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Chapter 1: Project Management 
Concepts 
 What Is a Project? 
 What Is Project Management? 
 Life Cycles of Projects and Project 
Management 
 Project Stakeholders 
 Organizational Structure and Its Influence
Learning Objectives: 
After completing this chapter, you will be able to: 
 Differentiate between projects and operational work 
 Describe the main concepts of project management 
 Explain the differences between the project life cycle and 
the project management life cycle 
 Identify project stakeholders and their influence 
 Compare the different types of organizational structures
What Is a Project? 
A project is: 
Temporary 
It has a definite 
beginning and a 
definite, measurable 
end. 
Unique 
The project is 
undertaking something 
that has not been 
undertaken previously. 
At least some aspect is 
unique. 
Projects embrace the concept of progressive elaboration; 
that is, as time goes by, you learn more about the project 
as you do the work of the project.
What Is a Project? 
Projects vs. Ongoing Operations 
According to the PMBOK Guide: 
Projects : Temporary, unique; embrace 
progressive elaboration 
Operations : Ongoing, repetitive; do not fit 
all the criteria of a project
What Is Project Management? 
Overlapping Disciplines 
Project Management 
environment skills 
Application 
knowledge 
Body of knowledge Interpersonal skills
Project Management Components 
Portfolios, Programs, and Subprojects 
Program 
Project A Project B 
Subproject Subproject Subproject Subproject 
Portfolio 
Program 
Project A Project B 
Subproject Subproject Subproject Subproject
Project Management Components 
Project Management Office
What Is Project Management? 
Project Management System
Life Cycles of Projects and Project Management 
Project Life Cycle vs. Project Management Life Cycle 
Software development project 
Design Code Test Train Implement 
Project management life cycle Project life cycle 
Initiating Initiating Initiating Initiating Initiating 
Planning Planning Planning Planning Planning 
Executing Executing Executing Executing Executing 
Monitoring & Monitoring & Monitoring & Monitoring & Monitoring & 
Controlling Controlling Controlling Controlling Controlling 
Closing Closing Closing Closing Closing
Life Cycles of Projects and Project Management 
Project Life Cycle vs. Product Life Cycle 
Product life cycle stages: 
Introduction and creation 
Growth 
Maturity 
Decline 
Projects run in the context of the product life cycle. 
Many projects can be undertaken throughout 
the product life cycle.
Project Stakeholders 
It is important to identify stakeholders. 
Who is or should be involved? 
Who is external to the 
organization? 
Who has “bought in” and who 
hasn’t? 
Who can influence the 
project’s performance or 
outcome?
Organizational Structure and Its Influence 
Functional Weak Matrix Strong Projectized 
Functional Weak Matrix Strong Projectized
Organizational Structure and Its Influence 
Functional Organization 
Power resides with the 
functional manager. CEO 
Functional Functional Functional Functional Functional 
manager manager manager manager manager 
Staff Staff Staff Staff Staff 
Staff Staff Staff Staff Staff 
Staff Staff Staff Staff Staff 
*Darkened boxes represent staff working on project activities.
Functional Organizations 
Advantages and Disadvantages of 
Functional Structures 
Advantages 
Familiar structure 
One-supervisor reporting 
structure 
Clearly defined career paths 
Employees as experts 
Disadvantages 
Employee’s job difficult to change 
Need to fight for resources 
and project priority 
Functional manager responsible 
for performance reviews and 
promotions 
Competition for resources 
Little or no project manager 
authority 
No clearly defined project 
management career path
Organizational Structure and Its Influence 
Matrix Organization 
Two bosses: 
Power resides with both 
functional manager and the CEO 
project manager. 
Functional 
manager 
Staff 
Staff 
Project 
manager 
Functional 
manager 
Staff 
Staff 
Staff 
Functional 
manager 
Staff 
Staff 
Staff 
Functional 
manager 
Staff 
Staff 
Staff 
Functional 
manager 
Staff 
Staff 
Staff 
*Darkened boxes represent staff working on project activities.
