PROJECT MANAGEMENT

The Managerial Process

MODULE 1
Modern Project Management

Business leaders and experts have proclaimed that project management is

a strategic imperative. Project management provides people with a powerful set
of tools that improves their ability to plan, implement, and manage activities to
accomplish specific organizational objectives. But project management is more
than just a set of tools; it is a results-oriented management style that places a
premium on building collaborative relationships among a diverse cast of
characters. Exciting opportunities await people skilled in project management.

Project management is the use of specific knowledge, skills, tools and

techniques to deliver something of value to people. The development of software
for an improved business process, the construction of a building, the relief effort
after a natural disaster, the expansion of sales into a new geographic market—
these are all examples of projects.

All projects are a temporary effort to create value through a unique

product, service or result. All projects have a beginning and an end. They have a
team, a budget, a schedule and a set of expectations the team needs to meet.
Each project is unique and differs from routine operations—the ongoing activities
of an organization—because projects reach a conclusion once the goal is
achieved.

Leading these projects are Project Professionals—people who either

intentionally or by circumstance are asked to ensure that a project team meets
its goals. Project professionals use many different tools, techniques and
approaches to meet the needs of a project.

Some projects are needed to quickly resolve problems, with an

understanding that improvements will be made over a period of time. Other
projects have a longer duration and/or produce a product or other outcome that
will not need major improvements outside of projected maintenance, such as a
highway. Still others will be a mix of both of these types of projects. Project
professionals use a variety of skills and knowledge to engage and motivate others
to reach a project’s goals. Project professionals are critical to the success of
projects and are highly sought after to help organizations achieve their goals.

The Project Management Institute

As the world’s leading authority on project management, PMI empowers

people to make ideas a reality. Through global advocacy, networking,
collaboration, research, and education, PMI prepares organizations and
individuals to work smarter in an ever-changing and dynamic world.

Building on a proud legacy dating to 1969, PMI is a “for-purpose”

organization working in nearly every country around the world to advance
careers, strengthen organizational success, and enable change-makers with new
skills and ways of working to maximize their impact.
What is a Project?

A project is a complex, nonroutine, one-time effort limited by time, budget,

resources, and performance specifications designed to meet customer needs.

Characteristics of a Project
1. An established objective.
2. A defined life span with a beginning and an end.
3. Usually, the involvement of several departments and professionals.
4. Typically, doing something that has never been done before.
5. Specific time, cost, and performance requirements.

The terms program and project are often used interchangeably in practice,
which sometimes causes confusion. Programs and projects are similar in the sense
that they both are director toward goals and require plans and resources to reach
their goals. Both use similar tools, methods, and policies. The differences lie
primarily in scope and time horizon. A program is a series of coordinated, related,
multiple projects that continue over extended time intended to achieve a goal.
A program is a higher level group of projects targeted at a common goal.

The Project Life Cycle

Whether you’re working on a small project with modest business goals or a

large, multi-departmental initiative with sweeping corporate implications, an
understanding of the project management life cycle is essential.
Wasted money and resources can be prevented with effective project
management, as 57% of unsuccessful projects fail due to communication
breakdown. In the phases of the project management life cycle, you come up
with the idea for a project, define its goals, plan for its execution, and guide it to
completion. The project management life cycle is usually broken down into four
phases: defining, planning, execution, and delivering. These phases make up the
path that takes your project from the beginning to the end.

Project Life Cycle

100

80

60

40
Delivering
20
Executing
0
Planning
Start
Time Defining
Time
Time
End

Defining Planning Executing Delivering

Project effort starts slowly, builds to a peak, and then declines to delivery of
the project to the customer.
Defining stage: Specifications of the project are defined; project objectives are
established; teams are formed; major responsibilities are assigned.

Steps for the project definition stage may include the following:
 Undertaking a feasibility study: Identify the primary problem your project
will solve and whether your project will deliver a solution to that problem
 Identifying scope: Define the depth and breadth of the project
 Identifying deliverables: Define the product or service to provide
 Identifying project stakeholders: Figure out whom the project affects
and what their needs may be
 Developing a business case: Use the above criteria to compare the
potential costs and benefits for the project to determine if it moves
forward
 Developing a statement of work: Document the project’s objectives,
scope, and deliverables that you have identified previously as a working
agreement between the project owner and those working on the
project

Planning stage: The level of effort increases, and plans are developed to
determine what the project will entail, when it will be scheduled, whom it will
benefit, what quality level should be maintained, and what the budget will be.
During this phase of the project management life cycle, you break down the
larger project into smaller tasks, build your team, and prepare a schedule for the
completion of assignments. Create smaller goals within the larger project, making
sure each is achievable within the time frame. Smaller goals should have a high
potential for success.

