PMP Preparation Training

Project Management Environment

Chapter 2
 Objectives
• To be able to describe:
– Project life cycle
– Characteristics of the project phases
– Key project stakeholders
– Organizational and socioeconomic influences
on the project
– Key management skills used in managing a
project

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-2

 Project Life Cycle

•• Defines
Defines the
the beginning
beginning and
and end
end of
of the
the project
project
•• Divides
Divides the
the project
project into
into phases
phases that
that provide
provide better
better
management
management control
control and
and the
the appropriate
appropriate links
links to
to
the
the ongoing
ongoing operations
operations of
of the
the organization
organization

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-3

 Phase Characteristics

• Deliverables Tangible, verifiable work products

• Reviews Evaluation of deliverables and project
performance
• Phase Exit Criteria Measurements used to determine if
project should go into next phase

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-4

 Characteristics of Life Cycle
• Defines the beginning and end of the project
• Deliverables usually approved before work
starts on the next phase
• Sometimes a subsequent phase is begun prior
to approval of the previous phase. This is
called fast tracking.
• Defines technical work and implementers

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-5

 Characteristics of Life Cycle
(cont.)
• Cost and staffing levels are low at the start,
higher towards the end, and drop as project
closes
• Probability of project success is low at the
start of the project and gets progressively
higher as the project continues
• Cost of changes and of error correction
generally increases as the project continues

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-6

 Phases and Resources Usage

• Concept 5%
• Development 20%
• Implement 60%
• Close Out 15%
Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-7
 Project Stakeholders
Individuals
Individuals and
and organizations
organizations whowho are
are
actively
actively involved
involved in
in the
the project
project and
and whose
whose
interests
interests may
may be
be positively
positively or
or negatively
negatively
affected
affected by
by the
the project
project success
success or
or failure
failure

Key Stakeholders
• Project manager
• Customer
• Performing organization
• Sponsor
Source: pmbok guide 2000
Manages the project
Uses the product or service
Enterprise that does the project work
Provides financial resources
© 2002 Robbins-Gioia, Inc. 2-8
 Organizational Influences
• Organizational systems
– Project-based
• Derive income by performing projects for others
• Treat on-going operations as projects (management
by projects)

– Non-Project-based
• No project-oriented systems in place to support
project needs efficiently and effectively

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-9

 Organizational Cultures
& Styles
• Shared values, norms, beliefs, and
expectations
• Reflected in policies and procedures, view
of authority relationships, etc.
• Directly influences the project

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-10

 Organizational Structure
• Functional organization – Hierarchy where
each employee has one clear superior
• Projectized organization – Most of
organization’s resources are involved in
project work and report to the project
manager
• Matrix organization – Blend of both

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-11

 Organizational Structure
• Project Office
– Provides services ranging from support
functions to project managers, such as training,
software, templates, etc. to actually being
responsible for the results of the project

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-12

 Organizational Planning

Functional Organization
• Specialists grouped by function

• Difficult to cross functional lines

• Barriers exist on horizontal information flow

• Functional emphasis – loyalties may impede

completion

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-13

 Organizational Planning

Matrix Organization
• Multiple-command system

• Individuals from functional areas assigned on

temporary basis to PM

• Individuals return to functional organization

• Careful plans and procedures needed to minimize

effects of dual reporting

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-14

 Organizational Planning

Matrix Organization
• Advantages
– Visible objectives
– Efficient utilization of resources
– Better co-ordination
– Better information flow
– Retention of home after project

• Disadvantages
– More than one boss
– Complex structure to control
– Differing priorities of PM and FM
– Duplication of effort
– Conflict
Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-15
 Organizational Planning

Projectized Organization
• Emerges from functional when latter impedes
progress
• Line of authority is the PM
• Uncertainty where to go on completion of project
• Tendency to retain assigned personnel too long
• FMs feel threatened as people are removed from
their areas

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-16

 Organizational Planning

Organizational Structures
Type PM Authority
Functional None
Project Expediter Low
Project Coordinator Low
Weak Matrix Low –> Medium
Strong Matrix Medium –> High
Projectized High

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-17

 General Management Skills
• Leading
– Establishing direction, aligning people, motivating, and inspiring

• Communicating
– Reporting project performance; deciding how, when, in what form,
and to whom

• Negotiating
– Conferring with others in order to come to terms or reach an
agreement

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-18

 Management Skills (cont.)
• Problem solving
– Defining the causes of problems, analyzing the
problems to identify viable solutions, and
selecting the best one
• Influencing the organization
– Understanding the formal and informal structures
and the mechanics of power and politics and
using this knowledge to get things done

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-19

 Social-Economic-Environmental
Influences
• Projects have positive or negative
impacts on people, economics, and the
environment
• Organizations are accountable for these
impacts

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-20

 Social-Economic-Environmental
Influences
• Standards and regulations
– Project plan should reflect how standards and
regulations affect the project

• Internationalization
– Consider the effect of time-zone differences,
national holidays, travel requirements,
teleconferencing, and political differences

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-21

 Social-Economic-Environmental
Influences
• Cultural influences
– Projects operate within a context of cultural norms
that affect the way people and organizations
interact
• Social-Economic-Environmental Sustainability
– Projects have unintended positive and negative impacts
on people, the economy and the environment
– Organizations are increasingly accountable for project
impacts

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-22

 Summary
• Review Questions

Source: pmbok guide 2000 © 2002 Robbins-Gioia, Inc. 2-23