BMP5004 Project Management

Lecture week 1

INTRODUCTION TO PROJECT MANAGEMENT

LECTURE 1

Prof Flomny Menon

UNIT OVERVIEWUnit Overview

qThis unit provides you with that all-important real life experience. Theunit will enable you to learn from your experience of managing a realproject by critically assessing a range of project managementmethodologies/Bodies of knowledge, theories, tools and techniques

qProject management involves a deliberate and reflective assumption ofrole, and you will be encouraged to reflect on your own performance asproject manager or team member.

UNIT AIMS

qLearners should be able to:qDistinguish between projects and business as usual;qDescribing project management, portfolio and programmemanagement;

qDifferentiating between project management, portfolio andprogramme management.

qOutlining the characteristics of programme management andits relationship with strategic change;

qExplaining the challenges a project manager may faceworking within a programme; describe where the use ofportfolio management may be appropriate.

ASSESSMENTS

AssessmentqThis assignment document is 1,500 (+/-10%) word reportqTCA (multiple choice questions): closed books, 60 mins (50%)qWhich assesses the breadth and depth of your knowledge and criticalevaluation of the application of project management techniques andmethodology

qDemonstration of your understanding of and reflection on thedifferent approaches to decision making in project monitoring,procurement, contacting, risk and quality management (LO1, 2 & 3).

Project, Program, and Portfolio Management

The relationship between project, program, and portfolio management can best be described like this:

•A project is a temporary endeavor undertaken by a company or organization (such as the creation of a new product, service, or result)

•A program is a group of projects that are similar or related to one another, and which are often managed and coordinated as a group instead of independently

•A portfolio is a group of different programs and/or projects within the same organization, which may be related or unrelated to one another

WHAT IS A PROJECT

What is a project?

q According to Association for Project Management (2018), a project is aunique, transient endeavors undertaken to achieve a desired outcome.

q Project Management Institute (2017) defined a project as a temporaryendeavor undertaken to create a unique product, service or result.

q According to Office of Government Commerce (2009) PRINCE2 defined aproject as a management environment created for the purpose of delivery oneor more business products according to a specified business case

WHAT MAKES PROJECT DIFFERENT?

What makes project different?qChange: Projects are the means by which we introduce change. They are notrepetitive business as usual types of activity.

qTemporary: Once the desired change has been implemented, business as usualresumes and the need for the project is removed. Project should have a defined start andend.

qCross-functional: Projects involve a team of people with different skills workingtogether (on a temporary basis) to introduce a change that will impact others outside theteam.

qUnique: Every project is unique (different team, different customers etc). We do projectwith the expectation of deriving long term benefits beyond the end of the project itself.

qUncertainty: Projects are of various sizes and risky. There are overheads associatedwith any project and are therefore normally a significant endeavour involving risk that mustbe managed. More threats and opportunities emerge in the life of a project than businessas usual

Projects are different from business-as-usual

• Projects are formulated and undertaken for the purpose ofintroducing change to an existing status quo (e.g. a new computersystem, a bridge, a new product launch etc). This distinguish themfrom operational tasks.• Open Heart Surgery: to a surgeon and the patient this may seemlike a project whereas to the theatre nurse it may seem like arepetitive operation.• A factory manufacturing 300 washing machines a day – the factorywill see this as a project while each washing machine is simplybusiness-as-usual• Building a footbridge over a river: never been done before is aproject.

Project Management vs. Portfolio Management vs. Program ManagementProject management is an umbrella term which can actually refer to three different types of management: Project management, portfolio management, and program management.

While these disciplines are all similar and interrelated, they each have unique differences that impact the responsibilities of project managers in their given roles.Three types of interrelated project management disciplines include:•Project Management: In a traditional project management role, the objective is to complete a project successfully, while remaining on time and within budget. Project managers utilize a variety of project management strategies to help organize teams and complete projects according to their success criteria while engaging stakeholders appropriately.•Program Management: A program is defined as the coordinated management of a set of interrelated or similar projects to achieve an organization’s objectives in a way that’s not possible if managed separately. Program managers collaborate with project managers to ensure each project is strategically aligned and on track to hit major milestones. Program managers also facilitate organizational change, manage the dependencies between projects, and address any project- or organizational-level issues and risks that affect the program.•Portfolio Management: A portfolio is the organization’s collection of programs, projects, and operational work. Portfolio managers work with the organization’s leaders to identify, prioritize, select, balance, authorize, evaluate, and control the organization’s approved work to best meet its strategies, given resource capacity and risk.