Steps for the project planning stage may include the following:
 Creating a project plan: Identify the project timeline, including the
phases of the project, the tasks to be performed, and possible
constraints
 Creating workflow diagrams: Visualize your processes using swimlanes to
make sure team members clearly understand their role in a project
 Estimating budget and creating a financial plan: Use cost estimates to
determine how much to spend on the project to get the maximum
return on investment
 Gathering resources: Build your functional team from internal and
external talent pools while making sure everyone has the necessary tools
(software, hardware, etc.) to complete their tasks
 Anticipating risks and potential quality roadblocks: Identify issues that
may cause your project to stall while planning to mitigate those risks and
maintain the project’s quality and timeline
 Holding a project kickoff meeting: Bring your team on board and outline
the project so they can quickly get to work

Executing stage: A major portion of the project work takes place – both physical
and mental. The physical product is produced. Time, cost and specification
measures are used for control. Is the project on schedule, on budget, and
meeting specifications? What are the forecasts of each of these measures? What
revisions/changes are necessary? You’ve received business approval, developed
a plan, and built your team. Now it’s time to get to work. The execution phase
turns your plan into action. The project manager’s job in this phase of the project
management life cycle is to keep work on track, organize team members,
manage timelines, and make sure the work is done according to the original plan.

Steps for the project execution stage may include the following:
 Creating tasks and organizing workflows: Assign granular aspects of the
projects to the appropriate team members, making sure team members
are not overworked
 Briefing team members on tasks: Explain tasks to team members,
providing necessary guidance on how they should be completed, and
organizing process-related training if necessary
 Communicating with team members, clients, and upper management:
Provide updates to project stakeholders at all levels
 Monitoring quality of work: Ensure that team members are meeting their
time and quality goals for tasks
 Managing budget: Monitor spending and keeping the project on track
in terms of assets and resources

If you have a properly documented process already in place, executing

the project will be much easier. Depending on the project management
methodology you follow, there are many visual tools that you can apply to see
which deliverables have been completed ensure that your project remains on
track.

Delivering stage: Includes two activities: delivering the project product to the
customer and redeploying project resources. Delivery of the project might include
customer training and transferring documents. Redeployment usually involves
releasing project equipment/materials to other projects and finding new
assignments for team members. Once your team has completed work on a
project, you enter the closure phase. In the closure phase, you provide final
deliverables, release project resources, and determine the success of the project.
Just because the major project work is over, that doesn’t mean the project
manager’s job is done—there are still important things to do, including evaluating
what did and did not work with the project.

Steps for the project delivering stage may include the following:
 Analyzing project performance: Determine whether the project's goals
were met (tasks completed, on time and on budget) and the initial
problem solved using a prepared checklist.
 Analyzing team performance: Evaluate how team members performed,
including whether they met their goals along with timeliness and quality
of work
 Documenting project closure: Make sure that all aspects of the project
are completed with no loose ends remaining and providing reports to
key stakeholders
 Conducting post-implementation reviews: Conduct a final analysis of
the project, taking into account lessons learned for similar projects in the
future
 Accounting for used and unused budget: Allocate remaining resources
for future projects
 By remaining on task even though the project’s work is completed, you
will be prepared to take everything you’ve learned and implement it for
your next project.
Who are Project Managers?
They are organized, passionate and goal-oriented who understand what
projects have in common, and their strategic role in how organizations succeed,
learn and change.

Project managers are change agents: they make project goals their own
and use their skills and expertise to inspire a sense of shared purpose within the
project team. They enjoy the organized adrenaline of new challenges and the
responsibility of driving business results.

They work well under pressure and are comfortable with change and
complexity in dynamic environments. They can shift readily between the "big
picture" and the small-but-crucial details, knowing when to concentrate on each.

Project managers cultivate the people skills needed to develop trust and
communication among all of a project's stakeholders: its sponsors, those who will
make use of the project's results, those who command the resources needed, and
the project team members.

