Project Management

What is project management?

This section will cover…
• What a project is
• The project management triangle
• The project lifecycle
• Organisational structures
• Project roles
• Project stakeholders
History of Project Management
• As a discipline, project management developed in different sectors
including construction, engineering, and defence.

• 1920, The main figure in project management is Henry Gantt, called

the father of planning and control techniques, who is well known for
his use of the Gantt chart

• 1956, the American Association of Cost Engineers was formed by early

practitioners of project management and the associated specialties of
planning and scheduling, cost estimating, and cost/schedule control
(project control)

• In 1969, the Project Management Institute (PMI) was formed to serve

the interest of the project management industry.

• In 1975 the Association of Project Managers (became Association for

Project Management in 1996)
What is not a Project?

Activities not requiring a formal temporary

Organisation such as:

– Support and maintenance of existing solutions

– Infra-structure and housekeeping
– Support functions
– Anything that can be considered ‘everyday
activities’
What is a Project?

A Project has the following characteristics:

• It is a temporary endeavour and therefore has
a defined start and end point
• It has a specified end-product
• It is unique, either in its end-product or the
environment in which it is delivered
Product Lifecycles - Engineering

MARKETING DEVELOPMENT PRODUCTION/ SUPPORT WITHDRAWAL

IDEA CONSTRUCTION

CONCEPT
GENERATION

DESIGN
Product Lifecycles – Oil and Gas

PROSPECTING EVALUATION DEPLOYMENT PRODUCTION DECOMMISSION

Product lifecycles – Energy

CONCEPT DEVELOPMENT IMPLEMENTATION MAINTAINANCE DECOMMISSION

Different types of project

1. Development/build project – London cross-

rail, new Forth road bridge

2. Change Management Project - IT system,

business improvement

3. An event – Olympic games, disaster relief, etc.

Project Management is therefore…
Completing the work within the following constraints:

• To the customer’s ‘Scope’

• On or before ‘Time’

SCOPE
• On or under ‘Budget’

COST TIME
Project Management controls…

Assumptions
Risks Issues
Changes
Scope

THE
PROJECT

n ges Ch a
nge
Cha s
ns Assu
u m ptio s m
Risk ptions
s
As s Issue s Iss
Risk ue s

Cost Time
Bending a project out of shape

Scope

Changes
Issues
Risks
Cost THE Time
s
Risk s PROJECT
e Issu Risks
Issu es es C
ng han
Cha ges
Ingredients for success

• Management commitment to, and a mutual view of ‘the

project-based company’
• The right culture (emphasis on Project supported by
Function)
• The necessary supporting systems and procedures –
Operational systems
• The right people with the right skills
• Robust project management tools, methodologies and
practices
Project Lifecycle Phases

1. INITIATION 2. PLANNING 3. EXECUTION 4. CLOSURE

Approve Approve Execution Project

Project Idea Planning Complete Complete

Proceed Proceed Proceed to

to Planning to Execution Closedown

Project Certainty

Project UN-Certainty
Organisational Structures
Organisational Structures

The sum total of the ways in which the

organisation divides its labour into distinct tasks
and then achieves coordination among them
H Mintzberg
Structures…
• Facilitate the
– Division of tasks
– Supervision of staff
– Coordination work
• Provide
– A hierarchy of authority
– Lines of communication
– Flow-down of responsibility
Functional Structure
BOARD

ENGINEERING MANUFACTURING MARKETING PROCUREMENT

PROJECT A

PROJECT B

PROJECT C

PROJECT D
Project Structure

BOARD

SCOPE SCOPE SCOPE SCOPE

COST TIME COST TIME COST TIME COST TIME

Matrix Structure

BOARD

ENGINEERING MANUFACTURING MARKETING PROCUREMENT

PROJECT A

PROJECT B

PROJECT C
Characteristics of a Matrix Structure
• The function is the resource provider;
– People, tools, equipment and process
• The project is the resource user;
– Tasks the people and utilises the resources, equipment and
process
• The project manager is the ‘boss’ of the resources while they are
under his control
• Key thing is:
– The Project provides the why it must be done, tasks resources
with what must be done and by when and to what cost
– The Function decides how it must be done
Mixed Structure

BOARD

ENGINEERING MANUFACTURING MARKETING PROCUREMENT

PROJECT A

PROJECT B

PROJECT C
Characteristics of a Mixed Structure

• The mixed structure recognises that:

– Not all resources need to be attached to the
project all of the time such as the accountant, or
other low utilisation specialists, etc.
– Some resources do not need to be attached to the
project at all such as IT support, HR, etc.
Project Roles
Project Sponsor
• Should be as senior a manager as you can get

• Validates the goals and objectives of the project.

