Foundations of Project Management. Presented by: Kelly Baumer, MBA, PMP Mindy Rings, MBA, PMP

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1 Foundations of Project Management Presented by: Kelly Baumer, MBA, PMP Mindy Rings, MBA, PMP August 18, 2014

2 Project Management Basics In the next slides we will cover: Basic project management terminology and definitions. Project organizational roles and responsibilities. Project performance. What happens when there are gaps in project performance. 2

3 What is a Project? A Project is a Temporary Endeavor. All Projects have Two Essential Characteristics. Every Project produces a Unique Product, Service or Result. Every Project has a Beginning and an End. 3

4 The Purpose Of A Project To deliver a specific business case or outcome. To deliver a quality product, service or result. To satisfy the customer. 4

5 Comparison Of Daily Work Every day employees can engage in two types of work: Project Project work is the work that is performed to satisfy a one-time specific requirement. Ongoing Operations Ongoing Operations represent the work we perform over and over (i.e. our daily work). 5

6 What Is Project Management? Led by a Project Manager Project Management is a Discipline 6

7 Poll Question On average how much of your day is spent on projects? A) Less than 20% B) Between 21% - 50% C) Between 51% - 75% D) I work more than 75% of the time on projects 7

8 Who Is A Project Sponsor? A project Sponsor is a person with formal authority to use their influence to ensure project success. They are responsible for securing funding and resources for the project, and ensuring alignment with the company or firm strategy. They are ultimately accountable for the overall project. Project Manager Team Members Stakeholders Sponsor 8

9 Who Is A Stakeholder? Stakeholder is any person, group or organizations (internal or external) who can impact or are impacted by the project for better or worse. Stakeholders include: Project Sponsor, Project Team Members, Support Staff, Customers, Users, and Suppliers. Project Manager Team Members Stakeholders Sponsor 9

10 Who Is A Project Manager? Project Manager is someone who is given the authority by the Project Sponsor to lead a Project. The Project Manager acquires, develops and manages the project team. They plan, direct and manage project execution. They are accountable for delivering the project s business case. Project Manager Team Members Stakeholders Sponsor and Gatekeepers 10

11 Who Is A Team Member? Project Team Members execute the work defined in the Project Plan. They are responsible for producing deliverables outlined by the Project Plan and directed by the Project Manager. Project Manager Stakeholders Team Members Sponsor 11

12 What Is A Project Management Office (PMO)? 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. PMBOK - Guide to Project Management Body of Knowledge - 5 th edition Some of the Ways a PMO provides support are: Identifying and developing project management methodology, best practices, and standards. Coaching, mentoring, and training. Monitoring compliance to standards and tools Conformance to governance Process Knowledge Management Firm or Company Competency Governance 12

13 Poll Question Does your Firm or Company have some type of PMO (Project Management Office) in place? A) Yes B) No 13

14 How Do I Measure Project Performance? Every project is constrained in different ways. Project Performance is Measured on how well the Project is Tracking to Scope, Schedule, Cost and Quality. Scope What work will be performed and what value will be delivered? Schedule How long to complete? Cost What is the cost to complete? Quality Did we produce a quality result / outcome? Were the processes in the Project Life Cycle completed efficiently? 14

15 Project Performance: What Does Project Success Look Like? Project success is defined as delivering project within scope, on schedule, at budgeted cost and at the expected quality. Project success requires the fulfillment of the Customer s business case within the Triple Constraint. 15

16 Consequences Of Poor Project Performance Wasted Time Waiting Failure to Realize Expected Returns Feeling Overwhelmed and/or Upset Wasted Time Re-working Issues Credibility Can Be Impacted Poor Project Performance Can Result in Many Types of Gaps Project Performance is Measured on a Project s Ability to Achieve the Objectives of its Business Case. 16

17 Closing The Gaps When a disciplined approach to project management is used by providing People, Processes, and Tools we can close gaps that may lead to poor project performance. Tools Process People A Disciplined Approach to Project Management will Close the Gaps that Result from Poor Project Performance. 17

18 Tools Key Tool = Project Charter Process People A formal document that authorizes the existence of a project Provides the Project Manager with authority to utilize organizational resources to project activities An approved Project Charter formally initiates the project. Chartering a project validates alignment of the project to the strategy and ongoing work of the organization. A project charter is not considered to be a contract, because there is no consideration or money promised or exchanged in its creation PMBOK - Guide to Project Management Body of Knowledge - 5 th edition 18

19 Key Tool = Project Management Plan Tools Process People Components of a Project Management Plan: Integration Management Plan Scope Management Plan Time Management Plan Cost Management Plan Quality Management Human Resource Management Plan Communications Management Plan Risk Management Plan Procurement-Vendor Management Plan Change Management Plan Stakeholder Management Plan Developing Accurate Cost and Schedule Commitments Requires Detailed Planning prior to Execution. 19

20 Process Group Iteration Tools Process People Project Lifecycle Methodology The Project Team Iterates through one or more of the Project Management Process Group Steps (right) within every Stage of the Project Lifecycle Close Initiate Monitor and Control Process Group Steps Plan Execute 20

21 Poll Question What Tools are most often used by your Firm or company for means of managing a project? A) A Detailed Schedule B) A Charter C) A Scope Statement D) All of the above E) None of the above 21

22 Tools Deliver Results Process People Keep track of the deliverables owed to others. Document work you need to complete. Give yourself the appropriate amount of time to accomplish the work. A project s success is dependent on every individual team member s ability to deliver according to plan. Keep track of the deliverables owed to you. Document what is owed to you by when and by whom. Give yourself time to review and provide feedback on the work given to you. 22

23 Poll Question What are the biggest obstacles to completing a project at your Firm? A) Lack of Management Support B) Lack of dedicated team members C) Poorly defined Business Requirements D) My On-going work leaves little time to work on projects E) All of the above 23

24 Closing The Gaps: Individual Contribution Tools Process People Every individual working on a project or task in support of ongoing operations, impacts the Firm with their contribution. Individual Contributor Project Team or Functional Area Program or Department Business Unit Organization or Firmwide Focus on each individuals Values and Strengths to Positively Impact the Organization or Firm. 24

25 Tools Communicate Effectively Process People Effective communication is essential to successful project outcomes. Speak productively. Communicate to accomplish the deliverables agreed upon. Your communications plan should be SMART: Specific Measureable Actionable Realistic Time-bound Proactively let others know when you can or cannot honor your commitments. Communicate with honesty and integrity. 25

26 Solve Problems Tools Process People Problems are expected. Every effort should be taken to find problems early: Look for warning signs. Encourage team members to identify and expose potential problems. Encourage team members to offer solutions. Document issues in a log. Assign an owner and a due date. Measure impact. Determine most optimal solution before implementing. 26

27 Ability to Deliver Projects Effective Behavior Benefits Through effective (disciplined) behavior you will be in a better position to achieve success in projects. Effective Behavior One of the clearest ways to see good leadership traits in action is through the lens of project management. 27

28 Summary and Wrap Up A disciplined approach to running projects: Reduce rework Decrease project failure rate Reduce costs Increase customer satisfaction

29 Project Management Training does pay off Firms that measure the effectiveness of their project management training show that business needs are being met: Organizations saw an average 26% improvement in the following eight measures: 29% improved stakeholder satisfaction 27% improved schedule performance 26% Decrease in project failures 25% Improved budget performance 25% improved requirements performance 25% Improved Quality 25% Improved productivity 24% Improved time to market Source: The State of Project Management Training 2011, PM college 29

30 Project Management Value Trends Study performed by Project Management Solutions, Inc,

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