What Is a “Project” in Project Management?So, what exactly does “project” mean in the world of project management? Generally, a project is a temporary endeavor, with a finite start and end, that is focused on creating a unique product, service, or result.Nothing in this definition describes the size or the precise content of a project—there are projects of every size imaginable in virtually every industry, and project managers supervise them regardless of these specifics.

What Does a Project Manager Do?As project managers, the key parts of the job are to balance the scope of work—also known as “deliverables”—to meet the project objectives with the resources that are available within the schedule and allotted budget. They must do this all while working to ensure the project meets the quality guidelines required by its customers, which is not an easy task.

Project management is about applying the right tools, techniques, and processes, in a value-added way, to complete the project successfully. As we know, the body of project management knowledge is huge, and there are a number of skills, tools, and techniques available to support project managers in the delivery of these initiatives. What’s important is to understand the project, its goals and objectives, and what its challenges are, and to pick, choose, and use those right parts of project management accordingly.

Key Responsibilities of a Project Manager

So, what do project managers actually do?In the broadest sense, project managers (PMs) are responsible for planning, organizing, and directing the completion of specific projects for an organization while ensuring these projects are on time, on budget, and within scope.By overseeing complex projects from inception to completion, project managers have the potential to shape an organization’s trajectory, helping to reduce costs, maximize company efficiencies, and increase revenue.The exact duties of a project manager will depend on their industry, organization, and the types of projects that a PM is tasked with overseeing. But across the board, all project managers share responsibilities across what’s commonly referred to as the “project life cycle,” which consists of five phases (or processes):

•Initiating•Planning•Executing•Monitoring and Controlling•ClosingWhile it may be tempting to think of these as “steps,” they aren’t. Rather, these are processes project managers continually return to throughout the life of a project.

1. InitiatingProject managers begin each new project by defining the main objectives of the project, its purpose, and its scope. They alsoidentify key internal and external stakeholders, discuss shared expectations, and gain the required authorization necessary to move a project forward.

Important questions that project managers ask during the initiating phase include:•Why is the project important?•What’s the specific problem we’re trying to solve?•What is the desired outcome?•What are the project’s success criteria?•Who are the stakeholders on this project? Who is impacted by, or who impacts, this project?•What are the requirements and constraints within this project?•What assumptions are we making?•How will the project be funded?•What is within our scope? What is not within our scope?•Has this project been executed before? If so, what was the result? What information from that past project should be considered in this project?It’s important to recognize that project managers don’t do this on their own. Oftentimes, a project manager isn’t assigned untilmuch of this work is well underway.As soon as the project manager is assigned, however, he or she needs to fully engage in the above work which should culminate in a project being chartered and formally assigned. What do they do?

2. PlanningOnce the charter is approved, project managers work with key stakeholders to create an integrated project plan focused on attaining the outlined goals.The plan established during this process helps project managers oversee scope, cost, timelines, risk, quality issues, and communications. It is during this phase that project managers will outline key deliverables and milestones and identify the tasks that must be completed to complete each.It’s important to note that project “planning” doesn’t actually end until the project does. The project plan should be treated as a living document that constantly evolves and changes throughout the project.

3. ExecutingDuring this phase, team members complete the work that has been identified in the project plan in order to reach the goals of the project. The project manager’s role is to assign this work and to ensure that tasks are completed as scheduled. The project manager will also typically:•Protect the team from distractions•Facilitate issue resolution•Lead the team in working through project changes

4. Monitoring and ControllingDespite being listed as the fourth phase, monitoring and controlling processes actually commence at the beginning of a project and continue throughout planning, execution, and closing. In the monitoring and controlling phase, a project manager’s work includes:•Monitoring the progress of a project•Managing the project’s budget•Ensuring that key milestones are reached•Comparing actual performance against planned/scheduled performanceOf course, things rarely go exactly according to plan. Therefore, a project manager must be flexible enough to work within a project’s plan but readily adapt when necessary.5. ClosingDuring this phase, project managers strive to ensure all activities necessary to achieve the final result are completed. During the close of a project, project managers will:•Work with the client to get formal sign-off that the project is complete•Release any resources (budget or personnel) who are no longer needed for the project•Review the work of third-party vendors or partners in order to close their contracts and pay their invoices•Archive project files for future reference and use

After the project has been completed, a post-implementation review is often used to identify key lessons learned. Understanding what went well, what could be done differently, and what to stop doing can help inform and improve project management practices moving forward.

