Project management

fundaments.
Project initiation

2.10.2019
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Learning Objectives
 Fundament of project management
– Explain what is a project
– Describe project management
 Project initiation
– Explain the importance of creating a project charter to formally
initiate project
– Explain the importance of stakeholder identification

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 Advantages of Using Formal
Project Management

 Better control of financial, physical, and human

resources
 Improved customer relations
 Shorter development times
 Lower costs
 Higher quality and increased reliability
 Higher profit margins
 Improved productivity
 Better internal coordination
 Higher worker morale

Kathy Schwalde, Information Technology Project Management, 7ed, 2014 3

Fundaments of Project
management

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 What Is a Project?
 A project is “a temporary endeavor undertaken to create
a unique product, service, or result” (PMBOK® Guide,
Fifth Edition, 2012)
 Operations is work done to sustain the business
 Projects end when their objectives have been reached or
the project has been terminated
 Projects can be large or small and take a short or long
time to complete

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 Examples of IT Projects
 A team of students creates a smartphone application and
sells it online
 A company develops a driverless car
 A small software development team adds a new feature
to an internal software application for the finance
department
 A college upgrades its technology infrastructure to
provide wireless Internet access across the whole
campus

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 Project Attributes
 A project
– has a unique purpose
– is temporary
– is developed using progressive elaboration
– requires resources, often from various areas
– should have a primary customer or sponsor
 The project sponsor usually provides the direction and funding for the project
– involves uncertainty

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Project Triple Constraint

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Project Life Cycle

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 What is Project Management?
 Project management is “the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements” (PMBOK® Guide, Fourth Edition,
2012)
 Project managers strive to meet the triple constraint
(project scope, time, and cost goals) and also facilitate
the entire process to meet the needs and expectations of
project stakeholders

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 PM Framework

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PM Processes

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PM Processes (PMBOK)

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http://www.savassakar.com/wp-content/uploads/2013/04/pmbok-5-processes.png
 PM Processes (ISO 21500)

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https://hennyportman.files.wordpress.com/2013/01/iso21500-management-products-map-130105-v1-0.pdf
PM Process Grouping

Basic processess Support processess

 Scope management  Quality management
 Time management  Resource management
 Cost management  Communication and
stakeholder management
 Risk management
 Procurement
management

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 Project Success
 There are several ways to define project success:
– The project met scope, time, and cost goals
– The project satisfied the customer/sponsor
– The results of the project met its main objective, such as
making or saving a certain amount of money, providing a
good return on investment, or simply making the
sponsors happy

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 Suggested Skills for Project Managers

 The Project Management Body of Knowledge

 Application area knowledge, standards, and
regulations
 Project environment knowledge
 General management knowledge and skills
 Soft skills or human relations skills

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 Ten Most Important Skills and Competencies for Project
Managers

1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities

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Project Initiation

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Project Initiation Factors
 Market demand
 Organization needs
 Customer demand
 Technological
Problem
developments
 Legal requirements,
 Ecological impacts
 Social needs

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 Strategic Planning and Project Selection

 Strategic planning involves determining long-

term objectives, predicting future trends, and
projecting the need for new products and services
 Organizations often perform a SWOT analysis
– analyzing Strengths, Weaknesses, Opportunities, and Threats
 As part of strategic planning, organizations
– identify potential projects
– use realistic methods to select which projects to work on
– formalize project initiation by issuing a project charter

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 Methods for Selecting
Projects
 There are usually more projects than available
time and resources to implement them
 Methods for selecting projects include:
– focusing on broad organizational needs
– categorizing information technology projects
– performing net present value or other financial
analyses
– using a weighted scoring model
– implementing a balanced scorecard

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 Financial Analysis of Projects
 Financial considerations are often an important
consideration in selecting projects
 Three primary methods for determining the
projected financial value of projects:
– Net present value (NPV) analysis
– Return on investment (ROI)
– Payback analysis

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 Weighted Scoring Model
 A weighted scoring model is a tool that
provides a systematic process for selecting
projects based on many criteria
 Identify criteria important to the project selection process
 Assign weights (percentages) to each criterion so they add up to
100%
 Assign scores to each criterion for each project
 Multiply the scores by the weights and get the total weighted
scores
 The higher the weighted score, the better

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Project Initiation Activities

