2013

IntroductiontoProject,Program
&PortfolioManagement

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Table of Contents
DEFINITIONOFAPROJECT............................................................................................................................2
DIFFERENCEBEWTEENOPERATIONSANDPROJECTS...................................................................................3
DEFINITIONOFPROJECTMANAGEMENT.....................................................................................................4
CumulativeEffectofFourApplicationAreas............................................................................................5
PROCESSGROUPS.........................................................................................................................................5
Initiation....................................................................................................................................................5
Planning....................................................................................................................................................5
Execution...................................................................................................................................................5
MonitoringandControl............................................................................................................................6
Closing.......................................................................................................................................................6
REQUIREMENTSOFMANAGINGPROJECTS..................................................................................................7
Identificationofrequirements..................................................................................................................7
Addressingstakeholdersissues...............................................................................................................7
Projectconstraints....................................................................................................................................7
RELATIONSHIPBETWEENCONSTRAINTS..................................................................................................8
CREATINGBALANCEBETWEENCONTRAINTS...........................................................................................8
PROGRAMMANAGEMENT...........................................................................................................................9
PORTFOLIOMANAGEMENT..........................................................................................................................9
PROJECT,PROGRAMANDPORTFOLIOMANAGEMENT..............................................................................10
FUNCTIONOFPORTFOLIOMANAGEMENT.............................................................................................10
FUNCTIONOFPROGRAMMANAGEMENT..............................................................................................11
FUNCTIONSOFPROJECTMANAGEMENT...............................................................................................11
OVERVIEWOFPROJECT,PROGRAMANDPORTFOLIOMANAGEMENT..................................................11
PROJECTMANAGEMENT....................................................................................................................11
PROGRAMMANAGEMENT.................................................................................................................12
PORTFOLIOMANAGEMENT................................................................................................................12
PROJECTMANAGEMENTOFFICE................................................................................................................13
BASICFUNCTIONSOFPROJECTMANAGEMENTOFFICE.........................................................................13
DifferencebetweenRoleofProgramManagementOfficeandProjectManager.................................14
RoleofaProjectManager..................................................................................................................14

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INTRODUCTION TO PROJECT
MANAGEMENT

SinceEarly1980sProjectManagementwasrecognizedasaprofessionandneedofdedicatedProject
Managerswasfelt.Nowaday,ProjectManagementisoneofthemostrapidlygrowingprofessionsin
theworldandthedemandforProjectManagersandProjectstaffisincreasingwitheverypassingday.
Thisissobecausethecomplexitiesandrisksoftheprojectsareincreasingandthestakesandmoney
involvedisgettinghigher.Tocaterfortherisksandtominimizethechancesoffailure,oneneedsbetter
trainedstafftohandlethesituationandmaketheprojectsuccessful.
TodayProjectManagementisavastfieldandithasbeendividedintoareasofspecializationlike
ConstructionProjectManagement,SoftwareProjectManagement,ResearchProjectManagementand
TelecommunicationProjectManagementetc.Thisissobecauseeveryfieldhasdifferenttechnicalities
andshouldbedealtdifferently.Forthebasicunderstanding,welldiscussthebasicsofProject
Management.

DEFINITION OF A PROJECT
Firstlywemustdefinewhataprojectisandhowitcanbedefined.Theprojecthasthefollowing
characteristics

ItisTemporary
Thismeansthatprojectsarenotapermanentfeature.Itdoesntmatterhowlongtheprojectis,it
hassomestartingdateandsomeendingdate.Itisimportanttomentionherethatitsfinishmustbe
specified;otherwiseitsnotaproject.

ItisUnique
Everyprojectisunique.Nomatterhowsimilaraprojectis,stillitisuniqueastheremustbesome
difference.Forexampletwosimilartowers(inshape)aretobeconstructedadjacenttoeachother.
Althoughitlookssimilarbutstilltheareaofconstructionisdifferent,plannedinhabitantsofthe
buildingaredifferentandsoon.

