EssentialProjectManagement

1.Projectsandprojectmanagement

Ifyouenjoywhatyoudo,youllneverwork
anotherdayinyourlife.
Confucius

Therearemanydifferenttypesofprojects.Someexamplesare:ITprojects,investmentprojects,research
projects,developmentprojects,buildingprojects,maintenanceprojectsetc.Projectsmaylastanywherefrom
betweentwoweeksuptoseveralyears.Thenumberofpeopleinvolvedintheprojectteammayrangefrom
betweentwotoseveralthousand.Thelevelofcomplexityvaries,fromprojectswherethechallengesaremoreor
lessequalfromoneinstancetothenext,tothedevelopmentofnewandinnovativesolutionsthathaveneverbeen
developedpreviously.Commontoallprojects,however,isthefactthatoneshouldalwaysapplygoodpracticein
projectmanagementinordertomeettheexpectationsofthestakeholdersinthebestpossiblemannerand
therebyensurethattheprojectattainsitsobjectives.

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Objectives
Aftercompletingthislesson,participantswill:
Knowwhataprojectis

Knowhowprojectmanagementcanbedefined

Understandtheconnectionbetweenprojectsand
othertasksinacompany

Haveanawarenessofthefoundationsofa
successfulproject

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Questions
Beforeyougofurther,trytoanswerthequestionsbelow.Youranswerswillbeshowninaboxtotherightofthe
correctanswerinthetext.Trytojudgeyouranswersupagainstthetheory.Don'tmoveonbeforeyouhave
answeredthequestions!

Nameexamplesoflinetasks:

Typehere...

Whatcharacterisesaproject?

Typehere...

Namekeyelementsofgoodpracticeinproject
management.

Typehere...

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InPractice
Projects
Allcompaniesandorganisations,privateandpublic,deliverproductsorservicesinaccordancewiththeir
strategicobjectives,whichmaybeassociatedwithprofitability,growth,rangeofproductsandservices,serviceto
citizens,rulesandregulations,etc.Inordertosurvive,thecompanymusthavethecapacitynecessarytoboth
produceanddeliverexistingproductsandservicesandalsotochangeandcreatenewcompetitiveproductsand
services.Workdutiesrelatedtotheseobjectivescanbedividedintotwocategories:linetasksandprojects.

Linetasks
"Linetasks"isatermreferringtoworkdutiessuchas:
Generalmanagementofthecompany
Administrationandaccounting
Salesandmarketing
Productionanddistributionofproductsandservices
Maintenanceofequipmentandmaterials
Linetasksarecarriedoutaccordingtothecompanysfunctionalstructure,alsoknownasthelineorganisation.
Anexampleofthisisthatworkconnectedtosalesandmarketingiscarriedoutbyemployeesinthesalesand
marketingdepartment.

Figure1Functionalstructure

Thecompanymustproduceanddeliverexistingproductsandservicesinthebestpossiblewaywiththeaim
ofsurvivingindefinitely.Goodideasthatemergeintheorganisationmayresultinprojectsbeingestablished,
inordertoensurethatproductsandservicesmeetthefuturerequirementsandneedsofcustomersandusers.

WhatisaProject?
Projectisatermreferringtoworkdutiesthatresultin:
Developmentofnewproductsorservices
Changetoexistingproductsorservices
Changeoforganisationandworkingprocesses
Introductionofnewmethodsandtools
Projectsareoftencarriedoutacrossthefunctionalstructureofacompany.Theprojectusesinternalcompetence
availablefromoneormoreofthecompanysfunctionalareas(crossfunctionalcompetence)andwilloften
alsouseresourcesfromexternalcompaniesthatprovidespecialisedcompetenceintheirrelevantareasofskill.

