans, risk registers,

probability/impact matrices, risk rankings
Procurement management Make-or-buy analyses, contracts, requests for
proposals or quotes, source selections, supplier
evaluation matrices
Stakeholder management Stakeholder registers, stakeholder analyses, issue
logs, interpersonal skills, reporting systems

CT050-3-3-PRMGT (Project Management) Planning Projects 2

 Tools and Techniques by Purpose

The PMBOK® Guide – Sixth Edition now lists tools

and techniques based on their purpose, as follows:
• Data gathering
• Data analysis
• Data representation
• Decision making
• Communication
• Interpersonal and team skills
• Ungrouped

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 Project Success

• There are different ways to define project

success:
– The project met scope, time, and cost goals.
– The project satisfied the customer/sponsor.
– The project produced the desired results.

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 Programs and Megaprojects

• A program is “a group of related projects,

subsidiary programs, and program activities
managed in a coordinated manner to obtain
benefits not available from managing them
individually.”*
 A megaproject is a very large project that
typically costs over US $1 billion, affects over
one million people, and lasts several years.

*Project Management Institute, Inc., A Guide to the Project Management

Body of Knowledge (PMBOK® Guide – Sixth Edition) (2017).

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 Figure 1-5. Example Programs

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 Project Portfolio Management
• A portfolio is defined as “projects, programs, subsidiary
portfolios, and operations managed as a group to achieve
strategic objective.”*
• Many organizations support an emerging business strategy
of project portfolio management by continuously
selecting and managing the optimum set of projects and
programs to deliver maximum business value.
• Organizational project management is a “framework in
which portfolio, program, and project management are
integrated with organizational enablers in order to achieve
strategic objectives.”
*Project Management Institute, Inc., A Guide to the Project Management
Body of Knowledge (PMBOK® Guide – Sixth Edition) (2017).

CT050-3-3-PRMGT (Project Management) Planning Projects 2

 Project and Program Management
Compared to Project Portfolio Management

• Project and program management address

questions like:
– Are we carrying out projects well?
– Are projects on time and budget?
– Do project stakeholders know what they should be
doing?
• Portfolio management addresses questions like:
– Are we working on the right projects?
– Are we investing in the right areas?
– Do we have the right resources to be competitive?

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 Figure 1-6. Organizational project
management framework (parts of figure)
  Projects Programs Portfolios
Definition A project is a A program is a group of related A portfolio is a collection of
temporary endeavor projects, subsidiary programs and projects, programs, subsidiary
undertaken to create a program activities that are managed portfolios, and operations
unique product, in a coordinated way to obtain managed as a group to
service, or result. benefits not available from managing achieve strategic objectives.
them individually.
Manageme Project managers Programs are managed by program Portfolio managers may
manage the project managers who ensure that program manage or coordinate
nt team to meet the benefits are delivered as expected, portfolio management staff, or
project objectives. by coordinating the activities of a program and project staff that
program’s components. may have reporting
responsibilities into the
aggregate portfolio.
Monitoring Project managers Program managers monitor the Portfolio managers monitor
monitor and control the progress of program components to strategic changes and
work of producing the ensure the overall goals, schedules, aggregate resource allocation,
products, services, or budget, and benefits of the program performance results, and risk
results that the project will be met. of the portfolio.
was undertaken to
produce
Success Success is measured A program’s success is measured by Success is measured in terms
by product and project the program’s ability to deliver its of the aggregate investment
quality, timeliness, intended benefits to an organization, performance and benefit
budget compliance, and by the program’ efficiency and realization of the portfolio.
and degree of effectiveness in delivering those
customer satisfaction. benefits.

Source: Project Management Institute, Inc., A Guide to the Project

Management Body of Knowledge (PMBOK Guide) – Sixth Edition
(2017).
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 The Project Management Profession

• Project, program, and portfolio managers

need to develop specific skills

• Certification is available for project

managers

• There are many software tools to assist

in project, program, and portfolio
management

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 Suggested Skills for Project
Managers
Knowledge of the following:
• All ten project management knowledge areas
• The application area (domain, industry, market, etc.)
• The project environment (politics, culture, change
management, etc.)
• General management (financial management,
strategic planning, etc.)
• Human relations (leadership, motivation,
negotiations, etc.)

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 PMI Talent Triangle
1. Technical project management skills:
Understanding the knowledge areas, process
groups, and project management tools and
techniques fall into this category.
2. Strategic and business management skills:
Topics include strategic planning, financial
management, accounting, marketing, and
other topics.
3. Leadership skills: Providing vision and
inspiration to people.

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 Additional Skills for Program and Portfolio
Managers
• Program managers normally have
experience as project managers. They
often rely on their past experience, strong
business knowledge, leadership capability,
and communication skills to manage
programs
• Portfolio managers must have strong
financial and analytical skills and
understand how projects and programs can
contribute to meeting strategic goals 3
CT050-3-3-PRMGT (Project Management) Planning Projects
 Project Management Careers

• Between 2010 and 2020, 15.7 million new project

management roles will be created globally across seven
project-intensive industries.
• [Link], a popular job search site, listed over
354,000 jobs in the U.S. when searching for project
manager in March 2017. Cities with the most openings
included New York City, Chicago, Seattle, San
Francisco, and Washington, D.C.
• Sixty percent of hiring managers say interest in
project management careers among younger job
applicants has grown over the past decade.
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 Project Management Career Path

• Many people start off leading a small project related to their

current job, part-time, to make sure they are cut out for and
enjoy the work.
• Some organizations require their people to have a few
years of experience before they let them lead any projects.
Others hire entry-level people with the title of project
coordinator or project manager.
• Many organizations realize that they need to provide a
structured career path to develop and maintain their talent
pipeline for project managers. Some organizations have
different levels of project managers, often based on
knowledge and experience.

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 Quick Review Question

CT050-3-3-PRMGT (Project Management) Planning Projects

 Summary of Main Teaching Points

 A project is a temporary endeavor undertaken to create a

unique product, service, or result
 Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet project
requirements
• A program is a group of related projects, subsidiary programs,
and program activities managed in a coordinated manner to
obtain benefits not available from managing them individually
• Project portfolio management involves organizing and
managing projects and programs as a portfolio of investments
that contribute to the entire enterprise’s success
• The project management profession continues to grow and
mature, and demand for project manager is high

CT050-3-3-PRMGT (Project Management) Planning Projects

 Question and Answer Session

Q&A

CT050-3-3-PRMGT (Project Management) Planning Projects

 What we will cover next

• 02 Introduction – Aligning Projects with

Business Strategy

CT050-3-3-PRMGT (Project Management) Planning Projects