Types and Categories of Projects Topic 3 - 3.

Project Management

Topic 3 Types and Categories of Project

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Learning Objectives

By the end of this topic you will be able to

• Understand different types of organisation.
• Explain several frameworks for classifying projects.
• Assess and discuss the implications for project
management of different types of project.
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Types of Project and Organisation

Projects in the real world

• In Topic 1 we looked at what is meant by project.
• In Topic 2 we looked at what is meant by stakeholder.
• These definitions rely on an assumption …
• … that there is only one type of project and one type of
organisation.
• This is a simplification of reality. There are many types.
• Sometimes we must look beyond the simplification and
explore the reality in more detail.
 Types and Categories of Projects Topic 3 - 3.4

Types of Project and Organisation

What do all organisations have in common?

• A purpose.
• An environment.
• People.
• Processes.
• Capabilities.
There are also many differences between organisations.
We put organisations into types to make them easier to understand.
(Brooks, 2018)
 Types and Categories of Projects Topic 3 - 3.5

Types of Project and Organisation

Different types of organisation (1)

• Large and mega businesses.
• Structured businesses e.g. groups, conglomerates.
• Public utilities.
• National governments.
• Regional and local governments.
• Government agencies.
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Types of Project and Organisation

Different types of organisation (2)

• Educational institutions.
• SMEs (small and medium enterprises).
• One-person organisations.
• Cooperatives.
• Mutuals.
• Partnerships.
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Types of Project and Organisation

Different types of organisation (3)

• Charities and societies.
• Clubs.
• International organisations.
• Umbrella organisations.
• Temporary organisations.
 Types and Categories of Projects Topic 3 - 3.8

Types of Project and Organisation

What do all projects have in common?

• Objectives.
• Schedule.
• Resources.
• Constraints.
• Project manager.
There are also many differences between projects.
We also put projects into types to make them easier to understand.
(Wysocki, 2017)
 Types and Categories of Projects Topic 3 - 3.9

Types of Project and Organisation

What is a model?
• A simplified version of something real.
• It contains the most important elements of the real thing.
• Conceptual models are used for learning, discussion and
decision-making.
• We can create a conceptual model of a generic project.
• Several different generic project models are possible …
• … and the model you use will depend on your perspective.
 Types and Categories of Projects Topic 3 - 3.10

Types of Project and Organisation

Why are project models important?

• A common basis for agreement and action.
• Tools for solving problems.
• They help separate the important from the trivial or routine.
• Definition of baselines.
• Envisioning future possibilities.
• Good models can get all the stakeholders “on the same
page”.
 Types and Categories of Projects Topic 3 - 3.11

Types of Project and Organisation

A well-known generic project model – the S-curve

close

effort

execute
launch

time
 Types and Categories of Projects Topic 3 - 3.12

Project Classification Schemes

Ways of classifying projects

• By size.
– Cost, duration, team, business value, etc.
• By type.
– Strategic, tactical, operational, etc.
• By application.
– New product development, infrastructure installation, etc.
• By complexity and uncertainty.
– Number of interfaces, possible changes in the environment, etc.

(Wysocki, 2017)
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Project Classification Schemes

Strategic, tactical and operational types

• Strategic projects.
– To help achieve the objectives of the organisation.
– Example: enter a new market.
• Tactical projects.
– To achieve a narrow, short-term result.
– Example: integrate two legacy IT systems.
• Operational projects.
– To support operations work.
– Example: re-start a disused assembly line in a factory.
 Types and Categories of Projects Topic 3 - 3.14

Project Classification Schemes

External, internal, and specialist project suppliers

• External projects.
– Delivered for paying clients.
– Expected to be immediately profitable for the project supplier.
• Internal projects.
– Often strategic or infrastructural.
– Funded from an internal organisation budget e.g. R&D.
– Expected to deliver longer term benefits.
• Specialist project suppliers.
– Firms whose normal business is to manage projects for clients.
– Projects are a routine service to be sold, delivered and supported.
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Project Classification Schemes

Obeng’s four types of project (1)

(Obeng, 2003)
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Project Classification Schemes

Obeng’s four types of project (2)

• Walking in the fog.
– You have a problem to solve or you want to do something new …
– … but you don’t yet know what to do, or how to do it.
• Making a movie.
– You have valuable capabilities and resources …
– … but you don’t yet know what to do with them.