They have a broad and flexible toolkit of techniques, resolving complex,

interdependent activities into tasks and sub-tasks that are documented,
monitored and controlled. They adapt their approach to the context and
constraints of each project, knowing that no "one size" can fit all the variety of
projects. And they are always improving their own and their teams' skills through
lessons-learned reviews at project completion.

Project managers are found in every kind of organization -- as employees,

managers, contractors and independent consultants. With experience, they may
become program managers (responsible for multiple related projects) or portfolio
managers (responsible for selection, prioritization and alignment of projects and
programs with an organization's strategy).

What makes a project manager unique is that they manage temporary,

nonrepetitive activities, to complete a fixed life project. Unlike functional
managers, who take over existing operations, project managers create a project
team and organization where none existed before. They must decide what and
how things should be done instead of simply managing set processes.

Importance of Project Management

Because projects are often complex and involve numerous stakeholders,
having a project manager to lead the initiative and keep everyone on the same
page is critical to project success.

In fact, PMI found that organizations using any type of project

management methodology are better at meeting budget, staying on schedule
and meeting scope, quality standards and expected benefits.

1. Realistic project planning

The importance of project planning cannot be overstated. Too often,
organizations overestimate how quickly they can achieve deliverables,
underestimate the costs, or both—a recipe for failure.
 A good project manager considers the big picture and sets realistic and
achievable goals, budgets, and timelines. Without careful management, a
project can quickly get off track before it has even begun.

To set realistic goals, budgets, and timelines, the project manager

communicates with different stakeholders to understand the strategic priorities
and business objectives of the initiative. Based on their research, the project
manager then outlines a project plan that balances those priorities within the
constraints of time and budget. This process involves cost estimation, resource
management, and risk assessment.

2. Clear focus and objectives

A lack of clear goals was the most common reason for project failure in
2017. Project managers help organizations hone in on their priorities and define
their project objectives.

When project management is left to the team to handle, the scope and
objectives can easily get muddled. Unclear focus can lead to scope creep,
missed deadlines, and overspending.

Plus, without a project manager to oversee the project plans and task
breakdowns, many teams may not notice potential risk factors as they arise. If
they don’t address evolving project risks, the team could end up prioritizing the
wrong tasks.

A good project manager keeps an eye on all these factors so that the team
can focus on the right tasks at the right time and adapt as needed.

3. Strategic alignment
One of the most important reasons to use project management is to align
projects with business strategy. Mark Langley, the president and CEO of PMI
cautions, “If your organization is not good at project management, you’re putting
too much at risk in terms of ultimately delivering on strategy.”

In other words, project management is a driver of organizational strategy.

So if you aren’t applying it to your initiatives, you are missing a crucial opportunity
to grow.

As project managers oversee the planning and execution of a project, they

help ensure the project’s overall goals and its subsequent tasks and milestones all
align with the organization’s strategy. Strategic alignment at every level of the
project keeps each stakeholder on the same page and ensures your initiatives
drive the organization forward.

4. Managed process
Project management is a proactive process that seeks to help the right
people do the right tasks at the right time. Without a set project management
method, many teams tend to work reactively—handling issues as they arise rather
than proactively planning for known risks and setting project goals and
parameters from the beginning.

Project managers help teams break down a project into more

manageable pieces. By breaking the project into a clear process of assigned
tasks, milestones, and deadlines, project managers can direct their teams more
efficiently and react to issues with greater agility.

5. Quality control
Quality control is an essential component of project management. Your
project could meet all parameters for time and budget, but if the quality
standards aren’t met, the project will be deemed a failure.

Unfortunately, this is an all-too-easy trap to fall into. Teams are under a lot
of pressure to finish a project on time and on budget. And this can lead to rushed
work and shoddy execution.

That’s where project managers come in. They not only manage deadlines
and objectives, but they also keep an eye on how well project tasks are
executed. Project managers help outline deliverables and define their quality
standards so that everyone knows exactly what they’re aiming for.

6. Reduced costs

In 2018, according to PMI, 9.9% of every dollar invested was wasted due to
poor project performance—that’s $99 million for every $1 billion invested.

Project management reduces project costs by improving efficiency,

mitigating risks, and optimizing resources. Even with the added cost of investing in
a project manager, organizations stand to gain much more.