Exam preparation – lectures slides

Lecture 1 (PM Scope, PM Standards, PMBoK and PMKAs)

Project stakeholders
• Typical key stakeholders in any industry or sector:
• Project sponsor
• Project manager
• Project management office (PMO)
• Customer/user
• Project management team
• Influencers
• Investors
• Contractor
• Government

What is the role of a contractor in a project?

In construction, a contractor is an organisation (or sometimes a person), hired by the client
to carry out the work that is required for the completion of a project

Project management practitioner

Competencies
 General management skills
 Interpersonal skills
 Well versed and continuously informed about the profession from a global
perspective.
Project manager (PM)

• Project Managers (PMs) plan, initiate, and oversee execution of all elements of a
project, and usually work with multiple internal teams, contractors, and clients
• PMs may be involved in early discussions with a client and upper management to
ensure they have a clear understanding of the client’s desired goals and outcomes.
• PMs then determine the resources, processes, and other materials necessary to
complete the project in the desired timeline, and draw up plans for each phase of
execution
• This may involve delegating tasks or significant portions of the project to the Project
Coordinators or teams of employees to help maintain a broad overall view of the
entire project throughout
PMs are responsible for the final quality of a project. Following, project management
is more of a leadership role and involves trusting others to complete specific parts or
stages of a plan or process

Project Coordinator/Engineer 
• Project Coordinators (PCs) may work under a PM to help with administrative tasks on
a specific project.
• PCs help make sure all teams and departments have what is needed to meet the
milestones the PM has set.
• PCs must be familiar with every project aspect, including short- and long-term goals.
Unlike the PM, the PC’s role is more focused on executing specific stages of a plan,
being mindful of the entire project calendar and budgeting details.
• The PC enables the PM to focus on broader issues by helping the PM to manage the
day-to-day details of a project. PCs may expand their responsibilities to 

Principal Agent

Lecture 2

PM Principles are foundational guidelines for strategy, decision making, and problem
solving.
Professional standards and methodologies are based on principles, which could serve as
laws or rules.
A Project Performance Domain is a group of related activities that are critical for the effective
delivery of project outcomes.
Performance Domains are interactive, interrelated, and interdependent areas of focus
working together to achieve project outcomes

PM Competence
The expected outcome obtained by applying knowledge, personal attitude, and skills and
experience in a certain function (APM).
The ability to perform activities within a project environment to achieve the
expected/defined/accepted outcomes(PMI, 2007).
Competent project managers consistently apply their PM knowledge and personal
behaviours to increase the likelihood of delivering projects that meet stakeholders’
requirements
Dimensions of Competence
1. Knowledge/Technical - what the project manager knows about the application of
processes, tools, and techniques for project activities
2. Personal/Behavioural - how the project manager behaves when performing activities
within the project environment
3. Performance/Contextual - how the project manager applies project management
knowledge to meet the project requirements.
Professionalism
Professionalism has shifted from being a position of significant status and autonomy, hard-
earned and jealously guarded by occupational groups to professions acting as
institutionalized form of control of occupations
There are five dimensions of professionalism for career development.
1. Breadth: Body of Knowledge;
2. Depth: Competence Framework;
3. Achievement: Qualifications;
4. Commitment: Continuing Professional Development; and
5. Accountability: Code of Professional Conduct
Project management tools and techniques across project life-cycle

Authority and Power

The best way to document the project manager’s authority is through the project charter.
Project managers have a lot of delegated authority but little formal power.
Types of Power
• Legitimate power: the project manager is officially empowered to issue orders.
• Reward power: the project manager dispenses valued organizational rewards.
• Penalty power: the project manager dispenses penalties to be avoided.
• Expert power: the project manager possesses special knowledge or expertise.
• Referent power: the project personnel are attracted to the manager or the project.
Organizational Theory
Organizational Theory provides information regarding the way in which people, teams, and
organizational units behave; hence, Organizational Behaviour.
Different organizational structures (refer to the next slide) have different individual
response, individual performance, and personal relationship characteristics.
Also, applicable organizational theories may recommend exercising a flexible
leadership/management style that adapts to the changes in a team’s maturity level
throughout the project life cycle.
National Culture
“The collective programming of the mind distinguishing the members of one group or
category of people from others”. Prof. Geert Hofstede
The six dimensions of national culture are:
1. Power Distance Index (PDI)
2. Individualism Versus Collectivism (IDV)
3. Masculinity Versus Femininity (MAS)
4. Uncertainty Avoidance Index (UAI)
5. Long Term Orientation Versus Short Term Normative Orientation (LTO)
6. Indulgence Versus Restraint (IVR)
Organizational Culture
“Organizational culture refers to shared basic assumptions, values, and beliefs that
characterize a setting and are taught to newcomers as the proper way to think and feel …”
“Organizational climate refers to the shared perceptions of and the meaning attached to the
policies, practices, and procedures employees experience and the behaviours they observe
getting rewarded …”
The Competing Values Framework (CVF)is an influential and extensively used model in the
study of organizational culture. CVF’s two dimensions describe four types of organizational
culture(next slide)
Conflict Resolution Modes
1. Confronting (or Collaborating) – the conflicting parties meet face to face and try to
work through their disagreements.
2. Compromising – bargaining or searching for solutions that leave both parties with
some degree of satisfaction.
3. Smoothing (or Accommodating) – reducing the emotions that exist in a conflict by
emphasizing areas of agreement.
4. Forcing (or Competing) – when one party tries to impose the solution on being
uncooperative.
5. Avoiding (or Withdrawing) – a temporary solution that results in recurrence of the
problem and resulting conflict.
Lecture 3: Stakeholder, communications, and value management

