Ch1 ch2

Nov-13

Project Management Frame work

Based on the project management body of knowledge
(PMBOK) 5th edition

ABDULLAH ALKHADRAWY, PMP - PMBOK
5TH.

1

Course Instructor:
 Abdullah Ahmed Al-Khadrawy.
 BSc. Civil Engineering 2006 (V.Good HD).
 Graduation Project (Project Management)
2006.(Excellent graded)
 Certified from Primavera Inc. ® : Advanced user
for Primavera P6 (2008).
 Certified from Primavera Inc. ® : Advanced user
for primavera Contract Manager 12 (2009).
 Attended courses (PMP, CCE, FIDIC, Project
Management, Arbitration for Engineering
Contracts) [2007-2013]
 Certified from PMI ® as PMP ® April2011

5TH.

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2

E.Abdullah Al-Khadrawy,PMP - PMBOK
5th. ed. course material

Nov-13


5TH.

3

- Purpose of the PMBOK® Guide.
- What is a Project?
- What is Project Management?

Introduction

- Relationships Among Portfolio Management, Program
- Management, Project Management, and Organizational
Project Management.
- Relationship Between Project Management, Operations
Management, and Organizational Strategy.
- Business Value.
- Role of the Project Manager.
- Project Management Body of Knowledge.
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Nov-13


•

Purpose of the PMBOK® Guide.
* Generally recognized.
* Good practice.
* The PMBOK® Guide also provides and
promotes a common vocabulary within the project
management profession for using and applying project
management concepts.
* Code of ethics.

5TH.

5

A Project
PMI ® Definition:
“A project is a temporary endeavor undertaken
to create a unique product, service or result.”

May be divided into sub-projects (phases)

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A Project
* Finite: start and end date
* Interrelated tasks
* Has one or more clear objectives which are strategically aligned and
whose achievement will add value to the organization
* Unique deliverables based on a Business Need
* Progressive elaboration.

Progressive elaboration

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A4

A Project

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PROJECT MANAGEMENT
* The application of knowledge, skills, tools, and techniques
to project activities to meet the project requirements.
* Accomplished through the appropriate application and
integration of the 47 logically grouped project management
processes.
* Process Groups are:
Initiating, Planning, Executing, Monitoring and Controlling, and
Closing

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9

PROJECT MANAGEMENT
Monitoring &
Controlling Processes
Planning
Processes

Initiating
Processes

Closing
Processes

Executing
Processes

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Nov-13


Knowledge
Areas
4. Project
Integration
Management

Project Management Process Groups
Initiating
Process Group

Planning
Process Group

4.1 Develop

4.2 Develop Project

Project Charter

Executing
Process Group
4.3 Direct and
Manage Project
Work

Management Plan

Monitoring
and
Controlling

5.1 Plan Scope

4.5 Perform
Integrated Change
Control
5.5 Validate Scope

Management

5. Project Scope
Management

Closing
Process Group

4.4 Monitor and
4.6 Close Project or
Control Project Work Phase

5.6 Control Scope

5.2 Collect
Requirements
5.3 Define Scope
5.4 Create WBS
6.1 Plan Schedule

6.7 Control

Management

6. Project Time
Management

Schedule

6.2 Define
Activities
6.3 Sequence
Activities
6.4 Estimate
Activity Resources
6.5 Estimate
Activity Durations
6.6 Develop
Schedule
7.1 Plan Cost

7. Project Cost
Management

7.4 Control Costs

Management
7.2 Estimate Costs
7.3 Determine
Budget
8.1 Plan Quality
Management

8.2 Perform Quality
Assurance

9.1 Plan Human
Resource
Management

8. Project
Quality
Management
9. Project
Human Resource

9.2 Acquire Project

8.3 Control Quality

Team
9.3 Develop Project

Management

Team
9.4 Manage Project
Team
10.1 Plan
Communications
Management

10. Project
Communications
Management

10.2 Manage
Communications

11.1 Plan Risk

11. Project Risk
Management

10.3 Control
Communications

11.6 Control Risks

Management
11.2 Identify Risks
11.3 Perform
Qualitative Risk
Analysis
11.4 Perform
Quantitative Risk
Analysis
11.5 Plan Risk
Responses
12.1 Plan
Procurement
Management