MusthaveaDeliverable
Alltheprojectsmusthaveadeliverable,meansthatitmusthaveatarget,objectivethathastobe
achieved.Thedeliverablecanbeaspecifiedproduct(thiscanbeapartofabiggerproject),aservice
oraresult.Theprojectisdeclaredclosedoncetheobjectivesoftheprojecthavebeenaccomplished
oritisfeltthatthedeliverablesoftheprojectarenomoreneeded.

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Someoftheexamplesoftheprojectsareasfollows
1. Constructionofanewbuilding(Aproduct)
2. Creating/changingaprocedure,process.(Service)
3. UndertakingOrganizationalchangewithrespecttoHumanResource.(Result)

DIFFERENCE BEWTEEN OPERATIONS AND PROJECTS

BroadlytherearetwomajordifferencesbetweenOperationsandProjects

1. Operationsareofpermanentfeatureandremainthereuntiltheyarechanged.Thechangein
theoperationswillbebroughtaboutbyaprojectandthenewprocedurewillbetheoutputof
thatproject.
2. TheseconddifferencebetweenOperationsandProjectisthatOperationsarerepetitivein
natureE.g.Processingofmilkisacontinuousactivityandisrepeatedwitheverybatchofmilk
thathasbeenprocessed.Ontheotherhand,aprojectisauniqueandonetimeactivityandhas
norepetitioninit.

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DEFINITION OF PROJECT MANAGEMENT

ThereisnospecificdefinitionofProjectManagement.DifferentauthorsandexpertsofProject
Managementhavedefineditdifferently.Forthesakeofunderstanding,itssimpledefinitionhasbeen
evolvedwhichisacceptedinternationally.ProjectManagementcanbedefinedastheapplicationof
tools,techniques,skillsandknowledgetoprojectactivities(Projectactivityissmallactivitiesthatwhen
combinedgivethedesiredresult),sothattherequirementsoftheprojectcanbemet.
ItisimportanttomentionherethatthebasicideaofProjectManagementistheapplicationandthe
applicationofanythingisinthehandsofanindividualorgroupofpeople.Thisisthereasonwhythe
ProjectManagementisdoneprimarilybytheProjectManagersortheProjectstaffandtheyarethekey
playersinmanagingaproject.AllthestuffonProjectManagementgivesguidelinestotheProjectStaff
butasthereisnospecificwaytohandleorexecuteaproject,attheendofthedayitistheProject
ManagerandStaffthathastohavethedecisionpowerandtheabilitytotakecorrectivedecisions.
Thereare4importantwordsthatshouldbelookedintotounderstandthedefinitionofProject
Management.Thefourwordstheirexplanationisasfollows
Tools
TherearedifferenttoolsdevelopedtohelpProjectManagers/StafftouseandmakeProject
Managementeasier.Theyaregenericandallprojectsneedthesetools.ForexamplePERT,Ganttcharts,
MicrosoftProjectManagement,Primaveraetc.
Techniques
TherearedifferenttechniquesthattheProjectManager/Staffshouldhavetomanageprojectsmore
effectivelyandefficiently.ForexampleRiskAnalyzingtechniques,ConflictManagementtechniquesetc.
Techniquesrequiredforacomplexprojectofeachfield/areawillbedifferent.Thatiswhynowfield
specificProjectManagersarerequiredbycompanies/firmsasthisisaspecializedfieldnow.
Skills
Asmentionedabove, differentskillsarerequiredfortheProjectManagersandstafftomanagethe
projectandmakeitsuccessful.Theskillsrequiredagainvarywiththeprojecttypeandprojectfield.For
instanceskillsrequiredtomanagearesearchprojectaredifferentfrommanagingaconstruction
project.Forexamplecommunicationskills,planningskills,managingpeopleskills.
Knowledge
Theprojectmanagerandstaffshouldhaveknowledgeofthespecificfieldandprojectmanagement.For
exampletechnicalknowledge,organizationalknowledge,stakeholderknowledgeetc.

