Chapter 1

Project Management Professional Diploma Chapter One
Chapter 1: An Introduction to Project, Program, and Portfolio Management
Project Management Professional

Learning Objectives
Understand the growing need for better project, program, and portfolio management. Explain what a project is, provide examples of projects, list various attributes of projects, and discuss the triple constraint of project management. Describe project management and key elements of the project management framework, including project stakeholders, project management knowledge areas, common tools and techniques, and project success factors.
Private & Confidential
www.major-qa.com

Learning Objectives (continued)
Discuss the relationship between project, program, and portfolio management and their contribution to enterprise success. Describe the project management profession, including suggested skills for project, program, and portfolio managers, the role of professional organizations such as the Project Management Institute, the importance of certification and ethics, and the growth of project and portfolio management software.
www.major-qa.com

Introduction
Many organizations today have a new or renewed interest in project management.

The U.S. spends $2.3 trillion on projects every year, or one-quarter of its gross domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds.* In 2003, the average senior project manager in the U.S. earned almost $90,000 per year, and the average project management office director earned more than the average chief information officer ($118,633 vs. $103,925).** Project management certification is popular worldwide
*PMI, Inc., The PMI Project Management Fact Book, Second Edition, 2001. **PMI, Inc., Project Management Salary Survey, Third Edition, 2003.
Private & Confidential www.major-qa.com

What Went Wrong?
A 1995 Standish Group study (CHAOS) found that only 16.2 percent of information technology (IT) application development projects were successful in meeting scope, time, and cost goals. Over 31 percent of the projects were canceled before completion, costing over $81 billion in the U.S. alone. The authors of this study were adamant about the need for better project management.
www.major-qa.com

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
www.major-qa.com

What Is a Project?
A project is a temporary endeavor undertaken to create a unique product, service, or result.* Operations is work done to sustain the business. Projects end when their objectives have been reached, or the project has been terminated.
*Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide) (2004), p. 5.

Examples of Projects
A young couple hires a firm to design and build them a new house. A college campus upgrades its technology infrastructure to provide wireless Internet access. A television network develops a system to allow viewers to vote for contestants and provide other feedback on programs. A government group develops a program to track child immunizations.
www.major-qa.com

Project Attributes
A project:
Has a unique purpose. Is temporary. Is developed using progressive elaboration or in an iterative fashion. 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.
www.major-qa.com

Figure 1-1. Lost For Words
A good project manager is crucial to a projects success. Project managers work with the project sponsors, the project team, and the other people involved in a project to meet project goals.
www.major-qa.com

Project Constraints
Every project is constrained in different ways by its:

Scope: What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project? Time: How long should it take to complete the project? What is the projects schedule? Cost: What should it cost to complete the project? What is the projects budget? Quality: How good does the quality of the product or services need to be? What do we need to do to satisfy the customer? Risk: How much uncertainty are we willing to accept on the project?
www.major-qa.com

Figure 1-2. Typical Project Constraints
www.major-qa.com

More on the Project Constraints
It may be good enough to hit the target, or range of project constraints goals, but.. Its important to determine which aspects of the project constraints are the most important.
www.major-qa.com

What is Project Management?
Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.*

Figure 1-3. Project Management Framework
www.major-qa.com

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 Suppliers Opponents to the project
www.major-qa.com

Project Management Knowledge Areas
Four core knowledge areas lead to specific project objectives.

Project scope management involves defining and managing all the work required to complete the project successfully. Project time management includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. Project cost management consists of preparing and managing the budget for the project. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken.
www.major-qa.com

Project Management Knowledge Areas (continued)
Four facilitating knowledge areas are the means through which the project objectives are achieved.
Project human resource management is concerned with making effective use of the people involved with the project. Project communications management involves generating, collecting, disseminating, and storing project information. Project risk management includes identifying, analyzing, and responding to risks related to the project. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization.
One knowledge area (project integration management) affects and is affected by all of the other knowledge areas. All knowledge areas are important!

Project Management Tools and Techniques
Project management tools and techniques assist project managers and their teams in various aspects of project management. Note that a tool or technique is more than just a software package. Specific tools and techniques include:
Project charters, scope statements, and WBS (scope) Gantt charts, network diagrams, critical path analyses (time) Net present value, cost estimates, and earned value management (cost).
www.major-qa.com

Project Management Tools and Techniques
www.major-qa.com

What Went Right?
The number of successful IT projects has more than doubled, from 16 percent in 1994 to 34 percent in 2002, although that number dropped to 29 percent in 2004. The number of failed projects was cut in half, from 31 percent in 1994 to 15 percent in 2002, although that number increased to 18 percent in 2004. The amount of money wasted on challenged projects and failed projects was down to $55 billion in 2002 compared to $140 billion in 1994.*
www.major-qa.com

Why the Improvements?
The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.*
*The Standish Group, CHAOS 2001: A Recipe for Success (2001).
www.major-qa.com

Project Success
Ther e are different ways to define project success:

The project met scope, time, and cost goals. The project satisfied the customer/sponsor. The project produced the desired results.
www.major-qa.com

What is a Program?
A program is:
a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.* A Program Manager provides leadership and direction for the project managers heading the projects within the program.