What Does a Project Manager Do?: A Day in the Life of a Project Manager

•Communicating with team members: Project Management is all about communication, whether through emails, calls, daily check-ins, or team meetings. Project managers must communicate with the members of their team regularly to determine the status of various projects and potential roadblocks that will need to be resolved.•Communicating with key stakeholders: Just as important as communicating with your team is regularly updating key stakeholders on project progress and ensuring that the project still aligns with changing company initiatives. This communication can take many forms, including weekly or monthly reports, regularly updated dashboards, or quick emails, calls, or meetings. Regardless of the medium, getting comfortable communicating with data is an essential skill.•Issue identification and resolution: Throughout the course of any project, it’s common for scope, budget, resource allocation, and other miscellaneous issues to arise. It is the role of the project manager to ensure that these issues are resolved effectively in order to keep the project on track.•Budgeting: For small-scale projects, cost estimation may be a weekly or even a monthly task. But for larger projects with many different expenses to keep in mind, project managers may spend time reviewing budgets each day to ensure the project does not exceed resource allocations. This may also include reviewing, processing, and approving invoices from outside vendors if the project includes such partnerships.•Time management and approval: In order to ensure that the project remains on track, many project managers turn to timesheets or a project management software that allows them to see how their team is spending their time. In addition to ensuring that the project is moving along as planned, this helps project managers shift resources between projects as necessary.•Team-building: A good project manager will do more than simply manage the steps of a project. They will also manage their team in order to keep them productive and happy. A part of this should include team-building exercises designed to boost morale, particularly after challenging weeks or phases of the project. Organizing a weekly lunch or happy hour is one such example.

EXERCISE 1: BENEFITS OF PROJECT MANAGEMENT

• The organization is able to deploy their projects in a consistent way, with a consistent set of processes and commonality of approach.

• Risk is reduced and opportunities maximized through the use of tried and tested processes and with skilled and talented project managers risk can be managed proactively and a judicious amount of risk taking considered.

• Success happens more readily and frequently, the culture of the organization improves to encompass the normality of success and failure becomes less frequent and more unacceptable with ill-founded or non-viable projects being terminated.

• Stakeholders become more accustomed to success and the opportunity to contribute positively is enhanced as there is less need for conflict when things go wrong

What Is a “Program” in Project Management?

In some cases, it’s important that a group of projects is managed in a coordinated way to ensure that value is achieved. In project management terms, this collection of projects becomes a program. Like a project, a program is a temporary organization, so when the related projects are complete, the program is complete.The Project Management Institute (PMI) describes program management in its PMBOK Guide as:“The application of knowledge and skills to achieve program objectives and to obtain benefits and control not available by managing related program components individually.”

What Does a Program Manager Do?Program management is not simply managing multiple projects—it’s a bit more strategic than that. The program manager also doesn’t micromanage those projects; he or she is helping ensure that the right work is moving between the right projects at the right points in time.The program manager focuses, throughout the program, on the business benefits, starting very early at its inception by looking at what benefits can be realized and then making that happen.Each project still has a project manager completing the work described above. The role of the program manager is to ensure that the benefits intended are met by validating that the correct projects are included in the program. Any project not providing value to the benefits is then realigned or removed from the program.The program manager is responsible for overseeing the dependencies between projects and creating program-level plans to accomplish this.For example, a master schedule is created to manage the dependencies between projects; a program risk management plan is created to manage program-level risks; and a program communication plan establishes how information will flow in the program. The program manager is then not managing the projects, but rather providing the oversight needed to ensure that the pieces of each project are completed effectively and efficiently in order to meet the needs of the other projects.The program manager is focused on benefits realization—rather, knowing the benefits that can be accomplished from this collection of projects and focusing on achieving them. The program manager is also working to manage organizational change and ensure that the benefits are not only transitioned to operations, but that processes are in place to sustain these benefits.Since the role of program management is to ensure that projects are aligned to the business strategy, as the strategy changes, the program manager also needs to communicate with the project teams so that they are aware of the changes and what needs to be done about them.

