CHAPTER2 PROJECTLIFECYCLEANDORGANIZATION

AhmadH.Maharma PMP

PROJECT LIFE CYCLE AND ORGANIZATION

Projects and project management take place in an environment that is broader than that of the project itself. Understanding this broader context helps ensure that work is carried out in alignment with the goals of the enterprise and managed in accordance with the established practice methodologies of the organization. This chapter describes the basic structure of a p j p project as well as other important high-level considerations including how projects impact ongoing operational work, the influence of stakeholders beyond the immediate project team, and how organizational structure affects the way the project is staffed, managed, and executed.

2.1 The Project Life Cycle-0verview

A project life cycle is a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application. While every project has a definite start and a definite end, the specific deliverables and activities that take place in between will vary widely with the p j y project. The life cycle provides the basic framework for managing the project, regardless of the specific work involved.

2.1 The Project Life Cycle-0verview

2.1 The Project Life Cycle-0verview

2.1.2 Product vs. Project Life Cycle Relationships The product life cycle consists of generally sequential, non-overlapping product phases determined by the manufacturing and control need of the organization. The last product life cycle phase for a product is generally the product's retirement. Generally, a project life cycle is contained within one or more product life cycles. Care should be taken to distinguish the project life cycle from the product life cycle. All projects have a purpose or objective, but in those cases where the objective is a service or result, there may be a life cycle for the service or result, not a product life cycle.

2.1.3 Project Phases

Project phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverable . Project phases are typically completed sequentially, but can overlap in some project situations. The high level nature of project phases makes them an element of the project life cycle. A project phase is not a project management process group. Regardless of the number of phases comprising a project, all phases have similar characteristics:

Project Phases

When phases are sequential, the close of a phase ends with some form of transfer or handoff of the work product produced as the phase deliverable. This phase end represents a natural point to reassess the effort underway and to change or terminate the project if necessary. These points are referred to as phase exits, milestones, phase gates, decision gates stage gates, or kill points The work has a distinct focus that gates, gates points. differs from any other phase. This often involves different organizations and different skill sets. The primary d li i deliverable or objective of the phase requires an extra d bl bj i f h h i degree of f control to be successfully achieved..

Projects vs. Operational Work Organizations

Projects Performed by people Performedbypeople Constrainedbylimited resources Planned executed and Planned,executedand controlled Temporary Unique

Operations Performedbypeople yp p Constrainedbylimited resources Planned executed and Planned,executedand controlled Ongoing Repetitive

STAKEHOLDERS

2.3Stakeholders
Definition: Stakeholdersare personsororganizations whoareactivelyinvolvedintheproject or whoseinterestsmaybepositivelyornegativelyaffected bytheperformanceorcompletionoftheproject. b h f l i f h j Examplesofpersonsororganizations Examples of persons or organizations customers sponsors p theperformingorganization thepublic

2.3Stakeholders
Exertinfluenceontheproject,itsdeliverables,andtheproject p j , , p j teammembers. Theprojectmanagementteammust identifybothinternalandexternalstakeholders inordertodeterminethe in order to determine the projectrequirements andexpectationsofallpartiesinvolved. Furthermore,theprojectmanagermust managetheinfluenceofthevariousstakeholders inrelationtotheprojectrequirementstoensureasuccessful outcome.

2.3Stakeholders
Concepts: p ProjectTeam[Members] ProjectManagementTeam OperationsManagement i FunctionalManagers Functional Managers

2.3Stakeholders
StakeholdersResponsibilityandAuthority: p y y Varyinglevelswhenparticipatingonaproject Changeoverthecourseoftheprojectlifecycle. RANGE fromoccasionalcontributionstofullprojectsponsorship Caution! CanhaveanadverseIMPACT ontheprojectobjectives.

2.3Stakeholders
StakeholderIdentification: Stakeholderidentificationisacontinuousprocess Itcanbedifficult. Identifyingstakeholdersandunderstandingtheirrelativedegreeof influenceonaprojectiscritical.Failuretodosocanextendthe influence on a project is critical. Failure to do so can extend the timelineandraisecostssubstantially. Impactoflaterecognitionofastakeholder

ORGANIZATIONALINFLUENCESON PROJECTMANAGEMENT PROJECT MANAGEMENT ORGANIZATIONALCULTURESANDSTYLES

2.4OrganizationalInfluencesonProjectManagement
Theorganizationalculture,style,andstructure influencehow g , y , projectsareperformed. Aprojectmanagershouldunderstandtheseastheyaffectaproject. Anorganizations An organizations degreeofprojectmanagementmaturity and itsprojectmanagementsystems its project management systems canalsoinfluencetheproject. Whenaprojectinvolvesmorethanoneorganizations,theproject willbeinfluencedallofthem. Theorganizationalcultureisanenterpriseenvironmentalfactor.

