Introduction to Project Management by Javid Hamdard

Introduction to Project ManagementDecember 2015

Javid Hamdard

How Clear Can You See?

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How Clear Can You See?

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Let’s See the Whole Elephant !

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• Between 2010 and 2020, 15.7 million new project management roles will becreated globally, and the project management industry is slated to grow by$6.6 trillion.

• 70% of high-performance/successful projects are led by a Qualified ProjectManager.

• Up to 75% of Business and IT Executives Anticipate Their Software ProjectsWill Fail due to the lack of a qualified PM team.

• On average IT project runs 45% over budget, 17% over time, anddelivers 56% less value than expected.

• One in six IT projects has an average cost overrun of 200% and a scheduleoverrun of 70%.

• Only 39% of all projects succeed (delivered on time, on budget, and withrequired features and functions).

• 60% of companies don’t measure ROI on projects.

Why Does it Matter?

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute, KPMG, PMSolutions, the Access Group.

• The Global Average (Annual) Salaries of Qualified Project Managers:• Entry-level:

$54,953

• Managing small, low-risk projects:$65,818

• Managing medium-size, moderate-risk projects:$81,520

• Managing large, highly integrated projects:$103,047

• The Average ROI of Qualified/Certified Project Managers is 375% (Including salary& Training costs).

• Firms say they get 26% or more ROI from implementing Project PortfolioManagement (PPM) Processes.

• 83% of PM organizations reported that they were understaffed at somelevel. 44% of the reported shortages were for senior-level project managers.89.4% report that it is either very difficult or somewhat difficult to find senior-leveltalent.

Why Does it Matter? (Cont.)

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute, KPMG,PM Solutions, the Access Group.

• Our customers really Love us, so they Don't care if our products and servicesare late and don't work.

• Organizing to manage projects isn't compatible with our culture, and the lastthing we need around this place is change.

• We aren't smart enough to implement project management without stiflingcreativity and offending our technical geniuses.

• Project management requires integrity and courage, so they would have topay me extra.

• Our bosses won't provide the support needed for project management; theywant us to get better results through Magic.

• We'd have to apply project management blindly to all projects regardless ofsize and complexity, and that would be Stupid.

• We know there is a well-developed Project Management Body of knowledge,but We can't find it under this mess on our desks.

• We figure it's more profitable to have 50% overruns than to spend 10% onProject Management to prevent and fix them.

Why DON’T You Need PM !

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Sources: Project Management Institute (PMI), PM-BOK Guide (4th Ed); PM Fundamentals, Chris Miller (PMP) 2010.

• A Project is a Temporary Endeavor Undertaken to Create a UniqueProduct, Service, or Result.

• The Temporary nature of projects indicates that a project has adefinite beginning and end. The end is reached when theproject’s objectives have been achieved or when the project isterminated because its objectives will not or cannot be met, orwhen the need for the project no longer exists.

• Every project creates a Unique product, service, or result. Theoutcome of the project may be tangible or intangible. Althoughrepetitive elements may be present in some project deliverablesand activities, this repetition does not change the fundamental,unique characteristics of the project work.

What is a Project?

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Sources: PM-BOK Guide (5th Ed), A Guide To the Project Management Body of Knowledge. 2013. PMI Inc.

• Management is the process of attaining organizational goalsby Effectively and Efficiently Planning, Organizing, Leading andControlling the organization's Human, Physical, Financial andInformational Resources.• The practice of management, defined for many centuries as planning,

organizing, directing, and controlling, has existed since early times. Buildingthe Great Wall of China, running the Roman Empire, and preparing armies forbattle all required management skills; until the late nineteenth century,however, management was usually viewed as an art that was passed on fromgeneration to generation by oral tradition. In the last hundred years, thescience of management has developed. While management was once definedas "the ability work through others", today most definitions are similar to theone offered by Courtland Bouee above.

What is Management?

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Sources: Timothy J. Kloppenborg, Arthur et-al. “Project Leadership”. Management Concepts. 2003. Vienna, VA 22182.

• Project management is the application of knowledge, skills, tools, andtechniques to project activities to meet the project requirements. Projectmanagement is accomplished through the appropriate application andintegration of the 47 logically grouped project management processes, whichare categorized into Five Process Groups. These Five Process Groups are:

• Initiating,

• Planning,

• Executing,

• Monitoring and Controlling, and

• Closing.

What is Project Management?

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute,KPMG, PM Solutions, the Access Group.

• While the history of project management goes back to the building ofPyramids of Egypt and the construction of the Wall of China, the ManhattanProject is considered as one of the first to use the contemporary concepts andframeworks of Project Management (The Manhattan Project was a researchand development project that produced the first nuclear weapons duringWorld War II. It was led by the United States with the support of the UnitedKingdom and Canada).

