Project Management for

Entrepreneurs
Mihai PASCADI
mihai.pascadi@avantera.ro
start C1-C2

2
 Project Management for
Entrepreneurs
The application of
• knowledge,
• skills,
• tools, and
• techniques
to project activities to meet project requirements.

PMBOK® Guide (2021)

 Project Management for
Entrepreneurs
The application of Project management refers to guiding the project work to
• knowledge, deliver the intended outcomes.
• skills,
• tools, and Project teams can achieve the outcomes using a broad
• techniques range of approaches (e.g., predictive, hybrid, and adaptive).
to project activities to meet project requirements.

PMBOK® Guide (2021)

 Project Management for
Entrepreneurs
entrepreneurship
/ɒntrəprəˈnəːʃɪp/

Noun

the activity of
• setting up a business or businesses,
• taking on financial risks in the hope of profit.
"the new business opportunities have encouraged https://languages.oup.com/google-dictionary-en/
entrepreneurship on a grand scale"
 PROJECT MANAGEMENT PERFORMANCE FACTORS
A 2017 study suggested that the success of any project depends on how well four key aspects are aligned with the contextual dynamics affecting the
project, these are referred to as the four P's:[20]

• Plan: The planning and forecasting activities.

• Process: The overall approach to all activities and project governance.
• People: Including dynamics of how they collaborate and communicate.
• Power: Lines of authority, decision-makers, organograms, policies for implementation and the like.

There are a number of approaches to organizing and completing project activities, including:
• phased,
• lean,
• iterative, and
• incremental.
• There are also several extensions to project planning, for example based on outcomes (product-based) or activities (process-based).

Regardless of the methodology employed, careful consideration must be given to the overall project objectives, timeline, and cost, as well as the
roles and responsibilities of all participants and stakeholders.

https://en.wikipedia.org/wiki/Project_management#History
 Project management: the origins

• Until 1900, civil engineering projects were generally managed by creative architects,
engineers, and master builders themselves, for example,
• Vitruvius (first century BC),
• Christopher Wren (1632–1723),
• Thomas Telford (1757–1834) and
• Isambard Kingdom Brunel (1806–1859).[7]

• In the 1950s organizations started to systematically apply project-management tools and

techniques to complex engineering projects.[8]

https://en.wikipedia.org/wiki/Project_management#History
 Project management: the origins
• As a discipline, project management developed from several fields of
application including
• civil construction,
• engineering, and
• heavy defense activity.[9]

• Two forefathers of project management are

• Henry Gantt, called the father of planning and control techniques,[10] who is famous for
his use of the Gantt chart as a project management tool (alternatively Harmonogram first
proposed by Karol Adamiecki[11]); and
• Henri Fayol for his creation of the five management functions that form the foundation of
the body of knowledge associated with project and program management.[12]
• Both Gantt and Fayol were students of Frederick Winslow Taylor's theories of scientific
management. His work is the forerunner to modern project management tools including
work breakdown structure (WBS) and resource allocation.

https://en.wikipedia.org/wiki/Project_management#History
 Project management: the origins
• The 1950s marked the beginning of the modern project management era where core engineering fields come together to
work as one.

• Project management became recognized as a distinct discipline arising from the management discipline with engineering
model.

• In the United States, prior to the 1950s, projects were managed on an ad-hoc basis, using mostly Gantt charts and informal
techniques and tools. At that time, two mathematical project-scheduling models were developed.

• The "critical path method" (CPM) was developed as a joint venture between DuPont Corporation and Remington Rand
Corporation for managing plant maintenance projects.

• The "program evaluation and review technique" (PERT), was developed by the U.S. Navy Special Projects Office in
conjunction with the Lockheed Corporation and Booz Allen Hamilton as part of the Polaris missile submarine program.

https://en.wikipedia.org/wiki/Project_management#History
Project Management: decades of evolution
• Since 1987, The Standard for Project Management has represented a process-
based standard.

• The Standard for Project Management included in the PMBOK® Guide aligned the
• project management discipline and function around a collection of business processes.

• Those business processes enabled consistent and predictable practices:

• That could be documented;
• Through which performance against the processes could be assessed; and
• Through which improvements to the process could be made to
• maximize efficiency and
• minimize threats.