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Figure2Projectsthatspreadacrossalineorganisation

Theprojectmanagerisresponsibleformakingsuretheproductorserviceisdeliveredinaccordancewith
applicablequalityrequirementsandwithindefinedtimeandcostconstraints.Thelineorganisationand
externalsuppliersdeliverresourcessuchaspersonnel,equipmentandmaterialfortheplanningandexecutionof
theproject.Theprojectisatemporaryformoforganisation.Oncetheprojecthasdelivereditis
thenclosed,andthepersonnelarereturnedtothelineorganisationortootherprojects.The
deliverable(s)(productsorservices)arehandedovertoonesownlineorganisationortotheclient,whoisinturn
responsibleforrealisingprojectedbenefits.

Projectdefinitions
MetierAcademydefinesaprojectasfollows:
Aprojectisaworkdutythatisbestcarriedoutbyatemporaryorganisationwithinaprojectcharter(alsocalled
projectmandate)thatdescribestheobjectives,scopeofwork,andtimeandcostconstraintsforthepurposeof
achievingdefinedbenefits.
Therearealsootherdefinitions,andbelowfollowsaselectionfromleadingorganisationsinprojectmanagement:

TheProjectManagementInstitute(PMI)usesthefollowingdefinitionofaproject:"Aprojectisatemporary
endeavorundertakentoprovideauniqueproductorservice".
TheInternationalProjectManagementAssociation(IPMA)usesthefollowingdefinitionofaproject:"A
projectisatimeandcostconstrainedoperationtorealiseasetofdefineddeliverables(thescopetofulfill
theprojectsobjectives)uptoqualitystandardsandrequirements".
InPRINCE2aprojectisdefinedasfollows:"Aprojectisatemporaryorganisationthatiscreatedforthe
purposeofdeliveringoneormorebusinessproductsaccordingtoanagreedbusinesscase".

CharacteristicsofaProject
Drawingontheabovedefinitions,onecanthereforesummisethataworktaskisaprojectifitfulfilsmostofthe
followingcriteria:
Uniqueassociatedwithchangeandinnovation
Clearobjectives:benefitstoberealisedduringtheprojectandafterconclusionoftheproject
Temporaryandcrossfunctionalorganisationwithprojectmanagerandprojectowner
Timelimited
Costlimited
Achievementofobjectivesisaffectedbyrisk
Inaddition,specificindividualtasks(regardlessofthepreviouslynamedcriteria),mayalsobebestsolvedasa
project.Insuchacase,managementwillprefertheplanningandexecutionofthesespecifictaskstotakeplacein
accordancewiththecompanysprojectmethodology.

Linedutiesasopposedtoprojects
Onecanthereforesaythatthefollowingarelineduties,andnotprojects:
Tasksthatcanbestbesolvedthroughthecompanysfunctionalstructurethetaskisassociatedwitha
functioninthelineorganisation
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Tasksassociatedwiththeproductionanddeliveryofexistingproducts
Routinetasksassociatedwithdaytodayoperations
Taskswithlowresourcerequirementsmeasuredintermsofmanhoursorcosts

ProjectLinetask
Therearegreyareasbetweenprojectsandlinetasks.Notallprojectscanbeconsideredasunique,andthere
arealsosomelinetasksthatcanbedefinedasunique.Managementcandecideswhichtasksshouldbe
organisedasprojects.Itmaybethatonewantsatypicallinetask,suchasthemaintenanceofamachine,tobe
carriedoutasaproject.Thebackgroundforthismaybethatmanagementwantstofollowupontheworkthrough
aprojectmanagerwhoappliesthecompany'sprojectmodel,thusensuringthattheworkisperformedefficiently.
Managementmayalsochoosetocarryoutatypicalprojectasalinetaskwhenthecompanyknowsthetaskwell
andthereforebelievesthatitcanbedonemoreeffectivelyintheline.Goodpracticeinprojectmanagementalso
includesrequirementsthatmaybebureaucraticallyunnecessaryforsmalltaskswithwhichthecompanyis
familiar.

Oncemanagementhasdecidedthatthetaskisaproject,thengoodpracticein
projectmanagementshouldbeusedinordertoincreasethelikelihoodof
reachingtheprojectsobjectives!

