Lecture 3& 4

Project Management- Planning
Lecture 3&4
Image courtesy :https://www.xibms.com/blog/career-prospects-in-project-management/
Strategy &
Structure
Strategic Management Process
Organizational goal - a desired state of

affairs that an organization attempts to
reach
Projects and Organizational Strategy
Strategic management—the science of formulating, implementing, and evaluating cross-
functional decisions that enable an organization to achieve its objectives.
Consists of:
• Developing vision and mission statements
• Formulating, implementing, and evaluating
• Making cross-functional decisions
• Achieving objectives
“ Projects are stepping-stones to corporate Strategy “

Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Projects Reflect Strategy
Strategy Project
Technical or operating initiatives (such as new distribution Construction of new plants or
strategies or decentralized plant operations) modernization of facilities
Development of products for greater market penetration and New product development projects
acceptance
New business processes for greater streamlining and Reengineering projects
efficiency
Changes in strategic direction or product portfolio New product lines
reconfiguration
Creation of new strategic alliances Negotiation with supply chain members
(including suppliers and distributors)
Matching or improving on competitors’ products and services Reverse engineering projects
Improvement of cross-organizational communication and Enterprise I T efforts
efficiency in supply chain relationships
Promotion of cross-functional interaction, streamlining of Concurrent engineering projects
new product or service introduction, and improvement of
departmental coordination
Strategy Cornerstone for Energy / Infrastructure Projects
• Financial Viability
• Cost Leadership?
• Funds – Maintaining Working Capital
• Stakeholder Management
• Technology – Client’s Requirement
• Sustainability
• Choosing the right procurement and tendering method
T O W S Matrix
Chandler’s Model- Structure Follows Strategy
Dynamic relationships between strategy and structure in the ‘classical’ model.

E = Environment, R = Resource (Capabilities), S = Strategy. Si Structure, l, time
- Alfred Chandler’s General Thesis
McKinsey Matrix
McKinsey Matrix
Organizational structures
Project
Functional Matrix
Based
organization Organizatio
organization
s n
s.
Organizational culture , diversity management are important paradigms
which make the structure effective or ineffective and also impact project
management style
Organizational communication is critical for project management
Project management and organizational governance

Line
Source: http://kalyan-city.blogspot.com/2010/06/organisation-organizational-structure.html
Staff
Source: http://kalyan-city.blogspot.com/2010/06/organisation-organizational-structure.html
Courtesy: PMBOK 5th Edition
Broad Organizational structure at NTPC
CEO
Functional Director
directors Projects
HR/Finance/
Design/ GM Project
Contracts
Project Project Functions

Manager of Manager of ( Finance , HR,
Package 1 Package 2 Contracts
Support Staff Support Staff

Strengths and Weaknesses of Matrix Structures
Strengths for Weaknesses for

Project Management Project Management
1. Suited to dynamic environments 1. Dual hierarchies mean two
bosses
2. Equal emphasis on project 2. Negotiation required in
management and functional order to share resources
efficiency
3. Promotes coordination across 3. Workers caught between
functional units competing project and
functional demands
4. Maximizes scarce resources Blank
Managers’ Perceptions of Effectiveness of Various Structures on Project
Success
Courtesy: PMBOK 5th thEdition
Courtesy: PMBOK 5 thEdition
Project Management Offices / PMCs
Centralized units that oversee or improve the management of projects
Resource centers for:
• Technical details
• Expertise
• Repository
• Center for excellence
Alternative Levels of Project Offices
• Who is the Project Manager? What is the role?
– The leader of the project team responsible to achieve project objectives
– The Project Manager is formally appointed by the Organization
– Project manager draws authority and responsibility.
Project Manager Functional Manager Operations Manager
Responsible for getting Responsible for management Responsible for operations of

things done for the project of a Function eg. Finance, a Business Unit
HR, Engineering etc.
The knowledge and skills set Specialized in a particular Knowledge and skills related
relate to overall business, field to operations
project and project
management
Role of Project Manager

Interpersonal or human
relationship skills
l
ica
hn
Subject matter and project management
c
Te
Conceptual skill
Ability to visualize the whole
Competencies of Project Manager