PMBOK® Guide (2021)

Entrepreneurs:
Make investments in order to Setting up a business is a PROJECT

• Set up businesses that deliver

• (sometimes) Newly developed products / services

Developing a new product / service is a

PROJECT
Key terms and concepts
ORGANIZATION
An organization, or organisation, is an entity – such as a company, an institution, or an association –
comprising one or more people and having a particular purpose.

The word is derived from the Greek word organon, which means tool or instrument, musical
Instrument, and organ.
https://en.wikipedia.org/wiki/Organization
 Key terms and concepts1
• Outcome. An end result or consequence of a process or project. Outcomes can include outputs and
artifacts, but have a broader intent by focusing on the benefits and value that the project was undertaken
to deliver.
• Portfolio. Projects, programs, subsidiary portfolios, and operations managed as a group to achieve
strategic objectives.
• Product. An artifact that is produced, is quantifiable, and can be either an end item in itself or a
component item.
• Program. Related projects, subsidiary programs, and program activities that are managed in a coordinated
manner to obtain benefits not available from managing them individually.

1The Standard for Project Management Seventh Edition ANSI/PMI 99-001-2021 - PMBOK® Guide (2021).
 Key terms and concepts1
• Project. A temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects
indicates a beginning and an end to the project work or a phase of the project work. Projects can stand alone or be part of
a program or portfolio.

• Project management. The application of knowledge, skills, tools, and techniques to project activities to meet project
requirements. Project management refers to guiding the project work to deliver the intended outcomes. Project teams can
achieve the outcomes using a broad range of approaches (e.g., predictive, hybrid, and adaptive).

• Project manager. The person assigned by the performing organization to lead the project team that is responsible for
achieving the project objectives. Project managers perform a variety of functions, such as facilitating the project team
work to achieve the outcomes and managing the processes to deliver intended outcomes. Additional functions are
identified in Section 2.3.

• Project team. A set of individuals performing the work of the project to achieve its objectives.
1The Standard for Project Management Seventh Edition ANSI/PMI 99-001-2021 - PMBOK® Guide (2021).
 Key terms and concepts1
• System for value delivery. A collection of strategic business activities aimed at
• building,
• sustaining, and/or
• advancing an organization.

• Portfolios,
• programs,
• projects,
• products, and
• operations
can all be part of an organization’s system for value delivery.

• Value. The worth, importance, or usefulness of something. Different stakeholders perceive value in different ways.
• Customers can define value as the ability to use specific features or functions of a product.
• Organizations can focus on business value as determined with financial metrics, such as the benefits less the cost of achieving those benefits.
• Societal value can include the contribution to groups of people, communities, or the environment.