ProjectManagement
Projectmanagementcanbedefinedasreachingprojectobjectivesthroughothers.Projectmanagementisa
matterofreachingprojectobjectivesthroughtheapplicationofleadership,competence,experience,methods
andtoolstoorganise,plan,executeandclosetheproject.Projectmanagementisexecutedbytheprojectowner,
projectmanager,subprojectmanager(teammanager)andotherswithmanagementresponsibilityintheproject.
Theprojectteamcarriesouttheactualtechnicalwork.Figure3depictsasimpleorganisationalstructure:

Figure3Levelsintheprojectmanagementteam

Theprojectownersjobistoensurethatthecompanyreachesitsprojectedbenefitsandsupportstheproject
manager.Theprojectmangerisresponsibleforthemanagementandadministrationoftheprojectandreportsto
theprojectowner.Subprojectmanagersareresponsibleforthemanagementandadministrationoftheirsub
projectsandmustfollowuptoensurethattheprojectteamperformstheplannedworkwithinthetimeandcost
constraints.Thesubprojectmanagerreportstotheprojectmanager.Theprojectteamperformstheactualwork
onthedeliverables.

GoodpracticeinProjectManagement
Allpersonnelwhoholdadefinedroleinthemanagementofaproject,mustperformtheirjobaccordingtogood
practiceinprojectmanagement.Thismeansthatthecompanysprojectmodel(lifecyclemodelorprojectmethod)
shouldbeadaptabletoprojectsizeandlevelofcomplexity,thatexperiencesfromotherprojectsshouldbeused
toreduceriskandexploitopportunity,andthatrecognisedmethodsandtechniquesinprojectmanagement
shouldbeusedtoplan,organise,executeandclosetheprojecteffectively.

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Figure4Goodpracticeinprojectmanagement

Inaddition,themanagersatthevariouslevelsintheprojectmustarrangeforgoodcooperation,openandsincere
communicationandleadwithastrongfocusonreachingtheprojectsobjectives.Figure4illustratesthekey
elementsingoodpracticeinprojectmanagement.

CompanyProjects
Mostcompanieshavemanypotentialprojectstheywishtocarryout,buttheprojectsusuallyhavetogothrougha
prioritisationprocessbecauseoflimitedaccesstoresourcesandmoney.Theprocessofprioritisationis
undertakenbyseniormanagementinthecompany.Abenefitsanalysisisperformed,inwhichmanagementworks
withkeymembersofstaffsuchasusers,linemanagersandprojectmanagers,toevaluatepotentialbenefitsand
risks.Onthebasisofthisresultinginformation,managementcandecidewhichprojectsbestunderpinthe
company'sstrategicobjectivesandhavethepossibilityofbeingcarriedoutwithintheexistingframeworksand
limitations,seefigure5.

Figure5Priorities

Aprojectcharteristhusestablishedforprojectsthataregivenpriority,andmanagementappointaprojectowner,
whointurnappointsaprojectmanager.Oncetheprojectiscomplete,thedeliverablesresultingfromtheproject
willbeusedtocreatebenefitsforboththecompanyandtheclient'scompany(ifapplicable).Uponcompletionof
theproject,projectpersonnelarereleasedandarethenfreetobeassignedtonewprojects.Responsibilityfor
theprojectsdeliverablesistransferredtoapositioninthelineorganisation.Thispositionwillberesponsiblefor
realisingtheexpectedbenefitsandcreatingthefoundationforfutureinnovationandchanges,throughnew
projects.

CriteriaforSuccessfulProjects
Notallprojectsreachtheirobjectives.Theremaybemanyreasonsforthis,butacommonreasonisalackof
focusongoodpracticeinprojectmanagement.Thefollowingarethepredominantcornerstonesforcreatingand
executingsuccessfulprojects:
1. Clearlydefinedbenefitswhyshouldtheprojectbecarriedout?
2. Projectgovernancemanagementmustmonitorandcontroltheprojectsandensurethatbenefitsare
realised
3. Choiceofprojectmanagerdoestheindividualinquestionhavecompetenceanddrive?
4. Theprojectmanagerscharteranagreementwiththeprojectowneronresponsibilityandauthorityshall
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beinplace.
5. Effectiveorganisationoftheprojectcompetenceandcapacity,clarityinroles,responsibilitiesandlines
ofcommunication
6. Realisticandambitiousprojectplanwhat,whenandhowmuch?
7. Managementoftheclientsexpectationswillthefinishedproductsatisfytheclient?
8. Proactivemonitoringandcontrolofprogressandmanagementofchanges
9. Managementofriskreductionofthreatsandexploitationofopportunities
10. Projectclosureensurethatalltaskshavebeencompleted,thatexperienceshavebeendocumentedand
thattheprojectisformallyconcluded.

