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Two Groups of
Activities in any Workplace |
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Ongoing Operations
– the work performed over and over; produce similar products and
have no defined end
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Projects
– all the work that is done one time; have a beginning and an
end; produce a unique product
Corporate
Strategy: 2 Logics
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Project
Planning & Management Approaches |
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Targeted Market |
Effective Approach |
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Lifestyle; change cycle is
longer than duration of the project |
Project Administration |
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Rapidly changing; highly
competitive; change cycle is shorter than or equal to duration of
the project |
Business Synergies |
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Four Project
Categories |
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New
product, service or facility development – produce
something new in the organization.
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Internal
– involve infrastructure development, reengineering an organization,
and other improvement that is internal to the organization.
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External
–
involve new
product/service development as an external venture, geographical
expansion (e.g. developing strategic alliances, joint ventures,
networks), or organizing of large events
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Client engagement
– are conducted for an external client or customer.
"Most projects require three hands."
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Two Phases of
Project Development |
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Promising to deliver
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Delivering on the promise
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Project vs.
Business Processes |
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Project |
Business Process |
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Temporary: has a beginning and
an end |
Ongoing: the process is
repeated over and over again |
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Produces a unique output or
deliverable |
Produces the same output each
time the process is run |
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Has no predefined work
assignments |
Has predefined work
assignments |
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Two Types of
Projects and Project Management Approaches |
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Project Type |
Management Approach |
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Lifestyle Projects
– developing new or improving existing products, services or
infrastructures in a lifestyle business environment |
Project Administration – classic approach built on the
triple constraints of project management - cost, duration, and outcome |
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Venture Projects
– developing new products/services for rapidly changing and highly
competitive markets |
Business Synergies – new entrepreneurial approach to managing
projects; goes beyond the triple constraints to consider project and
project outcome lifecycle in a wider context of the overall
organizational strategy |
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Four Phases
of a Project |
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Initiation
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Planning
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Execution
Phase
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Close-Out
Phase ...
More
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Three Project
Management Functions
Related Activities and Outputs |
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Project Definition -
Project Planning
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Project Control ...
More
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What is a
Project?
Unlike repetitive business
processes or ongoing operations, projects are defined as work that happens
one time only. Each project produces some unique outcome and has both a
clear beginning and an end.
What is
Project Management?
Managing projects is not the same
as managing ongoing operations. This work that is unique and temporary
requires different management disciplines.
Project management is both an art
and a science. The science of project management – goal setting, project
planning, execution and monitoring tools – provide the foundation for
success in any project. Learning this basic science is requisite to
practicing the art of project management that encompasses political,
leadership, and interpersonal skills, making and
inspiring creative decisions, and much more.
Leadership
vs. Management
Inspirational Leader: 10 Roles
Project management is the
planning, organization, monitoring and control of all aspects of a project
and the motivation of all involved to achieve the project objectives safely
and within agreed time, cost and performance criteria. It is a set of tools,
techniques, and knowledge that, when applied, helps you produce better
results for your project. It contains the total amount of
leadership skills, leadership tasks, leadership organization,
leadership techniques and leadership measures for the performance of the
project.
Two
Approaches to Project Management
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Project
Administration – focuses on finding solutions within given
constraints (output, time, and budget); characterized by an early design
freeze that creates a stable target for the project; effective when
duration of the project – or the time required to innovate – is shorter
than the rate of change in the business environment.
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Business
Synergies – focuses on adding value to the organization and
maximizing return on investment; does not lock down design earlier than
absolutely necessary not to miss a newly emerging opportunity; effective
for managing innovation projects in the rapidly changing business
environment.
Strategic Project
Management (SPM)
Blue Ocean vs. Red Ocean Strategy
SPM is the process of managing complex projects
by combining
business
strategy and project management techniques in order to implement the
business strategy and to deliver organizational breakthroughs.1...
More
Identifying Project Stakeholders
"Satisfy
stakeholders!" is the project manager's mantra. For successful projects,
it's not enough to deliver on the customer's demand; projects have to meet
all stakeholder expectations. Identifying stakeholders is a primary task
because all the important decisions during the initiation, planning and
execution stages of the project are made by these stakeholders.
The five primary project
stakeholders are the project manager, the
project team,
the functional management, the sponsor, and the customer. In a larger
sense, anyone who participates in the project or is impacted by its results
is a stakeholder. Each stakeholder has an essential contribution to make,
and all stakeholder expectations need to be met. Contribution made by
different people to the project is the principal criteria for identifying
stakeholders...
More
Apply the 80/20 Principle
The
80/20 Principle
says that 80% of the value of any project will come from 20% of its
activities...
More
The New
Business Synergies Approach to Managing Projects
The business
synergies
approach is concerned with discovering possibilities for adding value to the
organization, not with finding solutions within given constraints. This
approach uses a framework for thinking about projects based on business
concepts such as increasing
economic value, or Economic Value Added (EVA).
The use of economic value as a
decision criterion indicates a change in the way project success is
determined and points the way toward the future of project management. While
the old criteria of meeting outcome, cost, and schedule constraints will
still be important factors for measuring the project progress, they are
augmented by business factors that are used to measure project success.
The
entrepreneurial approach to project
management requires you to manage the project as if it were an independent
business venture. But you must also manage with the larger organizational
system in mind. You need to understand how the elements of the project
affect the business as a whole and how elements of the business influence
the project.2 This dynamic new approach to projects will serve
you well whether your project is in a business, a non-profit organization,
or a governmental agency...
More
Turning
Failed Projects Into New Opportunities
To profit from experience you must be open and
willing to learn, even from what some people might consider a
failure.
What may seem to be a failure can actually
lead to new opportunities, especially if the knowledge acquired from the
failed projects can be exploited. Effective
learning questions can serve as a starting point for the assimilation of
learning. "Learning questions should focus on both project content and the
project-development process. The trick is to generate double-loop learning:
to learn what works and what does not, and about the assumptions (business
logic) that lie behind why it works or why it does not. During reviews, it
is important not only to digest what is learned, but also either to renew
the commitment and
motivation
necessary to keep the project going, or to terminate it."1
References:
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Getting Started in Project Management, Paula K.. Martin and Karen Tate
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Project Manager's MBA, Cohen E. Graham
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ICB – IPMA Competence Baseline, International
Project Management Association (IPMA)
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The Fast Forward MBA in Project Management,
Erich Verzuh
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Staying Alive
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