1The Standard for Project Management Seventh Edition ANSI/PMI 99-001-2021 - PMBOK® Guide (2021).
BUSINESS ORGANIZATIONS
are complex, heterogeneous objects
Organizations: The two faces of the medal
Organizations: The two faces of the medal
An organization is a complex object with heterogeneous components. This is why organizations are difficult to run. Overall
you may consider them as being a complex aggregate of their STRATEGY, their OPERATIONS and last but not least PEOPLE
(organizational culture and motivation). We may metaphorically represent these concepts on the two faces of a medal.
Quiz The first face is showing the Strategy and Culture/Motivation related concepts.
subject Market- Each organization is given birth and then operates within a specific environment (including markets for companies). It is
Environment within this environment that the organization: interacts with its stakeholders, understands the overall situation, identifies
present and future needs and considers contributing to building the future.
Vision Vision (for organizations) as a concept may be encountered with slightly different meanings. The organization builds a
desirable image of it's future, based on the understanding of the existing opportunities and risks within the environment it
acts and it's strengths and weaknesses. Vision must be developed by leaders, shared and supported to the entire
organization, comprehensive and detailed and positive and inspiring. The Vision is the destination the organization wants
to reach in the future.
Mission The Mission is stating about HOW the organization will get to achieve its Vision. What needs to be done today in order to
achieve tomorrow's Vision.
Lines of business / The Mission is detailed by Lines of business / activity. The high level goals established through the Mission are being
activity + detailed by each line of business and activity into more detailed objectives. The detailing of the objectives is as well
objectives. refined on the time scale from a medium or long term to an annual basis and on the activity scale from lines of business to
each process' level.
System of There are two factors that manage organizations. One factor is the System of Interests. When you establish clear
Interests relationships between the organizational objectives, individual objectives and responsibilities and the reward and
recognition mechanisms, you have established a System of Interests. This way, organizational, group and individual
interests are aligned and everyone pulls in the same direction.
Lines of authority The lines of authority define the subordination relationships between organizational units.
Management Management styles range anywhere in between autocratic to consensual. Management styles may significantly influence
the organizational climate in a negative / positive manner.
Collaboration An important component of the organizational culture / climate and as well performance factor is the way people work
together. From formal to informal and spontaneous support, collaboration is key to the organization's success.
Communication Proper, correct, comprehensive, clear, concise, well addressed and open communication is another key success factor for
any organization.
Knowledge Organizations create, take in, use, re-use, store, and retire-destroy knowledge. Knowledge is a highly valuable resource
that requires specific knowledge management techniques.
Attitude Organizational behavior is determined by people's attitude. Adequate management, collaboration and communication are
all based on people's attitude.
Values Values are part of the organization's strategy and are the second factor that manages organizations (in addition to the
system of interests). Values determine people's attitude and behavior and protect organizations from making major
strategic and operational mistakes.
 Organizations: The two faces of the medal
Flipping the coin shows us the operations & resources related concepts.
Functions Functions produce results, deliverables. They may be seen as black boxes that take inputs and produce outputs
needed / desired either internally by the organization or externally by the organization's customers.
Processes- When we open the functional black-boxes, we see inside activities organized into processes or projects that produce
Projects results (output). It is activities that generate, by consuming-using resources, the added value of the organization's
results.
Positions (Roles) The processes' and projects' activities are performed by or with the contribution of agents (human resources).
Working units Based on different criteria (such as common technical knowledge or common contribution to producing results),
human resources are grouped into organizational units (working units).
Financial, Activities add value by consuming-using financial, material, infrastructure, relational, image and information
Material, resources. The adequate level of resources is esential to effective and efficient operations.
Infrastructure,
Relations, Image
and Information
resources.

Quiz
subject
Organizations: some clarifications – Vision vs
Mission About
Mission Statement Vision Statement
A Mission statement talks about HOW you will A Vision statement outlines WHERE you want to
get to where you want to be. Defines the be. Communicates both the purpose and values
purpose and primary objectives related to of your business.
your customer needs and team values.
Answer It answers the question, “What do we do? It answers the question, “Where do we aim to
What makes us different?” be?”
Time A mission statement talks about the present A vision statement talks about your future.
leading to its future.
Function It lists the broad goals for which the It lists where you see yourself some years from
organization is formed. Its prime function is now. It inspires you to give your best. It shapes
internal; to define the key measure or your understanding of why you are working here.
measures of the organization's success and its
prime audience is the leadership, team and
stockholders.
Change Your mission statement may change, but it As your organization evolves, you might feel
should still tie back to your core values, tempted to change your vision. However, mission
customer needs and vision. or vision statements explain your organization's
foundation, so change should be kept to a
minimum.
Developing a What do we do today? For whom do we do it? Where do we want to be going forward? When
statement What is the benefit? In other words, Why we do we want to reach that stage? How do we want
do what we do? What, For Whom and Why? to do it?

Quiz Features of an Purpose and values of the organization: Who Clarity and lack of ambiguity: Describing a bright
effective are the organization's primary "clients" future (hope); Memorable and engaging
subject statement (stakeholders)? What are the responsibilities expression; realistic aspirations, achievable;
of the organization towards the clients? alignment with organizational values and culture.

https://www.diffen.com/difference/Mission_Statement_vs_Vision_Statement
Organizations: some clarifications – Vision vs Values
Joel, I like That’s a good
what you’re question.
Someone the only
saying about
once told me: things that
Vision, but
“When you will get you
what about
live during through are
Values?
tough times your
such as Values…”
today,

I believe we After all,

could regard this without Values
matter Values, we protect us
otherwise: could create from making
Values help us to a Vision that such
measure the is immoral or mistakes
correctness of unethical.
our direction.

