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Introduction to Project, Program, and Portfolio Management,[object Object],*Some content in these slides may be copyrighted by Course Technology,[object Object]
Outline,[object Object],Understand the growing need for better project, program, and portfolio management,[object Object],What is a project? ,[object Object],What are some key terms and items to understand? ,[object Object],What about the Project Management Profession? ,[object Object],2,[object Object]
Introduction,[object Object],Many organizations today have a new or renewed interest in project management.,[object Object],The U.S. spends $2.3 trillion on projects every year, the world as a whole spends nearly $10 trillion of its $40.7 gross product on projects of all kinds.,[object Object],In many sectors, inadequate project management is a key problem. For example, the U.S. government spends over $70B on IT.  In 2008, OMB determined that 352 projects totaling $23.4B were poorly planned because of issues with cost schedule, performance, security, privacy, or acquisition strategy),[object Object],A 2004 PricewaterhouseCoopers study of 200 companies from 30 different countries found that over half of all projects fail.,[object Object],3,[object Object]
Advantages of Formal Project Management,[object Object],Better control of financial, physical, and human resources,[object Object],Improved customer relations,[object Object],Shorter development times,[object Object],Lower costs,[object Object],Higher quality and increased reliability,[object Object],Higher profit margins,[object Object],Improved productivity,[object Object],Better internal coordination,[object Object],Higher worker morale,[object Object],4,[object Object]
What Is a Project?,[object Object],A project is “a temporary endeavor undertaken to create a unique product, service, or result.”,[object Object],Operations is work done to sustain the business.,[object Object],Projects end when their objectives have been reached or the project has been terminated.,[object Object],Examples: ,[object Object],A college campus upgrades its technology infrastructure to provide wireless Internet access.,[object Object],A pharmaceutical company launches a new drug.,[object Object],A team of college students plan, design, and implement an IT system for a research center,[object Object],5,[object Object]
Project Attributes,[object Object],A project:,[object Object],Has a unique purpose.,[object Object],Is temporary.,[object Object],Is developed using progressive elaboration or in an iterative fashion.,[object Object],Requires resources, often from various areas.,[object Object],Should have a primary customer or sponsor.,[object Object],The project sponsor usually provides the direction and funding for the project.,[object Object],Involves uncertainty.,[object Object],Project managers work with the project sponsors, the project team, and the other people involved in a project to meet project goals.,[object Object],6,[object Object]
The Triple Constraint,[object Object],Every project is constrained in different ways by its:,[object Object],Scope: What work will be done as part of the project? What unique product, service, or result does the sponsor expect from the project?,[object Object],Time: How long should it take to complete the project? What is the project’s schedule?,[object Object],Cost: What should it cost to complete the project? What is the project’s budget?,[object Object],7,[object Object]
More on the Triple Constraint,[object Object],It may be good enough to hit the target, or range, of triple constraint goals, but not the bull’s-eye.,[object Object],It’s important to determine which aspects of the triple constraint are the most important.,[object Object],The “quadruple constraint” includes quality as well as scope, time, and cost.,[object Object],8,[object Object]
What is Project Management?,[object Object],Project management is “the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”*,[object Object],     *Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK® Guide, Third Edition) (2004), p. 8.,[object Object],9,[object Object]
Project Management Framework,[object Object],10,[object Object]
Project Stakeholders,[object Object],Stakeholders are the people involved in or affected by project activities.,[object Object],Stakeholders include:,[object Object],The project sponsor,[object Object],The project manager,[object Object],The project team,[object Object],Support staff,[object Object],Customers,[object Object],Suppliers,[object Object],Opponents to the project,[object Object],11,[object Object]
Project Management Knowledge Areas,[object Object],Four core knowledge areas lead to specific project objectives.,[object Object],Project scope managementinvolves defining and managing all the work required to complete the project successfully.,[object Object],Project time managementincludes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project.,[object Object],Project cost managementconsists of preparing and managing the budget for the project.,[object Object],Project quality managementensures that the project will satisfy the stated or implied needs for which it was undertaken.,[object Object],12,[object Object]