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Cumulative Effect of Four Application Areas

Allthesefourapplicationareashaveaspecificorder.TheknowledgethattheProjectstaffhasisrefined
bytheskillsthattheyhaveandenhancesthechancesofasuccessfulproject.Byhavingbetterskillsthe
applicationoftheknowledgewillgetbetter.Theskillscanfurtherberefinedandcausebetterproject
managementbyapplyingdifferenttechniquestoit.Theapplicationofeffectiveandhandytechniques
supportstheskills.Finally,byapplyingtoolsforprojectmanagement,techniquescanbemademore
effectiveandthatallcumulativelyresultsinbetterprojectmanagement.Thisiswhy,applicationof
theseareasarethepillarsofProjectManagement.

PROCESS GROUPS
Forsimplicityofunderstanding,projectmanagementhasbeendividedintofivedifferentstagescalled
processgroups.Thesefivestagesarefurtherdividedintofortytwocategorieslogicallyintegrated
knownasprojectmanagementprocesses.Againitisemphasizedthatitisnotnecessarytoexactly
followtheseprojectmanagementprocessgroupsandprocesses,thesearejustfortheguidanceofthe
projectmanagerandstaff.Thefiveprocessgroupsareasfollows

Initiation
Initiationstagementionsthepurposeoftheprojectanditsfeasibility.Allthestakeholders(Allthe
peoplewhoareinvolvedintheprojecteitherdirectlyorindirectly)areidentifiedandjudgedwhether
theprojectisneededandisviableornot.Forexampleviabilityofconstructionofafivestarhotelin
remotehillyareaandalsohowtostakeholderissueswillbeaddressedandsettledetc.

Planning
Intheplanningphase,alltheplansfortheimplementationoftheprojectareidentifiedandallthe
StandardOperatingProcedures(SOPs)aredefined.ThisisthemostimportantphaseandalltheSOPs
doesandDontsoftheprojectaredefinedduringtheplanningphase.Forexamplefinancialplan,
executionplan,timelinesoftheprojectetc.

Execution
Executionisthegenerallythemostlengthyportionoftheproject.Inthisphysicalworkontheprojectis
doneandisgenerallyverycomplex.Mostofthecostoftheprojectisspentonthisportionofthe
project.Themajorityoftheproblemsisfacedduringthisstage.Forexampleconstructionofabuilding,
developingacodeofthesoftwareetc.

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Monitoring and Control

MonitoringandControlgoesparallelwiththeExecution.Itisacheckonwhethertheexecutionisbeing
doneaccordingtotheplanandthespecifications.Generallyforbigprojects,thereisaseparate
MonitoringandControldepartmentwhichregularlychecksaspertheSOPdifferentparametersofthe
projectbeingexecutedwhichincludesbutisnotlimitedtothecost,timeandqualityoftheexecuted
portionoftheproject.Forexampleonestoreyofthebuildinghasbeencompletedoutoffive.The
monitoringandcontrollingteamwillcheckitscostincurredagainstplannedcost,timetakenagainst
plannedtimeandalsothequalityoftheworkdone.

Closing
Whentheexecutionoftheprojectiscompleted,theclosingphasestarts.Inthisphasealltheremaining
issueslikepayments,stockentriesandobservationsduringexecutionaresettled.Onceallthe
parametersoftheprojectarecompleteanddatafromallthedepartmentsisgatheredandcompiled,
reportsoncompletionoftheprojectaregenerated,theprojectisdeclaredclosedandthisistheendof
theproject.Else,ifitisfeltatanystageoftheprojectthattheprojectisnomoreviableorneeded,then
theprojectcanbeclosedinmidwaywithoutgettingthedesireddeliverablesfromtheproject.