Characteristics of programme management

..

What Is a “Portfolio” in Project Management?

A portfolio is a collection of projects and programs that are managed as a group to achieve strategic objectives. An organization may have one portfolio, which would then consist of all projects, programs, and operational work within the company. It may also establish several portfolios for project selection and ongoing investment decisions.

According to PMI and its PMBOK Guide, a portfolio includes,

“Projects, programs, other portfolios, and operations managed as a group to achieve strategic objectives.”

Organizations need to decide which projects are the right ones to focus on. Often times, they are limited by how many projects can be done based on the capacity within an organization, begging the question, “Are we doing the right projects?”

What Does a Portfolio Manager Do?

Portfolio management is the centralized management of one or more portfolios to achieve an organization’s strategic objectives.Within organizations, the reality is often that resources are limited, whether it’s dollars, people, space, or equipment. Based on the organization’s strategy, there are several projects and programs that could be done; it just needs to be decided which are the right ones and in what order they should be completed.It’s critical to look not only at programs and projects at the individual level, but also holistically to know how these align with the organization’s overarching goals.At the same time, it’s important to consider a level of balance in the portfolio. The organization “needs to keep the lights on,” while also developing new opportunities. Some risk needs to be taken, but the portfolio should not be so risky that everything could be lost within a period of time.Beyond prioritizing and selecting projects and programs, portfolio management is balancing the portfolio so that the right projects and programs are selected and implemented. Monitoring and controlling is key to the process, since portfolio composition is not a one-time decision. Evaluations should be conducted in some regular cadence. It may be decided that a project’s priority becomes lower and others move into its place. A project could be temporarily moved out of the portfolio or permanently moved out of what that portfolio entails.This is done to ensure projects align with an organization’s strategies, goals, and objectives. It may also be the case that, as we get into performing a project or program, we find it no longer aligns, causing a reprioritization of all projects and programs in the portfolio.

Relationship between programmes, projects and strategic change

Implementing strategy is the hardest part of the strategy process, and it is delivered through the execution of strategic projects and programmes and the realisation of their targeted benefits.

Strategic change is an essential part of making the strategic investment work.

The project focus is on the creation of value enabling the execution of deliberate and emergent strategies. The scope of projects and programmes must incorporate benefit realization justifying the investment and result in a viable and achievable business case.

The diagram above shows the organisation has set its strategic objectives for change and responding to the environment, which could involve a number of structural choices from portfolios to programmes to projects.

Portfolio management is mainly focused on the selection and prioritisation of projects and programmes within the capacity to deliver.

Programme management then focuses on the coordination of projects and business-as-usual with particular emphasis on the achievement of beneficial change.

REFERENCES

References

qLook at when you are likely to need books/references c.f.course content and assignment due dates

qOrder early to ensure you have what you need when it.Use e-book where available

qUse electronic databases in the LRCqMaterials will be available on blackboard

qDistinguish between projects and business as usual;

Time-Bound vs. Ongoing

Projects have a start, middle and end date, and are a one-off event. This is the project life cycle. In fact, the most defining characteristic of a project is that it has an end. The project manager and the team work on the project during this time. At the end, the team is usually disbanded.

BAU is ongoing. You can, of course, close down a function or stop a process if it's no longer required for the business—but even that is usually done as a project. A BAU function produces ongoing work with no foreseeable end date.

Changemakers vs. Change Identifiers

There’s a difference in how change is handled in project and BAU work. BAU teams identify the need for change, and project teams implement that change.Because BAU teams run the business, they're also the first to know when the existing processes aren’t working and are no longer useful. When that happens, they identify the need for change.A manager, as part of a strategic review, can suggest what changes need to be made for a unit to reach its goals. Or, a team member may make a suggestion for change. At the other end of the spectrum, you may have a full business case produced by a senior manager to deliver changes required to help their division reach its annual targets. Those working in BAU roles may also realize change is essential because of shifts in the regulatory framework or as part of the competitive landscape for the organization.Project teams help implement all of these needed changes. Projects deliver change to and through the BAU functions using project management. This usually happens once the project has gone through a business case and senior management approval process.

