PROJECT MANAGMENT

Project = building, for example, the Eiffel Tower

Design is unconstrained, multi-disciplinary and execution-oriented, applicable to the purpose of agreed
deliverables within the final specified requirements and constraints
Each private project is made by:

• Final product (scope)

• Implementation time (deadlines), costs (budget)
• Quality (project completion)
• Resources (capital, human, technological, information)
Projects are also a field of knowledge
1. Initial phase - military projects (1940s)
2. Instrumental development - civilian projects, administration of methods and techniques (still
ongoing, focused on tools, currently on applications, 1960s))
3. Organizational and personal development - accessibility and organizational solutions (how people
and organizations develop)
4. Situational development (situational management, e.g. agile

Management history (where does it come from?)

At the beginning of the 20th century in connection with production management, main factories,
production lines

Can you make good use of it?

1. Communication
Good a communication:

− A common language
− We know cellular communication
− Community of purpose
− When we listen to the other person with understanding
2. Customer need
3. Teamwork (mutual benefits)

DESIGN => repeatable, routine, safe, predictable

PROCESS (complete opposite => unique, not routine, dangerous, unpredictable)
Procedures rules => Standardization of processes, a specific model, and repeatability of activities are
important (if I find the optimal method of production, I will describe it and repeat it).
Process projects
I have to make projects in a repeatable way, we choose works of options that are compatible with each
other
Project highlights:
✓ Uniqueness, unusualness – the product differs in important respects from similar products or has
no equivalents
✓ Constraints – resources, time, budget
✓ Uniqueness – often related to the unique context of work (business or human)
✓ Temporality – the project has a specific implementation time, i.e. a beginning and an end
✓ Teamwork – requires the involvement of people with extensive knowledge and skills

Product life cycle:

The chart has 2 axes (vertical - sales and profit and horizontal - time)
1. Creation (design phase)
2. Introduction (initiation phase)
3. Growth
4. Maturity
5. Decline
The project phase is a period of creating sequences within the project and clearly separating it from other
periods.
Milestones are a specific event in the project (duration 0), where one of the three key decisions regarding
the project implementation is made - we move to the next phase, repeat a given stage of the project
implementation, or discontinue the project.

As part of the initiation, the scope of work to be performed in the project and the division of
responsibilities should be defined
The difference between a project and a process is that a process is a repeatable activity that results in a
clearly defined, repeatable effect with a low level of risk, and a project is a one-off activity that has a
clearly defined but unusual goal.

The project is intended to respond to changes in the economic environment.

Examples
Coca-Cola's operation on the market => process
Production of a flavor of Coca Cola, e.g. mint (introducing something new to the market, a new one-off
idea => project

The project is:

• Venture
• Disposable
• Unique
• Separated from permanent activities
• Change - product or service

DESIGN IS CONSTANT CHANGE

Project managment triangle

Called also the triple constraint, iron triangle and project triangle
This triangle presents the relationship between the scope of the project and its time, budget and quality.
Increasing scope usually results in increasing at least one of the time and/or budget parameters. If time
and budget remain unchanged, the result may be reduced quality of the product or service produced.

The project manager is responsible for managing all parameters to achieve project success and project
management
Project management is planning, organizing, monitoring and controlling all aspects
Project management and leadership activities and activities for all involved to safely achieve project
objectives within agreed time, cost, scope and performance/quality criteria.

Project sponsor
1) This is a key – manager in the organization who can make the most important decisions in the
project
2) A person interested in the success of the project, most often directly responsible for the results
resulting from the project.
3) He is a decisive person and interested in the project, otherwise we are dealing with a serious
threat to the so-called project. orphan syndrome, i.e. lack of active support from the project
sponsor.
4) They form a working group to supervise all the so-called projects. steering comittee

A process is a set of interrelated, repeatable, continuously performed and improved activities aimed at
achieving and delivering repeatable results (e.g. opening bank accounts, concluding insurance contracts,
production of machines or devices, etc.).

The most important thing in a project is preparation. Preparation is the first stage in the project life
cycle (authorization to initiate the project is the formal beginning of the project)

Permission to initiate the project = formal start of the project

The point where preparation ends and the project begins is called the initial offer

Our goal is to present a document (project charter), a document initiating the project, based on the basic
assumptions of the project

Project life cycle

The design card protects us from:

− Communication side
− Formal side

What is most important in the preparation process (project cards)?