12. Project
Procurement
Management
13. Project
Stakeholder
Management

13.1 Identify
Stakeholders

12.2 Conduct

12.3 Control

12.4 Close

Procurements

Procurements

Procurements

13.2 Plan
Stakeholder
Management

13.3 Manage
Stakeholder
Engagement

13.4 Control
Stakeholder
Engagement

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11

Portfolios, Programs, and Projects
Process – "a systematic series of activities directed
towards causing an end result such that one or more inputs
will be acted upon to create one or more outputs"
An Operation - an organizational function performing the
ongoing activities that produce the same product or provide
a repetitive service
Business Value – entire value of the business

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Nov-13


Project - "a temporary endeavor undertaken to
create a unique product, service or result!
Program – "a group of related projects, subprograms
and program activities managed in a coordinated
way to obtain benefits and control not obtainable
from managing them individually"
Portfolio - "projects, programs, sub portfolios and
operations managed as a group to achieve strategic
objectives – not necessarily directly related"
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Organizational
strategy & goals

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Nov-13


Portfolio - "projects, programs, sub portfolios and
operations managed as a group to achieve
“strategic objectives “– not necessarily directly
related"

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15

Program – "a group of related projects,
subprograms and program activities managed in a
coordinated way to obtain benefits and control not
obtainable from managing them individually"

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Nov-13


Organizational Project Management – "strategy
execution framework utilizing project, program, and
portfolio management as well as organizational enabling
practices to consistently and predictably deliver
organizational strategy producing better performance,
better results, and a sustainable competitive
advantage.

Organizational Project Management Maturity
Model – OPM3
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Organizational Project Management –

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Nov-13


Organizational Project Management
Projects
Narrow scope –
specified deliverables

Portfolios,
Programs,
and Projects

Programmes
Portfolios
Wide scope – Outcomes Business Scope – aligned to
measured in benefits,
strategic direction – flex to
ambiguity
suit
PM manages change PgM expects and embraces
PoM – monitors broad
control ; controls
change
internal and external
changes
environments
Success -> Project
Success -> New
Success -> aggregate
Performance criteria
Capabilities through
performance of portfolio
transition and embedding,
elements
Benefits
Leadership style –
Leadership style –
Leadership – influential,
directive, authoritative
influential, relationship
Board decision making,
centered; stakeholder
internal and external
engagement
relationship building
PM manages
PgM manages project
PoM manages portfolio staff
specialists
managers
PM motivates using
PgM motivates via
Leaders – ideas, innovation,
own knowledge and
Programme Vision,
synthesis, inspiration, pull
skills; team focus
Leadership, winning hearts
leadership
and minds, Relationships
Detailed planning;
High level planning;
Business planning; strategic
stage focus
Programme focus
focus
Monitor team through Monitors projects through
Monitors aggregate
Team Managers;
the Governance structure in
performance; value
monitor and control is a
place, including Quality
indicators; early warning
key task for the Project
Assurance and maybe,
systems; Portfolio dashoards
Manager
Programme Assurance
requiring Program reports

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19

Projects and Strategic Planning •
- Market demand
- Business need / Strategic opportunity
- Customer request / social need
- Technological advance
- Legal requirement
- Environmental Need – reduce waste

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Nov-13


PMO

Projects,(Programs)
Management,
Office

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PMO

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Nov-13


PMO
Return Of Investment

5TH.

PMO

23

Can be a main stakeholder and a Key decision maker - There
are three main types:
Supportive
•consultative role
•supplies templates, best practice, training, lessons learnt; has low
control
Controlling
•supplies templates, best practice, training, lessons learnt
•requires compliance and has moderate control
Directive
•supplies templates, best practice, training, lessons learnt
•takes control, manages projects directly and has high control

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Nov-13


PMO

integrates data and information from corporate strategic projects
and evaluates how higher level strategic objectives are being
fulfilled. Supportive

the natural liaison (link) between the organization’s portfolios,
programs, projects, and the corporate measurement systems
(e.g. balanced scorecard).
May have the authority to act as an integral stakeholder and a key
decision maker throughout the life of each project,
make recommendations, or to terminate projects or take other
actions, as required, to remain aligned with the business objectives.
may be involved in the selection, management, and deployment of
shared or dedicated project resources.

5TH.

PMO

(e.g. balanced scorecard).