Managing vs. Mitigating Risk

For business as usual functions to be effective, you’ll find BAU teams seek to mitigate all risk to operations. They work to take the uncertainty out of business for better organizational stability and repeatable processes.By their very nature of being unique and uncertain, projects require an element of risk. The company is making a bit of a leap into the unknown just by doing a project as it introduces change and delivers something that wasn’t there before.Project teams, therefore, approach risk in a different way than BAU teams. Project managers seek to manage risk—both positive and negative—to get the best outcomes. That might include mitigating risk to try to limit the likelihood that it is going to happen, but it includes other risk management strategies as well.

Capitalizing vs. Not Capitalizing Costs

Projects can be usually be capitalized, and often BAU cannot be since you rely on operating expenses for your ongoing business as usual work. In other words, the accounting treatments for projects and other tasks are different.Project funding often relates to bringing an asset into service—meaning the costs can be capitalized. In some cases, depending on where you are in the world and your local accounting regulations, you can even take project costs below the line.BAU costs are normally considered operating expenditures and are tracked in the profit and loss accounts of the company.Project funding and business funding, in general, is a very specialized area so it’s always best to take advice from your finance experts before making judgments about what should and shouldn’t be capitalized in your organization. Accounting rules vary by country, and even by organization where individual businesses have particular processes and ways of doing things.

Cross-Functional vs. Functional Teams

Finally, there’s a big difference in the makeup of project and BAU teams. Projects tend to involve multi-disciplinary teams of experts brought together to deliver a particular output.Project teams are made of people filling particular roles. These aren’t job titles, but positions within the project with distinct responsibilities. The main roles on a project team are:

•Project sponsor•Project manager•Senior supplier (the organization responsible for doing the work, which could be an internal team like IT or an external contractor or vendor)•Customer (this could be an internal customer such as a different department manager, or, in a client services organization, the customer for whom you are delivering the project)•Subject matter experts (people brought onto the team either for the duration of the project or part of it who use their expertise to contribute to the project’s success).

BAU work, on the other hand, is managed by functional teams. They are experts in their own right but grouped together as a division. There is normally less cross-functional overlap with other departments, and they'll have defined targets and a vision for the role the department plays in the company. An example would be a customer service team that works as part of a larger customer service division handling calls and emails from customers about your product.There can be some overlap as people from BAU teams are called to take part in project teams.

Key differences between BAU and Projects

•Projects change the business; BAU identifies the change•Projects manage risks; BAU mitigates risks•Projects are time-bound; BAU is ongoing•Projects can be capitalized; BAU often cannot be•Projects involve cross-functional teams; BAU involves functional teams•Projects are non-repetitive or unique; BAU are often repetitive

PROJECTS

qHeathrow Terminal 5qChannel – tunnel between France and UKqhttps://www.youtube.com/watch?v=uRdqoQnQ6PkqCapitulo 3 Managing Hard Rock’s Rockfest

Exercise: Group Task

• In groups, provide response to the following:• Projects can be undertaken many times in the same time

True/False? Justify your answer• Which of these is a project?: Running a marketing department; A

prototype software system; Running a finance department; A research paper; Renumbering the UK telephone system; Making washing machines. List five attributes of what makes them a project and describe how each differs from business as usual?

• 15minutes

RECOMMENDED RESOURCES qPinto, J., (2016), Project Management Achieving Competitive Advantage, (4th edition),Pearson.

qProject Management Body of Knowledge (PMBoK), 6th Edition, Associate of ProjectManagement.

qMaylor, H., (2010), Project Management: with MS Project CD, (4th Edition),FT/Prentice Hall.

qKerzner, H. R. (2013) Project management: a systems approach to planning, schedulingand controlling, 11th ed. New Jersey: John Wiley and Sons Inc.

qLock, D. (2013) Project Management, 10th ed. Farnham: Gower PublishingqOffice of Government Commerce (2009) Managing Successful Projects with Prince 2.London: The Stationary Office

qProject Management Journal: Project Manager today, APM JournalsqJISC Project Management Toolkit: http://www.jiscinfonet.ac.uk/infokits/project-management/