• While the US military was the key industry behind the development of severalproject management Processes and Techniques. In 1917, Henry Ganttdeveloped the famous Gantt chart as a tool for scheduling work in factories:

• A Gantt chart is a standard format for displaying project scheduleinformation by listing projects activities and their corresponding start andfinish dates in a calendar format.

History of Project Management?

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute,KPMG, PM Solutions, the Access Group.

Project Management Process Groups

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Initiating Planning ExecutingMonitoring

& Controlling

Closing

A process group is a logical grouping of activities, inputs, tools, techniques, and outputs required for any type of project.

Define a new project or new phase, identify

stakeholders, and obtain authorization

“Authorize the Work”

Develop an integrated project management plan to attain project

objectives

“Plan the Work”

Complete the work and satisfy project objectives

“Work the Plan”

Track and review project progress and

performance; manage variance and change

“Control the Plan”

Finalize all activities and formally close the project

or phase

“End the Work”

• Project Charter/MoU• Stakeholder Register

• Project Mgt. Plans & Related Documents- Scope- Requirements- Schedule- Cost- Quality- Human Resources- Communication- Risk- Procurement- Change- Stakeholders

• Project Deliverables• Work Performance

Data• Team Performance

Assessments• Project

Communications (e.g. status reports)

• Selected Suppliers &Agreements

• Change Requests• Issue Log

• Change Logs• Approved Change

Requests• Work Performance

Information• Schedule Forecasts• Cost Forecasts• Updates to Project Plan• Quality Control

Measurements• Verified Deliverable• Accepted Deliverables

• Final Product, Service, or Result (i.e. purpose of project)

• Closed Procurement (e.g. formal signature of acceptance)

Act

ivitie

sKey

Outp

uts

Pro

cess

G

roups

Sources: Tom Tiede. “PMI Project Management Principles” – A point of reference. Based on the PMBOK (5th Ed). PP. 2014.

Applying PM Process Groups

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Sources: HBR Reviews (MISC); PMBOK Guide, Body of Knowledge (5th Ed). PMI. 2013; Tom Tiede. “PMI Project ManagementPrinciples” – A point of reference. Based on the PMBOK (5th Ed). PP. 2014.

Process Group Overlap

Time

Initiating

Planning

Executing

Monitoring & ControllingClosing

Initiating

Planning ExecutingMonitoring &

ControllingChange

?Complet

e?

Closing

Yes Yes

No

No

“Plan, Do, Check, Act”

Key Elements of Project Management

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute, KPMG,PM Solutions, the Access Group.

Schedule

Scope

Cost

Quality

Sample Project

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute,KPMG, PM Solutions, the Access Group.

Birthday Party

• Send RSVP Invites & Get Headcount,• Hire Music Band,• Arrange Space (Table & Chairs, Toshaks),• Cook or Order Food,• Buy Cake and Snacks,• Buy BBQ Food, • Decorate Space, • Food Setup,• Buy Ice,• PARTY!

Project Management Life Cycle

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Sources: Project Management Institute, KPMG, PM Solutions, the Access Group; Project Management.COM

Project Management Methodologies

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• Waterfall: This is the legacy model for software development projects. Thismethodology has been in practice for decades before the new methodologies wereintroduced. In this model, development lifecycle has fixed phases and linear timelines.This model is not capable of addressing the challenges in the modern softwaredevelopment domain.

• Adaptive: In this methodology, the project scope is a variable. Additionally, the timeand the cost are constants for the project. Therefore, during the project execution, theproject scope is adjusted in order to get the maximum business value from the project.

• Crystal-Methods: In crystal method, the project processes are given a low priority.Instead of the processes, this method focuses more on team communication, teammember skills, people and interaction. Crystal methods come under agile category.

• Agile: Agile software development methodology is for a project that needs extremeagility in requirements. The key features of agile are its short-termed delivery cycles(sprints), agile requirements, dynamic team culture, less restrictive project control andemphasis on real-time communication.

Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute,KPMG, PM Solutions, the Access Group.

Project Management Methodologies (Cont.)

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute,KPMG, PM Solutions, the Access Group.

Waterfall

AdaptiveAgile

Agile vs. Waterfall

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Sources: Harvard Business Reviews, McKinsey & Company, Pricewaterhouse Coopers, Project Management Institute,KPMG, PM Solutions, the Access Group.

Agile Companies

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• Functional/Classical Organization – marked and managed by apredefined hieratical structure through pre-identifiedsuperiors. Departments and Staff are usual grouped bytechnical and special skills. Perceived scope of work is usuallylimited by particular functions (e.g. Engineering, HR).Typically have part-time and/or occasional Project Manager/s.The center piece of the organization is the predefinedorganizational structure and hierarchy.