• Helps secure resources and facilities

• Maybe ultimate authority on key project decisions

• Assists with issue resolution through the

escalation process.
Project Manager

• Has overall end-to-end responsibility &

accountability for the project.
• Delivers project to the required quality, on
time and on budget;
• Prepares and tracks Scope, Schedule & Budget
Project Team Member

• Is drawn from other functional disciplines e.g.

Commercial, Finance, Engineering,
Purchasing, HR, IS,…
• Owns defined work packages within the
scope of the project
• Provides specialist knowledge into the project
Stakeholder Management
Stakeholders are…

Individuals and groups with a multitude of

interests, expectations, and demands as to what
the project should provide to them and their
organization
Stakeholder Map
Unions Audit
Q
Business
Intelligence

Contractor
Humpty Press
Enterprise JS
Dumpty
Development Bach
Team
Project
James Richard Elvis
ABC Customers Head Albert
Bond Jack
Project Daniels Einstein

Suppliers
XYZ
Elizabeth Project
Enterprise Tudor
Team Leaders
Finance Site
Staff MDs
Account Vincent Finance
Managers Site Van Gogh
Managers
Business FDs Homer Mata
Simpson Corporate
Architects Finance Hari

Sub Process John

Owners Big Thomas
Brother Han Line
Business Solo Managers
Services
Managers
B.U.
Process Location General
Implementation Implementation Manager
Teams Teams
Stakeholder Assessment

Four core questions:

1. Who are our stakeholder groups?
2. What is the nature of the stake?
3. What opportunities and challenges do
stakeholders present?
4. What strategies or actions should our project
take to best manage stakeholder challenges
and opportunities?
What is the nature of the Stake?
• How much are the group interested – the
specifics of their interest and how strong that
interest is
• How much power do they hold – its source, its
strength and how it can be used
• How much influence does each stakeholder
have over the organization?
• Which of the stakeholder groups should we be
most concerned with?
• Will this change over time?
Power/Interest Grid
Power - Stakeholders Potential Threat to the Organisation
LOW HIGH

HIGH SUBJECTS PLAYERS

Interest - in the
Organisation
and its activities

LOW CROWD CONTEXT SETTERS

Power…
Positional
• Legitimate - the formal right to make demands, and to
expect others to be compliant and obedient
• Reward - to compensate another for compliance
• Coercive - to punish others for non-compliance
• Informational - to control the information that others need
to accomplish something
Personal
• Expert - level of skill and knowledge
• Referent - perceived attractiveness, worthiness and right to
others' respect
Influence…

• Reason
• Bargaining
• Friendliness
• Coalition
• Assertiveness
• Appeal to higher authority
• Sanction
Maybe of interest…
• French, J. R. P., Raven, B. The bases of social power. In D.
Cartwright and A. Zander. Group dynamics. New York: Harper
& Row, 1959
• Raven, B. H. (1965). Social influence and power. In I.D. Steiner
& M. Fishbein (Eds.),Current studies in social psychology (pp.
371–382).
• Kipnis, D. and Schmidt, S.M. (1980) Intra-organisational
Influence Tactics: Explorations in Getting Ones Way, Journal of
Applied Psychology, 65, 440-452.

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Communication Planning
Stakeholders to approach by which means?

Keep Consult Involve Collabor Empower

Informed ate
Owners
Customers

Employees

Community

Public at
large
Other
Communicating with Stakeholders

• ANouncement
• Imperative
• Media
• Audience
• Timing
• Environment
• Sender