Figure 1-4. Program Examples
www.major-qa.com

Project Portfolio Management
Project portfolio management (PPM) is an emerging business strategy in which organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprises success. Pacific Edge Softwares product manager, Eric Burke, defines project portfolio management as the continuous process of selecting and managing the optimum set of project initiatives that deliver maximum business value.*
www.major-qa.com

Figure 1-5. Project Management Compared to Project Portfolio Management
www.major-qa.com

The Project Management Profession
Project, program, and portfolio managers need to develop specific skills. Certification is available for project managers. There are many software tools to assist in project, program, and portfolio management.
www.major-qa.com

Suggested Skills for Project Managers
Knowledge of the following: All nine project management knowledge areas The application area, including specific standards and regulations The project environment (politics, culture, change management, etc.) General management (financial management, strategic planning, etc.) Human relations (leadership, motivation, negotiations, etc.)

Media Snapshot Good Project Management Skills from The Apprentice Leadership and professionalism are crucial. Know what your sponsor expects from the project, and learn from your mistakes. Trust your team, and delegate decisions. Know the business. Stand up for yourself.
Be a team player. Dont be overly emotional and stay organized. Work on projects and for people you believe in. Think outside of the box. Some luck is involved in project management, and you should always aim high.
www.major-qa.com

Table 1-2. Most Significant Characteristics of Effective and Ineffective Project Managers
www.major-qa.com

Importance of Leadership Skills
Effective project managers provide leadership by example. A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals. A manager deals with the day-to-day details of meeting specific goals. Project managers often take on the role of both leader and manager
www.major-qa.com

Figure 1-6. 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/management 9. Critical thinking/problem solving 10. Understands and balances priorities

Different Skills Needed in Different Situations
Large projects: Leadership, relevant prior experience, planning, people skills, verbal communication, and teambuilding skill were most important. High uncertainty projects: Risk management, expectation management, leadership, people skills, and planning skills were most important. Very novel projects: Leadership, people skills, having vision and goals, self confidence, expectations management, and listening skills were most important.
www.major-qa.com

Additional Skills for Program and Portfolio Managers
Program managers normally have experience as project managers. They often rely on their past experience, strong business knowledge, leadership capability, and communication skills to manage programs. Portfolio managers must have strong financial and analytical skills and understand how projects and programs can contribute to meeting strategic goals
www.major-qa.com

Best Practice A best practice is an optimal way recognized by industry to achieve a stated goal or objective. Robert Butrick, suggests that organizations need to follow basic principles of project management. Make sure your projects are driven by your strategy. Be able to demonstrate how each project you undertake fits your business strategy, and screen out unwanted projects as soon as possible. Engage your stakeholders. Ignoring stakeholders often leads to project failure. Be sure to engage stakeholders at all stages of a project, and encourage teamwork and commitment at all times. Use leadership and open communications to make things happen.

Figure 1-6. Growth in PM professionalism 1993-2009
www.major-qa.com

Ethics in Project Management
Ethics is an important part of all professions. Project managers often face ethical dilemmas. In order to earn PMP certification, applicants must agree to the PMP code of professional conduct. Several questions on the PMP exam are related to professional responsibility, including ethics.
www.major-qa.com

Project Management Software
There are hundreds of different products available today. Three main categories of tools are the following:
Low-end tools: Handle single or smaller projects well; cost under $200 per user. Midrange tools: Handle multiple projects and users; cost $200-600 per user; Microsoft Project is the most popular. High-end tools: Also called enterprise project management software; often licensed on a per-user basis; example is VPMi Enterprise Online (www.vcsonline.com); see front cover for trial version information.
www.major-qa.com

Figure 1-7. Screen From Microsoft Project 2007
www.major-qa.com

Figure 1-8. Screen Shot from @task
www.major-qa.com

Chapter 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. A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Project portfolio management involves organizing and managing projects and programs as a portfolio of investments that contribute to the entire enterprises success. The project management profession continues to grow and mature.
Thank you for your time!
Doha
Tel: +974 44632777 Fax: +974 44646514
www.major-qa.com
Qatar

Chapter 1

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 1

Uploaded by

Copyright:

Available Formats

Project Management Professional Diploma Chapter One

Chapter 1: An Introduction to Project, Program, and Portfolio Management

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Many organizations today have a new or renewed interest in project management.

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Every project is constrained in different ways by its:

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Four core knowledge areas lead to specific project objectives.

Private & Confidential

Project Management Professional

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

*The Standish Group, CHAOS 2001: A Recipe for Success (2001).

Private & Confidential

Project Management Professional

Ther e are different ways to define project success:

Private & Confidential

Project Management Professional

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional

Project Management Professional

Project Management Professional

Private & Confidential

Project Management Professional

Private & Confidential

Project Management Professional