Matrix Organization 
Advantages and Disadvantages of Matrix 
Structures 
Advantages 
Continued visibility of 
objectives 
Increased support from 
functional managers 
Increased control by project 
manager 
Improved flexibility 
Continued job after project 
completion 
Multiple input on performance of 
team members 
Disadvantages 
Multiple bosses 
Added complexity 
Need for additional policies and 
procedures 
Differing priorities or objectives
Organizational Structure and Its Influence 
Projectized Organization 
Power resides with 
project manager. CEO 
Project Project Project Project Project 
manager manager manager manager manager 
Staff Staff Staff Staff Staff 
Staff Staff Staff Staff Staff 
Staff Staff Staff Staff Staff 
*Darkened boxes represent staff working on project activities.
Projectized Organization 
Advantages and Disadvantages of Projectized 
Structures 
Advantages 
Clear focus on project 
Project loyalty 
Efficient project 
organization 
Efficient project 
communication 
Disadvantages 
Job over at project 
completion 
Less efficient use of 
resources 
Duplicated job functions 
and facilities
The Structure of Organizations and Its Influence 
Summary 
Project 
Aspect 
Organization 
Structure Functional 
Weak Matrix 
Matrix 
Balanced 
Matrix 
Strong Projectized 
Matrix 
Project Manager Little or 
Authority none 
Resource Little or 
Availability none 
Project Budget Functional 
Controlled By manager 
Limited 
Limited 
Functional 
manager 
Low to 
moderate 
Low to 
moderate 
Mixed 
Moderate to High to 
high almost total 
Moderate to High to 
high almost total 
Project Project 
manager manager 
Role of the Project 
Manager Part-time Part-time Full-time Full-time Full-time 
Project 
Management Part-time Part-time Part-time Full-time Full-time 
Administrative Staff 
*Based on the PMBOK Guide, Fourth Edition.
Knowledge Check 
Concepts You Should Know 
 Important terms: 
 Project: Temporary endeavor undertaken to produce a unique 
product, service, or result 
 Subproject: Component of project identified by subdividing the 
project into smaller, more manageable pieces 
 Operations: Ongoing, repetitive work of the organization 
 Project management: Application of knowledge, skills, tools 
and techniques to project work to fulfill project requirements 
 Program: Interrelated group of projects and other work that are 
managed together to achieve efficiencies not available by 
managing them separately 
 Portfolio: Group of programs, projects, and other work 
managed together to meet strategic business objectives
Knowledge Check 
Concepts You Should Know (cont.) 
 Important terms (cont.): 
 Project management system: Aggregated collection of 
processes, tools, techniques, methods, procedures, and 
resources assembled to manage projects 
 Project stakeholder: Any individual or group that meets one or 
more of the following requirements: 
 Is involved in the project 
 Has a positive or negative interest in the project 
 Can exert influence over project performance or results
Knowledge Check 
Concepts You Should Know (cont.) 
 Triple constraint model: 
 All projects are constrained by time, cost (or resources), and 
scope. 
 Changes to one set of constraints affect remaining areas of 
constraint. 
 Project management should be focused on identifying and 
managing the balance among the areas of constraint. 
 Three life cycles: 
 Product life cycle: Sequence of phases that a product goes 
through between conception and retirement 
 Project life cycle: Sequence of phases of project work required 
to meet project requirements 
 Project management life cycle: Sequence of phases in the 
management of the work of the project (remember IPECaC)
Knowledge Check 
Concepts You Should Know (cont.) 
 Projects generally occur within the larger product or service 
life cycle and often occur as the means of transitioning a 
product from one life cycle phase to another. 
 Successful project managers make connections between the 
following areas: 
 Project Management Body of Knowledge 
 Application area standards and regulations 
 Organizational environment in which the project takes place 
 General management skills 
 Interpersonal skills
Knowledge Check 
Concepts You Should Know (cont.) 
