Project Organization

Winter 2018

235-AAD-CH Process and concept of Project Management

 Plan
Introduction

Project Management Office

Program Management

Portfolio Management

Portfolio, Program, and Project Management Interactions

Key definitions

Exercises
 Introduction

Projects are often utilized as a means of directly or indirectly achieving

objectives within an organization’s strategic plan.
 Introduction

Project governance enables organizations to consistently manage projects and 
maximize the value of project outcomes and align the projects with business strategy.
 Project Management Office - PMO

Definition

A project management office (PMO) is a management structure that standardizes the

project-related governance processes and facilitates the sharing of resources,
methodologies, tools, and techniques. The responsibilities of a PMO can range from
providing project management support functions to actually being responsible for the
direct management of one or more projects.

Project Management Institute. 2013. A Guide to the Project Management Body of Knowledge
(PMBoK Guide), 5th Edition.
 Project Management Office - PMO

Definition
PMO is an organizational body or entity assigned various responsibilities related to the
centralized and coordinated management of those projects under its domain and it has
various roles in an organization:

Providing the policies, methodologies, and templates for managing projects within the
organization.

Providing support and guidance to others in the organization on how to manage

projects, training others in project management or project management software, and
assisting with specific project management tools

Providing project managers for different projects, and being responsible for the results
of those projects
 Project Management Office - PMO

PMO Roles
• Supportive: Supportive PMOs provide a consultative role to projects by supplying
templates, best practices, training, access to information and lessons learned from
other projects. This type of PMO serves as a project repository: The degree of control
provided by the PMO is low.

• Controlling: Controlling PMOs provide support and require compliance through

various means. Compliance may involve adopting project management frameworks or
methodologies, using specific templates, forms and tools, or conformance to
governance. The degree of control provided by the PMO is moderate.

• Directive: Directive PMOs take control of the projects by directly managing the
projects. The degree of control provided by the PMO is high.
 Project Management Office - PMO

PMO Roles
 Project Management Office - PMO

PMO Roles
A primary function of a PMO is to support project managers in a variety of ways which
may include, but are not limited to:

• Managing shared resources across all projects administered by the PMO;

• Identifying and developing project management methodology, best practices, and

standards;

• Coaching, mentoring, training, and oversight;

• Monitoring compliance with project management standards, policies, procedures, and

templates by means of project audits;

• Developing and managing project policies, procedures, templates, and other shared
documentation (organizational process assets); and

• Coordinating communication across projects.

 Project Management Office - PMO

Project Manager vs PMO

Project managers and PMOs pursue different objectives and, as such, are driven by
different requirements. All of these efforts are aligned with the strategic needs of the
organization. Differences between the role of project managers and a PMO may include
the following:

The project manager focuses on the specified project objectives, while the PMO
manages major program scope changes, which may be seen as potential opportunities to
better achieve business objectives.

The project manager controls the assigned project resources to best meet project
objectives, while the PMO optimizes the use of shared organizational resources across all
projects.

The project manager manages the constraints (scope, schedule, cost, quality, etc.) of
the individual projects, while the PMO manages the methodologies, standards, overall
risks/opportunities, metrics, and interdependencies among projects at the enterprise
level.
Project Management Office - PMO

https://www.youtube.com/watch?v=dt8DaibZpKo
 Program Management

Definition 1
“A program is defined as a group of related projects, subprograms, and
program activities managed in a coordinated way to obtain benefits not
available from managing them individually. Programs may include elements
of related work outside the scope of the discrete projects in the program. A
project may or may not be part of a program but a program will always have
projects.”

Project Management Institute. 2013. A Guide to the Project Management Body of Knowledge
(PMBoK Guide), 5th Edition.
 Program Management

Definition 2
“A Programme is defined as a temporary, flexible
organization, created to coordinate, direct and
oversee the implementation of a set of related
projects and activities in order to deliver outcomes
and benefits related to the organization's strategic
objectives.”
Office of Government Commerce. 2009. PRINCE2 Guide.
 Program Management

Definition 3
“Program management is the application of knowledge, skills, tools, and techniques to a
program in order to meet the program requirements and to obtain benefits and control
not available by managing projects individually.”
Project Management Institute. 2013. A Guide to the Project Management Body of Knowledge
(PMBoK Guide), 5th Edition.