Developing Project
Charter

Identifying Stakeholders

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 Developing a Project Charter
 After deciding what project to work on, it is important to
let the rest of the organization know
 A project charter is a document that formally recognizes
the existence of a project and provides direction on the
project’s objectives and management
 Key project stakeholders should sign a project charter to
acknowledge agreement on the need and intent of the
project; a signed charter is a key output of project
integration management

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Content of Project Charter
 Project name
 Project overview
– Project purpose or justification
– Measurable project objectives and related success criteria
– High-level requirements
– Project approval requirments
– Summary budget
– Milestones
– Higt-level risks, assumptions and constraints
 Roles and responsibilities
– Project sponsor, main stakeholder, project manager
 Sign-off

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S.M.A.R.T objective
 Objectives must be defined so that the following
conditions are met:
– S – Specific
– M – Mesurable
– A – Agreed
– R – Realistic
– T – Time-bound

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 Project Charter example

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 Project Charter example (cont.)

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 Identifying Stakeholders
 Internal project stakeholders generally include the project sponsor,
project team, support staff, and internal customers for the project.
Other internal stakeholders include top management, other
functional managers, and other project managers because
organizations have limited resources
 External project stakeholders include the project’s customers (if they
are external to the organization), competitors, suppliers, and other
external groups that are potentially involved in the project or
affected by it, such as government officials and concerned citizens

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 Project Stakeholders
 Stakeholders are the people involved in or affected by
project activities
 Stakeholders include
– the project sponsor
– the project manager
– the project team
– support staff
– customers
– users
– suppliers
– opponents to the project

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 Importance of Project Stakeholder Management

 Because stakeholder management is so important to

project success, the Project Management Institute
decided to create an entire knowledge area devoted to it
as part of the Fifth Edition of the PMBOK® Guide in
2012
 The purpose of project stakeholder management is to
identify all people or organizations affected by a project,
to analyze stakeholder expectations, and to effectively
engage stakeholders

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Stakeholder analysis
 Step 1: Identify stakeholder
– Document analysis
– Interview
 Step 2: Evaluate impact and classify stakeholder
– Classification models:
 Power / Interest
 Power, Legitimacy, Urgency

 More:
http://www.academia.edu/172847/Issues_and_Strategies_in_Stakeholder_
Management

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 Stakeholder Register
 A stakeholder register includes basic information on
stakeholders:
– Identification information: The stakeholders’ names, positions,
locations, roles in the project, and contact information
– Assessment information: The stakeholders’ major requirements
and expectations, potential influences, and phases of the project
in which stakeholders have the most interest
– Stakeholder classification: Is the stakeholder internal or external
to the organization? Is the stakeholder a supporter of the project
or resistant to it?

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 Stakeholder Register

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Project planning

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 Basic planning activities

Define
scope Estimate
costs
Estimate Determine
activity the budget
resources
Define Estimate
activities activity
durations
Sequence Develop
activities schedule

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Questions ?

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Lecture Summary
 A project is a temporary endeavor undertaken to create a unique
product, service, or result
 Project management is the application of knowledge, skills, tools,
and techniques to project activities to meet project requirements
 The five project management process groups are initiating,
planning, executing, monitoring and controlling, and closing
 Project managers play a key role in helping projects and
organizations succeed
 Development of the project charter
 Identify stakeholders

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Assignment
Due Date: 9.10.2019
 Task 1: Reading:
– PMP: Project Management Professional Exam Review
Guide (2nd Edition)
 Chapter 1: Project Foundation
 Chapter 2: Initiating the Project
 Chapter 3: Planning the Project
– Section «Assessing the Requirements»
– Section «Creating the Work Breakdown Structure»
– Information Technology Project Management
 Chapter 1: Introduction to Project Management
 (optional) Chapter 2: The Project Management and Information
Technology Context

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Assignment
 Task 2: Quizzes:
– Quiz 1: Fundaments of Project Management
– Quiz 2: Project Initiation
Quizzes are available in ORTUS
Questions from quizzes will be included in mid-term test and
final test
 Task 3: Study project
– Make group of 1-2 students
– Decide on study project topic
– Create Project Charter and send it to lauma.jokste@rtu.lv
until 9.10.2019 10:00 (template available in ORTUS)

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Questions?

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