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Nov-13


PMO

PMO is to support project managers
• Managing shared resources across all projects
administered by the PMO;
• Identifying and developing project management
methodology, best practices, and standards; Coaching,
mentoring, training, and oversight;
• Monitoring compliance with project management
standards, policies, procedures, and templates by means
of project audits;
• Developing and managing project policies, procedures,
templates, and other shared documentation
• (organizational process assets); and
• Coordinating communication across projects.

5TH.

PMO

27

The role of project managers Vs. PMO role
• The project manager focuses on the specified project
objectives, while the PMO manages major program scope
changes, which may be seen as potential opportunities to
better achieve business objectives.
• The project manager controls the assigned project
resources to best meet project objectives, while the
• PMO optimizes the use of shared organizational resources
across all projects.
• The project manager manages the constraints (scope,
schedule, cost, quality, etc.) of the individual projects, while
the PMO manages the methodologies, standards, overall
risks/opportunities, metrics, and interdependencies among
projects at the enterprise level.

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Nov-13


Operations Management


Operations are ongoing endeavors that produce
repetitive outputs, with resources assigned to do
basically the same set of tasks according to the
standards institutionalized in a product life cycle.

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29

Operations Management


overseeing, directing, and controlling business
operations.



support the day-to-day business



necessary to achieve strategic and tactical goals of
the business.

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Nov-13


Operations’ Examples


Production operations.



Manufacturing operations.



Accounting operations



Software support.



maintenance.

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31

Projects versus Operations
Projects

Operations



Performed by people



Performed by people



Constrained by limited
resources



Constrained by limited
resources



Planned, executed and
controlled



Planned, executed and
controlled



Temporary



Ongoing



Unique



Repetitive

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Nov-13


Projects interacts Operations


At each closeout phase



When developing a new product, upgrading a
product, or expanding outputs



While improving operations or the product
development process

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33

Projects interacts Operations


At each point, deliverables and knowledge are transferred
between the project and operations for implementation of
the delivered work.



This implementation occurs through a transfer of project
resources to operations toward the end of the project, or
through a transfer of operational resources to the project
at the start.

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Nov-13


Operational Stakeholders in
Project Management


Operational stakeholders should be engaged and
their needs identified as part of the stakeholder
register, and their influence (positive or negative)
should be addressed as part of the risk
management plan.

5TH.

35

Operational Stakeholders in
Project Management


Plant operators,



Manufacturing line supervisors,



Help desk staff,



Production system



support analysts,



Customer service representative,



Salespersons,



Maintenance workers,



Telephone sales personnel,



Call center personnel,



Retail workers,



Line managers, and



Training officers.

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Nov-13


Organizations and Project
Management


Organizations use governance to establish
strategic direction and performance parameters.



The strategic direction provides the purpose,
expectations, goals, and actions necessary to
guide business pursuit and is aligned with
business objectives.



Project management activities should be aligned
with top-level business direction.

5TH.

37

Organizations and Project
Management


Project management activities should be aligned with
top-level business direction.
 if there is a change, then project objectives need to be
realigned.
 In a project environment, changes to project objectives
affect project efficiency and success.
 When the business alignment for a project is constant,
the chance for project success greatly increases
because the project remains aligned with the strategic
direction of the organization.

5TH.

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Nov-13


Project-Based Organizations
(PBO)s.


various organizational forms that create temporary systems
for carrying out their work.



PBOs can be created by different types of organizations
(i.e., functional, matrix, or projectized).



PBOs may diminish the hierarchy and bureaucracy inside the
organizations as the success of the work is measured by the
final result rather than by position or politics.

5TH.

39

Project-Based Organizations
(PBO)s.


PBOs conduct the majority of their work as projects
and/or provide project rather than functional
approaches.
 PBOs conduct the majority of their work as projects
and/or provide project rather than functional
approaches.
 PBOs can refer to either entire firms, multi-firm
consortia, or networks; it is also possible that some
large project-based organizations have functional
support areas or that the PBO is nested within
subsidiaries or divisions of larger corporations.
5TH.

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Nov-13


Project Management &
Organizational Governance


Projects (and programs) are undertaken to achieve strategic business outcomes,



Many organizations now adopt formal organizational governance processes and
procedures.



Organizational governance criteria can impose constraints on projects—particularly if
the project delivers a service which will be subject to strict organizational governance.