Program management focuses on the project interdependencies and helps to determine

the optimal approach for managing them. Actions related to these interdependencies
may include:

Resolving resource constraints and/or conflicts that affect multiple projects within the
program,

Aligning organizational/strategic direction that affects project and program goals and
objectives, and

Resolving issues and change management within a shared governance structure.

 Program Management
Program’s Life Cycle & Phases
Pre-Program Set Up

Close the Program

Program Set Up

Establish Program Management

and Technical Infrastructure
Deliver the Benefits
 Portfolio Management

Definition 1
“ Portfolio management refers to the centralized management of one or more
portfolios to achieve strategic objectives. Portfolio management focuses on
ensuring that projects and programs are reviewed to prioritize resource
allocation, and that the management of the portfolio is consistent with and
aligned to organizational strategies.”
Project Management Institute. 2013. A Guide to the Project Management Body of Knowledge
(PMBoK Guide), 5th Edition.
 Portfolio Management

Definition 2
“A Portfolio is the totality of an organization's investment (or segment thereof) in
the changes required to achieve its strategic objectives.”

“Portfolio Management is a coordinated collection of strategic processes and

decisions that together enable the most effective balance of organizational
change and Business as Usual”
Office of Government Commerce. 2009. PRINCE2 Guide.
 Portfolio Management

A portfolio refers to projects, programs, subportfolios, and operations managed

as a group to achieve strategic objectives.

The projects or programs of the portfolio may not necessarily be

interdependent or directly related.

Portfolio, program, and project management are aligned with or driven by

organizational strategies.

Portfolio Management is carried out at many different levels in an organization,

at the corporate level, at directorate or divisional level and business units.

Portfolio Managment involves the collection in one place of relevant

information about the organization's investment initiatives, including
programmes and projects, and aligning their delivery with strategic objectives,
business requirements and the organization's capability, capacity (to deliver
change and adopt change) and maturity.
 Portfolio Management

A portfolio refers to projects, programs, subportfolios, and operations managed

as a group to achieve strategic objectives.

The projects or programs of the portfolio may not necessarily be

interdependent or directly related.

Portfolio, program, and project management are aligned with or driven by

organizational strategies.

Portfolio Management is carried out at many different levels in an organization,

at the corporate level, at directorate or divisional level and business units.

Portfolio Managment involves the collection in one place of relevant

information about the organization's investment initiatives, including
programmes and projects, and aligning their delivery with strategic objectives,
business requirements and the organization's capability, capacity (to deliver
change and adopt change) and maturity.
Portfolio, Program, and Project Management Interactions

In order to understand portfolio, program, and project management, it is

important to recognize the similarities and differences among these disciplines. It
is also helpful to understand how they relate to organizational project
management (OPM).

OPM is a strategy execution framework utilizing project, program, and portfolio

management as well as organizational enabling practices to consistently and
predictably deliver organizational strategy producing better performance, better
results, and a sustainable competitive advantage.
Portfolio, Program, and Project Management Interactions
Portfolio, Program, and Project Management Interactions
 Key definitions

Acceptance Criteria:  a set of conditions that is required to be met before deliverables 
are  accepted.

Adaptive Life Cycle: A project life cycle, also known as change-driven or agile methods,
that is intended to facilitate change and require a high degree of ongoing stakeholder
involvement. Adaptive life cycles are also iterative and incremental, but differ in that
iterations are very rapid (usually 2–4 weeks in length) and are fixed in time and resources.
 
Agreements: Any document or communication that defines the initial intentions of a
project. This can take the form of a contract, memorandum of understanding (MOU),
letters of agreement, verbal agreements, email, etc.
 
Alternative Analysis: A technique used to evaluate identified options in order to select
which options or approaches to use to execute and perform the work of the project.
 Key definitions

Assumption: A factor in the planning process that is considered to be true, real, or

certain, without proof or demonstration.
 
Authority: The right to apply project resources, expend funds, make decisions, or give
approvals.
 
Benchmarking: Benchmarking is the comparison of actual or planned practices, such as
processes and operations, to those of comparable organizations to identify best practices,
generate ideas for improvement, and provide a basis for measuring performance.
 
Business Case: A documented economic feasibility study used to establish validity of the
benefits of a selected component lacking sufficient definition and that is used as a basis
for the authorization of further project management activities.
 
Constraint: A limiting factor that affects the execution of a project, program, portfolio, or
process.
 Key definitions

Make-or-Buy Analysis: The process of gathering and organizing data about product
requirements and analyzing them against available alternatives including the purchase or
internal manufacture of the product.