Effectiveprojectmanagementmeansbetterprojects.Therearemany
companiesthathaveimplementedprojectmanagementproceduresinorderto
securetheirinvestments.Upuntilnow,noneofthesecompanieshavedecided
tostopusingit.Thismightserveasproofthateffectiveprojectmanagement
worksandproducesgreatvalue..

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Examples
Aprojectcanoccurasaresultof:
Aneedinthemarket:anautomobilemanufacturerdevelopsacarwithlowemissionsandenergy
consumption.
Abusinessneed:thecompanyneedstooptimiseoperationsormoveintonewmarkets.
Aninquiryfromclienttosupplier:theclientwantsanewofficebuilding,anewplant,avessel,anoilrigora
subseainstallation.
Rulesandregulations:allcargoshipsmustinstalladecontaminationsystemintheirballasttankstoavoid
spreadingoforganisms.
Technologicalupgrade:theoldITsystemcannolongerbesupportedbythesupplier.
Accidentsorcrises:thewreckedboatneedstoberaisedaccordingtodefinedrequirements.
Socialneeds:therelieforganisationisinstallingawaterplanttoincreasecropgrowthinadeveloping
country.
Theorganisationhasidentifiedgreatpotentialbenefitsinconvertingthecurrentmanualroutinesforrecording
hoursandabsenceduetoillnessintoanITbasedsolution.Theprojectisestablishedandaprojectmanageris
appointedwithaccompanyingcharter.Theprojecthasascheduletargetof5monthsandacosttargetof
$500.000.
After5monthsthesystemisinoperation.TheITdepartmentisresponsibleforthenewsystem.Theusers
requestanewreport.ThereportismadebyoneoftheemployeesintheITdepartment.Thereportisreadytobe
usedafter18manhours.

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Pitfalls
Where"everythingiscalledaproject,butnoteverythingistrulycarriedoutaccordingtogood
practiceinprojectmanagement.
Thecompany'sprojectmodelisnotproperlyimplemented,andprojectsthereforedonot
followacommonframework.
Thecompanydoesnotprioritiseprojectsaccordingtotheirlimitations.Therearetoomany
projects,manydelaysandalotoffrustrationamongprojectmanagersandprojectteam
members.
Theprojectsarenotbasedonpotentialbenefits.Theprojectsareinitiatedonthebasisof
otheragendasoftenadesiretoacquireanewandmodernproduct.
Theprojectsarenotbasedonthecornerstonesforsuccessfulprojects.Itisuptoeach
individualprojectmanagerastohowtheprojectisplanned,organisedandexecuted.Then
thelikelihoodoffailingwillbeundulyhigh.

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Checklist
Isthetaskaproject?

Isthejobcarriedoutinkeepingwithgood
practiceinprojectmanagement?

Doesthecompanyhavetheresourcestocarry
outtheproject?

Istheprojectbasedonclearlydefined
benefits?

Doestheprojectmanagerhaveacharter?

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CaseStudy

1.Thetrainingdepartmentwantseveryoneworkingwithprojectstohavetraininginprojectmanagement.
ItisdecidedthateveryoneshouldhaveaccesstothecourseEssentialProjectManagementfrom
MetierAcademy.Thecourseistakenentirelyonline.Everyonehas8weekstocompletethecourseafter
logginginforthefirsttime.MetierAcademyprovidestechnicalguidance.