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REQUIREMENTS OF MANAGING PROJECTS

Followingaretheverybasicrequirementsformanagingprojectssuccessfully

Identification of requirements
Themostimportantthingforasuccessfulprojectistoidentifytherequirementsofthetarget
population.Iftherequirementsofthetargetpopulationarenotmet,thentheprojectismostlikelyto
fail.Thisneedsextensiveresearchandanalysisbecausethisisoneofthemostcrucialstageofthe
project.Forexamplebeforelaunchingofthestudiosorsingleroomflats,itshouldbeanalyzedand
identifiedthatwhetherthetargetpopulationprefersstudiosorsingleroomapartments.Thewrong
decisioncancausetheprojecttofailortobelesseffectiveandprofitable.

Addressing stakeholders issues

Identifyingandaddressingtheissues,needsandexpectationsofthestakeholdersareextremely
important.Failingtoaddresstheissuesofevenasinglestakeholdercancausetheprojecttofailand
delayed.Forexample,theeffecteesofManglaDamraisingprojectswerenotsettledinatimelymanner,
duetothistheprojectgotdelayedbywholeoneyearandthewatercouldnotbestoredinthedamas
planned.Similarlyneedsshouldbeaddressediftheneedsofyourprojectmanagerarenotfulfilled,the
projectcanbenegativelyaffectedoriftheproductisnotaccordingtotheexpectationsofthe
consumer,chancesoffailureoftheprojectgetveryhigh.

Project constraints
Inaprojecttherearedifferentconstraintswhicharetobemanagedeffectivelytomaketheproject
successful.Followingaresomeofthemajorprojectconstraints

Scope

Whatistheperipheryoftheprojectanditdefineswhatisincludedintheproject.Duetootherfactors,
thescopebecomesaconstraintwhichhastobemanagedproperly.

Quality

Itdefinesthequalityofthedeliverableoftheproject.Onecannotgivebestqualityeverytimedueto
variousreasonse.g.Budgetissues,humanresourceissues.Therefore,onehastosettleforacertain
levelofqualityandthatshouldnotbecompromised.

Schedule

Itdefinesthescheduleortimelinesoftasksandsubtasksoftheproject.Aseveryprojecthaslimited
time,thereforeitisaconstraintthatneedstobemanaged.

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Budget/Resources

Astherearelimitedbudgetandresourcesinthehandsoftheprojectmanagerandstaff,thereforeits
managementisveryimportant.

Risks

Everyprojecthasdifferentrisksassociatedwithit.Therisksaretobeidentifiedandmitigatedtomake
theprojectsuccessful.Assomerisksareverydifficulttomitigateorareveryexpensive,risksshouldbe
analyzedandmanagedaccordingly.

RELATIONSHIP BETWEEN CONSTRAINTS

Itisveryimportanttonoteandisalsoveryvisiblethatallconstraintsareinterconnectedandifone
changesatleastoneoftheconstraintschanges.Forexample,ifIchangethebudgetoftheproject,then
alltheotherconstraintsincludingscope,quality,scheduleandrisksmightchange.Withchangesinthe
qualityofthedeliverableagainalltheconstraintsmightgetchanged.

CREATING BALANCE BETWEEN CONTRAINTS

Itisveryimportanttocreateabalance.Onemustidentifywhataretheresourcesatdisposalandwhat
minimumquality,scopeandtimeisrequiredtomaketheprojectsuccessful.Therearealways
compromisesthatonehastomakeduringtheprojectandonemustkeeptheprojectflexibleenough
thatifsomeconstrainthastobechanged,theprojectcanstillbecontrolledandmadesuccessful.
Therefore,attheplanningstagealltheseconstraintsshouldbelookedintoverydeeplybecauseallthe
projections,planningcangowrongifoneoftheconstraintgoesout.

