Dr.

Rameez Khalid, PMP

Faculty, Department of Management
Institute of Business Administration, Karachi
PM is used in all industries, at all levels

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 What is a Project?
A project is a temporary endeavor undertaken to create
a unique product, service or result.

Temporary means
that every project
has a definite Projects involve creating
beginning and a something that has not
definite end been done in exactly the
same way before and
which is, therefore,
unique and distinct
Note: temporary does not mean short in duration
4
 Projects Vs. Operations
• Projects and operations sometimes overlap and they
share many of the same characteristics:
– Performed by people
– Constrained by limited resources
– Planned, executed and controlled
• Operations are ongoing and routine, while projects are
temporary and unique
• Project objectives are fundamentally different than
operational objectives:
– Purpose of a project is to attain its objective and terminate
– Purpose of an ongoing operations is to sustain business

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 Projects Vs. Operations
Operation Project
1. Repeat process or product 1. New process or product
2. Several objectives 2. One objective
3. On-going 3. One shot – limited life
4. People are homogeneous 4. More heterogeneous
5. Systems in place 5. Systems must be created
6. Performance, cost, & time known 6. Performance, cost & time less
7. Part of the line organization certain
8. Bastions of established practice 7. Outside of line organization
9. Supports status quo 8. Violates established practice
9. Upsets status quo

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 Projects Vs. Operations

Role of Projects rameezkhalid@iba.edu.pk 7

Role of Projects 8
 Why Project Management?
• Identification of time limits
• Minimum need for continuous reporting
• Early problem identification
• Knowing when objectives can’t be met
• Project Management and productivity are related!

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 What is Project Management?

It’s both a science and an art

PMI breaks it into:
• Process groups
• Knowledge Areas
• Professional and social responsibility

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 Humor

• Project management means different to

different people
• Definition of Project management
– It is the art of creating the illusion that
any outcome is the result of a series of
predetermined, deliberate acts when, in
fact, it was dumb luck.

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 Why is a Project Management System Necessary?

• Always “class or prestige” gaps between various levels of management.

• Companies are made up of small operational islands that refuse to
communicate for fear of giving up info. may strengthen their opponents.
• Project Manager’s responsibility is to get these islands to communicate
cross-functionally toward common goals and objectives.
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 Classical Management
• Planning
• Organizing
• Staffing
• Controlling
• Directing

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 Project Management
• Definition
– Project management is the planning, organizing,
directing, and controlling of company resources for a
relatively short-term objective that has been
established to complete specific goals and objectives.
– Furthermore, project management utilizes the systems
approach to management by having functional
personnel (the vertical hierarchy) assigned to a specific
project (the horizontal hierarchy).

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 Overview of Project Management

RESOURCES

PERFORMANCE/TECHNOLOGY

Role of Projects 15
 Why Projects Fail?
Only 28% of Projects Succeed! (ref. Standish group)
• Poor communications
• Scope Creep
• Poor planning
• Weak business case
• Lack of management direction & involvement
• Incomplete specifications
• Mismanagement of expectations
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 Project Stakeholders
• Stakeholders are the people involved in or affected by
project activities – they may also exert influence over
the project and its results
• Stakeholders include Functional
Portfolio Managers
– the project sponsor Manager Sponsor
– project team PMO Project Team
Customers/
Project Other Users
– support staff Mgmt Project
Program Team Members
– customers Project
Manager Manager
Seller/
– users Business
Partners
– Suppliers and vendors Other
Stakeholders
– opponents to the project
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 Stakeholders’ Influence, Risk, and Uncertainty

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 Multiple Boss Reporting
SPONSOR GM

PM LM LM LM

APM

APM

PM = Project Manager
APM = Assistant Project Manager
LM = Line or Functional Manager 20
Project Manager-Functional Manager Interface

Most companies have the following resources:

1. Money 4. Facilities
2. Manpower 5. Materials
3. Equipment 6. Information Technology

Project managers
control only “Project Money”

Functional managers
control resources

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 Maturity in Project Management

• Is like a THREE-LEGGED STOOL (Tripod)

• Legs represent:
– Project Manager
– Line Manager(s)
– Executive Management (including, Project Sponsor)