Leadership
• leading the project team towards project goal. Establishing and maintaining project mission, vision, strategy, communicating, team building,
mentoring, monitoring, evaluating the performance of the project and the team.
Team building
• Effectively making the team members work with each other, with the leader, with stake holders in achieving the common project goal. Tasks
– defining roles, responsibilities, procedures, communication, problem solving, rewards & recognition.
Motivation –
• Aligning project and individual goals. Job satisfaction, challenging work content, sense of accomplishment, growth, rewards & recognition,
compensation.
Communication –
• Single biggest reason for project success or failure. Communication within the team, with various stakeholders is essential for project
success. Correct, precise and timely. Key to decision making.
Influencing –
• Ability to influence by professional and personal power, leading by example is the key.
Decision making –
• Steps (i) define, (ii) identify alternatives, (iii) analyze, (iv) decision, (v) evaluate. Styles (i) command; (ii) consultative and (iii) consensus.
Chose appropriate style based on situation.
Responsibility of Project Manager

Political and cultural awareness
• Skillful use of power and politics is essential. Understanding organizational culture and external environment cultural diversity is key.
Know your team and external environment. International cultural differences is key for global projects. Culture can impact decision
making and speed of working.
Negotiation
• Bringing compromise or agreement between opposing parties or parties with shared interest. How to negotiate? Analyze situation;
differentiate between wants & needs; focus on interest or issue not position; know your BATNA; have room for mutual concessions;
Win: Win; listen intently; Ask high & offer low, be realistic.
Trust building
• Built trust among team members and with stakeholders. Key to trust is Open & candid communication & information sharing. Engage
in direct communication; Open to innovation; look beyond your own interests; demonstrate true concern for others.
Conflict management
• Conflict is inevitable. The key is to know root cause of conflict and actively manage to minimize potential negative impact.
Coaching or mentoring
• Developing the team for a higher level of competency and performance. Helping people realize their potential through development
and empowerment. Address poor performance by helping team members to overcome deficiencies.
Responsibility of Project Manager

Forms of P M O s and Control
Three forms of PMOs, varying with degrees of control and influence include:
• Supportive—low control; consultative and provide PM resources and training
• Controlling—moderate control; requires compliance to adopted P M
standards/processes
• Directive—high control; directly manages projects
Models of P M O s
In addition to the forms of P M O and varying levels of control, there are models of P
M O s with various purposes for companies:
• Weather station—monitoring and tracking
• Control tower—project management is a skill to be protected and supported.
Performs the following functions
• Establishes standards for managing projects
• Consults on how to follow these standards
• Enforces the standards
• Improves the standards
• Resource pool—maintain and provide a cadre of skilled project professionals
Organizational Culture
A system of shared meanings and common beliefs held by organizational members
that determines, in a large degree, how they act towards each other.
“The way we do things around here.”
Sub-cultures -
Rules of Held by some Taught to all
Unwritten
behavior subset of the new members
organization
Key Factors That Affect Culture Development
Technol
ogy
Environm
ent
Geographical
location
Reward
systems
Rules and
procedures
Key organizational
members
Critical
incidents
Cultural Constraints on Managers
Because an organization’s culture constrains what they can and cannot do and how they manage, it’s particularly relevant to managers.
A manager’s decisions are influenced by the culture in which he or she operates.
Copyright © 2018 Pearson Education, Inc. Copyright © 2018 Pearson Education, Ltd. All Rights Reserved
Organizational Culture: Effects on Project Management
Departme Employee
ntal commitme
interaction nt to goals
Performan
Project
ce
planning
evaluation
How the Project Manager Leads
Project managers function as mini-CEOs and manage both “hard” technical
details and “soft” people issues.
Project managers:
• acquire project resources
• motivate and build teams
• have a vision and fight fires
• communicate
Acquiring Resources
Project are underfunded for a variety of reasons:

• Vague goals
• Lack of top management support
• Requirements understated
• Insufficient funds
• Distrust between managers
Purpose of Meetings
1. Define project and team players.

2. Provide an opportunity to revise, update, and add to knowledge base.
3. Assist team members in understanding role in project as part of whole and how
to contribute to project success.
4. Help stakeholders increase commitment to project.
5. Provide a collective opportunity to discuss project.
6. Provide visibility for project manager’s role.
Communication (1 of 2)
It is critical for a project manager to maintain strong contact with
all stakeholders.
Project meetings feature task-oriented and group maintenance
behaviors.
Task-Oriented Specific Outcome