Vision must be:

Only Vision Leader
provides us Initiated,
But Values,
with a Shared and
even though
Direction. It is supported,
essential for
the role of Comprehensiv
having a
Vision to e and detailed,
Vision, do
Quiz not provide determine our
destination.
Positive and
inspiring.
us direction.
subject
BUSINESS ORGANIZATIONS
seen as a SYSTEM for Value Delivery
The Organization seen as a System for Value Delivery
System

The System as a whole can

interact with other external
systems (organizations,
technological, financial,
economic, social, etc.
FUNCTION
systems), receiving inputs and
A system is a set of producing outputs from/to
components that fulfill them during their interactions.
functions and interact one
with each other.
FUNCTION FUNCTION
Input Output

A function is in its turn a subsystem that

A project is a set of interacting
processes that usually produce a
specific/unique/one-time result.
takes inputs and produces outputs. It‘s the
answer to the question “What is being
done?”. If we open the function box and
ask ourselves “How is it being done?” we
will find out that the function is being
fulfilled by the execution of processes and
projects.
Quiz

24
 The Organization seen as a
1Sistem
Management Functions
System Quiz

P
C
a o
r m
2 Main Value Chain
31 Input a
m 32 Output
Functions m Functions
e a
t n
e
r
d
s s

Inputs Outputs
C
o
m
m
a
n

Services
d
s
4 Support Functions

25
 The Organization seen as a System Quiz
The Management Functions read
parameters regarding the System’s status,
performance and progress, make
decisions and issue commands aligned to
the decisions made.

The Organization The Organization

seen as a System seen as a System
between Inputs and between Inputs and
Outputs. Outputs.

The Main Value Chain contains the

functions that fulfill the
Organization’s Mission (that
represent the reason for which the
organization was created).

The Support Functions receive service

requests / commands and provide internal
services to the other internal functions.

26
An Organization’s Functional Map = Operations (Processes) + Programs/Projects
1 Management
11 Organizational Planning 12 Process, Program and 13 Human Resources
and Development Project Management Management
(Strategic Management) (Operations Management)

2 Lanțul principal al valorii

31 Input 21 32 Output
MVC 211 Research, 212 Product 213
Development, Management Production
Mgmt
Methodology Capacity Mgmt
321
311 Marketing
Purchas
ing
322 Sales
22 Business
Lines 221 22n Service n
Production 1
323 Customer
312
Contract
Supply
Mgmt
Chain/
Contract
324
Mgmt 23 Direct
231 232 231 Other Partnerships
Services for , SRM
Maintenance Production DSP
Production Utilities Mgmt

4 Support
41 Indirect
Quiz
42 Budget, Finance 43 IT System and 44 Internal General
Productive and Accounting Knowledge Services
Infrastructure Mgmt Management

27
An Organization’s Functional Map = Operations (Processes) + Programs/Projects
Let’s detail one
function

Quiz

28
Each Organizational Function may be Detailed in Sub-functions Quiz

13 Human Resources Management

131 Career Management: 133 Compensations and 135 Employee Information
5 Benefits Management: Management:
5 4

13 Management Resurse
134 Employee Training and 136 Employee Time
132 Employee Performance Umane:
Development Management :
Management 5 2
3

137 Internal Communication 138 Employee Safety and

139 Personnel Authorisation :
Management : Security Services :
1
1 1

29
 Quiz
The Sub-functions are fulfilled by processes

Recruting and Orientation Promotion

Hiring

131 Career Management:

131 Management carieră:
5
5 processes
Internal / Retiring
External
Transfer

As a conclusion, the Organization’s

functions are fulfilled by groups of
processes (and sub-functions by
processes)

30
 Organizational Process Quiz
An activity or group of activities which
•Take an input,
When the process’
•Add value to that input by consuming resources and result differs from
•Transfers it to Output toward an the result
• internal or external customer of the organization established by its
objective, the quality
Obiectivele
loop is activated.
Procesului
(Performanta
Planificata)

supports
Compararea
Analiza si is predecessor of
Performantei
Decizie de
Realizate cu cea
corectie
Proces Planificata

Quality Loop
Furnizor is predecessor of
is predecessor of

Masurarea
has output of Performantei
Realizate

is input for

Livrabil partial
(Intrare)
is input for
Activitate cu
valoare adaugata
is predecessor of
Activitate cu
valoare adaugata
is predecessor of
Activitate cu
valoare adaugata
is predecessor of
Activitate cu
valoare adaugata
has output of
Livrabil
(Iesire)
Process explained
is input for

Optimizing and increasing the results’ quality is Proces

based on the Quality Loop. Client

31
 Organizational Process Quiz
An activity or group of activities which
•Take an input,
•Add value to that input by consuming resources and
•Transfers it to Output toward an
• internal or external customer of the organization

Optimizing and increasing the results’ performance is Obiectivele

Procesului
(Performanta

based on the Anticipative Management Loop. Planificata)

supports
Compararea
Corrective
Analiza si / is predecessor of Performance
Performantei
Decizie de
Preventive RealizateActual
comp. cu cea
corectie
Proces Action vs planned
Planificata
Furnizor is predecessor of
is predecessor of

Performance
Masurarea
has output of
measurement
Performantei
Realizate
When the process’
is input for
anticipated result
Livrabil partial
is input for Value- cu
Activitate
is predecessor of Value- cu
Activitate
is predecessor of Value- cu
Activitate
is predecessor of Value- cu
Activitate
has output of
Livrabil differs from the
added added added added
result established by
(Intrare) valoare adaugata valoare adaugata valoare adaugata valoare adaugata (Iesire)
Activity Activity Activity Activity
its objective, the
Management
Anticipative

is input for

anticipative
Intermediary Results/ Loop Anticipative management loop is
Performance Outcome action
activated.
Proces
Measurement Prediction Client

32
 Performance management Quiz

Performance Management
represents the ensemble of
processes (activities) that
Organization’s Objectives are establish and insure the
fulfilled through the Organization’s fulfillment of the objectives of
Processes Execution an organization.

(Function) Process Group Level

Objectives are linked through
mathematical formulae to the
Process Level Objectives
Organizational
unit level
objectives
Process Level Objectives are
linked through mathematical Individual level
formulae to the process instance
objectives. (e.g. the Select and
Objectives
hire process objective (actually its
performance indicator) could be
the average performance of all the A process instance is a specific
Select and hire process execution case of a process.
instances).
33
 An Organization’s Functional Map = The General Process Architecture
This Processes Group fulfills
the Strategic Management
Function for the organization.
The organizations Vison and
Mission, it’s Values, the
Strategic and Annual
Planning processes, the
Strategic Program and
Projects definition, the
Functional and Process
Architecture definition,
process design and re-
engineering,, internal
regulatory documents
development.
This Processes Group fulfills the Operations
management function: short and long term
Planning, progress and performance
monitoring (processes and results),
reporting, audit, corrective and preventive
actions, quality management, environment
management, risk and opportunity
management, emergency situations
management, organizational security
management (physical, IT), etc.
Quiz
This Processes Group fulfills the Human
Resources Management function: Career
management, Employee Performance
Management, Compensations and Benefits
Management, Employee training and
development, Employee information
management, Organizational Health, Safety
and Security management, Internal
communication management, Personnel
authorization.
34
Purchase Management for
• internal consumption (in manyAn Organization’s Functional Map = The General Process Architecture
cases separated from purchases
for)
• production-integration-resale.
Processes are differentiated also
based on the purchase value in order
to use competition leverage between
suppliers.
Supply Chain Management supposes the
periodic
• analysis and qualification of the supply
markets, periodic
• suppliers assessment,
• Supply Contracts / Delivery management
(products, services and mixed) .
In this figure, only a
part of the marketing
The Sales Function provides the
functions are provided
sales/collaboration/contract lead
by the functional
identification and qualification thus the
group 321 (only
increase of business volume. The
market identification
customer approach is being done by
and analysis,
customer segments according to a
respectively
personalized market model defined by the
Marketing Function and depending on Promotion and
each segment’s specific needs. Usually, communication).
these processes cover the activities Product management
performed from the lead identification to (implicitly price
customer’s order or the Customer management) is
contract signature. managed within
functional group 212
(Product
Customer relationship management Management).
supposes the management of the
contractual (and non-contractual)
relationships, following up deliveries /
service execution / works executed, the Quiz
development and extension of such
relationships in the future, customer Stakeholder Relationship Management includes: managing
satisfaction assessment, customer communication and mutual services delivery with the
confidence in the organization as a shareholders, citizens and the community, partners, local and
supplier, customer financial, economic and central authorities, actual and potential investors, competition,
risk situation assessment, etc. other companies that are not suppliers or customers, professional
or activity branch associations, etc. – anyone could have an
interest related to the organization and its activity.
35
 An Organization’s Functional Map = The General Process Architecture
Quiz

Budget management (centralizing and

planning balancing, financial execution
monitoring), cash flow management,
accounting, fiscal compliance
management a.o..

Indirectly Productive General internal

Infrastructure Management services include
supposes the development, IT system management supposes: system functions that have
maintenance and development, continuous availability not been classified
retirement/sales of the used management, functionality management otherwise (but not
assets not used directly into and system administration, user less important) such
production (administrative assistance services. as: Legal (internal
buildings, car fleet – if the legal consulting and
company’s main activity is not litigation
transportation, internal roads management),
and logistics facilities such as registrar and
warehouses, any other archiving, secretarial
resources needed by the services, etc.
company but not used directly in
the production processes).

36
 An Organization’s Functional Map = The General Process Architecture
Quiz

Function 211 includes the innovation-

research and development (of new
product, services, technologies, etc.)
as well as those of modeling and
documenting the innovation.

Product and services management includes

the necessary processes during their entire
lifecycle; product development, product
validation, price management, product launch,
periodic assessment and adjustment, product
Production capacity management includes the processes that
retirement.
provide the directly productive infrastructure: production lines,
transport, technological, logistic, etc. capacities, during their entire
lifecycle, from adopting a new technology up to its retirement /
reuse / recycling / sale.

37
 An Organization’s Functional Map = The General Process Architecture
Quiz

Sometimes the activity needs utilities that

could be internally and/or externally provided
(electricity, thermal energy, chemical
substances delivered through pipes, etc.). The
processes ensure their availability in the
necessary volumes.

When the organization uses its

directly productive infrastructure, it
also has to maintain it. The
maintenance processes can be
reactive (incident triggered) or Other services delivered for production
preventive (periodic, planned purposes, storage, internal transport, etc., that
maintenance) and may suppose are specific to the company’s activity.
activities with volumes from very
small up to very high (e.g. capital
repairs).

38
 An Organization’s Functional Map = The General Process Architecture
Quiz

Here are listed the actual business

lines of the organization: production,
service delivery, warranty and other
after-sales services (for products), etc.

39
 An Organization’s Functional Map = The General Process Architecture
Quiz

Cost Centers

Cost Cost Centers Cost

Centers Centers

Profit Centers

Cost Centers

Cost Centers

40
How do these two concepts fit toghether ?
 Quiz How do these two concepts fit toghether ?
subject
 Standardized processes for specific
domains

• City Hall – 323 processes (APQC)

• Generic company: 300 processes
PCF models for different industries – as provided by APQC
•Accounting •Entertainment
•Public Relations
•Advertising •Environmental •Pulp and Paper

•Aerospace •Financial Services/Banking •Railroads

•Agriculture •Food/Beverage/Restaurant •Real Estate

•Airline •Forestry Products •Rental

•Research Organization
•Amusement/Recreation Services •Furniture
•Restaurant
•Appliances •Government/Military
•Retail/Catalog/Mail Order
•Architecture and Design •Healthcare
•Rubber & Plastics
•Association •Hospitality
•Security Systems
•Automotive •Instrumentation •Semiconductors
•Biotechnology •Insurance •Soaps/Detergents/Perfumes

•Broadcasting/Radio/TV/Cable/Media •Legal Services •Software

•Chemicals •Logistics •Steel

•Stone/Glass/Clay/Concrete
•Computers •Machinery
•Telecommunication
•Construction •Machinery Equipment
•Textile
•Consumer Products/Packaged Goods •Marketing
•Tobacco
•Cosmetics •Medical Equipment
•Transportation/Freight Carriers
•Data Management •Metals
•Warehousing
•Distribution •Mining •Waste Management/Environmental
•Durable Goods •Non-Profit •Wholesale Distribution

