New Product Development Management

Project management
Part 1

BEFORE
- Stable market conditions
- Low variability of demand
- Focus on production
- Scale economy
Context
NOWADAYS
- Instable and turbulent market
- Demand of new products
- Focus on market
- Flexibility economy
new entrants, different/new clients' needs
focus not only on costs but also in markets and customer
need for flexibility to change and adapt to nowadays
2
 The answer of project management

“PM is a status of mind” (General Electric CEO)

Key elements of project management (PM):

• PM moves from a technical-based to a business-oriented
discipline
• PM is cross-sections with respect to the organization
• PM is interdisciplinary
PM goes through different functions of the firm
adapt to nowadays market situation

3
 Why is it interesting to you?

Some results from a couple of the most famous job

search platforms:

• Careerjet > more than 4.000 job offers as Project

Manager in Italy
• Experteer > more than 9.000 job offers as Project
Manager in Italy
•…

4
 Il PM nel mondo 1/4

Project Management Institute (PMI - www.pmi.org)

• The most renowed entity in the field of Project Management at
the international level
• The main association for professionals in the Project
Management area, dedicated to the development of this
profession and the definition of international standards based
on best practices
• It carries out many studies on the topic and it is a reference
point for its ability to make resources and information available
worldwide

5
 Il PM nel mondo 2/4

International Project Management Association (IPMA)

• Non-profit organization for the propotion of prokect
management at the international level
• It establishes norms and guidelines for professionals in the PM
area through the IPMA Competence Baseline (ICB®)
• The certification programme is released by national
associations and/or certification organizations

6
 Il PM nel mondo 3/4

International Project Management Association (IPMA)

The IPMA certification system is based on the evaluation of
competences in PM activities referred to four main professional
categories:

• Certified Projects Director (IPMA Level A)

• Certified Senior Project Manager (IPMA Level B)
• Certified Project Manager (IPMA Level C)
• Certified Project Manager Associate (IPMA Level D)

7
 Il PM nel mondo 4/4

Italian Institute of PM (ISIPM)

Professional association for the diffusion and safeguard ofthe
profession of Project and Program Manager in Italy

8
 PM in large companies: the case of
Finmeccanica
• The Finmeccanica Group, due to the type of business, makes
the efficient and effective order management a critical
success factor of its strategy; for this reason, PM is highly
taken into account at different levels in the company
• In 2007, Finmeccanica launched a global programme to
develop competences about project and program
management for teams
• Around 2.300 poeple in 14 countries play the role of project or
program manager or support them

9
 PM in large companies: the case of
Finmeccanica
• Among these 2.300, around 250 people have an international
certification (PMP-PMI, IPMA A, B, C, Prince 2, ...)
• A community of professionals in PM exists, with a dedicated
plaform and activities of continuous information and education
(among which seminars to maintain the certifications)
• A Body of Knowledge on PM exists in Finmeccanica, coded in
a sort of “FINBOOK” (vs PMBOK)
• The main event of this community is an annual meeting,
representing a moment of debate, exchange, update and
networking

10
 What a project is

A set of activities that are

interconnected, unique and Activities

complex and have a purpose; they

must be completed within a certain
time range (date of start and date of Boundaries
end) respecting requirements
referring to time, costs, quality and
resources
Requirements
ISO10006 (a standard for quality in
project management)
11
 Example of project

Projects always have a start and an end

• Design and development of an Airbus

• Building of the Eurotunnel (from Calais to Dover)
• Re-layout of a firm
• Introduction of a new information system
• Renovation of a building
• Scientific studies
• Space missions
• Movie production
• Book writing
• …
12
 Scope of application of a project logic

• New product development

• Service design and development
• Managing Engineering-To-Order construction/production/service
orders
• Planning and managing performance improvement in firms
• Public research and international cooperation

13
 Complexity of projects

• Reaching a goal respecting constraints related to time, costs

and quality is complex and it requires organizational and
managerial principles and specific techniques
• Examples of project failure
• Concorde: technological success, but commercial disaster (sales
forecast: 250 products vs sold products: 12 products and built 16 due
to too high costs → 974 mln pounds vs. 170 budget)
• Sydney Opera House: estimation of 7 mln dollars and 6 years vs.
effective 102 milioni and 16 years
• EuroTunnel, Eurodisney di Parigi: budget doubled
a project fails not only if we don't reach the final result but also if we don't do it inside requirements settled.

14
 Organization for PM

• An organization suitable for effective PM must overcome

functional and hierarchical barriers
• Normally, in firms two organizational dimensions and two
managers exist:
• Functional Manager → maintaining the efficiency/effectiveness
standards typical of the function, as the management and building of
competences and resources, make resources available for different
projects
• Project Manager → take the most out of the resources dedicated for
his/her project to reach the final aims
Authority must be clear

• Bi-dimensional solution, not easy to manage: in case of

reseource constraints, who has the priority?
15
 Lightweight matrix project
organization
• The functional manager has the hierarchical authority
• The project manager has a role of coordination and
management of resources for the project
light weight solution, functional
manager keeps the authority
resources are coordinated by
functional manager.
Project managers here might lack in
involvement in the improvement of
the project
Adapt for companies in which
projects are the exception, standard
production companies

16
 Balanced matrix project organization

• The hierarchical authority remains in the hand of the

Functional Manager

• But the Project Manager has a stronger power and control over
project resources and budget

For increased numbers of projects.

17
 Heavyweight matrix project
organization
• The Project Manager exerts the hierarchical authority
• The Functional Manager deploys resources, ensuring the
performance of the function
for companies focused on project
development
Project managers are below the
general manager
in these cases there might be more
problems in terms of hierarchy
since companies are used to work
vertically

18
 Requirements of a matrix organization

• Easy communication functions usually are separated while in projects there's the need of
collaboration and knowldge sharing from different points of view.
• Inclination towards teamworking
• Working based on objectives
• Rewarding system based on results
• Manaer’s ability to empower lower roles and autonomy of lower
roles
• Proactive approach towards innovation and change

19
 The Project Manager

• (S)he identify, enroll and coordinate resources with the

purpose of reaching the objectives in terms of quality, costs
and time
• Her/His role does not require specifi technical knowledge, but a
stong ability to understand problems associated to any activity
included in the project
• Her/His task is leading and coordinating the project team in a
balanced and agreeable way

20
 Characteristics of a good project
manager

TECHNICAL • General/Specific or multidisciplinary technical competences

• High knowledge of PM methods and toolsto plan and manage the objectives in
terms of quality, time and costs

ORGANIZATIONAL • Ability to plan and see the overarching picture (global vision)
AND MANAGERIAL • Inclination towards understanding andactivating important and innovative initiatives
• Ability to select and cooordinate technical and human resources respecting time,
cost and quality constraints
• Ability to identify problems and solve them
• Ability to communicate well and negotiate

PERSONAL • Flexible and adaptable to change

soft skills • Determinant and self-confident
• Communicative and persuasive
• Ambitious, dynamic and energetic
• Well-balanced, enthusiastic and creative
• Many different personal interests
21
 Responsibilities of the project
manager
• Reaching project goals
• Correct planning and integration of different project activities
• Organizing the work to be carried out
• Correct acquisition and balanced use of technical and human
resourses
• Effective communication with all stakeholders
• Resolution of conflicts among team members
• Periodic evaluation of how the project is going on

22