Behavior
1. Structuring process Guide and sequence discussion
2. Stimulating
Increase information exchange
communication
3. Clarifying
Increase comprehension
communication
Check on understanding and assess
4. Summarizing
progress
Communication (2 of 2)
Group Maintenance
Specific Outcome
Behavior
1. Gatekeeping Increase and equalize participation
2. Harmonizing Reduce tension and hostility
Prevent withdrawal, encourage
3. Supporting
exchange
4. Setting standards Regulate behavior
Discover and resolve process
5. Analyzing process
problems
Characteristics of an Effective Project Manager
Leads by Technically
Visionary
example competent
A good A good
Decisive
communicator motivator
Stands up to
top
Supports team Encourages
management
members new ideas
when
necessary
Traits of Effective Project Leaders
One study on effective project leadership revealed these common characteristics:

• Credibility
• Creative problem-solver
• Tolerance for ambiguity
• Flexible management style
• Effective communication skills
Essential Project Management Abilities
Organizing under conflict
Experience
Decision making
Productive creativity
Organizing with cooperation
Cooperative leadership
Integrative thinking
Characteristics Rendering Project Managers Ineffective
Personal Flaw Organizational Factors

• Sets bad example • Lack of top management
support
• Not self-assured
• Resistance to change
• Lacks technical expertise
• Inconsistent reward system
• Poor communicator
• A reactive organization rather
• Poor motivator than a proactive, planning one
• Lack of resources
Challenges Associated with PM areas
Scope management Resource Management

Relationship between client and Lack of skilled workforce , 92-
contractor, why design changes? million-man years shortfall by
2022* , skill inversion.
Schedule Management Communication Managemen

Contract management, Risk Hierarchy; lack of planning
mitigation planning, not and standards , noise in
planning for quality. communication
Cost Management Risk Management

Small contractors –poor FM, VUCA, lack of dynamic
inaccurate estimates , price systems of risk management,
sensitivity, lack of professional approach.
Quality Management Procurement Management

Lack of Quality attitude and Matching the procurement type with
culture, how we handle failures the services and product required,
role of vigilance in CPSEs
*Digital construction management by Akhilesh Srivastava
Project life cycle phases
Idea / Driven by needs as well as strategic plan. How to
Phasing in practice for
need identification
generate ideas? large projects
Project concepts Identifying and analyzing multiple options
Develop preliminary layout plans, study availability of critical resources. Eg. land,
Pre-feasibility coal, water etc., study logistics etc. Preliminary estimates of cost, revenue, benefit.
Select optimal option and get approval.
Establish technical feasibility and financial viability of the chosen option. This
stage can include numerous onsite preliminary studies also. DPR. Project
Feasibility
financials finalization. Project is appraised by Investment Bankers.
Regulatory Clearances by Central, State, Local government

clearances departments as required. Marks a significant
milestone.
All the sources of funds tied up. Marks a

Financial Closure
significant milestone in project life cycle.
Generally termed as Project Development Stage

Basic design / Basic designs. Specifications, Scope. Project master
Phasing in practice for
Tender engineering
network (Level-1) large projects
Tendering Tender specifications, NIT, Bid evaluation and Contract award. Project
plan as per Level-2 network.
Detailed engineering (designs, construction drawings, construction procedures etc.)

Detailed engineering
Project construction Construction and erection of the project, Control & monitoring at Level
& - 3 or further drill-down level network. Protocols and Punch lists.
Erection
Testing & Moment of truth – has the project showed intended result.
Commissioning
Contracts closing, Handing over of the project and

Closure as built & operations documentation. Completion
certification.
Generally termed as Project Execution Stage
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Project Management- Planning

Organizational goal - a desired state of

“ Projects are stepping-stones to corporate Strategy “

Dynamic relationships between strategy and structure in the ‘classical’ model.

Project management and organizational governance

Project Project Functions

Support Staff Support Staff

Strengths for Weaknesses for

Project Manager Functional Manager Operations Manager

Responsible for getting Responsible for management Responsible for operations of

Role of Project Manager

Competencies of Project Manager

Responsibility of Project Manager

Responsibility of Project Manager

“The way we do things around here.”

A manager’s decisions are influenced by the culture in which he or she operates.

Project are underfunded for a variety of reasons:

1. Define project and team players.

Task-Oriented Specific Outcome

One study on effective project leadership revealed these common characteristics:

Personal Flaw Organizational Factors

Scope management Resource Management

Schedule Management Communication Managemen

Cost Management Risk Management

Quality Management Procurement Management

Regulatory Clearances by Central, State, Local government

All the sources of funds tied up. Marks a

Generally termed as Project Development Stage

Detailed engineering (designs, construction drawings, construction procedures etc.)

Contracts closing, Handing over of the project and

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