Because project success may be judged on the basis of how well the resultant
product or service supports organizational governance, it is important for the
project manager to be knowledgeable about corporate/ organizational
governance policies and procedures pertaining to the subject matter of the product
or service



(e.g., if an organization has adopted policies in support of sustainability practices
and the project involves construction of a new office building, the project manager
should be aware of sustainability requirements related to building construction.)

5TH.

41

Project Management and
Organizational Strategy


Organizational strategy should provide guidance and direction to project
management
 the project sponsor or the portfolio or program manager who
identifies alignment or potential conflicts between organizational
strategies and project goals and then communicates these to the
project manager.
 If the goals of a project are in conflict with organizational strategy, it
is incumbent upon the project manager to document and identify such
conflicts as early as possible in the project.
 the development of an organizational strategy could be the goal of a
project rather than a guiding principle. In such a case, it is important for
the project to specifically define what constitutes an appropriate
organizational strategy that will sustain the organization.

5TH.

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Nov-13


Business Value


Business value is a concept that is unique to each organization.



Business value is defined as the entire value of the business; the total sum of all tangible and
intangible elements.



Examples of tangible elements include monetary assets, fixtures, stockholder equity, and
utility.



Examples of intangible elements include good will, brand recognition, public benefit, and
trademarks.



Depending on the organization, business value scope can be short-, medium-, or long-term.



Value may be created through the effective management of ongoing operations. However,
through the effective use of portfolio, program, and project management, organizations will
possess the ability to employ reliable, established processes to meet strategic objectives and
obtain greater business value from their project investments.



While not all organizations are business driven, all organizations conduct business-related
activities. Whether an organization is a government agency or a nonprofit organization, all
organizations focus on attaining business value for their activities.

5TH.

43

Business Value


Successful business value realization begins with comprehensive
strategic planning and management.



Portfolio management aligns components (projects, programs, or
operations) to the organizational strategy,



Organized into portfolios or subportfolios to optimize project or
program objectives, dependencies, costs, timelines, benefits,
resources, and risks. This allows organizations to have an overall
view of how the strategic goals are reflected in the portfolio

5TH.

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Nov-13


Business Value


Using program management, organizations have the ability to
align multiple projects for optimized or integrated costs,
schedule, effort, and benefits.



Program management focuses on project interdependencies
and helps to determine the optimal approach for managing
and realizing the desired benefits.

5TH.

45

Business Value


With project management, organizations have the ability
to apply knowledge, processes, skills, and tools and
techniques that enhance the likelihood of success over
a wide range of projects.



Project management focuses on the successful delivery
of products, services, or results. Within programs and
portfolios, projects are a means of achieving
organizational strategy and objectives.

5TH.

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Nov-13


Alignment of portfolio, program, and project
management activities with Business Value


Strengthening organizational enablers such as structural,
cultural, technological, and human resource practices.



continuously conducting portfolio strategic alignment and
optimization.




performing business impact analyses.
and developing strong (robust) organizational enablers.

5TH.

47

Role of the Project Manager
Upon completion, you will be able to …

project manager:
• Roles
• Responsibilities
• Interpersonal skill requirements
• Your knowledge area gaps and strengths

5TH.

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Nov-13




The project manager is the person assigned by the
performing organization to lead the team that is
responsible for achieving the project objectives.



Depending on the organizational structure, a
project manager may report to a functional manager.
In other cases, a project manager may report to a
program or portfolio manager.

5TH.

49



project manager may report to a program or
portfolio manager,



the project manager works closely with the
1

program or portfolio manager to achieve the project
2

objectives and to ensure the project management
3

plan aligns with the overarching program plan.

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Nov-13




The project manager also works closely and in
collaboration with other roles, such as a business analyst,
quality assurance manager, and subject matter experts.

5TH.

51

Role of the Project Manager:
Responsibilities and Competencies of PM


satisfy the needs: task needs, team needs, and individual
needs.



the link between the strategy and the team.



Projects are essential to the growth and survival of
organizations.



The project manager’s role therefore becomes increasingly
strategic.
5TH.

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Nov-13


Responsibilities and Competencies of PM


Knowledge—Refers to what the project manager knows
about project management.



Performance—Refers to what the project manager is able to
do or accomplish while applying his or her project
management knowledge.



Personal—Refers to how the project manager behaves when
performing the project or related activity. i.e. :encompasses
attitudes,
core personality characteristics, and leadership

5TH.