2.Managementwantstoincreasethenumberofsuccessfulprojectsinthecompanyfrom50%to70%.
Thetrainingdepartmentisassignedtotrainallprojectmanagersinthepracticaluseofthecompanys
ownprojectmodel.ThetrainingdepartmentengagesMetierAcademytoassistinthedevelopmentofa
flexiblecoursesolutionconsistingofbothclassroomtrainingandelearning.MetierAcademyisengaged
tocarryoutaneedsanalysisandbasedontheresultsofthisanalysisproposeasolutionwithan
accompanyingscheduleandcostestimate.Thisworkshouldtakeamaximumof8weeks.Thetraining
departmentwishestoinvolvealldepartmentsinthiseffort.Managementshouldapprovetheproposed
solutionandtheframeworksforexecution.Uponapproval,MetierAcademywilldevelopthecourseand
beresponsibleforholdingthecourses.Thecoursemustbereadyforusewithin6monthsofthestartof
theproject.Managementwillassesstheprojectonanannualbasisinordertoevaluatethetrainings
effectiveness.

Whyisyourchoiceaproject?

Typehere...

Displaysuggestedanswer
Option1isnotaproject.Itisnotunique.Thisrelatestothepurchaseofanofftheshelfitemwithno
clearlydefinedgoalsorframework.Itisanoperationaltaskwithbudgetfunding,whichinturnprovides
theinvestmentframework.Norisitataskofatemporarynaturetobemanagedbyatemporary
organisation.
Correct.Option2isaproject.Itisunique,ithasaframeworkandcleargoals,anditinvolves
development,whichrequiresatemporaryorganisationwithaProjectManager,planning,decisionsand
subsequentimplementation.Thetrainingdepartmentisthecustomeronbehalfofthemanagementand
Metieristhesupplier.Acontractisrequiredforthedevelopmentwork,whichholdsrisksand
opportunitiesforbothparties.Thebenefitisprofitabilityandtheprojectissuccessfulifprofitabilityis
achieved.
Comments:Itisimportanttocompleteaprojectbeforebecomingoperational,i.e.thedevelopedsolution
mustbeapprovedbeforethecoursesbegin.

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Movethetaskstothecorrectbox.
Project

AcquireanewITsystemfor
documentmanagement.

Linetask
Monitortomakesurethat
routinesforhealth,
environmentandsafetyare
observedbyall.
Developanewreportforthe
financialmanagementsystem.

Movethecompanytoanew
facility.Deadline4months.

Acquire5newcopying
machines.

Developandimplementnew
routinesforhealth,
environmentandsafety

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answer

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Startover

Markthebestdefinitionofaproject:

Projectsarecarriedoutinaccordancewiththecompanysfunctional
structureandshouldliveforever
Theprojectisaworkdutythatisbestcarriedoutbyatemporary
organisationwithinamandatethatdescribestheobjectives,scopeofwork,
andtimeandcostconstraintsforthepurposeofachievingdefinedbenefits.
Theprojectisauniquetaskthatcannotbecarriedoutintheline
organisation.Theprojectmustbecarriedoutbyatemporaryorganisation
wheretherearealsopersonnelfromotherorganisations.

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Whatcharacterisesaproject?

Itisalwaysaroutinetask
Itisunique
Itlacksobjectives
Itshouldhaveclearobjectivesbutnoconstraints
Itshouldhaveclearobjectivesandconstraints
Itiscarriedoutbyafunctionalorganisation
Itiscarriedoutbyatemporaryorganisation
Theprojectisalwayscarriedoutinalinedepartment.
Theprojectiscrossfunctional.

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Startover

Connecttheboxestotherightresponsibility.
Projectowner

Managesbenefits
Managestheproject
Managestheprojectteam

Projectmanager

Doesthejob

Subprojectmanager

Projectteam

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Markthecornerstonesofsuccessfulprojects:

Clearlydefinedbenefits
Finishedasfastaspossible
Lowestpossiblecost
Activeprojectgovernance
Highestpossiblequality
Choiceofrightprojectmanager

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