 • What will I do? (description of what I plan to do)
• When will I do it (this also has an impact, e.g. prices in March are lower than prices during the
holidays)
• How much will it cost? (summing up all costs)
• Sources of financing (e.g. a client who will buy the project
• Risk (usually has negative connotations, but these are both OPPORTUNITIES AND THREATS)
It depends on the definition (e.g. WE ARE GOING OUTSIDE POLAND BECAUSE THERE IS A RISK
THAT THERE WILL BE NO SNOW IN POLAND, AND THE CHANCE IS THAT THERE WILL BE
BETTER PREPARATION FOR SKIING IN ITALY)
Goals fulfill 5 basic functions:
1. Control function (goals determine the desired result of the project)
2. Directing function (goals define the milestones and end point of the project)
3. Coordination function (goals improve communication between stakeholders)
4. Monitoring function (goals allow you to determine whether a given part of the project has been
completed
5. Consolidation function (goals gather the team around themselves)
Defining project goals
✓ Define the cause (problem)
✓ Logically reverse the problem (state that responds to the problem)
✓ Define goals (product, results, benefits)
✓ Specify exclusions
✓ Check logical consistency
✓ Approve with the decision maker (e.g. management board, person in charge of the entire project)

Example 2
Specify exclusions (despite our desire, we do not do something, e.g. if we go skiing in Italy, maybe we
will go to another city for a day - no, this should be excluded from the project

If we want to go skiing, we first sit down and talk to the group about where we want to go, etc., among
others. What will we do there

When setting project goals, it may turn out that it is not possible to achieve all the goals within the
expected time or cost. In such a situation, you need to prioritize and determine what is absolutely
necessary and what plays a supporting role.

How do we agree on goals

Agreeing on project goals - MoSCoW technique
 Must, Should, Could, Won't

Must:
• Objectives that are absolutely necessary, the
project will fail if at least one of them is not
achieved. The purpose for which a given project is
carried out (e.g. ski integration)

Should:
• Goals that should be achieved for the project's
success, but can be postponed or achieved in
another way. I want it, but if, for example, the
budget does not allow it, I will not cry (skiing on
an integration trip)

Could:
• Goals that increase the quality of the solution or
stakeholder satisfaction. It is worth implementing
them, but without them the project may be
considered finished. A thing we can do on
occasion (e.g. nice views)

Won't:
• Goals that have been rejected and are not
planned to be implemented. These are usually so-
called "whims" or from the "let's do something by
the way" category. Something that will definitely
not be present in our project

The MoSCow technique can also be used to prioritize customers.

Hierarchy of goals (example)

Project management goals should be divided into three categories:
1. Products – the main elements that the product provides. Without their implementation, the project
cannot be closed. The project team headed by the project manager is responsible for achieving product
goals.
2. Results – these are mechanisms that are triggered directly by the delivery of products. Sometimes we
achieve them during the project, but more often after its completion. The person who initiated the project
is usually responsible for the results.
3. Benefits – these are indirect mechanisms that are partially reinforced by results, but may also result
from a number of other factors. Their impact is visible in the long term. Generally, the organization's
management is responsible for the benefits
Projects => Results => Impacts

Example 1
Project duration
1. Products
• Portal
• Certificate register
• Online shop
2. Results
• Current data
• Post-project period
3. Impact
• Increased satisfaction of members and certified persons

Some company had bad patent sales

The company wanted to find out why they sold so few certificates. It turned out that the data was not
updated. Once the change starts, it is crucial that there is only one data source (e.g. cloud) so that
everyone can learn about the offer. Another mistake was that the company only allowed one type of
payment (cash at the post office) - it had to be changed to several forms, e.g. Blik, PayPal

Defining project goals - SMART model

SMART SMARTS SMARTER

Specific Specific Simple
Measurable Measurable Measureable
Ambitious Achievable Achiewvable
Realistic Realoistic Relevant
Tangible Time-bound Time-bound
Signed-off Exciting
Recorded
Simple (simply short and to the point)
Measurable (measurable, we use the iron triangle - time, budget and scope)
Achivable (can my company do this?)
Relevant (consistent with the vision we strive for
Time-bound

The most popular when it comes to business.

