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CHAPTER 1:
UNIVERSITY OF FINANCE - MARKETING
FACULTY OF BUSINESS ADMINISTRATION MODERN PROJECT MANAGEMENT

CHAPTER 1:
MODERN PROJECT MANAGEMENT

Course ID number: 1931101013902

QUẢN TRỊ DỰ ÁN

All of mankind’s greatest accomplishments—from building the great

pyramids to discovering a cure for polio to putting a man on the
Lecturer: Dr. PHAM HAI CHIEN moon—began as a project.
January, 2021 —Erik W. Larson—
Faculty of Business Administration
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LEARNING OBJECTIVES CHAPTER OUTLINE

1. Understand why project management is crucial in 1. What Is a Project?

today’s world
2. Current Drivers of Project Management
2. Distinguish a project from routine operations.
3. Project Governance
3. Identify the different stages of project life cycle.
4. Project Management Today — A Socio-Technical
4. Understand the importance of projects in implementing Approach
organization strategy.
5. Summary
5. Understand that managing projects involves balancing
the technical and sociocultural dimensions of the
project.

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1. WHAT IS A PROJECT? 1. WHAT IS A PROJECT?

What do the following headlines have in common?
1. Millions watch Olympic Opening Ceremony
2. Citywide WiFi System Set to Go Live
3. Hospitals Respond to New Healthcare Reforms
4. Apple’s New iPhone Hits the Market
5. City Receives Stimulus Funds to Expand Light Rail
System
CHAPTER 1: MODERN PROJECT MANAGEMENT
A project is a temporary endeavor undertaken to
create a unique product, service, or result. (PMI)
The major characteristics of a project are as follows:
1. An established objective.
2. A defined life span with a beginning and an end.
3. Usually, the involvement of several departments and
professionals.
4. Typically, doing something that has never been done
before.
5. Specific time, cost, and performance requirements.
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1. WHAT IS A PROJECT? 1. WHAT IS A PROJECT?

What a project is not? Program versus Project

Routine, Repetitive Work Projects  A program is a group of related projects designed to
Taking class notes Writing a term paper
accomplish a common goal over an extended period of
Daily entering sales receipts into Setting up a sales kiosk for a
the accounting ledger professional accounting meeting
time.
Responding to a supply-chain Developing a supply-chain  Each project within a program has a project manager.
request information system
Practicing scales on the piano Writing a new piano piece  The major differences lie in scale and time span.
Routine manufacture of an Apple Designing an iPod that is
 Program management is the process of managing a
iPod approximately 2 × 4 inches,
interfaces with PC, and stores 10,000 group of ongoing, interdependent, related projects in a
songs coordinated way to achieve strategic objectives.
Attaching tags on a Wire-tag projects for GE and Walmart
manufactured product
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1. WHAT IS A PROJECT?
The Project Life Cycle
CHAPTER 1: MODERN PROJECT MANAGEMENT
2. CURRENT DRIVERS OF PROJECT MANAGEMENT
1. Compression of the Product Life Cycle
2. Knowledge Explosion
3. Triple Bottom Line (Planet, People, Profit)
4. Increased Customer Focus
5. Small Projects Represent Big Problems
CHAPTER 1: MODERN PROJECT MANAGEMENT
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1. WHAT IS A PROJECT?
What is the Project Management?
The “art and science” of coordinating people, equipment,
materials, money, and schedules to complete a specified
project on time and within approved cost.
What is the Project Manager?
The project manager is the person assigned by the
performing organization to lead the team that is
responsible for achieving the project objectives.
Being Part of a Project Team
 Most people’s first exposure to project management
occurs while working as part of a team assigned to
complete a specific project.
 Work is full-time, or part-time on one or more projects.
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3. PROJECT GOVERNANCE
Governance is designed to improve project management in
the whole organization over the long haul.
The rationale for integration of project management was to
provide senior management with:
 An overview of all project management activities;
 A big picture of how organizational resources are being
used;
 An assessment of the risk their portfolio of projects
represents;
 A rough metric for measuring the improvement of managing
projects relative to others in the industry;
 Linkages of senior management with actual project
execution management.
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4. PROJECT MANAGEMENT TODAY:

3. PROJECT GOVERNANCE
A SOCIO-TECHNICAL APPROACH
Alignment of Projects with Organizational Strategy
 Technical dimension includes
 Since projects are the modus operandi, strategic alignment of projects is of
planning, scheduling, and
major importance to conserving and effective use of organization resources.
controlling projects
 Selection criteria need to ensure each project is prioritized and contributes
to strategic goals  The sociocultural dimension
also involves managing the
interface between the project
and external environment
 Strategic plans are
written by one group of  The technical dimension
managers, represents the “science” of
project management while
 Projects selected by the sociocultural dimension
another group, and represents the “art” of
 Projects implemented by managing a project.
another
 To be successful, a manager
must be a master of both.

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5. CHAPTER SUMMARY

1. A project is defined as a non-routine, one-time effort

limited by time, resources, and performance
specifications designed to meet customer needs.
2. One of the distinguishing characteristics of PM is that it
has both a beginning and an end and typically consists
of four phases: defining, planning, executing, and
closing.
3. Effective project management begins with selecting
and prioritizing projects that support the firm’s mission
and strategy. Successful implementation requires both
technical and social skills.
4. Project managers have to plan and budget projects as
well as orchestrate the contributions of others.
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