2.4OrganizationalInfluencesonProjectManagement
Culturesandstyles mayhaveastronginfluenceonaprojectsability y y g p j y tomeetitsobjectives. Culturesandstylesaretypicallyknownasculturalnorms Thenormsinclude[OrWhatdotheculturalnormsinclude?] The norms include [Or What do the cultural norms include?] acommonknowledgeregardinghowtoapproach gettingthework done, whatmeansareconsideredacceptableforgettingtheworkdone, and whoisinfluential infacilitatingtheworkgettingdone. Theprojectmanagermustknowwhichindividualsinthe organizationarethedecisionmakersandworkwiththemto organization are the decision makers and work with them to influenceprojectsuccess.

2.4OrganizationalInfluencesonProjectManagement
Mostorganizationshavedevelopeduniqueculturesthatmanifestin g p q numerouswaysincluding,butnotlimitedto: Sharedvisions,values,norms,beliefs,andexpectations, Policies,methods,andprocedures, Viewofauthorityrelationships,and Workethicandworkhours. Work ethic and work hours Detailedstudyof organizationalculture is beyond the scope of this Detailed study of organizational cultureisbeyondthescopeofthis course.

ORGANIZATIONALINFLUENCESON PROJECTMANAGEMENT PROJECT MANAGEMENT ORGANIZATIONALSTRUCTURE

2.4OrganizationalInfluencesonProjectManagement
Organizationalstructureisanenterpriseenvironmentalfactor Whyitisimportanttobyunderstood? Itaffecttheavailabilityofresourcesandinfluencehowprojectsare conducted. conducted Whatarethedifferenttypesofstructures? What are the different types of structures? Organizationalstructuresrangefromfunctionaltoprojectized,witha varietyofmatrixstructuresbetweenthem. FunctionalStructure MatrixStructures[Weak,Balanced,andStrong] ProjectizedStructure P j i dS

2.4OrganizationalInfluencesonProjectManagement

2.4OrganizationalInfluencesonProjectManagement
FunctionalOrganization:KeyPoints g y Eachemployeehasoneclearsuperior[UnityofCommand] Employeesaregroupedbyspecialty[Finance,HR,Marketingetc] Eachdepartmentwilldoitsprojectworkindependentofother department.

2.4OrganizationalInfluencesonProjectManagement

2.4OrganizationalInfluencesonProjectManagement
ProjectizedOrganization:KeyPoints j g y Teammembersarecolocated Mostoftheorganizationsresourcesareinvolvedinprojectwork ProjectManagershavegreatdealofindependenceandauthority j h d l fi d d d h i Projectizedorganizationsoftenhaveorganizationalunitscalled Projectized organizations often have organizational units called departments,butthesegroupseitherreportdirectlytotheproject managerorprovidesupportservicestothevariousprojects.

2.4OrganizationalInfluencesonProjectManagement
ProjectizedOrganization:KeyPoints j g y

2.4OrganizationalInfluencesonProjectManagement
MatrixOrganizations:AdvantagesandDisadvantages g g g MatrixOrganizationsareablendoffunctionalandprojectized characteristics. Advantages
Highlyvisibleprojectobjectives g y p j j Improvedprojectmanagercontrol overresources Moresupportfromfunctionalareas f f i l Maximumutilizationofscarce resources Bettercoordination Betterhorizontalandvertical disseminationofinformation f f Teammembersmaintainahome

Disadvantages
Extraadministrationisrequired q Morethanonebossforprojectteams Morecomplextomonitorandcontrol l i d l Tougherproblemswithresource allocation Needextensivepoliciesandprocedures Functionalmanagermayhavedifferent prioritiesthanprojectmanagers Higherpotentialforconflict

2.4OrganizationalInfluencesonProjectManagement

2.4OrganizationalInfluencesonProjectManagement
WeakMatrixOrganization:KeyPoints g y Maintainmanyofthecharacteristicsofafunctionalorganization ProjectManagersroleismoreofacoordinatororexpediterthan thatofatrueprojectmanager.