Stakeholders and Management

• Stakeholders are all those who have an interest in the project or are impacted by the
project.
• Stakeholder management is the systematic identification, analysis and planning of
actions to communicate with, negotiate with and influence stakeholders.
What it entails
1. Identifying and prioritizing stakeholder interests
2. Analysing their interests, requirements and level of influence
3. Developing a strategy/plan to manage and communicate effectively with stakeholders
4. Implementing and monitoring the effectiveness of stakeholder management plan
5. Communicating to stakeholders which of their requirements will be fulfilled or not
fulfilled by the project
6. Ensuring the threats and opportunities represented by stakeholders are captured and
proactively managed as risks
7. Executing, communicating and managing the changes in the stakeholder
management plan throughout the life cycle
8. Gaining the commitment of all stakeholders, including the most challenging.

Public Sector Projects

1. Sponsors (owners)
2. Passive investors
3. Contractors and subcontractors
4. Input suppliers
5. Operations and maintenance operators
6. Lenders (syndicate)
7. Subordinated lenders and preference shareholders
8. International agencies
9. Export credit agencies
10. Customers
11. Workers
12. Facilitators (professionals)
13. The state
 14. Other groups

PM Competence and Stakeholder Management

Competent project managers consistently apply their:

1. PM knowledge (technical) and personal behaviors to increase the likelihood of
delivering projects that meet stakeholders' requirements (performance).
2. Requirements state the need that a project has to satisfy and should be
comprehensive, clear, well-structured traceable and testable.
3. Requirements management (a technical competence) is the process of capturing,
analyzing and testing the documented statements of stakeholders and user wants
and needs.

The project manager is responsible for coordinating and integrating activities across multiple
functional lines.
The integration activities performed by the project manager include:
• Integrating the activities necessary to develop a project plan;
• Integrating the activities necessary to execute the plan; and
• Integrating the activities necessary to make changes to the plan.

Stakeholder Management Skills

1. Leading: The construction project managers and the project superintendent are
expected to be the project leaders. The project manager mostly interfaces with
executive management.
2. Communicating: Managing the communications and the corresponding documents
require a consistent effort and communications plan that covers stakeholders’ needs
and levels of understanding.
3. Negotiating: This occurs around many issues and most often involves the exchange
of money for the performance of services. It also includes estimating the scope and
cost of modifications.
4. Problem solving: This skill is important in construction scheduling for proper
sequencing of construction activities to provide a safe and economically controlled
series of site operations. It is also applicable in labor dispute.
Forms of Communications
1. Contract documents indicating the general and special conditions
2. Project documentation to demonstrate fulfilment of the contract
3. Corporate communication and social responsibility to engage the community
 4. Requests for information, Variation Requests, Construction Change Orders
5. Daily Report on worksite conditions and events (e.g., weather, visitors, work
progress)

Value-Driven PM
Traditionally, project success has been defined in terms of the triple constraint (time, cost,
and quality). Now, project success encompasses the provision of value to clients and
organizations.
• Value is the stakeholders’ perception of the worth of the project’s deliverables.
Actual value can be expressed in qualitative terms rather than purely quantitative terms.
• Applying the best PM methodology does not guarantee value because completing the
wrong project on time and within budget is not a success.

The Workshop/Job Plan VM Workshop

1. Information Phase
2. Functional Analysis Phase
3. Creative Phase
4. Evaluation Phase
5. Development Phase
6. Presentation Phase
Benefits of VM
1. Defining problem context
2. Developing and structuring objectives with multiple stakeholders
3. Establishing targets, trade-offs, and SMART objectives
4. Establishing a value proposition
5. Creating a value-based measurement framework
6. Developing briefs and specifications
7. Designing, developing and reviewing options
8. Concept, detail design, and stage gate reviews
9. Assessing outputs and outcomes
10. Individual and organizational learning

Lecture 4: WBS, Resource Planning and Risk Management

 It includes the processes for conducting risk management planning/identification,

analysis, response and monitoring & controlling on a project.
 Project risk management is essential for successful project management and should
be applied throughout a project’s lifecycle.
 It increases the likelihood and impact of positive events or opportunities while
decreasing the likelihood and impact of negative events or threats.
Risk management cycle