• Maturity cannot exist without stability

• OPM3: (Organizational Project Management Maturity Model)
– PMI’s model that is designed to help organizations
determine their level of maturity in project management
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 Top of the Three-Legged Stool
Effective PM

ORGANIZATIONAL ORGANIZATIONAL
STRUCTURE BEHAVIOR

QUANTITATIVE
TOOLS &
TECHNIQUES

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 Project Manager’s Role
• Project Managers have increasing responsibility, but very little authority
• This lack of authority forces them to negotiate with upper level
management as well as functional management

Interface Management:
• Managing human interrelationships in the project organization
• Maintaining balance between technical and managerial project functions
• Coping with risk associated with project management
• Surviving organizational restraints
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 Integration Management
• As part of interface management, the project manager’s role
also includes integration management
Integration
Resources Management
Capital
Materials
Products
Equipment Integrated
Inputs Services Outputs
Facilities Processes
Profits
Information
Personnel

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 Functional Manager’s Role
• The functional manager has the responsibility to
define how the task will be done and where the task
will be done (i.e., the technical criteria)

• The functional manager has the responsibility to

provide sufficient resources to accomplish the
objective within the project’s constraints (i.e., who
will get the job done).

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 Functional Manager’s Obstacles
• Unlimited work requests
• Predetermined deadlines
• All requests having a high priority
• Limited number of resources
• Unscheduled changes in the project plan
• Unpredicted lack of progress
• Unplanned absence of resources
• Unplanned loss of resources
• Unplanned turnover of personnel

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 Executive’s role

Expected to interface a project in:

• Project planning and objective setting

• Conflict resolution
• Priority setting
• Project sponsor

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 Working with Executives
Priority Projects Project Sponsor
Senior Management

Maintenance Projects Project Sponsor

Lower Middle Management

RELATIONSHIP
Objective setting
Project Up-front planning
Sponsor Project organization
Key staffing
Master planning
Polices
Project Monitoring execution
Manager
Project
Manager
Project Team
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 Promises Made???
Administered by Functional Manager or Project Manager?
• Promotion
• Grade
• Salary
• Bonus
• Overtime
• Responsibility
• Future work assignments

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 PM in Non-Project-Driven Org.
• Projects may be few and far between
• Projects tend to be delayed because approvals most
often follow the vertical chain of command.
• Because project staffing is on a “local” basis, only a
portion of the organization understands project
management and sees the system in action.
• Poor understanding of project management and a
reluctance of companies to invest in proper training.
• Heavy dependence on subcontractors and outside
agencies for project management expertise.
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 Tip-of-the-Iceberg Syndrome

DELEGATION
OF AUTHORITY TO
PROJECT MANAGER

EXECUTIVE
MEDDLING

LACK OF UNDERSTANDING OF HOW PROJECT

MANAGEMENT SHOULD WORK

LACK OF TRAINING IN COMMUNICATIONS /

INTERPERSONAL SKILLS

Many of the problems

associated with project
management will
surface much later in the
project and result in much
higher costs 36
 Location of the Project Manager
What salary?
President
Who to report?
Vice President
• Ideally project managers
Director should be at the same
pay scale as the people
Division Typical position of a they negotiate.
Project Manager
• Location depends upon:
Department o Type of organization
o Responsibility
Section

Laborer

Role of Projects 37
 High-Level Reporting
Project Manager:
• is charged with getting results from the coordinated
efforts of many functions. He should, therefore, report
to the man who directs all those functions
• must have adequate Org. status to do his job effectively.
• needs direct access to an upper echelon of management
to get adequate and timely assistance in solving
• If reports to a high echelon then customer, particularly in
a competitive environment, will be favorably impressed

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 Low-level Reporting
• Inefficient to have too many projects, especially small
ones, diverting executives from more vital concerns.
• Although giving a small project a high place may create
the illusion of executive attention, its real result is to
foster executive neglect of the project.

• Placing a junior Project Manager too high in the

organization will alienate senior functional executives
on whom the organization must rely for support.

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 REFERENCES
•Project Management: A systems Approach
to Planning, Scheduling and Controlling
Harold Kerzner

•Project Management: A Case Study

Harold Kerzner

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