Project Management Knowledge Areas (continued),[object Object],Four facilitating knowledge areas are the means through which the project objectives are achieved. ,[object Object],Project human resource managementis concerned with making effective use of the people involved with the project.,[object Object],Project communications managementinvolves generating, collecting, disseminating, and storing project information.,[object Object],Project risk managementincludes identifying, analyzing, and responding to risks related to the project.,[object Object],Project procurement managementinvolves acquiring or procuring goods and services for a project from outside the performing organization.,[object Object],Project integration management affects and is affected by all of the other knowledge areas.,[object Object],13,[object Object]
Project Management Tools and Techniques,[object Object],Project management tools and techniques assist project managers and their teams in various aspects of project management.,[object Object],Specific tools and techniques include:,[object Object],Project charters, scope statements, and WBS (scope),[object Object],Gantt charts, network diagrams, critical path analyses (time),[object Object],Net present value, cost estimates, and earned value management (cost),[object Object],14,[object Object]
Common Project Management Tools and Techniques by Knowledge Areas,[object Object],15,[object Object]
Common Project Management Tools and Techniques by Knowledge Areas (continued),[object Object],16,[object Object]
What Went Right? Improved Project Performance*,[object Object],The Standish Group’s CHAOS studies show improvements in IT projects in the past decade,[object Object],*Jim Johnson, “CHAOS 2006 Research Project,” CHAOS Activity News, vol. 2: issue 1, (2007).,[object Object],17,[object Object]
Project Success?,[object Object],There are different ways to define project success:,[object Object],The project met scope, time, and cost goals.,[object Object],The project satisfied the customer/sponsor.,[object Object],The project produced the desired results.,[object Object],18,[object Object]
What is a Program?,[object Object],A program is:,[object Object],“a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.”*,[object Object],[object Object],    *Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK® Guide, Third Edition) (2004), p. 8.,[object Object],19,[object Object]
Project Portfolio Management,[object Object],Project portfolio management is an emerging business strategy in which organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise’s success.,[object Object],Project Management Compared to Project Portfolio Management,[object Object],20,[object Object]
The Project Management Profession,[object Object],Project, program, and portfolio managers need to develop specific skills.,[object Object],Certification is available for project managers.,[object Object],There are many software tools to assist in project, program, and portfolio management.,[object Object],Good knowledge and skills for a project manger? ,[object Object],All nine project management knowledge areas,[object Object],The application area, including specific standards and regulations,[object Object],The project environment,[object Object],General management,[object Object],Human relations,[object Object],21,[object Object]
Importance of Leadership Skills,[object Object],Effective project managers provide leadership by example.,[object Object],A leader focuses on long-term goals and big-picture objectives while inspiring people to reach those goals.,[object Object],A manager deals with the day-to-day details of meeting specific goals.,[object Object],Project managers often take on the role of both leader and manager.,[object Object],22,[object Object]
Ten Most Important Skills and Competencies for Project Managers*,[object Object],23,[object Object]
Different Skills Needed in Different Situations,[object Object],Large projects: leadership, relevant prior experience, planning, people skills, verbal communication, and team-building skills are most important,[object Object],High uncertainty projects: risk management, expectation management, leadership, people skills, and planning skills are most important,[object Object],Very novel projects: leadership, people skills, having vision and goals, self-confidence, expectations management, and listening skills are most important,[object Object],24,[object Object]
Additional Skills for Program and Portfolio Managers,[object Object],Program managers normally have experience as project managers. They often rely on their past experience, strong business knowledge, leadership capability, and communication skills to manage programs.,[object Object],Portfolio managers must have strong financial and analytical skills and understand how projects and programs can contribute to meeting strategic goals.,[object Object],25,[object Object]
Project Management Certification,[object Object],PMI provides certification as a Project Management Professional (PMP).,[object Object],A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam.,[object Object],The number of people earning PMP certification is increasing quickly.,[object Object],			Growth in PMP Certification, 1993-2006,[object Object],26,[object Object]
Ethics in Project Management,[object Object],Ethics — a set of principles that guide our decision making based on personal values of what is “right” and “wrong” — is an important part of all professions.,[object Object],Project managers often face ethical dilemmas.,[object Object],In order to earn PMP certification, applicants must agree to the PMP code of ethics and professional conduct.,[object Object],Several questions on the PMP exam are related to professional responsibility, including ethics.,[object Object],27,[object Object]

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