53

Interpersonal Skills of a Project Manager

 Decision-maker
 Coaching
 Communication
 Team building
 Power broker
 Influencing
 Negotiation
 Motivation

n
n
n
n
n
n
n
n

Leadership
Sales person
PM expert
Conflict management
Behavior model
Political and cultural awareness
Trust building
Communication

5TH.

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54


Nov-13


Organizational Influences on Project
Management
• An organization’s culture, style, and structure influence how its
projects are performed.
• The organization’s level of project management maturity and its
project management systems can also influence the project.
• JV or partnering agreement, the project will be influenced by more
than one organization.

The following sections describe organizational characteristics, factors,
and assets within an enterprise that are likely to influence the project.
5TH.

55

Organizational Cultures and Styles (cultural
norms)
• Organizations are systematic arrangements of entities
(persons and/or departments) aimed at accomplishing a
purpose, which may involve undertaking projects.
• An organization’s culture and style affect how it conducts
projects
• Organizational culture is shaped by the common experiences
5TH.

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Nov-13


Organizational Cultures and Styles
* Common experiences


Shared visions, mission, values, beliefs, and expectations;



Regulations, policies, methods, and procedures;



Motivation and reward systems;



Risk tolerance;



View of leadership, hierarchy, and authority relationships;



Code of conduct, work ethic, and work hours;



Operating environments.
5TH.

57

Organizational Communications
globalization



Project management success in an organization is highly dependent on an
effective organizational communication style.



project managers in distant locations are able to more effectively communicate with
all relevant stakeholders within the organizational structure to facilitate decision
making.



Stakeholders and project team members can also use electronic communications
(including e-mail, texting (text chatting), instant messaging, social media, video and
web conferencing, and other forms of electronic media) to communicate with the
project manager formally or informally.

5TH.

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Nov-13


Organizational Structures

5TH.

59

Functional Organization
Project
Coordination

Chief
Executive

Functional
Manager

Functional
Manager

Functional
Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

(Gray boxes represent staff engaged in project activities )

5TH.

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Nov-13


Discussion Question

• In your opinion, what advantages and potential
disadvantage does
this type of organizational structure foster?

5TH.

61

Potential Advantages

•
•
•
•

Clear reporting relationships
Highly specialized expertise
Homogeneous group
Drive for technical excellence

5TH.

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Nov-13


Potential Issues

•
•
•
•
•
•
•

Project boundaries limited to discipline
Barrier to customer influence and satisfaction
Employee development opportunities limited
Project manager dependent on personal influence
Hierarchical decision and communication processes
Overwork technical issues versus build to standard
Fosters part-time roles
5TH.

63

Weak Matrix
Chief
Executive

Functional
Manager

Functional
Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Functional
Manager

(Gray boxes represent staff engaged in project activities

5TH.

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)

Project
Coordination

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Nov-13


Balanced Matrix
Chief
Executive

Functional
Manager

Functional
Manager

Functional
Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Project Manager


)

Project
Coordination

5TH.

65

Strong Matrix
Chief
Executive

Functional
Manager

Functional
Manager

Functional
Manager

Manager of
Project Managers

Staff

Staff

Staff

Project Manager

Staff

Staff

Staff

Project Manager

Staff

Staff

Staff

Project Manager

Staff


)

5TH.

٣٣

Project Coordination

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Nov-13


Projectized Organization
Project
Coordination

Project
Manager

Chief
Executive

Project
Manager

Project
Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff


)

5TH.

67

Projectized Organization
Discussion Question

• Based on your experience, what potential advantages and
disadvantage does this type of organizational approach
foster?

5TH.

٣٤

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Nov-13


Project-Based Organization
Potential Advantages

•
•
•
•
•
•
•
•
•

Strong project manager role
Full-time administrative staff
Clear accountability
Fosters co-location
Improved focus
Cost and performance tracking
Decision-making
Customer relationships
Common processes
5TH.

69

Project-Based Organization
Potential Issues

•
•
•
•
•
•

Lessening of employee’s “profession” identity
Reduced focus on technical competence
Leadership by the non-technically skilled
Focus on administrative work versus technical
Devaluing of functional managers
Process versus deliverable emphasis

5TH.

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Nov-13


Structure Influence on Projects

5TH.

