Project Management Context

Introduction
Organisational Context

Lecturer: Abraham Muza

[Chartered Quantity Surveyor (Fellow) & Project Manager]
BSc(QS) Edin, MSc (PM) Syd, MZIPM, MAPMZ, AAIPM, MZIQS, RQS, FRICS
 Abraham Muza

KEY PROFESSIONAL MEMBERSHIP

Director at Promanint International ( QS and Project Management Consultants)
Fellow of The Royal Institute of Chartered Surveyors (UK)
Past President of The Zimbabwe Institute Of Quantity Surveyors,
Current Chairman of The Education Committee ZIQS
Board Member: AAQS Education Committee
 THE LECTURER
 + 20 years industrial experience
 Projects include airport, hotels,
shopping malls, universities and
colleges, offices, residential, industrial
buildings etc.
 + 15 years as a lecturer
 Taught PM, QS and MBA Courses at
several universities
Administration
 Course overview
 Outcomes

 Assessments

 Approach
 Overview of Lecture
 Introduction
 Administration
 Project Management Definitions
 History of Project Management
 Nature of projects
• Organisational Context
• Strategic Planning
• Systems
• Cultures
• Structures
• Project management Maturity
 Case study –class exercise
Project Management Definitions

 Definitions
 Project Management
 Project, Program, Portfolio

 Features
 Projects vrs Operations
What is project management
 The application of knowledge, skills, tools and
techniques to project activities to meet
project requirements’.

 Simply put, project management is a

formalised and structured approach to
managing projects.
 Project
 A human endeavor which creates change , is limited in time
and scope, has mixed goals and objectives, involves a
variety of resources and is unique

 A complex effort to achieve a specific objective, within a

schedule and budget target which typically cuts across
organizational lines, is unique and is usually not repetitive
within the organizations

 A one-time unique endeavor by people to do something

that has not been done that way before
 Scope of work to deliver a unique product to a particular
quality with the constraint of cost and time
 A temporary endeavor undertaken to create a unique
product or service
 WHY PROJECT MANAGEMENT?

• Weak vision: IBM (1990’s) and General Motors (2000s) failed to respond
to new technology
• Failed execution: HP and Apple (1980s) failed to realise benefits of
their innovative vision
• Failed business case: Iridium satellites orbiting the earth lost to more
cost effective cellular networks
• Failed implementation: Heathrow Terminal 5 in 2008, lost bags for days
• Complexity: Channel Tunnel: Delayed by years and over budget
200 Financiers.
• Definition of success: Concorde in the 60s and Sydney Opera
Hse were over budget and delays
• Risk management: London’s Millenium bridge (1990s) closed after
opening – wind sways
• Local examples: Zimpost, Banks and ecocash, cinema houses, Camera
versus Phones
COMPETENCIES OF A HIGH PERFORMING PM
Research by Australian Institute of Project Management

EXPERIENCE

ATTITUDE

TRAINING
 Nature of Projects
Method
Water Air
Clarity
Eg. Product Devt Eg. Organisational/Cultural
No
Change

Earth Fire
Eg. Construction/ Eg. Information Systems
Yes
Engineering

Yes No
Goal Clarity
 Projects vs Operations
 Projects  Operations
 Unique &Novel  Repetitive
 Ongoing
 Finite &Temporary
 Evolutionary change
 Revolutionary

change  Stable resources

 Transient resources  Stable processes

 Flexible processes  Security &

 Risk and uncertainty

experience
History of Project Management
 Non scientific PM eg great wonders, Noah’s
arc, Great Pyramids
 Scientific PM started around WWII
 Initially Construction and Defence oriented
 Now across all walks of life & profession eg
medicine, education, IT etc
 Most organisational goals are achieved
through projects
 Why project management
 Clarify and agreement to goals, required
resources, accountability for project
performance and achievement
 public sector, private sector etc

 In a rapidly changing environment with

diverse issues and challenges
 Logical, consistent approach
 Portfolio
What is a portfolio?
 A portfolio is a collection of projects and / or programs
and other work grouped together to facilitate effective
management of that work to meet strategic business
objectives.

