Chapter (2)

Project Management Framework

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 Projects vs. Operations
Project Operational Work
Is a temporary endeavor with a Is ongoing repetitive work
beginning & an end

Creates a unique product, supports the business & systems

service, or result of the organization

Examples: developing a product Examples: maintenance &

& constructing a building. manufacturing.

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 Programs & Portfolios
Program
a group of related projects so that
their management can be
coordinated
It focuses on the
interdependencies between
projects & may help achieve
decreased risks & improved
management.
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Portfolio
is a group of programs, projects, &
other operational work, they may
not be related but they help
achieve a common strategic goal
It helps optimize the use of
resources, enhances
organization’s benefits & reduces
risks.
 Project Management Office (PMO)
 Centralizes & standardizes the management of
projects. It has 3 types:
Supportive Controlling Directive
provides the policies, provides support & Provides project
methodologies, guidance in the managers for different
templates & lessons organization on how to projects, & is
learned for managing manage projects, train responsible for the result
projects within the others in PM, SW, assist of those projects
organization with specific PM tools, &
ensure compliance to
organizational practices

Low level of control Moderate level of control High level of control

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 Organizational Structure
 Can be defined in terms of the project manager
level of authority.
1. Functional
most common, organization is
grouped by areas of specialization
(accounting, marketing,…).
Project occurs in a single
department, if anything is needed
from another department, the
request is transmitted up to the
department head, who
communicates the request to the
other department head.
Functional manager has higher
authority
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2. Projectized
The company is organized by
projects, the project manager
controls the project, personnel,….
Team members complete project
work & when the project is over,
they don’t have a department to
go back to. They need to be
assigned to another project
Project manager has higher
authority
 Organizational Structure
3. Matrix:
• is an attempt to maximize the strengths of both
functional & projectized forms.
• The team member reports to two bosses ( the
project manager & functional manager).
• Team members do project work in addition to
normal department work.
• In a strong matrix power rests with the project
manager.
• In a weak matrix power rests with the functional
manager.
• In a balanced matrix power is shared.
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 Organizational Structure
 In a weak matrix, the project manager role is:
1. Project Expediter: is like a staff assistant &
communications coordinator. He can’t make
decisions.
2. Project Coordinator: is similar to project
expediter, but he has some power & some
authority to make decisions.

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 Organizational Structure
 What are the advantages & disadvantages of
each type of organizations?
Functional:
Advantages Disadvantages

Individuals report to one boss No authority for PM

Easier management of No career path in project
specialists management
Resources are grouped by People give functional work
specialization. higher priority than project work.
There is a career path in areas of
specialization.

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 Organizational Structure
Projectized:
Advantages Disadvantages

More Loyalty to project. No “home” when project is finished

More effective communications. Resources aren’t grouped by

specialization.

Efficient project organization. Less efficient use of resources.

Duplication of facilities.

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 Organizational Structure
Matrix:
Advantages Disadvantages

There is a “home” Extra administration

Maximum utilization of scarce More complex to monitor & control

resources.
Improved PM control over resources More than one boss.

More support from functional There may be conflict between

managers functional & project managers
Highly visible project objectives More complex policies & procedures

Better coordination Resource allocation is more complex

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 Important Definitions
 Constraints: Include time, cost, scope, risk, resources,
quality & any other factors that limit options like
milestone dates, project completion date. Management
sets the priority of each constraint & you use the
prioritization to properly plan the project.
 Stakeholders: are people or organizations whose
interests may be positive or negative impacted by the
project or its product. They include PMO, functional
managers, program managers, sponsor, team,
sellers,...

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 Important Definitions
 Enterprise Environmental Factors: are conditions not
under the control of the project team that influence the
project. They include company culture, structure &
existing systems, government or industry standard,
infrastructure, market place conditions,..
 Project Management Information System (PMIS): is a
part of EEF. It includes automated tools as: scheduling
SW, change management system, configuration
management system, shared workspace for file storage,
work authorization SW, procurement management SW,
repositories for historical information,..

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 Important Definitions
 Organizational Process Assets: they provide direction
& guidance in planning & help the project benefit from
past company experience, They include:
1. Processes, Procedures & Policies
2. Corporate Knowledge Base
3. Historical Information
4. Lessons Learned

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 Project Life Cycle & Project
Management Processes
 Project Life Cycle: is the series of sequential
phases that a project passes through from its
initiation to its closure. It is the logical breakdown of
what you want to do to produce the deliverable.
The types of project life cycles vary depending on
the product type, industry,…
Project Life Cycle is what you need to do to do the
work.

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 Project Life Cycle & Project
Management Processes
 Project Management Processes: is what you
need to do to manage the work.
They include Initiating, Planning, Executing,
Monitoring & Controlling, and Closing.

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 Project Life Cycle & Project
Management Processes
 For small projects following a predictive life cycle,
you may go through the overall project
management process once for the entire project,
although portions of process may be iterated.

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 Project Life Cycle & Project
Management Processes
 Large projects require each of the life cycle
phases to be managed through the project
management process groups.

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