Progressive Elaboration: The iterative process of increasing the level of detail in a project
management plan as greater amounts of information and more accurate estimates
become available.

Standard: A document that provides, for common and repeated use, rules, guidelines, or
characteristics for activities or their results, aimed at the achievement of the optimum
degree of order in a given context.

Hand-Off: transfer of the work product produced as the phase deliverable.

 Key definitions

Deliverable : Any unique and verifiable product, result, or capability to perform a service
that is required to be produced to complete a process, phase, or project.

Subproject: A smaller portion of the overall project created when a project is subdivided
into more manageable components or pieces.

Phase Gate: A review at the end of a phase in which a decision is made to continue to the
next phase, to continue with modification, or to end a project or program.
 Exercises

What is a stakeholder?

A- The person responsible for preparing the project budget.

B- An organization that’s hired to perform risk analysis.

C- A person or organization that is not actively involved in the project, or whose interests
will not be affected by execution or completion of the project.

D- A person or organization that is actively involved in the project, or whose interests

may be positively or negatively affected by execution or completion of the project.
 Exercises

Which answer includes the five project management process groups?

A- investigating process group, planning process group, deciding process group,

monitoring and controlling process group, and the closing process group

B- initiating process group, performing process group, executing process group,

monitoring and controlling process group, and the closing process group

C- initiating process group, planning process group, executing process group, monitoring
and controlling process group, and the closing process group

D- investigating process group, planning process group, estimating process group,

monitoring and controlling process group, and the closing process group
 Exercises

When does a project reach its end?

A- When the project objectives have been achieved.

B- When the project is terminated because its objectives will not or cannot be met.

C- When the need for the project no longer exists.

D- For any of the reasons above.

 Exercises

Which of the following is not a project constraint?

 A- schedule

 B- stakeholder

 C- budget

 D- quality
 Exercises

Organizational project management is a strategy execution framework that utilizes

which of the following?

A- project management

B- program management

C- portfolio management

D- all of the above

 Exercises

After a phase-end review occurs, what comes next within a project life cycle?

A. A feasibility study is conducted

B. Work on the next phase begins

C. A hand-off occurs

D. A kick-off meeting
 Exercises

Which of the following best describe organizational process assets?

A- buildings and equipment owned by the performing organization

B- reasons that most projects encounter risk

C- items that must be estimated before the schedule is developed

D- plans, processes, policies, procedures, and knowledge bases specific to and used by
the performing organization
 Exercises

Project management offices (PMO) often serve which function?

 A- They provide human resource support functions.

 B- They provide project management certification exams.

 C- They provide accounting and budgetary support functions.

 D- They provide project management support functions.

 Exercises

A directive PMO

A- takes control of the projects by directly managing them. Their degree of control is high.

B- directs contract project managers to manage the projects. Their degree of control is
low.

C- receives directives from external stakeholders and shares in the management of the
projects. Their degree of control is low.

D- none of the above.

 Exercises

The role of the project manager includes

A- leading the team that is responsible for achieving the project objectives.

B- leading the functional managers towards reaching the strategic objectives.

C- leading the human resources department to meet the labor ratio requirements.

D- all of the above

 Exercises

Which of the following is not an enterprise environmental factor?

A- project work activities

B- organizational culture

C- government or industry standards

D- political climate
 Exercises

A project to expand a manufacturing park will force Joe’s Hamburger Shack to relocate.
Joe does not wish to relocate. His interests are best served if the project never begins.
Joe is a

A- functional stakeholder.

B- project sponsor.

C- negative stakeholder.

D- positive stakeholder.
 Exercises

The initiating process group includes

A- those processes required to tract, review, and regulate the progress and performance
of the project; identify any areas in which changes to the plan are required; and initiate the
corresponding changes.

B- those processes performed to complete the work defined in the project management
plan to satisfy the project specifications.

C- those processes performed to finalize all activities across all process groups to formally
close the project or phase.

D- those processes performed to define a new project or a new phase of an existing

project by obtaining authorization to start the project or phase.
 Exercises

Which of the following is not a required skill-set that a project manager should have?

A. Problem Solving Skills

B. Communication Skills

C. Motivating Skills

D. Development Skills
 Exercises

A phase-end review is also known as all of the following EXCEPT:

A. Kill points

B. Phase Gates

C. Hand-Off

D. Phase Exits
Thank you for your Attention!!