Unit One

Introduction to the Project

Environment
Concept of a Project
• ‘A project is a temporary endeavor undertaken to create a unique
product, services, or result’(Project Management Institute : PMI
2010)
• The Temporary nature of projects indicates a definite beginning
and end. The end is reached when the project’s objectives have
been achieved or when the project is terminated because its
objectives will not or cannot be met, or when the need for the
project no longer exists.
• Temporary does not necessarily mean short in duration.
Temporary does not generally apply to the product, service, or
result created by the project; most projects are undertaken to
create a lasting outcome.
• For example, a project to build a national monument will create a
result expected to last centuries. Projects can also have social,
economic and environmental impacts that far outlast the projects
themselves.
• Unique product, service or result implies that
projects involve doing something that has not
been done before and which is therefore, unique.
A product or service may be unique. A product or
service may be unique even if the category to
which it belongs is large. For example, many
thousands of office buildings have been
developed, but each individual facility is unique-
different owner, different design, different
contractors and so on. The presence of repetitive
elements does not change the fundamental
uniqueness of the project work.
Variable Nature of Projects
• Projects are not the all the same, that is, they vary from small/
relatively straightforward and cheaper to extremely large and
highly complex requiring enormous effort and resources.
• Project can also be Commercial (for profit making) or social
(not for profit i.e purely for developmental or humanitarian aid
purposes)
 Corporate Social Responsibility (CSR) – Business Ethic that
requires that apart from being profit making oriented business
institutions should also be able to plough back into the
community which is providing them the market for their
products and services by undertaking development activities
and community service. This Business Ethic prompts Business
Institutions to undertake not for profit making projects, on
relatively a smaller scale.
 Defacto System – A Standard or practice which has wider
application even if it has no legal backing.In Zambia as at now
• Operational Projects (projects undertaken to
improve on operations)/ Strategic Projects
(Projects undertaken to achieve the
company’s strategic objectives)/ legal
oriented Projects (projects undertaken to
comply to legal requirements.
• However, despite the variability nature of
projects, they have common characteristics.
Characteristics/ Attributes of the Project
– unique purpose
– temporary
– require resources, often from various areas
– should have a primary sponsor and/or customer
– involve uncertainty
– Cross-functional
– Change (Projects are the means by which we
introduce change
– Interventions: Policy / Programmes / project
Examples of projects include, but are not
limited to:
• Developing a new product or service
• Effecting a change in the structure, staffing, or
style of an organization
• Developing or acquiring a new or modified
information system
• Constructing a building or infrastructure
• Implementing a new business process or
procedure
Samples of IT Projects
• Northwest Airlines developed a new reservation
system called ResNet (see case study on
companion Web site at
www.course.com/mis/schwalbe)
• Many organizations upgrade hardware, software,
and networks via projects
• Organizations develop new software or enhance
existing systems to perform many business
functions
• Note: “IT projects” refers to projects involving
hardware, software, and networks
Why the Improvements?
The reasons for the increase in successful projects vary.*
– The average cost of a project has been more than cut in half.
– Better tools have been created to monitor and control progress
– Better skilled project managers with better management
processes are being used.

*The Standish Group, "CHAOS 2001: A Recipe for Success"

(2001)
The Concept of the Project Life Cycle

• A project life cycle is a collection of generally sequential and

sometimes overlapping project phases whose name and number
are determined by the management and control needs of the
organization or organizations involved in the project, the nature of
the project itself and its area of application (PMI)
• It is a path way along which a project passes through from start to
completion
• It is also a linear progression of a project from inception to
completion. A linear progression process or development is one in
which something changes or progresses straight from one stage to
another, and has a starting point and an ending point. On other side
if you describe something as non-linear, you mean that it does not
progress or develop smoothly from one stage to the next in a logical
way. Instead, it makes sudden changes, or seems to develop in
different directions at the same time.
Key Goals of the Project Life Cycle
• Provides a framework for budgeting
manpower and resources allocation and for
scheduling project milestones and project
reviews
• Provides a clear picture or a clear or rather a
clear picture is drawn as to where the money
goes
Benefits of a Project Life Cycle
1. It provides a structure for project delivery.
2. It improves communication between team
members.
3. It enables progress to be tracked across the
organisation.
4. It provides for the progressive evolution of
the project.
5. It enables structured reviews that support
governance.
Benefits of a Project Life Cycle
1. It provides a structure for project delivery.
The project lifecycle provides a structured approach for the
delivery of the project. This allows everyone working on the
project to identify and monitor how the project is progressing;
and whether there are any issues with particular aspects of the
deliverables.
2. Aids communication and helps define roles within the project
organisation as it provides a framework for the project that is
visible and understood by all members of the project. Also, roles
and responsibilities can be assigned according to the project
phase. This makes it easy for people to understand what they
should be doing in each phase.
3. It enables progress to be tracked across the organisation.
The project lifecycle will allow the project manager to link
progress directly to each phase and recognise the completion of
each phase
4. It provides for the progressive evolution of the project
The phases within the project lifecycle provide an
understanding of the evolution of the project, being able to
identify areas that need greater attention at different times
such as risk management in the early stages and more
Project Evaluation Reviews during the Implementation
stage.
5. It enables structured reviews that support governance.
The project lifecycle will define when the Project Evaluation
Review and the Gate Reviews will take place, therefore
allowing the project manager to plan completion of reports
in readiness to support the reviews. It will also allow
required people to pre-plan their attendance to enable
quick decisions on a ‘go no go’ for the project progress.
Generic Stages of the Project Life Cycle (by PMI)
1. Starting the Project (Project Identification/
Initiation)
2. Organizing and Preparing (Planning)
3. Carrying out the Project Work
(Implementation/ Execution)
4. Closing the Project
Generic Stages of the Project Life Cycle
1. Starting the Project (Project Identification/ Initiation)
2. Organizing and Preparing (Planning)
3. Project Appraisal/Feasibility Study/ Ex-ante
Evaluation
4. Carrying out the Project Work (Implementation/
Execution)
5. Monitoring & Control
6. Closing the Project
 Project Phases
• A project may be divided into any number of
phases. A project phase is a collection of logically
related project activities that culminate in the
completion of one or more deliverables.
• Project phases are used when the nature of the
work to be performed is unique to a portion of
the project, and are typically linked to the
development of a specific major deliverable.
 Phase-to-Phase Relationships