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PROGRAM MANAGEMENT

Theprogramcanbedefinedasthegroupofinterrelatedprojectstogetbenefitcollectively.Allthese
interrelatedprojectsmayormaynotbemanagedseparatelybutatacertainstagetheyarejoinedand
managedasasingleentity.Thisisdoneforbettermanagementandtoachievestrategicgoalsofthe
organization.ThemanagementofaprogramiscalledasProgramManagement.Alltheprojectscan
havetheirseparateprojectmanagerandstaff,separatesetofresourcesandseparatedeliverables.But
thedeliverableofaparticularprojectwillnotbeofsignificanceuntilitislinkedtotheotherrelated
projects.Forexample,thereisaprogramtoconstructacarmanufacturingfacility.Theprogramis
subdividedintothreeprojectsnamelyAssemblylineconstruction,Bodyshopconstructionandpaint
shopconstruction.Ifalltheprojectsarecomplete,onlythenacarcanbemanufactured,completionof
anyoftheprojectsaloneoranytwoprojectswillnotbeofsignificance.Formanagingmultipleprojects,
programsareidentifiedandaProgramManagerisgenerallytheheadofProgramManagement.

PORTFOLIO MANAGEMENT

Theportfoliocanbedefinedasthecollectionofprojectsandprogramsandotherrelatedworkandare
groupedtogetherforthesakeofbettermanagementandtomeetstrategicobjectivesofthe
organization.Theprojectsandtheprogramsgroupedtogethermayormaynotbeinterdependentor
related.Portfolioscanbefurtherdividedintosubportfolios,programsandprojects.Forexamplethere
isacompanywhosemainobjectiveistomaximizeitsprofitabilityandisinvolvedininfrastructure
developmentbusiness.Itmayinvestinanyoftheinfrastructureareaslikedevelopmentofroads,power
houses,waterreservoirs,seaportsoilandgasetc.Thisbecomestheportfolioofthecompany.Nowitis
atthediscretionofthecompanythatitmayjoininterrelatedprojectslikewaterreservoirdevelopment
andpowergenerationprojectsandmakeaprogramorallthepowerprojectscanbejoinedtomakea
powerfulprogram.
Itisalsoimportanttomentionherethatoftherelationshipisbasedonlyonsharingofclients,selleror
technologyetc,theeffortthen,shouldbemanagedandtreatedasaportfolioratherthanaprogram.
Alsobothprogramandportfoliomanagementminimizestheexternalandinternalrisksofprojectsas
resourcescanbeshared.

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PROJECT, PROGRAM AND PORTFOLIO MANAGEMENT

Project,ProgramandPortfoliomanagementisnotjustthesame.ItisnotlikethattheProgramand
Portfoliocanbeimaginedjustlikeabiggerorahugeproject.Thedynamicsofallthethreearedifferent
fromeachotherandeachonehastobelookedseparatelyanddistinguishedfromeachotherto
understandandmanageeffectivelyandsuccessfully.
TheProgramandPortfolioManagementisseeninrelativelymatureandwellestablishedorganizations.
Onlythoseorganizationswhichhavewelldefinedsystemsforprojectmanagementcanhaveandadapt
totheProgramandPortfolioManagementasifonedoesnthavethebasicsright,gettingintocomplex
issuesisnotadvisable.ThequantumoftheorganizationtohaveProgramandPortfolioManagement
shouldbebig.ItisveryimportanttodrawlinesanddecideifProgramsandPortfoliosaretobecreated
ornot.Isthefunctionoftheorganizationbiganddiverseenoughtocreateprogramsandportfoliosis
oneofthemostimportantdecisions.
Generallyiftheorganizationisbigenoughtohaveaportfolioorevenmultipleportfolios,itisatthat
levelthattheportfoliomanagersalongwiththeheadoftheorganizationtakesthestrategicdecisions.
Decisionsthatdeterminetheactionplanoftheorganization.Basedonthestrategicobjectivesandgoals
oftheorganization,theprogramsandprojectscanbedetermined.
Itisimportanttomentionthattherolesofallthreemanagementaredifferentandtheirfunctionsare
elaboratedbelow

FUNCTION OF PORTFOLIO MANAGEMENT

Followingaretheguidelinesthattrickledowntothelevelofprogramsandprojectsfromportfolio
managers

1. Strategiesandpriorityareasaredefinedandcommunicated.
2. Duringthecourseofimplementation,thestrategiesandprioritiesarefurtherelaboratedonthe
lowerlevel.
3. Thegoverningmethodologyoftheorganizationiscommunication
4. Takedecisionsonchangesthatarerequestedfromprogramsandprojectsduringthecourseof
projectsandprograms
5. Communicatetheimpactsifanyduetothechangesmadeinoneprojectorprogramtoother
projectsorprograms.

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FUNCTION OF PROGRAM MANAGEMENT

ProgramManagersaremanagingthingsthemselvesandareacommunicationchannelbetweenthe
projectmanagersandportfoliomanagers.Althoughthisisnottheonlychannelofcommunication
available(tobediscussedlater)butmostofthetimeisbeingusedbymanagers.Generallythefunctions
performedbyProgramManagersareasfollows

1. Collectingperformancereportsfromprojectsandsubmittingperformancereportsofprograms
andprojectstoportfoliomanagers.
2. Analyzingrequestsofchangesinprojectsorprogramsandsubmittingittotheportfolio
managers.

FUNCTIONS OF PROJECT MANAGEMENT

ProjectManagersaregenerallythepeoplewhoareatthebaseoftheeventsandaretheprovidersof
thefirsthandinformation.Theirfunctionsareasfollows
1. Collectandanalyzereports.
2. Communicateinformationtoprogrammanagementandmakesurethattheinformationis
correct
3. Identifythechangesthatarerequiredintheprojectbygivingreasonsanditsexpectedoutcome
oftheproject.

OVERVIEW OF PROJECT, PROGRAM AND PORTFOLIO MANAGEMENT

NowtomakeitmoreclearletusdefinewhatarethebasicdifferencesinProject,ProgramandPortfolio
managementbyhavingacomparisonofthesethreewithrespecttodifferentparameters.

PROJECT MANAGEMENT
Scope:Asdefinedearlier,projectshaveclearlydefineddeliverablesandobjectives.Thescopeofthe
projectisconstantlyexplainedindetailduringthecourseoftheproject.
Change:Asthisistheimplementationphase,changesintheprojectsarebeingconstantlylookedatas
thecircumstancesarealwayschanging.
Planning:ProjectManagershavetocontinuouslymakeadjustmentsandchangesinplanningwith
changingsituation
Management:ProjectManagerhastheprojectteamathisdisposaltomanageandmaketheproject
successful.

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Success:Itssuccesscanbemeasuredquantitativelymostofthetimee.g.bytimelines,budgetofthe
project,qualityetc.Itssuccesscanbedeterminedassoonastheprojectends.
Monitoring:ProjectManagersconsistentlymonitorthequalityoftheworkdoneandqualityofthe
product,resultorservicewhateveristhedeliverableoftheproject.

PROGRAM MANAGEMENT

Scope:programshaveabroaderperspectiveandresultinmoreimportantbenefitsascomparedto
projectmanagement
Change:ProgramManagerhastoconsiderboththeinternalandtheexternalchangesthatcanaffect
theprogram.
Planning:ProgramManagersdomoredetailedplanningkeepinginviewtheexternalfactorsandcreate
highlevelplansfortheportfoliomanagerstotakestrategicdecisions.
Management:ProgramManagershavetomanagetheprogramstaffaswellastheprojectmanagersof
therelatedprojectsoftheprogram
Success:Itisnotasquantifiableastheprojectsuccesscanbeaccessed.However,itisdeterminedby
theextenttowhichithasachieveditsobjectivesandhasbenefitedtheorganization.Inmostofthe
casesitisonthehighermanagementhowtoevaluatethesuccessofaprogram.Itmaytakesometime
dependingontheprogramtogetthebenefitsfromaprogram.
Monitoring:ProgramManagersmonitorthedifferentcomponentsoftheprogramandmonitortheir
progresswithrespecttocost,scope,goaletc.

PORTFOLIO MANAGEMENT
Scope:Portfolioshaveabusinesslevelscopewhichisattachedtothestrategicgoalsoftheorganization.
Change:PortfolioManagersalsohavetolookforthechangestakingplacefromallaspects
Planning:PortfolioManagerscreateallnecessaryprocessestokeeptheportfoliointact.Communication
oftheplanningtolowerlevelsisalsoveryimportant.
Management:PortfolioManagersmanageandcoordinatewiththeportfoliostaffaswellasprogram
andprojectmanagers
Success:Measuringofsuccesslikeoftheprogramdependsonhighermanagementandisaccessedby
thecumulativeperformanceofallrelatedprogramsandprojects.Thebenefitsoftheportfoliocanbe
longtermandcanbeaccessedoveralongerperiodoftime.
Monitoring:Portfoliomanagersmonitorthecumulativeperformanceofprogramsandprojects,give
importancetotheindicatorsratherthangoingdeepintotheprogramsandprojects.

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PROJECT MANAGEMENT OFFICE

Asexplainedearlier,thereisnotonlyonecommunicationchannelbetweentheprojectmanagers/staff
andportfoliomanagerandeventhetopmanoftheorganization.Thechannelofcommunicationisthe
projectmanagementofficethatisgenerallyapartoftheofficeoftheManagingDirectororChief
ExecutiveOfficeroftheorganization.
Theprojectmanagementofficeisanentitythatisresponsibleforcoordinatedandcentralizedeffortto
manageprojectsfallinginitsdomaininabettermanner.Theprojectmanagementofficegenerally
functionsasperthedirectionsoftheChiefExecutiveOfficeroftheorganization.Itsresponsibilitiescan
justbetomonitorandcollectdatafromprojects,summarizeitfortheChiefExecutiveOfficerorto
directlymonitorandmanageaproject.
ItisalsoatthedisposaloftheChiefExecutiveOfficerwhethertodeclaretheProjectManagementOffice
astakeholderintheprojectornot.Whethertogiveitrightstoadministeraprojectandbeinvolvedin
theplanningandapprovingphaseoftheproject.ProjectManagementOfficecanalsobemadetojudge
theallocationofsharedresourcesofdifferentprojectsgoingonsimultaneously.Bythisthereisacentral
bodythathasthelistofallthesharedresourcesandcanbeabetterjudgetoallocateresourcesandset
priorities.

BASIC FUNCTIONS OF PROJECT MANAGEMENT OFFICE

ThebasicjoboftheProjectManagementOfficeistosupporttheprojectmanagersanditcandothisin
differentwayswhichmayincludebutarenotlimitedto
1. Tomanagethesharedresourcesamongstdifferentprojectsandplayitsroleasamoderate
betweendifferentprojects.Itsdecisionshouldbetreatedasfinal.Thiscandecreasethe
conflictsbetweenprojectmanagersandresultinbettermanagementofresources.Asthe
ProjectManagementOfficeisapartoftheChiefExecutiveOfficersofficeandareconstantlyin
touchwiththeCEOandthePortfolioManagers,thereforetheyareinabetterpositiontoset
theprioritybetweentheprojects.
2. Toidentifybestpractices,giveguidelinesandStandardOperatingProcedurestoproject
managersandmostimportantlydevelopmethodologyforprojectmanagementwhichisinline
withthestrategicgoalsandobjectivesoftheorganization.
3. TomonitortheprogressoftheprojectanddeterminetheadherencetotheStandardOperating
ProceduresandbestpracticesdescribedbytheProjectManagementOffice.Thiscanbedoneby
keepingincontactwiththeprojectmanagers,collectingandanalyzingdataandmost
importantlybyundertakingprojectaudits.
4. Tomaintainingprojectdata,alldocumentationandanalyzingreportsandmakesummariesfor
theChiefExecutiveOfficerorfortheSteeringcommitteetotakedecisions.
5. Mostimportantofallistokeepallcommunicationchannelsactivewithallprojectmanagersso
thatalltheinformationcanbeforwardedtoprojectmanagementandrequiredinformationcan
becollected.
6. Tokeeptheprojectmanagersupdatedabouttheexternalandinternalchangestakingplacethat
canaffecttheproject.