What is portfolio management?

 Portfolio management is the selection and management
of all of an organisation’s projects, programs and related
business-as-usual activities taking into account resource
constraints. Portfolios can be managed at an
organisational, program or functional level.
 Programs
What is program
 A program is a group of related projects,
managed in a coordinated way to obtain benefits
and control not available from managing them
individually

What is program management?

 Program management is the centralised
coordinated management of a program of
projects to achieve strategic objectives and
benefits
 Organisational Context
 PM is a vital component of many organisations
 Organisational characteristics impact projects:
 Strategic Plans – actioned through projects
 Systems – may or may not be conducive eg
Financial systems
 Cultures – reflected in project organisation
 Structure – may or may not be a constrain on
projects
Functional Organizations
Functional Organization of Projects
 Advantages  Disadvantages
 No Structural Change  Lack of Focus
 Flexibility  Poor Integration
 In-Depth Expertise  Slow
 Easy Post-Project  Lack of
Transition Ownership
Project Management
Structures (cont’d)
 Dedicated Teams within functional Org
 Teams operate as separate units under the
leadership of a full-time project manager.
 In a projectized organization where
projects are the dominant form of business,
functional departments are responsible for
providing support for its teams.
Dedicated Project Team
 Project Organization:
Dedicated Team
 Advantages  Disadvantages
 Simple  Expensive

 Fast  Internal Strife

 Cohesive  Limited
Technological
 Cross-Functional Expertise
Integration  Difficult Post-Project
Transition
Project Organizational Structure
 Project Management
Structures (cont’d)
 Matrix Structure
 Hybrid organizational structure (matrix) is overlaid
on the normal functional structure.
 Two chains of command (functional and project)
 Project participants report simultaneously to both

functional and project managers.

 Matrix structure optimizes the use of resources.
 Allows for participation on multiple projects while
performing normal functional duties.
 Achieves a greater integration of expertise and project

requirements.
Matrix Organization Structure
 Maturity Levels
Organizational maturity levels in project management.

Levels of Project Management Maturity

Level 5: Optimizing

Level 4: Managed

Level 3: Defined

Level 2: Repeatable

Level 1: Initial
 Level 1 – Initial
•Project management is Informal
•Programs and projects are recognised
•Project/Program/Portfolio characteristics:
•informal list of investments in programs
and projects
•no formal tracking
•no reporting process.
 Level 2 – Repeatable
• Minimum Standards are used

 Program and/or project in portfolio have:

 own processes and procedures to a minimum specified
standard

 limited consistency

 limited portfolio coordination

Level 3– Defined
There is Central control

 Centrally controlled program and project

processes
 Scalable
 Portfolio management process
 Level 4– Managed
There are metrics and capacity assessment

 Obtain and retain specific management

metrics on whole portfolio of programs and
projects as a means of predicting future
performance

 Assess capacity to manage programs and

projects and prioritise them accordingly
Level 5 – Optimised
There is Continuous Improvement

 Proactive problem and technology

management for the portfolio in order to
better depict performance over time and
optimise processes
Class Exercise 1
 Looking at the way your company is set
up, how does the organisational
structure influence projects?

 What are the advantages and

disadvantages of the position of the
Projects Coordinator –in your
organisation?
Reading
 Dinsmore, Paul C. Winning in Business With
Enterprise Project Management. AMACOM,
December 1998
 Kerzner, Harold, PhD. Strategic Planning for
Project Management. John Wiley & Sons, January
2001.
 Airedale Group. Handbook for Strategic
Planning. Forbes, December 1996.
 Kotter, John P. Leading Change. Harvard Business
School Press, 1996.
 PMI Standards Committee. A Guide to the Project
Management Body of Knowledge. PMI. 2004
 Project Management Institute (PMI). OPM3. See
www.pmi.org.