There are also others, e.g.

SMART SMARTS SMARTER

SMART SMARTS SMARTER
Specific Specific Simple
Measurable Measurable Measureable
Ambitious Achievable Achievable
Realistic Realistic Relevant
Tangible Time-bound Time-bound
Signed-off Exciting
Recorded

Hierarchy of goals II
1) Main goal
2) Strategic goals (first order), e.g. safety of children and youth
3) Tactical goals (second order), e.g. use of funding from aid funds
4) Operational goals (third order), e.g. all meetings conducted by office employees
5) Results-related goals (financial, personnel)
6) Procedural goals (budget, schedule), e.g. the project budget cannot exceed a specific amount
7) Product goals (including assigning them priorities), e.g. the most important priority is the
participation of half of the population of children living in the voivodeship, the next priority is the
organization of 200 meetings. GOALS ADDRESS THE CAUSES OF THE TARGET GROUP'S
PROBLEMS AND ARE NECESSARY TO ACHIEVE THE GOAL.
Stakeholders
 All persons, groups or organizations involved in the implementation of the project, waiting for its results,
influencing it or being affected by it. All people who are interested in the project or limited by it in some
way.
We can influence stakeholders:
✓ power/influence
✓ attitude towards the project
Thanks to the stakeholder analysis, we can draw conclusions necessary for the company, which will help
us adopt various strategies. These strategies include:

• careful management
• meeting expectations
• informing
• considering expectations
Analysis of opportunities and threats - analysis of the project environment

How is the company's environment analyzed?

1) SWOT
2) PESTEL
3) Porter's 5 forces

1) SWOT analysis
Analysis used to identify strengths/weaknesses and opportunities/threats for companies as well as specific
projects.
This analysis allows you to determine the current position of the project.

SWOT
1. Strength - the strength of the hand
2. Weaknesses - weaknesses
3. Opportunities
4. Threats

Streigth Weaknesses Opportunities Threats

Thanks to them, we It is important to analyze your Opportunities are the result of Hazards refer to areas that
determine our good results strengths first and then your current strengths and may cause problems. These
and achievements, the weaker ones to have a point of weaknesses, as well as any are usually problems beyond
analysis of this factor may reference. Finding weaknesses external factors that help our control, e.g. a global
consist in comparison with allows for improvements in achieve a stronger competitive pandemic or changes in the
other initiatives or activities related designs position. competitive environment
of the competition.

Questions you can ask yourself A few questions we can ask

To analyze the good ones, to find out your chances: ourselves:
you can ask yourself
• What resources can we use to • In what areas does the
questions such as:
work on weaknesses? competition perform better?
− What is my company
• Can our services fill market • What changes in the
good at
gaps? industry cause concern?
− What makes our
company stand out? • What are our goals for this • What market trends are on
− What aspects of our year? the horizon?
business do our
target audience
value?

3 and 2 analysis of the internal environment

3 and 4 analysis of the external environment
2) PESTEL analysis
Political factors in PESTEL analysis:
• Stability of the government
• When will the next elections be? What can they change?
• Are the country's political elites stable or do they change frequently?
• Level of corruption and organized crime
• Tax policy
• Freedom of the press
• Approach to regulations and declarations, e.g. the need to introduce new declarations in the UK in
connection with Brexit (this resulted in the UK issuing the most legal declarations in Europe in 2019)
• Customs policy
• Government involvement in trade unions
• Monopoly and competition laws
• Political involvement of citizens
• Citizens' support and protests for the government
• Military spending
• Government subsidies
• Involvement in international organizations or bilateral agreements
• Import regulations
• Trade control
• Lobbying
• The size of the state and local government budget
• Is it easy to enter the country and run a business there?
For example, legal declarations from the government (e.g. support for mines) are in the political
environment, and actually established law is in the legal environment.
The idea of introducing a milk tax by the government is in the political environment. because it is not
realized.

