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Chapter 1Why Project Management?01-01Chapter 1 Learning ObjectivesAfter completing this chapter, students will be able to:Understand why project management is becoming such a powerful and popular practice in business.Recognize the basic properties of projects, including their definition.Understand why effective project management is such a challenge.Differentiate between project management practices and more traditional, process-oriented business functions.Recognize the key motivators that are pushing companies to adopt project management practices.

01-02Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 1 Learning ObjectivesAfter completing this chapter, students will be able to:Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project.Understand the concept of project success, including various definitions of success, as well as the alternative models of success.Understand the purpose of project management maturity models and the process of benchmarking in organizations.Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques.01-03Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallIntroductionExamples of projectsSplit the atomTunnel under the English ChannelIntroduce Windows 7Plan next Olympic games in London

Projects, rather than repetitive tasks, are now the basis for most value-added in business-Tom Peters

01-04Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall4Process vs. Project WorkProjectTake place outside the normal, process-oriented worldUnique and separate from routine, process-driven workContinually evolving

ProcessOngoing, day-to-day activities to produce goods and servicesUse existing systems, properties, and capabilitiesTypically repetitiveA project is a temporary endeavor undertaken to create a unique product or service.PMBoK 200801-05Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall5Additional DefinitionsA project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule, and quality.Buchanan & Boddy 92

Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique.Frame 9501-06Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallProject Definitions SummarizedA project can be considered any series of activities and tasks that have:Specific objectives to be completed within certain specifications,Defined start and end dates,Funding limits,Human and nonhuman resources, andMultifunctional focus.01-07Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallElements of ProjectsComplex, one-time processesLimited by budget, schedule, and resourcesDeveloped to resolve a clear goal or set of goalsCustomer-focused01-08Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall8General Project CharacteristicsAd-hoc endeavors with a clear life cycle

Building blocks in the design and execution of organizational strategies

Responsible for the newest and most improved products, services, and organizational processes

Provide a philosophy and strategy for the management of change01-09Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall9General Project CharacteristicsEntail crossing functional and organization boundaries

Traditional management functions of planning, organizing, motivating, directing, and controlling apply

Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule objectives

Terminated upon successful completion of performance objectives01-10Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallProcess & Project Management (Table 1.1)ProcessRepeat process or productSeveral objectivesOngoingPeople are homogeneousSystems in place to integrate effortsPerformance, cost, & time known

Part of the line organizationBastions of established practiceSupports status quoProjectNew process or productOne objectiveOne shot limited lifeMore heterogeneousSystems must be created to integrate effortsPerformance, cost & time less certainOutside of line organizationViolates established practiceUpsets status quo01-11Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall11Project Success RatesSoftware & hardware projects fail at a 65% rate,Over half of all IT projects become runaways,Only 30% of technology-based projects and programs are a success.Only 2.5% of global businesses achieve 100% project success and over 50% of global business projects fail,Average success of business-critical application development projects is 32%, andApproximately 42% of the 1,200 Iraq reconstruction projects were eventually terminated due to mismanagement or shoddy construction01-12Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall12Why are Projects Important?Shortened product life cyclesNarrow product launch windowsIncreasingly complex and technical productsEmergence of global marketsEconomic period marked by low inflation01-13Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall13Project Life CyclesMan HoursConceptualizationPlanningExecutionTerminationFig 1.3 Project Life Cycle Stages01-14Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall14Project Life CyclesConceptualization - the development of the initial goal and technical specifications.Planning all detailed specifications, schedules, schematics, and plans are developedExecution the actual work of the project is performedTermination project is transferred to the customer, resources reassigned, project is closed out.01-15Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallProject Life Cycles and Their Effects

FIGURE 1.4Project Life Cycles and Their Effects 01-16Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall16Quadruple Constraint of Project Success

Figure 1-601-17Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall17Four Dimensions of Project Success

FIGURE 1.701-18Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall18Six Criteria for IT Project SuccessSystem qualityInformation qualityUseUser satisfactionIndividual impactOrganizational impact01-19Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallUnderstanding Success Criteria01-20Table 1.2

Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallSpider Web Diagram (Figure 1.8)

01-21Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall21

Spider Web Diagram with Embedded Organizational EvaluationFigure 1-901-22Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallDeveloping Project Management MaturityProject Management Maturity (PMM) Models Center for Business PracticesKerzners Project Management Maturity ModelESI Internationals Project FrameworkSEIs Capability Maturity Model Integration01-23Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall23Center for Business Practices PMMLevel 1: Initial PhaseLevel 2: Structure, Process, and StandardsLevel 3: Institutionalized Project ManagementLevel 4: ManagedLevel 5: Optimizing01-24Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallKerzners PMM ModelLevel 1: Common LanguageLevel 2: Common ProcessesLevel 3: Singular MethodologyLevel 4: BenchmarkingLevel 5: Continuous Improvement01-25Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallESI Internationals Project FrameworkLevel 1: Ad HocLevel 2: ConsistentLevel 3: IntegratedLevel 4: ComprehensiveLevel 5: Optimizing01-26Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallSEIs Capability Maturity Model IntegrationLevel 1: InitialLevel 2: ManagedLevel 3: DefinedLevel 4: Quantitative ManagementLevel 5: Optimizing01-27Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallProject Management Maturity Generic Model

01-28FIGURE 1.10Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall28Project Elements and Text Organization

FIGURE 1.11Organization of Text 01-29Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallProject Manager Responsibilities Selecting a teamDeveloping project objectives and a plan for executionPerforming risk management activitiesCost estimating and budgetingSchedulingManaging resources01-30Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallFIGURE 1.12

Overview of the Project Management Institutes PMBoK Knowledge Areas01-31Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallSummaryUnderstand why project management is becoming such a powerful and popular practice in business today.Recognize the basic properties of projects, including their definition.Understand why effective project management is such a challenge.Differentiate between project management practices and more traditional, process-oriented business functions.Recognize the key motivators that are pushing companies to adopt project management practices.01-32Copyright 2013 Pearson Education, Inc. Publishing as Prentice HallSummaryUnderstand and explain the project life cycles, its stages, and the activities that typically occur at each stage in the project.Understand the concept of project success, including various definitions of success, such as the triple constraint, as well as alternative models of success.Understand the purpose of project management maturity models and the process of benchmarking in organizations.Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques.01-33Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

01-34Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall