Fundamentals of Project Management

1. Fundamentals of Project Management

2. 2 Table of Contents Fundamentals of Project Management Welcome What to expect from this introduction Key PM Concepts from the PMBOK® Guide Why Project Management? Benefits of Project Management for the Organization Benefits of Project Management for the Individual Why Do We Need Project Management?* Why do we Really Need Project Management Additional Standish Group findings (Feb. 2003) Top Management Recognizes the Need for Immediate Change Project and Statement of Work (SOW) Project Management PM Environment - Discussion Question Accelerating Trends A Balancing Act Expectation and Objective Congruency Contrast Projects and Operations - Discussion Question Exercise 1-1 - PM Pitfalls and Pluses Common Pitfalls Factors Affecting Project Success Integration Management A Model of Project Authority Summary Full Course Outline Next Steps

3. 3 Welcome to Fundamentals of Project Management. This introduction is designed to provide a sample of what to expect in the full course. By beginning with a fundamental understanding of the basics in conjunction with practical experience, the course will facilitate the learning of more advanced skills. The full course develops an understanding of the project environment and provides the basic tools and techniques for successful project management. In this module we will review some basic concepts and terminology that will be discussed further in the full course. By completing the full course, studying the recommended readings in project management, and applying the principles in your daily project responsibilities you will be well equipped to manage your projects more effectively. The full course is based on materials developed by Project Management International - PMI® and presented in the Project Management Body of Knowledge – PMBOK. Welcome

4. 4 We will: Define the key Project Management (PM) concepts List the reasons why PM is needed Explain the difference between projects and operations Identify trends in the PM environment List project success and failure factors Identify potential benefits of PM What to expect from this introduction

5. 5 Key PM Concepts from the PMBOK® Guide

6. 6 Disciplined project management provides: Focal point for effective communications, coordination and control A plan to assess progress Emphasis on time and cost performance Project management provides the framework for methods, processes, monitoring and change control Why Project Management?

7. 7 Increases stakeholder trust and confidence Continuously improves projects Balances competing demands Improves monitoring and control (providing consistent method for tracking tasks and milestones) Expands communication among participants Refines projections of resource requirements Provides a mechanism for performance measurement Identifies problem areas Clarifies project goals and project scope Quantifies project risk Prioritizes projects 1) PMI® Benefits of Project Management for the Organization1

8. 8 Provides future source of company leaders Creates high visibility of project results Enhances both professional and personal growth opportunities Builds one’s reputation and network Develops portable skills and experience Benefits of Project Management for the Individual1

9. 9 Exponential expansion of human knowledge Global demand for goods and services Global competition Above requires the use of teams versus individuals Why Do We Need Project Management?*

10. 10 A recent Standish Group survey of 8,000 software projects found the average project exceeded budget by 90% and its schedule by 120%. A Standish Group study found the most common causes of project failure were: Incomplete requirements Lack of user (customer) involvement Lack of resources Unrealistic expectations Lack of executive support Changing requirements (Scope creep) A Cutter Study found 40% of IT projects no longer supported corporate strategy. Why do we Really Need Project Management

11. 11 63% of projects have schedule delays 49% of projects exceed budget or do not meet business objectives 45% of project face cost overruns 23% of all projects FAIL Additional Standish Group findings (Feb. 2003)

12. 12 Top Management Recognizes the Need for Immediate Change

13. 13 A project is “a temporary endeavor undertaken to create a unique product or service.”1 A SOW is a narrative description of products or services to be supplied under contract. Project and Statement of Work (SOW)

14. 14 “The application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.” Project Management

15. 15 What are some trends that impact the environment in which projects are managed today? (For possible responses, see next slide) PM Environment - Discussion Question

16. 16 Corporate globalization Massive mergers and reorganizations Flatter organizations Short-term results driven Team environment Contract PM and outsourcing Primacy of interpersonal skills Multinational projects Importance of cultural differences Dependence on technology Accelerating Trends

17. 17 Schedule requirements cost A Balancing Act

18. 18

19. 19 Expectation and Objective Congruency

20. 20 How are “projects” different from “operations”? Contrast Projects and Operations - Discussion Question

21. 21 Operations Semi-permanent charter, organization, and goals Maintains status quo Standard product or service Homogeneous teams Ongoing Projects Create own charter, organization, and goals Catalyst for change Unique product or service Heterogeneous teams Start and end date

22. 22 Looking back on projects with which you were associated, what were the top three factors that caused serious problems? That created a perception of success? Exercise 1-1 - PM Pitfalls and Pluses

23. 23 Unclear objectives Lack of senior management support Lack of effective project integration Inadequate funding Change in business priorities Original assumptions invalid Ineffective team Lack of effective communication processes Other? Common Pitfalls

24. 24 Coordination and relations Adequacy of structure and control Project uniqueness, importance, and public exposure Success criteria salience and consensus Competitive and budgetary pressure Initial over-optimism, conceptual difficulty Internal capabilities buildup Factors Affecting Project Success

25. 25 Integration Management

26. 26 Project Governance Model

27. 27 Summary In this introduction we have: Defined key PM concepts Described why PM is needed Explained difference between projects and operations Identified trends in the PM environment Discussed project success and failure factors Identified potential benefits of PM

28. 28 1. Introduction and Key Concepts 6. Controlling Projects 2. Project Life Cycle Models 7. Closing Projects 3. Initiating Projects 8. Organizational Impacts 4. Planning Projects 9. Overview of Knowledge Areas 5. Executing Projects 10. Role of the Project Manager Full Course Outline

29. 29 What have you learned from this introduction? What would you like to learn from the full course? Are you searching for a Solution to a specific problem? Would you like to enhance your understanding of Project management concepts/knowledge? Are there other specific skills you would like to acquire? Follow the links below to contact PME Group Next Steps