71

Composite Organization
Chief
Executive

Functional
Manager

Functional
Manager

Functional
Manager

Manager of
Project Managers

Staff

Staff

Staff

Project Manager

Staff

Staff

Staff

Project Manager

Staff
Staff

Staff

Staff

Project Manager
Project A Coordination

Project B Coordination

)

5TH.

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Nov-13


Organizational structures & Project Manager
Many organizational structures include strategic, middle
management, and operational levels. The project manager may
interact with all three levels depending on factors such as:
- Strategic importance of the project,
- Capacity of stakeholders to exert
influence on the project,
- Degree of project management
maturity,
- Project management systems,
- Organizational communications.
5TH.

73

Organizational structures & Project Manager
This interaction determines project characteristics such as:
- Project manager’s level of authority,
- Resource availability and management,
- Entity controlling the project budget, Project manager’s role, and
- Project team composition.

5TH.

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Nov-13


Organizational Process Assets


They include any artifact, practice, or knowledge from any or all of the
organizations involved in the project that can be used to perform or govern the
project.



These process assets include formal and informal plans, processes, policies,
procedures, and knowledge bases, specific to and used by the performing
organization.



include the organization’s knowledge bases such as lessons learned and
historical information.



Organizational process assets may be grouped into two categories: (1)
processes and procedures, and (2) corporate knowledge base.

5TH.

75

Processes and Procedures


Initiating and Planning:

○ Guidelines and criteria for tailoring the organization’s set of standard
processes and procedures to satisfy the specific needs of the project;
○ Specific organizational standards
such as policies (e.g., human resources policies, health and safety policies, ethics
policies, and project management policies), product and project life cycles, and
quality policies and procedures (e.g., process audits, improvement targets,
checklists, and standardized process definitions for use in the organization);
○ Templates (e.g., risk register, work breakdown structure, project schedule
network diagram, and contract templates).

5TH.

٣٨

76


Nov-13




Executing, Monitoring and Controlling:
○ Change control procedures, including the steps by which performing organization
standards, policies, plans, and procedures or any project documents will be modified,
and how any changes will be approved and validated;

○ Financial controls procedures (e.g., time reporting, required expenditure and
disbursement reviews, accounting codes, and standard contract provisions);
○ Issue and defect management procedures defining issue and defect
controls, issue and defect identification and resolution, and action item tracking;

5TH.

77



Executing, Monitoring and Controlling:
○ Organizational communication requirements (e.g., specific communication technology
available, authorized communication media, record retention policies, and security
requirements);

○ Procedures for prioritizing, approving, and issuing work authorizations;
○ Risk control procedures, including risk categories, risk statement templates,
probability and impact definitions, and probability and impact matrix; and
○ Standardized guidelines, work instructions, proposal evaluation criteria, and
performance measurement criteria.

5TH.

٣٩

78


Nov-13




Closing:
○ Project closure guidelines or requirements
(e.g., lessons learned,
final project audits,
project evaluations,
product validations,
and acceptance criteria).

5TH.

79

Corporate Knowledge Base


The organizational knowledge base for storing and retrieving
information includes, but is not limited to:



Configuration management knowledge bases containing the
versions and baselines of all performing organization standards,
policies, procedures, and any project documents;



Financial databases containing information such as labor hours,
incurred costs, budgets, and any project cost overruns;



Historical information and lessons learned knowledge bases (e.g.,
project records and documents, all project closure information and
documentation, information regarding both the results of previous
project selection decisions and previous project performance
information, and information from risk management activities);
5TH.

٤٠

80


Nov-13


Corporate Knowledge Base


Issue and defect management databases containing issue and defect
status, control information, issue and defect resolution, and action item
results;



Process measurement databases used to collect and make available
measurement data on processes and products; and



Project files from previous projects (e.g., scope, cost, schedule, and
performance measurement baselines, project calendars, project schedule
network diagrams, risk registers, planned response actions, and defined
risk impact).

5TH.

81

Enterprise Environmental Factors


Enterprise environmental factors refer to conditions, not under the
control of the project team, that influence, constrain, or direct the
project.



Enterprise environmental factors are considered inputs to most
planning processes, may enhance or constrain project management
options, and may have a positive or negative influence on the outcome



Enterprise environmental factors vary widely in type or nature.

5TH.