1. Risk identification
A Number of Techniques can be Used for Risk Identification
1. Brainstorming
2. Standard Check List
3. The Past Archival Data / Standard Documents

2. Risk Analysis
Estimating the potential impacts of risk to decide what risks to retain and what risks to
transfer to other parties
4.Risk Monitoring and Controlling
The monitoring and control process systematically tracks and evaluates the effectiveness of
risk response actions against established metrics.
Some of the techniques include:
1. Earned Value
2. Program Metrics
3. Schedule Performance Monitoring
4. Technical Performance Measurement

Decision making
Decision making falls into three categories:
1. Under Certainty
2. Under Risk
3. Under Uncertainty
Decision making, including but not limited to payoff matrices, expected [monetary] value, and
decision trees, can be loosely linked with quantitative risk analysis.

Lecture 5:
Project evaluation and selection
The need for aligning projects with business strategies.
The starting point is to conduct a SWOT analysis.

Four stage planning process

1.Strategic planning
2.Business area analysis
3.Project planning
4.Resource allocation
Steps in the selection process
1.Develop a set of criteria against which the project will be evaluated.
 Company goals
 Anticipated sales volume
 Increase in market share
 Investments required
 Technology
2.List assumptions that will be used as a basis for each project
3.Gather data and information for each project to help ensure an intelligent decision
regarding project selection

Project selection methods

4.Evaluate each project against the criteria.
• Focus on strategy and organisational needs
• Performing a financial model
• Using weighted scoring model
• Implementing a balanced scorecard.
• Addressing problems , opportunities and directives.
• Considering project time frames
• Considering project priorities.
Project selection methods
• Focus on strategy and organisational needs
• Performing a financial model
• Using weighted scoring model
• Implementing a balanced scorecard.
• Addressing problems, opportunities and directives.
• Considering project time frames
• Considering project priorities.

Mapping the process groups to knowledge areas

 Project initiation

• Facilitate the formal authorisation • Once the project manager is appointed he

to start a new project . must take ownership of the project . We
• Important tasks during project expect the project manager to do the
initiation following:

• Determine the high level scope ,  Stakeholder identification and analysis.

timeframe , budget for the project.  Compile a business case.
• Identify the project sponsor and  Create a project charter (Clements and
manager. Gido,2012:41)
• Discuss the project with the project  Organise a kick-off meeting (pg 46)
manager.
 Compile a preliminary scope statement.
• Determine the high level
implementation approach of the
project.

Project Planning

• Failure to plan is planning for failure. Why planning

• Project Integration Management  Guide project execution.

involves the amalgam of all the nine
knowledge areas and five project
phases,co-ordinating project activities
to ensure that the team is working in a
consolidated fashion
 Basis for managing change during the project.
 Communication among stakeholders.
 Documentation of planning decisions.
 Assumptions and scenario planning.

 Measure and control.

 It verifies the final project’s product/outcome.

• Team contracts are invaluable.(pg 55)

Project Management Plans

• Document used to co-ordinate all project planning documents and provide guidelines.
• Common elements of project management plans:
• Introduction/overview of the project.
• Project organisation
 • Management and technical processes.
• Work to be performed.
• Schedule information.
• Budget information.
• References to other project planning documents

Project scope management planning tasks Project charter

• is the first document after project selection

• Focuses on defining the business problem or
need.
 The scope management plan doc contains:
 A process to prepare a detailed project scope
taking into consideration the preliminaries.
 Specification of formal verification.
 Control of requests for changes.
Scope statement
 A document to develop and
monitor a common understanding
of the project scope
 The preliminary scope statement,
project charter, organisational
process assets, and approved
change requests provide a basis for
creating the project scope
statement
 Usually begin with a preliminary
scope statement; this is done
during the initiation phase of the
PLC
 Product / service
requirements and
characteristics
 Scope of work included
 Boundaries/ battery limits
• is a statement of the scope, objectives and
participants in a project.
• provides a preliminary delineation of roles
and responsibilities, outlines the project
objectives, identifies the main stakeholders,
and defines the authority of the project
manager.
• it serves as a reference of authority for the
future of the project
Creating scope statement Creating a scope statement
• Output of the scope  Project Title, e.g. Risk Management
definition is the scope Training Project
statement.
 Project Justification, e.g. improving
• Includes a description productivity and reducing costs by
developing a training program to look
of the project,
at key topics or areas of
objectives, justification,
improvement
deliverables,
characteristics and  Product Characteristics and
requirements of Requirements, e.g. supplier
products and services management training, negotiating
produced, and project skills training
success criteria.
 Deliverables:
• It should reference
 Project Management-
supporting documents
Related Deliverables, e.g.
• Updates to the scope team contract, project
statement may affect management plan, scope
the scope management management plan, scope
plan statement, WBS.

 Scope of work excluded  Product-Related

Deliverables, e.g. a needs
 Deliverables assessment for training,
research, partnerships,
 References to related
course development
documents
 Project Success Criteria, e.g. quality
outcomes and standards to be met