Economic factors in PESTEL analysis:

• Economic growth - scale and pace
• Interest rates
• Inflation level
• Exchange rate and currency risk
• Credit availability
• Disposable income
• Propensity to consume
• Risk proneness
• Budget deficit
• Market trends, economic growth
• Business cycles
• Degree of unemployment and professional activity
• Stock market trends
• Price volatility
• What determines the development of the country's economy
• Degree of investment in GDP
• Profitability of companies in a given country
• Prices of fuel, energy, raw materials and land
Stability of law and taxes is very important for the stability of operations of both large and small
companies. Political and economic factors have a key impact on the appearance of the economy (but also
on how it develops and in what direction it is heading).

Socio-demographic factors in the PESTEL analysis:

• Population size
• Change in population size from year to year
• Number of births and deaths
• Number of marriages and divorces
• Immigration and emigration
• Life expectancy
• Age pyramid
• Division of society into social classes
• GDP per person
• Family size and structure
• Lifestyle
• Health and health awareness of citizens
• Disposable income
• Social mood – towards the government, work
• Shopping habits
• Tangential approach and awareness
• Cultural norms and values
• Equality in terms of gender, religion, sexuality
• Education level
• Minority
• Crime rate
• Religiosity
• The trend towards saving, investing, retirement, leisure and other consumer habits
Demographic factors affect mainly in the long term, while social aspects can change significantly in a
short time.
Socio-demographic factors determine how society develops, what trends and fashions prevail in it and
how their views change. Demographic factors can determine business changes, e.g. driving schools used
to be established at a dizzying pace, fewer and fewer age groups pass driving licenses, so a large number
of schools were forced to close.

Technological factors
• Level of innovation in the industry
• The country's innovativeness
• Degree of automation
• Availability of new technologies
• Users' technical awareness
• Length of technological processes
• Technology life cycle
• Communication, internet and energy infrastructure

Technological factors can undergo a major change in a short period of time. It is worth taking into account
not only the technology in our industry or country, but also those occurring on a regional or global scale,
e.g. the use of a production line has forever changed the functioning of not only the automotive industry,
but also other industrial sectors. Searching for and introducing technological solutions from other sectors
is one of the potential ways to gain a temporary competitive advantage over others.
The key is a creative approach to what is emerging, changing or on the horizon in technology.
Observing socio-demographic and technological changes affects our perception of the organization. The
analysis of these factors allows us to slowly adapt the organization to changing conditions so that it is
constantly at the forefront of these changes.

Environmental factors in PESTEL analysis:

• Weather and its diversity
• Climate and its changes
• Ecological and environmental policy
• Potential natural disasters
• Pressure from non-governmental organizations
• Pollution of water, soil and air
• Waste management standards
• Economic support for green initiatives
• Support for renewable energy
• Water management and access to water
With the development of the economy and technology, we are aware of the effects of human activities on
the environment. Therefore, it is increasingly important to assess the impact of our actions on the
environment in which we live. Many types of business may depend on these factors, e.g. water scarcity is
becoming a bigger problem in Poland every year. It may lead to power shortage etc.

Legal factors in PESTEL analysis:

• Labor law
• Tax law
• Administrative law
• GDPR
• Copyright
• Legal options for competition and consumer protection
• Health and safety

Legal environment, i.e. the rules of the game that must be followed.
Every organization, regardless of its size, depends on the environment, which influences and partly
shapes it.

4) Porter's 5 forces analysis

A 5-force model: analysis of direct competition, customers, buyers, substitutes and potential entrants. It is
used to evaluate the structural analysis of the sector. It is used to position our organization in a
competitive environment
Michael Porter (professor of Harvard Business School) created a model of the so-called 5 forces, used to
analyze the risk and profitability of operating in a specific industry. It consists of an analysis of the
immediate competitive environment.
The 5 forces model is composed of 5 elements:
1. Competition in the sector - the position and strength of competitors producing goods/services such as
ours and competing for the same customers.
2. Buyers - customers' pressure on the company to obtain a more favorable offer
3. Suppliers - pressure on the company that may be exerted by suppliers of resources necessary for the
functioning of the organization
4. Potential entrants - how difficult it is to start a business in the analyzed industry
5. Substitutes - the power of products that are different from ours, but can meet the same customer needs
in a different way

Competition analysis in the sector

Competition in a sector includes all other organizations that operate in the same sector towards the same
customers. Typically, competitive activities receive the most attention, but it depends on the sector (not
everyone requires the main focus on competition).