Project Management, BM-MBA: 2019-21 (Section 4 and 5)

Instructor: Professor W S William

Summary of Session-1and 2

Introduction and Overview of Project Management

Roles and Responsibilities of Project Manager

Very often organizations use project management to accomplish unique outcomes with limited resources
and constrained timeline. Projects are vital means of economic growth. This session addresses
fundamental concepts of project management and discusses broad overview of this field.

Definitions:

Projects are unique, transient endeavours undertaken to achieve a desired outcome.

Association for Project Management (UK)

A project is a temporary endeavor undertaken to create a unique product, service or result.

Project Management Institute (USA)

A unique set of coordinated activities, with definite starting and finishing points, undertaken by an
individual or organization to meet specific performance objectives within defined schedule, cost and
performance parameters.
British Standard 6079, 2000

A management environment that is created for the purpose of delivering one or more business products
according to a specified business case. And: A temporary organization that is needed to produce a unique
and predefined outcome or result at a given time using predetermined resources.
PRINCE 2 2009 (Projects IN Controlled Environments – UK Govt)

A project refers to a value creation undertaking based on a specific mission, which is completed in a given
or agreed timeframe and under constraints, including resources and external circumstances.
Project Management Association of Japan, 2005

Range of projects:

1. Physical: Example (Building a bridge or factory)

2. Mixed (systems and people): Example (New computer hardware and software systems)
3. Non-physical (behavioural): Example (Managerial training)

Definition of Programme:

A collection of interdependent projects managed in a coordinated manner that together will provide the
desired business outcomes.

Project Life Cycles

Most projects follow similar stages from initiation to termination. These stages are known as project life
cycle. The life cycle recognizes that projects have limited life span. Moreover, level of efforts changes over
life cycle of the project.

The ability to influence cost is highest in early phases and declines in later phases. Thus, a careful analysis
in the early phase holds the key to create maximum value at the lowest possible cost as shown in the
diagramme below:

Source: Handbook of Project Management by Kerzner

Managing Stakeholders

Stakeholders are any individual or group with an interest in the project process or outcome. The key
challenges for a project manager is to balance the expectations of diverse group of stakeholders. Initial
challenge for the project manager is to identify key stakeholders. The next step is to understand the
impact of stakeholders on the project and the project on the stakeholders. In all projects there are five
obvious stakeholders:

1. Sponsor
2. Customer
3. Project Manager
4. Functional Manager
5. Project Team Member
One popular way of balancing the stakeholders’ expectations is to understand influence of a stakeholder
vs the interest of that stakeholder for the project. This is called Power-Influence Stakeholder Map which
is shown below:

Project Management Office

Project office is used to assist in several aspects of managing project by organization which regularly
undertake large-scale projects. This office acts as a central facility to provide skills and knowledge to run
a project. One of the key tasks of this office is to train staff in project processes and to facilitate adoption
of best practices. Thus, main role of the PMO are

1. Project Monitoring and Control

2. Development of Project Management Capabilities
3. Multi-project Management
4. Organizational Learning

Knowledge Areas according to PMI (Project Management Institute, USA), PMBOK: 6th Edition

1) Project Integration Management

2) Project Scope Management
3) Project Schedule Management (earlier Ed: Time Management)
4) Project Cost Management
5) Project Quality Management
6) Project Resource management (earlier Ed: HRM)
7) Project Communication Management
8) Risk Management
9) Project Procurement Management
10) Stakeholder Management
Project Management Skills

1. Technical skills
2. Leadership skills
3. Resource management and HR skills
4. Communication skills
5. Negotiating skills
6. Marketing, contracting and customer relationship skills
7. Budgeting skills
8. Scheduling and time management skills