What is Project Management?

NBCC Moncton

PROJ 1029
PROJECT MANAGEMENT

Instructor: Aynslie Croney 2019

The vision must be followed by
the venture. It is not enough to
stare up the steps - we must step
up the stairs.
- Vance Havner

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 Objectives
 What is a Project?
 What is Management?
 What is Project Management?
 History of Project Management
 Advantages of Project Management
 Why do we need Project Management?
 Project Stakeholders

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 Introduction

 Many organizations today have a new or

renewed interest in project management
 Worldwide IT spending is projected to total
$3.8 trillion in 2019, an increase of 3.2 percent
from expected spending of $3.7 trillion in 2018,
according to the latest forecast by Gartner, Inc.
(retrieved from https://www.gartner.com/en/newsroom/press-
releases/2018-10-17-gartner-says-global-it-spending-to-grow-3-2-
percent-in-2019 )

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 Introduction

 The Project Management Institute estimates

demand for 15.7 million project management
jobs from 2010 to 2020, with 6.2 million of
those jobs in the United States
 Organizations waste $109 million for every $1
billion spent on projects, according to PMI’s
Pulse of the Profession® report

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 Operations vs. Projects
 Operations is work done to sustain the
business.

 A project is “a temporary endeavor

undertaken to create a unique product,
service, or result.”

 A project ends when its objectives have been

reached, or the project has been terminated.

 Projects can be large or small and take a

short or long time to complete.

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 What is a Project?
 A project:
 Has a unique purpose.

 Is temporary.

 Is developed using progressive elaboration.

 Requires resources, often from various

areas.
 Should have a primary customer or sponsor.

 The project sponsor usually provides

the direction and funding for the project.
 Involves uncertainty.

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 Examples of Projects
 A team of students creates a smartphone
application and sells it online
 A company develops a driverless car
 A government group develops a system to
track child immunizations
 A global bank acquires other financial
institutions and needs to consolidate systems
and procedures

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One More Example of a Project

 Evacuating and relocation of thousands of

people from Alberta (Fort McMurray 80,000
people) prior to and during - devastation by
wildfires.

 Evacuating and relocation of people from

New Brunswick Floods of 2018.

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 Project and Program Managers
 Project managers work with project
sponsors, project teams, and other people
involved in projects to meet project goals.
 Program: A group of related projects
managed in a coordinated way to obtain
benefits and control not available from
managing them individually.”
 Program managers oversee programs and
often act as bosses for project managers.

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What is management?
 The act, manner, or practice of
managing; handling, supervision,
or control:
 i.e. management of a crisis;
management of factory workers.
 The person or persons who control
or direct a business or other
enterprise.
 Skill in managing; executive
ability.
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What is Project Management?

 Project management is “the

application of knowledge, skills,
tools and techniques to project
activities to meet project
requirements.”*

*PMBOK® Guide, Fourth Edition, 2013

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History of Project Management
 Some people argue that building the
Egyptian pyramids was a project, as was
building the Great Wall of China.
 Most people consider the Manhattan
Project to be the first project to use
“modern” project management.
 This three-year, $2 billion (in 1946
dollars) project had separate project and
technical managers.

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Advantages of Project Management

 Better control of financial, physical, and

human resources
 Improved customer relations
 Shorter development times
 Lower costs
 Higher quality
 Increased reliability

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Advantages, continued

 Higher profit margins

 Improved productivity
 Better internal coordination
 Higher worker morale

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16
 20 Surprising Project
Management Statistics

 Over 1 in 3 (34%) projects have no baseline.

(Source: Wellingtone)

 For every $1 billion invested in the United States,

$122 million was wasted due to lacking project
performance. (Source: PMI.org)

 75% of business and IT executives anticipate

their software projects will fail. (Source:Geneca)
 http://blog.capterra.com/surprising-project-management-statistics/

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 Why do we need to take Project
Management?

 US spends $2.3 TRILLION on projects every

year ($10 TRILLION worldwide)

 16,000,000 people world-wide consider

themselves Project Managers

 On average, Project Managers make $63,000

- $109,000 CDN for certified PMP

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 Motivation for Studying Information
Technology (IT) Project Management

 IT Projects have a terrible track record, as

described in the What Went Wrong?

 A Standish Group study (CHAOS) found that only

16.2% of IT projects were successful in meeting
scope, time, and cost goals; over 31% of IT
projects were canceled before completion

 A PricewaterhouseCoopers study found that

overall half of all projects fail and only 2.5% of
corporations consistently meet their targets for
scope, time, and cost goals for all types of
project.
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 Project Stakeholders
 Stakeholders are the people involved in or
affected by project activities.

 Stakeholders include:
 Project sponsor
 Project manager
 Project team
 Support staff
 Customers
 Users
 Suppliers
 Opponents to the project
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 Lesson 1 - Group Activity
 Break into groups of 3 – 4 people
 Relate the attributes of a project to
this class (Is it a project?)
 Record (using template provided)
who is on your team and everyone’s
expectations as major stakeholders
for success:
 What do you expect from this class?
 What do you expect from the instructor?
 What do you expect from your
classmates?
 What do you expect from yourself?

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