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Difference between Role of Program Management Office and Project Manager

ItisveryimportanttodistinguishbetweentheroleofProjectManagementOfficeandProjectManager.
AlthoughtheroleoftheProjectmanagementofficedependsupontheinstructionsoftheChief
ExecutiveOfficer,theremustnotbeanyoverlappingareasofresponsibilityofProjectManagement
OfficeandProjectManagerbecauseoverlappingcancauseconfusionamongsttheprojectmanagerand
programmanagementofficeandalsotheprojectmanagercanfeellesspowerfulandhandicapped.
Followingaresomeofthegenericdifferencesbetweenprojectmanagementofficeandprojectmanager
1. Thefocusoftheprojectmanagershouldbeonachievingtheobjectivesofthespecificproject
whereastheroleoftheprojectmanagementofficeistomanagethechangesinprogramand
portfoliomanagementandalsotoprotecttheobjectivesoftheorganizationandplan
accordingly.
2. Theresourcesoftheprojectarebeingcontrolledandmanagedbytheprojectmanagerwhereas
theprojectmanagementofficecontrolsandmanagesthesharedresourcesoftheprojects
3. Constraintsoftheprojects(time,scope,costetc.)arecontrolledandmanagedbyaproject
managerwhereastheprojectmanagementofficecontrolsandmanagesthestandardoperating
procedures,risks,methodologiesofdifferentprojects.

Role of a Project Manager

Itisnotdifficulttoaccessthatthemostimportantmanintheprojectteamistheprojectmanagerand
alltheresponsibilityoftheprojectfailureorsuccesslieswiththeprojectmanager.Aprojectmanageris
apersonwhoisdeputedbythehighermanagementtoachievetheprojectobjectivesingivenresources.
Theroleoftheprojectmanageristotallydifferentandalotmorechallengingthanafunctionaloran
operationsmanagerasprojectmanagementisafarmoredynamicfield.
Dependingontheorganizationalstructureoftheorganization,theprojectmanagereitherreportstothe
functionalmanager(iftheprojectisbeingcarriedoutalongwithoperations)orhereportstothe
programorportfoliomanager(incaseswheretheprojectisapartofbiggerstrategicgoalsofthe
organizationandwhereoperationsarenotrunningalongsidetheproject).

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Tobeasuccessfulprojectmanager,theapplicationofknowledge,skills,toolsandtechniquesisnot
sufficientsometimes.Somemorequalitiesandabilitiesareneededbytheprojectmanagertobe
successfulwhichareasfollows:
Knowledge:Thattheprojectmanagerhastheknowledgeaboutprojectmanagementandthespecific
area/fieldinwhichtheprojectisbeingdone.
Performance:Itpointstowardstheefficiencyandeffectivenessoftheprojectmanagerthatwhetherhe
isabletoapplyhisknowledgeandskillstogetbetterresultsandmakethebenefitsoftheprojectsmore
prominentandmoreeffective.
Personal:Thisreferstowardsthebehaviorandattitudeoftheprojectmanagerwhichincludeshis
leadershipqualities,thequalityofdecisionsmadespeciallyunderintenseandpressuresituations.The
abilitytotaketheprojectteamoutofthetroubleandtoguidethemtodothejobmoreefficientlyand
effectively.

January10,2013

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