SECTION 1

THE PROJECT MANAGEMENT FRAMEWORK

PMBOK®
Fourth Edition
 CHAPTER 2
PROJECT LIFE CYCLE AND ORGANIZATION
STAKEHOLDERS
2.3 Stakeholders
Definition:
Stakeholders are
persons or organizations who are actively involved in the project
or
whose interests may be positively or negatively affected
by the performance or completion of the project.

Examples of persons or organizations

 customers

 sponsors

 the performing organization

 the public
2.3 Stakeholders
 Exert influence on the project, its deliverables, and the project
team members.

 The project management team must

identify both internal and external stakeholders
in order to determine the
project requirements and expectations of all parties involved.

 Furthermore, the project manager must

manage the influence of the various stakeholders
in relation to the project requirements to ensure a successful
outcome.
STAKEHOLDERS
2.3 Stakeholders
Concepts:
 Project Team [Members]

 Project Management Team

 Operations Management

 Functional Managers
2.3 Stakeholders
Stakeholders Responsibility and Authority:

 Varying levels when participating on a project

 Change over the course of the project life cycle.

 RANGE from occasional contributions to full project sponsorship

 Caution! Can have an adverse IMPACT on the project objectives.

2.3 Stakeholders
Stakeholder Identification:

 Stakeholder identification is a continuous process

 It can be difficult.

 Identifying stakeholders and understanding their relative degree of

influence on a project is critical. Failure to do so can extend the
timeline and raise costs substantially.

 Impact of late recognition of a stakeholder

 ORGANIZATIONAL INFLUENCES ON
PROJECT MANAGEMENT
ORGANIZATIONAL CULTURES AND STYLES
2.4 Organizational Influences on Project Management
 The organizational culture, style, and structure influence how
projects are performed.

 A project manager should understand these as they affect a project.

 An organization’s
degree of project management maturity and
its project management systems
can also influence the project.

 When a project involves more than one organizations, the project

will be influenced all of them.

 The organizational culture is an enterprise environmental factor.

2.4 Organizational Influences on Project Management
Cultures and styles may have a strong influence on a project’s ability
to meet its objectives.

Cultures and styles are typically known as “cultural norms”

The “norms” include [Or What do the cultural norms include?]

 a common knowledge regarding how to approach getting the work
done,
 what means are considered acceptable for getting the work done,
and
 who is influential in facilitating the work getting done.

The project manager must know which individuals in the

organization are the decision makers and work with them to
influence project success.
2.4 Organizational Influences on Project Management
Most organizations have developed unique cultures that manifest in
numerous ways including, but not limited to:
• Shared visions, values, norms, beliefs, and expectations,
• Policies, methods, and procedures,
• View of authority relationships, and
• Work ethic and work hours.

Detailed study of ‘organizational culture’ is beyond the scope of this

course.
ORGANIZATIONAL INFLUENCES ON
PROJECT MANAGEMENT
ORGANIZATIONAL STRUCTURE
2.4 Organizational Influences on Project Management

Organizational structure is an enterprise environmental factor

Why it is important to by understood?

It affect the availability of resources and influence how projects are
conducted.

What are the different types of structures?

Organizational structures range from functional to projectized, with a
variety of matrix structures between them.
 Functional Structure

 Matrix Structures [Weak, Balanced, and Strong]

 Projectized Structure
2.4 Organizational Influences on Project Management
2.4 Organizational Influences on Project Management
Functional Organization: Key Points
 Each employee has one clear superior [Unity of Command]

 Employees are grouped by specialty [Finance, HR, Marketing etc]

 Each department will do its project work independent of other

department.
2.4 Organizational Influences on Project Management
2.4 Organizational Influences on Project Management
Projectized Organization: Key Points
 Team members are co-located

 Most of the organization’s resources are involved in project work

 Project Managers have great deal of independence and authority

 Projectized organizations often have organizational units called

departments, but these groups either report directly to the project
manager or provide support services to the various projects.
2.4 Organizational Influences on Project Management
Projectized Organization: Key Points
2.4 Organizational Influences on Project Management
Matrix Organizations: Advantages and Disadvantages
Matrix Organizations are a blend of functional and projectized
characteristics.

Advantages
Highly visible project objectives
Improved project manager control
over resources
More support from functional areas
Maximum utilization of scarce
resources
Better coordination
Better horizontal and vertical
dissemination of information
Team members maintain a “home”
Disadvantages
Extra administration is required
More than one boss for project teams
More complex to monitor and control
Tougher problems with resource
allocation
Need extensive policies and procedures
Functional manager may have different
priorities than project managers
Higher potential for conflict
2.4 Organizational Influences on Project Management
2.4 Organizational Influences on Project Management
Weak Matrix Organization: Key Points
 Maintain many of the characteristics of a functional organization

 Project Manager’s role is more of a coordinator or expediter than

that of a true project manager.
2.4 Organizational Influences on Project Management
2.4 Organizational Influences on Project Management
Balanced Matrix Organization: Key Points
Balanced Matrix organization recognizes the need for a project
manager. But it does not provide the project manager with the full
authority over the project and project funding.
2.4 Organizational Influences on Project Management
2.4 Organizational Influences on Project Management
Strong Matrix Organization: Key Points

 Have many of the characteristics of the projectized organization

 Can have a full-time project managers with considerable authority

 Can have full-time project administrative staff

2.4 Organizational Influences on Project Management
2.4 Organizational Influences on Project Management
ORGANIZATIONAL INFLUENCES ON
PROJECT MANAGEMENT
ORGANIZATIONAL PROCESS ASSETS
2.4 Organizational Influences on Project Management
Definition:
Organizational process assets include any or all process related
assets, from any or all of the organizations involved in the project
that can be used to influence the project’s success.
Examples:
 formal and informal plans, policies, procedures, and guidelines.

 organization’s knowledge bases such as lessons learned and

historical information.
 completed schedules, risk data, and earned value data.

Key Points:
 Updating and adding to the organizational process assets is
necessary throughout the project
 Generally, is the responsibility of the project team members.
2.4 Organizational Influences on Project Management
Categorization:
Organizational process assets may be grouped into two categories:

1. Processes and Procedures

>> for conducting work

2. Corporate Knowledge Base

>> for storing and retrieving information
2.4 Organizational Influences on Project Management
Processes and Procedures
 Organizational standard processes such as
 standards
 policies [safety and health, ethics, and project management]
 standard product and project life cycles
 quality policies and procedures [process audits, improvement
targets, checklists, and standardized process definitions for
use in the organization]

 Standardized guidelines, work instructions, proposal evaluation

criteria, and performance measurement criteria

 Templates [risk, work breakdown structure, project schedule

network diagram, and contract templates]
2.4 Organizational Influences on Project Management
Processes and Procedures
 Guidelines and criteria for tailoring the organization’s set of
standard processes to satisfy the specific needs of the project;
 Organization communication requirements
 Project closure guidelines or requirements
 Financial controls procedures
 Issue and defect management procedures
 Change control procedures
 Risk control procedures
 Procedures for prioritizing, approving, and issuing work
authorizations.
2.4 Organizational Influences on Project Management
Corporate Knowledge Base
 Process measurement databases used to collect and make available
measurement data on processes and products,
 Project files
 Historical information and lessons learned knowledge bases
 Issue and defect management databases
 Configuration management knowledge bases
 Financial databases
2.4 Organizational Influences on Project Management

What is the difference between

Enterprise Environmental Factors
And
Organizational Process Assets
???