2.4OrganizationalInfluencesonProjectManagement

2.4OrganizationalInfluencesonProjectManagement
BalancedMatrixOrganization:KeyPoints g y BalancedMatrixorganizationrecognizestheneedforaproject manager.Butitdoesnotprovidetheprojectmanagerwiththefull authorityovertheprojectandprojectfunding. th it th j t d j t f di

2.4OrganizationalInfluencesonProjectManagement

2.4OrganizationalInfluencesonProjectManagement
StrongMatrixOrganization:KeyPoints g g y Havemanyofthecharacteristicsoftheprojectizedorganization Canhaveafulltimeprojectmanagerswithconsiderableauthority Canhavefulltimeprojectadministrativestaff

2.4OrganizationalInfluencesonProjectManagement
ProjectExpeditor j p Actprimarilyasstaffassistantandcommunicationcoordinator Cannotpersonallymakeorenforcedecision

2.4OrganizationalInfluencesonProjectManagement
ProjectCoordinator j Hassomepowermakedecision,someauthority Reporttoahighlevelmanager

2.4OrganizationalInfluencesonProjectManagement

2.4OrganizationalInfluencesonProjectManagement

ORGANIZATIONALINFLUENCESON PROJECTMANAGEMENT PROJECT MANAGEMENT ORGANIZATIONALPROCESSASSETS

2.4OrganizationalInfluencesonProjectManagement
Definition: Organizationalprocessassetsincludeanyorallprocessrelated assets,fromanyoralloftheorganizationsinvolvedintheproject thatcanbeusedtoinfluencetheprojectssuccess. th t b d t i fl th j t Examples: formalandinformalplans,policies,procedures,andguidelines. formal and informal plans policies procedures and guidelines organizationsknowledgebasessuchaslessonslearnedand historicalinformation. completedschedules,riskdata,andearnedvaluedata. KeyPoints: Updatingandaddingtotheorganizationalprocessassetsis necessarythroughouttheproject necessary throughout the project Generally,istheresponsibilityoftheprojectteammembers.

2.4OrganizationalInfluencesonProjectManagement
Categorization: g Organizationalprocessassetsmaybegroupedintotwocategories: 1.ProcessesandProcedures >>forconductingwork 2.CorporateKnowledgeBase >>forstoringandretrievinginformation >> for storing and retrieving information

2.4OrganizationalInfluencesonProjectManagement
ProcessesandProcedures Organizationalstandardprocessessuchas standards policies [safetyandhealth,ethics,andprojectmanagement] standardproductandprojectlifecycles qualitypoliciesandprocedures [ li li i d d [processaudits,improvement di i targets,checklists,andstandardizedprocessdefinitionsfor g ] useintheorganization] Standardizedguidelines,workinstructions,proposalevaluation criteria,andperformancemeasurementcriteria Templates[risk,workbreakdownstructure,projectschedule Templates [risk work breakdown structure project schedule networkdiagram,andcontracttemplates]

2.4OrganizationalInfluencesonProjectManagement
ProcessesandProcedures Guidelinesandcriteriafortailoringtheorganizationssetof standardprocessestosatisfythespecificneedsoftheproject; Organizationcommunicationrequirements Projectclosureguidelinesorrequirements Financialcontrolsprocedures Financial controls procedures Issueanddefectmanagementprocedures Changecontrolprocedures Change control procedures Riskcontrolprocedures Proceduresforprioritizing,approving,andissuingwork authorizations.

2.4OrganizationalInfluencesonProjectManagement
CorporateKnowledgeBase p g Processmeasurementdatabasesusedtocollectandmakeavailable measurementdataonprocessesandproducts, Projectfiles Historicalinformationandlessonslearnedknowledgebases Issueanddefectmanagementdatabases Issue and defect management databases Configurationmanagementknowledgebases Financialdatabases Financial databases

Formoreinformationdonothesitatetocontactme.

AhmadH.Maharma PMP
Ramallah,Palestine Phone:+(972)(2)2968644 Phone: + (972) (2) 2968644 Mobile:+(972)(599)001155 EMail:ahmad.maharma@gmail.com