٤١

82


Nov-13


* Enterprise environmental factors include, but are not limited to:


Organizational culture, structure, and governance;



Geographic distribution of facilities and resources;



Government or industry standards (e.g., regulatory agency regulations,
codes of conduct, product standards, quality standards, and
workmanship standards);



Infrastructure (e.g., existing facilities and capital equipment);



Existing human resources (e.g., skills, disciplines, and knowledge, such
as design, development, legal, contracting, and purchasing);



Personnel administration (e.g., staffing and retention guidelines,
employee performance reviews and training records, reward and
overtime policy, and time tracking);
5TH.

83

* Enterprise environmental factors include, but are not limited to:


Company work authorization systems;



Marketplace conditions;



Stakeholder risk tolerances;



Political climate;



Organization’s established communications channels;



Commercial databases (e.g., standardized cost estimating data,
industry risk study information, and risk databases); and



Project management information system (e.g., an automated tool,
such as a scheduling software tool, a configuration management
system, an information collection and distribution system, or web
interfaces to other online automated systems).
5TH.

٤٢

84


Nov-13


Project Stakeholders and Governance


A stakeholder is an individual, group, or organization who may affect,
be affected by, or perceive itself to be affected by a decision, activity, or
outcome of a project. Stakeholders may be actively involved in the
project or have interests that may be positively or negatively affected
by the performance or completion of the project.



Different stakeholders may have competing expectations that might
create conflicts within the project.

5TH.

85

Project Stakeholders
Project Life Cycle and Organization
Portfolio
Manager

Other
Stakeholders

Program
Manager
Project
Management
Office

Operations
Management

Sponsor

Project
Management
Team

Functional
Managers

Project Team
Project
Manager

Other
Project
Team
Members

Sellers/
Business
Partners
Customers/
Users

The Project

5TH.

٤٣

86


Nov-13



King Abdullah Sports City, Jeddah

5TH.

87

Project Governance


Project governance is an oversight function that is aligned with the
organization’s governance model and that encompasses the project life
cycle.



. Project governance framework provides the project manager and team with
structure, processes, decision-making models and tools for managing the
project, while supporting and controlling the project for successful delivery.

5TH.

٤٤

88


Nov-13


Project Governance


Strategic Alignment



Structured Authority Levels and decision making



Following Processes and Procedures



Communication standards, processes and procedures



Guidelines to align the project objectives with the strategic direction and targets



Processes for stage gate/phase reviews, project reviews, identifying lessons,
change and configuration control, decision making

5TH.

89

Organizations Governance


Establishing the strategic direction(s)



Designing and implementing organizational policies



Structuring systems, processes and procedures for consistent application



Setting up the required culture (desired behaviors and norms)



Communicating purpose, goals, expectations and actions (strategic planning >Business Plan)



Using these systems, processes and procedures, the project can contribute to
Business Value

5TH.

٤٥

90


Nov-13


Project Governance
Is
not

Part of

Organizations Governance

5TH.

91

Project team


Project teams include roles such as:



•Project management staff. This role may be performed or supported by a
project management office (PMO).



•Project staff. The members of the team who carry out the work of creating the
project deliverables.



•Supporting experts. Supporting experts perform activities required to develop
or execute the project management plan.



•user or customer representatives.

5TH.

٤٦

92


Nov-13


Project team


•Sellers. Sellers, also called vendors, suppliers, or contractors,. If the sellers bear
a large share of the risk for delivering the project’s results, they may play a
significant role on the project team.



•Business partner members. Members of business partners’ organizations may
be assigned as members of the project team to ensure proper coordination.



•Business partners: provide specialized expertise or fill a specified role such as
installation, customization, training, or support.

5TH.

93

Composition of Project teams


The composition of project teams varies based on factors such as organizational
culture, scope, and location.



The relationship between the project manager and the team varies depending on
the authority of the project manager.



Samples:



Dedicated: - All or a majority of the project team members are assigned to work
full-time on the project.

- The project team may be colocated or virtual and usually reports directly to the
project manager.
- This is the simplest structure for a project manager, as the lines of authority are
clear and team members can focus on the project’s objectives.
5TH.

٤٧

94


Nov-13




Part-time.
- Some projects are established as temporary additional work, with the project

manager and team members working on the project while remaining in their existing
organizations and continuing to carry out their normal functions.
- The functional managers maintain control over the team members and the
resources allocated to the project, and the project manager is likely to continue
performing other management duties (low authority).
- Part-time team members may also be assigned to more than one project at a
time.

