PMP Examination - PROJECT MANAGEMENT CONTEXT

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1. How to get PMP Cretification
2. PMP Framework and standard



MODULE – 2.0

PROJECT MANAGEMENT CONTEXT

What is project context ?


  • Project operates in a broader environment that that of the project activities itself

  • Project management team must identify
    • Project phases and project lifecycle
    • Project stakeholders
    • organizational influences
    • Socio-economic /environmental influences
    • Physical environment
    • International and political environment

PROJECT LIFECYCLE :

Serves to define the beginning and end of a project via specific project phases.

Project phases :

· Activities grouped together to complete one or more deliverables with defined exit and entry criteria

· Each phase exits is associated with
o Assessment of costs and deliverables
o Review of risks and allocation of further resources
o Go or No Go decision – review for accuracy and completeness

· Phase exits are also called stage gates and kill points
· Project phases may overlap – example of schedule compression called fast tracking
· Usually phases are sequential and usually involved transfer of technical information
· Phases can be further sub divided into sub-phases and may also have distinct project life cycle.

Project lifecycle :

· Typical project lifecycle

· Feasibility/initial/concept
· Planning and designing /development
· Construction/Execution/implementation
· Handover/closeout /termination/final

· Varies based on the industry, organization and application area

· The project lifecycle phase usually define
o The technical work to be done in each phase
o The skill level of staff involved
o The completed deliverable that will mark the end of each phase
o How the each phase will controlled and approved

· Project lifecycle is the subset of product lifecycle

Product lifecycle :
· Introduction: Launch , heavy advertisement
· Growth : Product is new, discount continue, sales increases, few competitors
· Maturity and saturation : decline in sale increase, more competition, other product
· Decline : Sales decline, product out of date or out or fashion.
· Lifecycle closure : During this phase the product is withdrawn from the market.

Project lifecycle characteristics :

· The ability of the stakeholder to influence the project is highest at the start of the project and become progressively lower as the project continue
· Cost and staffing level are low at the start, peak during intermediate phase and drop rapidly as the project is near completion
· The probability of successful completion of project is lowest at the start of the project, hence risk and uncertainty is highest at the start of project. The probability of successful completion increases as project continue
· Cost to change is lowest at the initial stage of project and progressively higher at the end.

PROJECT STAKEHOLDERS

· Individual and organizations that are actively involved in the project or whose interests may be positively or negatively affected as a result of project execution or completion.
· Who may exert influence on the project and its results
· Have varying level of responsibilities and authorities and these may change over the course of project lifecycle.
· They could be invisible yet powerful – It is the PMs responsibility to map all the stakeholders and their relative influencing power.
· May have vested interest.- PM need to reconcile them and when in conflict, decide in the interests of the customer/sponsor.
· Different stakeholders and their responsibility( See Rita P 267 to 274 –VVI)

o Executive sponsor
§ Set broad objectives
§ Fund the project

o Senior/ Functional manager
§ Set intermediate direction
§ Track progress
§ Approve deliverables and changes
§ Release resources.

o Project team
§ Execute the project
§ Identify and mange risks
§ Communicate progress

ORGANIZATIONAL INFLUENCE:

· Projects are influenced by the organization that set it up.

· Project are also influenced by the maturity of organization
o Project management system
o Cultural style
o Organizational structure
o Project management office

Organizational cultural style:

Most organization have developed unique and describable culture which are reflected in their share value, norms belief, expectation, policies and procedure, work ethics and work hours and view of authority relationship.

Project organizational structure : ( See PMTI’s blue book table )

· Functional Organization
o Clear reporting hierarchy – each person ahs one reporting manager
o Each department is specialized in a specific function or skill set
o Project are local to the department
o People with similar skill and expertise is easier to manage
o Work assignment are easy to distribute
o Usually supervisor or manager are the functional eapert
o PM has little or no authority in the functional area
o PM required good communication, interpersonal , influencing and negotiation skill to make project success. o Team member are loyal to the functional manager
o Cross functional decision are taken by the functional manager

· Projectized organization
o All Activities including functions carried out as projects
o Department provide support to the projects
o PM ha ultimate authority to the project
o Other departments supports the project
o Resources are focused on project
o Loyality is to the project not to the functional manager
o Project team dissolve at the conclusion of the project
o PM responsible for making decision regarding the project and assigning resources.

o Disadvantages – There is not enough work to justify the all dedicated
resources except for a very large project
o Projectized organization are very expensive to operate.