 The PMBOK Guide identifies four general organizational 
types: 
 Functional organization: Hierarchical organization in which 
employees are grouped based on their specialized skill set and 
have a single, clear boss. 
 Matrix organization: Structure in which the functional manager 
and the project manager share responsibility for determining 
priorities and directing the work of staff. The PMBOK Guide 
classifies matrix organizations as weak, balanced, or strong. 
 Projectized organization: Organization in which the project 
manager has total authority to assign priorities, apply 
resources, and direct the work of project staff. 
 Composite organization: Organization in which projects can be 
organized and managed in functional, matrix, or projectized 
ways depending on the needs of the project.
project management concepts

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project management concepts

  • 1. Chapter 1: Project Management Concepts  What Is a Project?  What Is Project Management?  Life Cycles of Projects and Project Management  Project Stakeholders  Organizational Structure and Its Influence
  • 2. Learning Objectives: After completing this chapter, you will be able to:  Differentiate between projects and operational work  Describe the main concepts of project management  Explain the differences between the project life cycle and the project management life cycle  Identify project stakeholders and their influence  Compare the different types of organizational structures
  • 3.
  • 4. What Is a Project? A project is: Temporary It has a definite beginning and a definite, measurable end. Unique The project is undertaking something that has not been undertaken previously. At least some aspect is unique. Projects embrace the concept of progressive elaboration; that is, as time goes by, you learn more about the project as you do the work of the project.
  • 5. What Is a Project? Projects vs. Ongoing Operations According to the PMBOK Guide: Projects : Temporary, unique; embrace progressive elaboration Operations : Ongoing, repetitive; do not fit all the criteria of a project
  • 6.
  • 7. What Is Project Management? Overlapping Disciplines Project Management environment skills Application knowledge Body of knowledge Interpersonal skills
  • 8. Project Management Components Portfolios, Programs, and Subprojects Program Project A Project B Subproject Subproject Subproject Subproject Portfolio Program Project A Project B Subproject Subproject Subproject Subproject
  • 9. Project Management Components Project Management Office
  • 10. What Is Project Management? Project Management System
  • 11.
  • 12. Life Cycles of Projects and Project Management Project Life Cycle vs. Project Management Life Cycle Software development project Design Code Test Train Implement Project management life cycle Project life cycle Initiating Initiating Initiating Initiating Initiating Planning Planning Planning Planning Planning Executing Executing Executing Executing Executing Monitoring & Monitoring & Monitoring & Monitoring & Monitoring & Controlling Controlling Controlling Controlling Controlling Closing Closing Closing Closing Closing
  • 13. Life Cycles of Projects and Project Management Project Life Cycle vs. Product Life Cycle Product life cycle stages: Introduction and creation Growth Maturity Decline Projects run in the context of the product life cycle. Many projects can be undertaken throughout the product life cycle.
  • 14. Project Stakeholders It is important to identify stakeholders. Who is or should be involved? Who is external to the organization? Who has “bought in” and who hasn’t? Who can influence the project’s performance or outcome?
  • 15. Organizational Structure and Its Influence Functional Weak Matrix Strong Projectized Functional Weak Matrix Strong Projectized
  • 16. Organizational Structure and Its Influence Functional Organization Power resides with the functional manager. CEO Functional Functional Functional Functional Functional manager manager manager manager manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff *Darkened boxes represent staff working on project activities.
  • 17. Functional Organizations Advantages and Disadvantages of Functional Structures Advantages Familiar structure One-supervisor reporting structure Clearly defined career paths Employees as experts Disadvantages Employee’s job difficult to change Need to fight for resources and project priority Functional manager responsible for performance reviews and promotions Competition for resources Little or no project manager authority No clearly defined project management career path
  • 18. Organizational Structure and Its Influence Matrix Organization Two bosses: Power resides with both functional manager and the CEO project manager. Functional manager Staff Staff Project manager Functional manager Staff Staff Staff Functional manager Staff Staff Staff Functional manager Staff Staff Staff Functional manager Staff Staff Staff *Darkened boxes represent staff working on project activities.