There are two basic types of phase-to-phase

relationships:
• Sequential relationship. In a sequential
relationship, a phase starts only when the
previous phase is completed.
• The step by-step nature of this approach
reduces uncertainty, but may eliminate
options for reducing the overall schedule.
• Overlapping relationship. In an overlapping
relationship, a phase starts prior to completion
of the previous one.
• This can sometimes be applied as an example of
the schedule compression technique called fast
tracking.
• Overlapping phases may require additional
resources to allow work to be done in parallel,
may increase risk, and can result in rework if a
subsequent phase progresses before accurate
information is available from the previous
phase.
 The Project Environment

• Projects and Project Management take place in an

environment that is broader than that of the project itself.
Understanding this broader context helps ensure that
work is carried out in alignment with the organization’s
goals and managed in accordance with the organization’s
established practices.
• This environment is very complex and has host of
variables that compound together to influence the project
being carried out.
• These factors could be part of the internal or external
environment. The internal environment consists of
variables that emanate from within the organization,
while eternal factors emanate from the external
Internal Factors that can influence a project include but
not limited to the following:
 Organizational Cultures and styles
 Organizational Structures

1. Organizational Cultures and Styles

• Organizations are systematic arrangements of entities
(persons and/ or departments) aimed at accomplishing
a purpose, which may involve undertaking projects.
• An organization’s culture and style affect how it
conducts projects. Cultures are group phenomenon
known as cultural norms, which develop overtime. The
norms include established approaches to initiating and
planning projects, the means considered acceptable for
getting the work done, and recognized authorities who
make or influence decisions.
• Organizational culture is shaped by the common
experiences of members of the organization and most
organizations have developed unique cultures over time
by practice and common usage. Common experiences
include, but are not limited to:
 Shared visions, mission, values, beliefs, and expectations;
 Regulations, policies, methods, and procedures;
 Motivation and reward systems;
 Risk tolerance;
 View of leadership, hierarchy, and authority relationships;
 Code of conduct, work ethic, and work hours; and
 Operating environments.
2. Organizational Structures
• Organizational structure is an enterprise
environmental factor, which can affect the
availability of resources and influence how
projects are conducted
• Organizational structures range from
functional to projectized, with a variety of
matrix structures in between (For charts or
figures depicting these structures refer to the
Project Management Body of Knowledge
Handbook by PMI)
Three Broad Organizational Structures
• 1. Functional Organization
• 2. Matrix Organization(Weak Matrix, Balanced
Matrix and Strong Matrix)
• 3. Projectized Organization
 Functional Organizations
• The classic functional organization, is a hierarchy
where each employee has one clear superior.
• Staff members are grouped by specialty, such as
production, marketing, engineering, and accounting
at the top level.
• Specialties may be further subdivided into focused
functional units, such as mechanical and electrical
engineering. Each department in a functional
organization will do its project work independently
of other departments.
Advantages of Functional Organizations
• Flexibility in the use of Staff
• Subject Matter Experts (SMEs) available to
work on multiple projects
• Knowledge and experience readily shared
between functional specialists
• Technical continuity exists within the
organization
Disadvantages of Functional Organization
• Project Customer is not the only focus
• Organization does not focus on solving project
business issues
• Project does not have a single individual
responsible for all aspects of the project
• Response to customer needs is slow and difficult
• Project issues are not all given the same level of
attention
• Project is not managed holistically
 Matrix Organizations(Multiple Command
Systems)
• Matrix organizations, reflect a blend of functional
and projectized characteristics.
• Matrix organizations can be classified as weak,
balanced, or strong depending on the relative level
of power and influence between functional and
project managers.
• Weak matrix organizations maintain many of the
characteristics of a functional organization, and the
role of the project manager is more of a coordinator
or expediter.
• A project expediter works as staff assistant and
communications coordinator. The expediter cannot
personally make or enforce decisions.
• Project coordinators have power to make some
decisions, have some authority, and report to a higher-
level manager.
• Strong matrix organizations have many of the
characteristics of the projectized organization, and
have full-time project managers with considerable
authority and full-time project administrative staff.