· Matrix Organization

o Functional and project organization co exists
o There can be week balanced and strong matrix
o In strong matrix organization there will be separate authority for project manager from top management
o Functional manager is the provide of resources and PM is the customer of resources
o Functional manager are responsible for administrative activities and assigning resources
o PM is responsible for work allocation
o PM and FM share the responsibility of performance review, assigning priority , planning and tracking.
o Team members reports to both Fm and PM
o Less anxiety exists about project completion the resources back to functional organization.
o Existence of horizontal and vertical communication chaannel

o Challenges of matrix organization :

§ Authority and responsibility of the PM Vs Functional manager
§ Communication flow within the team as well as to and from other group.

o Some tips for matrix organization to be successful

§ A project charter that assigned the responsibility and authority to the PM
§ A good working relationship between PM and FM
§ PM’s Job is accomplished primarily thro the process of negotiation and leadership
§ Team members must overcome the confusion and split loyalty and adapt to a two boss situation
§ Negotiation , communication and leadership skills are key for PM to success.
§ Need to anticipate the channel of conflict
§ Need to promote team work
§ Document the every approval
§ Plan globally and act locally.

· Composite organization – SEE PMBOK

Program Management office

· Program – Group of interrelated project managed in a coordinated way to obtain the benefit and control not available if managed separately.
· When Projects managed collectively as a program , then the PM capitalized on the benefit that would not be achievable if the project were managed separately.

· Some time program involves aspect of ongoing operation

· Program management is the centralized and coordinated management of a series of project to achieve organization objectives.
· PMO are vested with the responsibilities of managing the program
· PMO usually operate in strategic and tactical mode
· Centralized office for operation and management of project tools, such as enterprise wide project management software.
· Central coordination of communication management across projects
· Central monitoring of all PMO project timelines and budgets, usually at the enterprise level
· Coordination of overall project quality standards between the project and any internal and external quality personnel or standards organization.

· Strategic Mode:
o Project qualification – selection method/criteria
o Centralized repository and management for both shared and unique risks for all projects
o Project portfolio management

· Tactical mode:

o Guidance for effective project management
o Define Project management process
o Set reporting standards
o Train people , select use of tools and template.
o Allocate common resources and funds.
o Clearing house and management for project policies, procedures, template and other standard documentation .
o Centralized configuration management for all projects administered by PMO

· Portfolio Management

o Is a collection of projects or programs and other work that are grouped together to meet strategic business objectives.
o The projects or programs may or may not be related or interdependent.
o Portfolios are managed according to the organization goal
o Maximize the value of the portfolio through careful selection and examination of projects and programs for inclusion in portfolio
o Balanced the portfolio among incremental and radical investment
o Balance the portfolio for efficient use of resources.
o Portfolio management is utilized to achieve strategic objectives
o Portfolio management is generally the responsibility of senior managers.

General management skills of PM

· Leading –
o Establishing the direction/aligning people/motivation.
o Managing – Consistently producing key results expected by the stakeholders.
· Communicating
· Negotiating
· Problem solving- Conflict management
· Influencing the organization – required understanding of formal and informal structure of the organization
· Budgeting ,organizational and team building skills.
Socio – economic influences on project
· Understand how the project affect the people and how people affect the project
· Understand the demographic , economic, educational, ethical, ethnic, religion and other characteristic of people affected by the project or who have interest in the project.
· Standards and regulation
· Cross cultural issues.
· PM should examine the organizational culture to understand his/her recognized accountability and authority in managing the project.

Physical environment

Understand the local ecology and physical geography that could affect the
project or affected by the project

International and political environment
· Consider the time zone difference, national and religion holidays.
· Travel requirement for physical meeting and logistics
· Be familiar with international, national, regional and local laws, customs and political climate that could affect the project.





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