• Projectized Organizations – blend both functional andProjectized characteristics and traits. Mix cross-departmentalpersonnel and skills with full-time Project Manger/s with themain aim to achieve utmost productivity, efficiency andeffectiveness.

Organizational Structures

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Sources: PMI – Official PMP Certification Study Guide, 2014. PMI

• Project Management – the application of knowledge, skills, tools, and techniquesto project management activities to meet project requirements.

• Project Manager – the person authorized by the performing organization to directthe team accountable for realizing project objectives.

• Project Stakeholder – Individuals and Organizations who are actively involved inand impacted by the project.

• Triple Constraint – the foundation of project management is balancing scope, time,and cost. Quality is at the center of the triple constraint.

• Programs are groups of projects managed in a coordinated way to obtain benefitsnot available from managing the projects individually.

• Portfolio – Projects, programs, and operations managed as a group to achievestrategic objectives.

• PMBOK ® the Project Management Book of Knowledge from which PMI definesterms, standards, and good practices.

Key Definitions !

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Sources: Tom Tiede. “PMI Project Management Principles” – A point of reference. Based on the PMBOK (5th Ed). PP.

• Commercial• MS Project (PM):

• http://office.microsoft.com/en-us/project/default.aspx

• FastTrack (PM):

• http://www.aecsoftware.com/products/fasttrack/

• @Task (PM & PFM):

• http://www.attask.com/overview/

• ZOHO (COL PM):

• http://projects.zoho.com/home.na

• Open-Source:• Gantt Project:

• http://www.ganttproject.biz/

• OpenProject:

• http://openproj.org/• Open Workbench:

• http://www.openworkbench.org/• IXProject:

• http://www.jxproject.com/• Gantthead: Good resource

• http://www.gantthead.com/

Project Management Applications

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• CAPM® (Certified Associate in Project Management): demonstrates your understanding ofthe fundamental knowledge, terminology and processes of effective project management.

• PMP®(Project Management Professional): is a well recognized standard of projectmanagement certification offered by PMI. Recognized and demanded byorganizations worldwide, the PMP validates your competence to perform in therole of a project manager, leading and directing projects and teams.

• PgMP® (Program Management Professional): Is designed for those who managemultiple, complex projects to achieve strategic and organizational results.

• PfMP® (Portfolio Management Professional): Is designed for advanced experience andskill of portfolio managers. The PfMP is to demonstrate one’s proven ability in thecoordinated management of one or more portfolios to achieve organizationalobjectives.

• RMP® (Risk Management Professional): certification recognizes demonstratedknowledge and expertise in the specialized area of assessing and identifyingproject risks along with plans to mitigate threats and capitalize on opportunities.

Project Management Certification

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Sources: PMI – Official PMP Certification Study Guide, 2014. PMI

• The average IT project runs 45% over budget, 7% over time, anddelivers 56% less value than expected; while 45% admit they’reunclear on the business objectives of their IT projects.

• One in Six IT projects has an average cost overrun of 200% and aschedule overrun of 70%.

• While 75% of IT project leaders believe their projects are “Doomedfrom the Start”, 78% respondents said their project requirementsare usually or always out of sync with the business.

• 17% of large IT projects go so badly they threaten the existence ofthe company.

• Only 47% say their teams achieve 70-89% of their goals.Nearly 20% say they only achieve 50-69% of their goals.

• 80% of teams say they spend at least half their time reworkingcompleted tasks. .

Top Challenges of IT Projects !

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Sources: Wrike.Com. PM Statistics 2015; Harvard Business Reviews, Project Management Institute, KPMG, PM Solutions,the Access Group.

• Lack of Qualified Project Management Team/s,

• Unclear objectives/lack of business focus,

• Unrealistic Schedule/Reactive planning,

• Shifting Requirements/Technical complexity,

• Unaligned Team/Missing skills,

• Lack of Project Ownership and Coordination,

• Unexplained Causes.

Top Contributors to IT Projects Failure !

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Sources: Wrike.Com. PM Statistics 2015; Harvard Business Reviews, Project Management Institute, KPMG, PM Solutions,the Access Group.

• Project Management Certification• Project Management Institute

• http://www.pmi.org/

• Project management• Harvard Business Review, Harvard University,

• https://hbr.org/topic/project-management

• Project Management Tools,• University of Berkeley, UC

• http://oe.berkeley.edu/resources/project-management-tools

• Project Management Framework,• University of Adelaide

• http://www.adelaide.edu.au/technology/pmo/framework/

• Project Management Statistics 2015• Wrike News, Wrike.COM

• https://www.wrike.com/blog/complete-collection-project-management-statistics-2015/

• Scum Methodology• Scum Methodology

• http://scrummethodology.com/

Useful Resources

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Thank YouQuestions / Comments

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