  • 19. Matrix Organization Advantages and Disadvantages of Matrix Structures Advantages Continued visibility of objectives Increased support from functional managers Increased control by project manager Improved flexibility Continued job after project completion Multiple input on performance of team members Disadvantages Multiple bosses Added complexity Need for additional policies and procedures Differing priorities or objectives
  • 20. Organizational Structure and Its Influence Projectized Organization Power resides with project manager. CEO Project Project Project Project Project manager manager manager manager manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff *Darkened boxes represent staff working on project activities.
  • 21. Projectized Organization Advantages and Disadvantages of Projectized Structures Advantages Clear focus on project Project loyalty Efficient project organization Efficient project communication Disadvantages Job over at project completion Less efficient use of resources Duplicated job functions and facilities
  • 22. The Structure of Organizations and Its Influence Summary Project Aspect Organization Structure Functional Weak Matrix Matrix Balanced Matrix Strong Projectized Matrix Project Manager Little or Authority none Resource Little or Availability none Project Budget Functional Controlled By manager Limited Limited Functional manager Low to moderate Low to moderate Mixed Moderate to High to high almost total Moderate to High to high almost total Project Project manager manager Role of the Project Manager Part-time Part-time Full-time Full-time Full-time Project Management Part-time Part-time Part-time Full-time Full-time Administrative Staff *Based on the PMBOK Guide, Fourth Edition.
  • 23. Knowledge Check Concepts You Should Know  Important terms:  Project: Temporary endeavor undertaken to produce a unique product, service, or result  Subproject: Component of project identified by subdividing the project into smaller, more manageable pieces  Operations: Ongoing, repetitive work of the organization  Project management: Application of knowledge, skills, tools and techniques to project work to fulfill project requirements  Program: Interrelated group of projects and other work that are managed together to achieve efficiencies not available by managing them separately  Portfolio: Group of programs, projects, and other work managed together to meet strategic business objectives
  • 24. Knowledge Check Concepts You Should Know (cont.)  Important terms (cont.):  Project management system: Aggregated collection of processes, tools, techniques, methods, procedures, and resources assembled to manage projects  Project stakeholder: Any individual or group that meets one or more of the following requirements:  Is involved in the project  Has a positive or negative interest in the project  Can exert influence over project performance or results
  • 25. Knowledge Check Concepts You Should Know (cont.)  Triple constraint model:  All projects are constrained by time, cost (or resources), and scope.  Changes to one set of constraints affect remaining areas of constraint.  Project management should be focused on identifying and managing the balance among the areas of constraint.  Three life cycles:  Product life cycle: Sequence of phases that a product goes through between conception and retirement  Project life cycle: Sequence of phases of project work required to meet project requirements  Project management life cycle: Sequence of phases in the management of the work of the project (remember IPECaC)
  • 26. Knowledge Check Concepts You Should Know (cont.)  Projects generally occur within the larger product or service life cycle and often occur as the means of transitioning a product from one life cycle phase to another.  Successful project managers make connections between the following areas:  Project Management Body of Knowledge  Application area standards and regulations  Organizational environment in which the project takes place  General management skills  Interpersonal skills
  • 27. Knowledge Check Concepts You Should Know (cont.)  The PMBOK Guide identifies four general organizational types:  Functional organization: Hierarchical organization in which employees are grouped based on their specialized skill set and have a single, clear boss.  Matrix organization: Structure in which the functional manager and the project manager share responsibility for determining priorities and directing the work of staff. The PMBOK Guide classifies matrix organizations as weak, balanced, or strong.  Projectized organization: Organization in which the project manager has total authority to assign priorities, apply resources, and direct the work of project staff.  Composite organization: Organization in which projects can be organized and managed in functional, matrix, or projectized ways depending on the needs of the project.