• Going on a quest.
– You know exactly what you want to achieve …
– … but you don’t yet know how to do it.
• Painting by numbers.
– You know what to do and how to do it.
(Obeng, 2003)
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Project Classification Schemes

Project classification by output (1)

• A new invention requiring research.
• An event such as a festival.
• A new product or service for sale to consumers.
• Civil infrastructure such as a bridge.
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Project Classification Schemes

Project classification by output (2)

• A new or improved capability within an organisation.
• A customised high-value product or service for business.
• Education, health, social welfare and charity services.
• Administrative projects for more efficient operations or
reduced overheads.

This classification scheme is based on the idea that

the most important thing about a project is what it produces.
 Types and Categories of Projects Topic 3 - 3.19

Project Classification Schemes

Project classification by significant variable (1)
• Stability of scope.
• Degree of uncertainty.
• Importance of time.
• Importance of cost.
• Quality of human resources required.
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Project Classification Schemes

Project classification by significant variable (2)
• Level of new technology required.
• A one-off project, or part of a series?
• Contractual arrangements.
• Level of planning detail required.

This classification scheme is based on the idea that

some variables are more important than others
and this will vary between projects.
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Project Classification Schemes

Projects which don’t follow the rules

• Megaprojects.
– These are projects which are so big and/or complicated that the normal rules of
project management don’t work well enough.
• Software development.
– Approaches such as DevOps aim to turn new software creation into a routine
operational activity rather than a project.
• Research.
– The uncertain goals and high failure rate of research projects require unconventional
approaches to project management.
• Personal projects.
– People’s motivations, goals, culture and values can affect the approach chosen.
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Project Classification Schemes

Examples of projects – which type(s) are they? (1)

• Develop a website to sell consumer products.
• Build a road to serve a local community.
• Merge two subsidiaries of a giant business.
• Recruit 30 business development executives.
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Project Classification Schemes

Examples of projects – which type(s) are they? (2)

• Install a LAN in an office building.
• Launch a campaign to reduce lifestyle-related
illnesses.
• Research a drug.
• Start up a small business.
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Implications of Project Type

Why is it important to identify the type of a project?

The project type

will have a significant impact
on the choice of
project management approach.
 Types and Categories of Projects Topic 3 - 3.25

Implications of Project Type

Project management methodologies

• Traditional.
– Structured, staged, linear.
• Agile.
– Iterative, adaptable, client-focused.
• Proprietary.
– Popular with large organisations who find that standard project
methodologies don’t meet their needs.
• Hybrid
– A blend of different methodologies.
 Types and Categories of Projects Topic 3 - 3.26

Implications of Project Type

Shenhar’s research of engineering projects

• Low Technological Uncertainty Projects.
– Familiar implementations using mature technologies
• Medium Technological Uncertainty Projects.
– Common in industry. Limited use of new technology.
• High Technological Uncertainty Projects.
– Involving the first use of new, but existing technologies.
• Super High Technological Uncertainty Projects.
– Requiring technologies that do not exist at time of project initiation.

(Shenhar, 2001)
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Implications of Project Type

Besner & Hobbs’ research of project practitioners

• 108 different project practices, tools and techniques.
• Four types of project were compared: business,
engineering, telecom and software development.
• The practices were clustered into groups.
• There were significant differences between the four types.
• The interaction between complexity and uncertainty has a
major impact on project management practice.

(Besner & Hobbs, 2012)

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Implications of Project Type

Conclusion

There is no one-size-fits-all solution to

choosing a project management approach.

In short … it depends!
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References

• Besner, C. & Hobbs, B. (2012) ‘An empirical identification of project management toolsets
and a comparison among project types’, Project Management Journal, (43)5, pp. 24–46.
• Brooks, I. (2018). Organisational Behaviour: Individuals, Groups and Organisation.
London: Pearson.
• Obeng, E., (2003). Perfect projects. Pentacle.
• Shenhar, A.J. (2001) ‘One size does not fit all projects: exploring classical contingency
domains’, Management Science, (47)3, pp. 394–414.
• Wysocki, R. (2017) Effective Project Management: Traditional, Agile, Extreme. New York:
Wiley.
Topic 3 – Types and Categories of Project

Any Questions?