•Education (Higher Education) •Petroleum/Oil/Gas •Wine & Spirits

•Education (K-12) •Pharmaceutical

•Electronics •Pipelines

•Energy and Utility •Printing & Publishing

•Engineering •Professional Services/Business Services

APQC – standardized processes for many business
areas
PROJECTS’ PLACE IN THE VALUE
DELIVERY SYSTEM
CREATING VALUE
• Projects exist within a larger system, such as a governmental agency,
organization, or contractual arrangement. For the sake of brevity, we will use the
term organization when referring to enterprises, contractual arrangements, joint
ventures, and other arrangements.
• Organizations create value for stakeholders.
• Examples of ways that projects produce value include, but are not limited to:
• Creating a new product, service, or result that meets the needs of customers or end users;
• Creating positive social or environmental contributions;
• Improving efficiency, productivity, effectiveness, or responsiveness;
• Enabling the changes needed to facilitate organizational transition to its desired future state;
and
• Sustaining benefits enabled by previous programs, projects, or business operations.

PMBOK® Guide (2021)

 An Organization’s Functional Map = The General Process Architecture Quiz

Projects /
programs are
managed by
this function. EXTERNAL
BENEFFICIARIES

The project
Team may include INTERNAL BENEFFICIARIES
internal and
external
Projects /
contributors programs
generate Results
and Outcomes for
(having as
BENEFICIARIES)
any internal
functions and any
external entity
Example of a system for Value Delivery
The Value delivery
system includes:
• Operations =
internal, regular
processes
• Porfolios
• Programs
• Projects
INFORMATION FLOWS (ex)
are detailed into pass deliverables with
Strategy Programs and projects support
that should produce and maintenance
desired outcomes, information
develops defines benefits, and value on to Operations
Programs
Senior
Portfolios and Operations
Leadership
Projects

Portfolio performance Provide feedback Provide feedback

Information Performance information Information for updates,
and progress fixes, and adjustments
 ORGANIZATIONAL GOVERNANCE SYSTEMS Quiz

The OGSs are

concentrated
mainly here
ORGANIZATIONAL GOVERNANCE SYSTEMS
• The governance system works alongside the value delivery system to enable
• smooth workflows (process execution),
• manage issues, and
• support decision making.

• Governance systems provide a framework with functions and processes that guide activities.

• A governance framework can include elements of

• oversight,
• control,
• value assessment,
• integration among components, and
• decision-making capabilities.

• Governance systems provide an integrated structure for evaluating

• changes,
• issues, and
• risks
associated with the environment and any component in the value delivery system.
• This includes portfolio objectives, program benefits, and deliverables produced by projects.
ORGANIZATIONAL GOVERNANCE SYSTEMS

• Projects can operate within a program or portfolio or as a stand-alone activity.

• In some organizations, a project management office might support programs and

projects within a portfolio. Project governance includes defining the authority to
• approve changes and
• make other business decisions related to the project.

• Project governance is aligned with program and/or organizational governance.

WHO IS DOING WHAT IN A PROJECT ?
Functions in/associated with PROJECTS
PEOPLE & FUNCTIONS
• People drive project delivery
• Functions fulfilled by one or several people in a group
• Coordination – very important
• Types of coordination:
• Decentralized vs Centralized
• Self-organizing, self-managing vs strict hierarchical coordination

• Successful outcomes:
• Supportive leadership and
• Engagement
THE FUNCTIONS ASSOCIATED WITH PROJECTS
• PROVIDE OVERSIGHT AND COORDINATION
• PRESENT OBJECTIVES AND FEEDBACK
• FACILITATE AND SUPPORT
• PERFORM WORK AND CONTRIBUTE INSIGHTS
• APPLY EXPERTISE
• PROVIDE BUSINESS DIRECTION AND INSIGHT
• PROVIDE RESOURCES AND DIRECTION
• MAINTAIN GOVERNANCE
EO C1-C2

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