5TH.

95



Dedicated and part-time project team compositions may exist in any of the
organizational structures.



Dedicated project teams are often seen in projectized organizations, where most of
the organization’s resources are involved in project work and project managers have
a great deal of independence and authority.



Part-time project teams are common within functional organizations, .



Matrix organizations use both dedicated and part-time project teams.



Other members who have limited involvement at various stages of a project can be
thought of as part-time project team members. (limited calendar)
5TH.

٤٨

96


Nov-13




Based on organizational structure. An example of this is a partnershipbased project to gain
some advantages.



These advantages may be offset by the project manager’s lower degree of control over team
members and the need for strong mechanisms for communication and monitoring progress.



Virtual teams rely on collaborative tools, such as shared online workspaces and video
conferences, to coordinate their activities and exchange information about the project.



A virtual team can exist with any type of organizational structure and team composition.



Virtual teams are necessary for projects where resources are located onsite or offsite or both



Accommodate differences in the culture, working hours, time zones, local conditions, and
languages.

5TH.

97

Project Life cycle
Starting
the
project

Project
Management
Outputs

Organizing and
preparing

Project
Charter

Carrying out the work

Project
Management Plan

Accepted
Deliverables

Time
5TH.

٤٩

Closing
the
project

Archived
Project
Documents
98


Nov-13


Project Life cycle
High

Risk and uncertainty

Cost of changes
Low

Project Time

5TH.

99

Project Phases and the Project Life Cycle
• A project life cycle is a collection of project phases that
defines
– what work will be performed in each phase
– what deliverables will be produced and when
– who is involved in each phase, and
– how management will control and approve work produced in
each phase

• A deliverable is a product or service produced or provided
as part of a project
100
5TH.

٥٠


Nov-13


More on Project Phases
• In early phases of a project life cycle
– resource needs are usually lowest
– the level of uncertainty (risk) is highest
– project stakeholders have the greatest opportunity to influence the project

• In middle phases of a project life cycle
– the certainty of completing a project improves
– more resources are needed

• The final phase of a project life cycle focuses on
– ensuring that project requirements were met
– the sponsor approves completion of the project

5TH.

101

Phases of the Traditional Project Life Cycle
One Approach to Managing the Installation of a Telecommunications Network
Monitoring and Controlling Processes

Initiating Processes

Planning Processes

Executing Processes

Closing Processes

Example of a Single-Phase Project
5TH.

٥١

102


Nov-13


Phases of the Traditional Project Life Cycle

5TH.

103

Phase-to-Phase relationships
One Approach to Cleaning Up a Hazardous Waste Site
Facility Decommissioning

Waste Removal/Cleanup


Initiating
Processes

Planning
Processes

Landscaping


Executing
Processes

Closing
Processes

Initiating
Processes

Planning
Processes

Executing
Processes


Closing
Processes

Initiating
Processes

Planning
Processes

Executing
Processes

Closing
Processes

Sequential relationship

Potential Approach to Building a New Factory
Design Phase

Initiating
Processes

Planning
Processes

Executing
Processes

Construction Phase
Closing
Processes
Initiating
Processes


Overlapping relationship
Planning
Processes

Executing
Processes

Closing
Processes

5TH.

٥٢

104


Nov-13


• projects can follow
– Predictive life cycle: the scope of the project can be clearly
articulated and the schedule and cost can be predicted
– Iterative (cyclic) e.g. research projects
– Adaptive life cycle: (Agile) (rapid cyclic 2-4 W) requirements
cannot be clearly expressed, projects are mission driven and
component based, using time-based cycles to meet target dates.

5TH.

105

Predictive Life Cycle Models
• Waterfall model: has well-defined, linear stages of systems
development and support
• Spiral model: shows that project is developed using an iterative or
spiral approach rather than a linear approach
• Incremental build model: provides for progressive development of the
project
• Prototyping model: used for developing prototypes to clarify user
requirements
• Rapid Application Development (RAD) model: used to produce
systems quickly without sacrificing quality

5TH.

٥٣

106


Nov-13


Waterfall and Spiral Life Cycle Models

5TH.

107

Adaptive life cycles (also known as
change-driven or agile methods)

5TH.

٥٤

108


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