While the balanced matrix organization recognizes the
need for a project manager, it does not provide the
project manager with the full authority over the
project and project funding.
 Advantages Matrix Organizations
• Central Focus is the project
• Project Managers have access to a large reservoir of
technically skilled people
• Project team members have less anxiety about the future
• Customer issues are responded to quickly
• Administrative personnel are not duplicated in each
project team
• Resource balancing between projects is simpler and
more efficient
• Project team organization is more flexible
 Disadvantages of Matrix Organizations
• Person with decision making power is not
always clearly identified
• Resource balancing between projects can lead
to friction
• Project closeout tasks are often difficult in
strong matrix organizations
• Division of authority and responsibility is
complex.
 Projectized Organization
• At the opposite end of the spectrum to the functional
organization is the projectized organization.
• In a projectized organization, team members are often
colocated. Most of the organization’s resources are involved in
project work, and project managers have a great deal of
independence and authority.
• Virtual collaboration techniques are often used to accomplish
the benefits of colocated teams.
• Projectized organizations often have organizational units
called departments, but they can either report directly to the
project manager or provide support services to the various
projects.
Advantages of Projectized Organizations
• Clear lines of authority, the Project Manager has full
authority
• Response to customer and stakeholder issues is faster
and clearer
• Skilled Project team can support several sucessive
projects of the same type
• Timely decision making
• Organizational structure is simple, flexible, and easy to
understand
• Project is managed holistically
 Disadvantages of the Projectized
Organization
• Expensive approach because of the
duplication of personnel
• Team members lose access to a repository of
functional or technical expertize
• Policies and procedures are often applied
inconsistently
• Team members may be anxious about post-
project work
 External Environmental Factors of the Project
External Factors that can influence a project include
but not limited to the following:
• PESTLE Factors:
 P – Political Factors e.g Government standards ad
regulations
 E – Economic Factors e.g Demand and Supply forces,
Inflation, competition etc
 S – Social Factors e.g social needs, culture, religion,
life styles, Behavior Patterns etc
 Technological – change in modes of production,
change in soft ware applications etc
 Legal – legal frameworks and structures etc
 Environmental (Ecological )Factors – Climate
Change, Sustainable Environmental Protection
and Preservation etc

Note Below:
• It is important that the project team identifies
all these factors and takes care of them as the
project is being designed and carried out.
• Exclusion of these factors would ultimately
lead to total project failure
 Tools of Environmental Analysis
The two major tools that can be used to scan the Project
Environment and which can also be applied at organizational Level
Include but not limited to:
• PESTLE Analysis; a structured and systematic critical examination
of the Political, Economic, Social, Technological, legal and
Environmental/ Ecological factors that could have a positive or
negative influence on the project.
• SWOT Analysis: a structured and systematic critical examination of
the Project’s or organization’s Strengths, Weaknesses,
Opportunities and Threats. Strengths and weaknesses are internal
factors and normally the project team could have direct control
over them e.g organizational systems or practices, while
Opportunities and Threats are external factors , outside the
control of the project team e.g government standards and
regulations, exchange rates, inflation, industry standards and
 Project Stakeholders
Project Stakeholders are also part of the Project Environment.
• Project Stakeholders include any individual or group with
an interest in the project process or outcome e.g. the
project customers, the delivery team, the end beneficiaries
of the project, anyone affected by the outcome,
proponents and opponents of any change
• A project stakeholder is an individual, group or organization
who may affect, be affected by, or perceive itself to be
affected by a decision, activity, or outcome of a project.
• Project Stakeholders are individuals and organizations who
are actively involved in the project, or whose interests may
be affected as a result of project execution or completion.
Categories of Stakeholders
• External Stakeholders: these are people
outside the ‘Project Team’ or Organization.
They include the people for whom the project
is being provided (a customer group, for
instance) or the people paying for the process
(sponsors)
• Internal Stakeholders : are those associated
with the Process, typically members of the
team or governance structure
Examples of Project Stakeholders include but
not limited to the following:
• Project Manager
• Project Teams
• Sponsor Customers and users
• Sellers
• Business Partners
• Organizational groups
• Functional Managers
• Others Stakeholders