How To Manage Project Management

Transcription

1 MASTER OF BUSINESS ADMINISTRATION Project Management Contact details: Regenesys Business School Tel: +27 (11) Fax: +27 (11)

2 Version number: 7.2_e_f Date of Publication: January, 2014 Publisher: Regenesys Management: Sandton Document Change History Date Version Initials Description of Change 7 September LC First draft 25 September LC Reviewed and updated 25 September JN SME review 25 September LC Amendments as per SME recommendations 15 October _e LvN Editing 4 October PL Approved 27 June _e_f FVS Formatting 22 August CT Referencing revised 16 October _f FVS Formatting 29 October CT New recommended textbook, articles, and multimedia; rewrite to include revised learning outcomes, current knowledge and resources 4 November PL & RS Reviewed 6 November CT Inclusion of review comments and feedback from PL 14 January CT Inclusion of review comments and feedback from RS 24 January _f FVS Formatting 5 February _e_f CJ Proofreading This study guide highlights key focus areas for you as a student. Because the field of study in question is so vast, it is critical that you consult additional literature. Copyright Regenesys, 2014 All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission of the publisher. Any person who does any unauthorised act in relation to this publication may be liable for criminal prosecution and civil claims for damages.

3 CONTENTS 1. WELCOME TO REGENESYS INTRODUCTION TEACHING AND LEARNING METHODOLOGY ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES ICONS USED IN THIS STUDY GUIDE STUDY MATERIAL FOR THE MODULE RECOMMENDED RESOURCES RECOMMENDED BOOKS RECOMMENDEDARTICLES RECOMMENDEDMULTIMEDIA ADDITIONAL SOURCES TO CONSULT LEARNING OUTCOMES CONTENT SCOPE AND LEARNING GUIDANCE LOCATING PROJECT MANAGEMENT WITHIN THE CURRENT CONTEXT DEFINING PROJECT MANAGEMENT THE IRON TRIANGLE LAUFER'S VIEW ON PROJECT MANAGEMENT PROJECT LEADERSHIP PROJECT MANAGEMENT VS PROJECT LEADERSHIP COMMUNICATION 'HIGH TECH' OR 'HIGH TOUCH'? PROJECT TEAM DYNAMICS PROJECT MANAGEMENT LIFE CYCLE PROJECT LIFE CYCLE PROJECT INITIATION PROJECT PLANNING PROJECT IMPLEMENTATION INCLUDING MONITORING AND CONTROL PROJECT CLOSURE POST PROJECT EVALUATION PHASE PROJECT DOCUMENTATION AND REPORTING PROJECT MANAGEMENT INFORMATION SYSTEMS (PMIS) WORK PERFORMANCE REPORTING EFFECTIVE PROJECT REPORTING OUTSOURCING, CONTRACT AND TENDER MANAGEMENT OUTSOURCING CONTRACT MANAGEMENT TENDERS (BIDS) PROJECT SUCCESS FACTORS PROJECT SUCCESS VARIABLES ETHICAL DECISIONS AND STANDARDS POLICIES AND PROCEDURES CLOSING DISCUSSIONS MATURITY OF PROJECT PROGRAMME PORTFOLIO REFERENCES APPENDIX 1: QUICK REFERENCE - PLANS, DOCUMENTS AND REPORTS APPENDIX 2: PROJECT TEAM CHARTER APPENDIX 3: STAKEHOLDER REGISTER (SAMPLE) GLOSSARY OF TERMS

4 List of Tables TABLE 1: SUB-SAHARAN AFRICA - CULTURAL PATTERNS, VALUES AND HABITS TABLE 2: DISTINGUISHING BETWEEN MANAGEMENT AND LEADERSHIP IN PROJECTS TABLE 3: CLOSED AND OPEN COMMUNICATION TABLE 4: PROJECT LIFE CYCLE PROCESSES AND ACTIONS TABLE 5: SALIENCY GRID TABLE 6: STAKEHOLDER ENGAGEMENT ASSESSMENT MATRIX TABLE 7: KEY CONCEPTS IN THE PLANNING PROCESS TABLE 8: COST OF QUALITY TABLE 9: PROBABILITY AND IMPACT MATRIX TABLE 10: GENERIC RISK RESPONSES TABLE 11: PROJECT MANAGEMENT PLAN GUIDELINES TABLE 12: EARNED VALUE MANAGEMENT (EVM) TERMS TABLE 13: EVM ANALYSIS TABLE 14: SELECTION OF CONTRACT TYPES FOUND IN PROJECT MANAGEMENT TABLE 15: PROJECT MANAGER SUCCESS FACTORS TABLE 16: PROJECT PLANS TABLE 17: PROJECT DOCUMENTS TABLE 18: PROJECT REPORTS TABLE 19: STAKEHOLDER REGISTER (SAMPLE) List of Figures FIGURE 1: HIERARCHY STRATEGIC OBJECTIVES, PORTFOLIOS, PROGRAMMES AND PROJECTS15 FIGURE 2: A PORTFOLIO OF PROJECTS FOR AN ORGANISATION FIGURE 3: THE IRON TRIANGLE FIGURE 4: TIME, COST AND QUALITY FIGURE 5: EXTENDED FRAMEWORK FOR PROJECT MANAGEMENT SUCCESS FIGURE 6: THEORETICAL FRAMEWORK FOR TEAM CULTURE FIGURE 7: THE COMPLEXITY OF THE PROJECT MANAGEMENT ENVIRONMENT FIGURE 8: PMBOK'S EXAMPLE OF A SINGLE-PHASE PROJECT FIGURE 9: PMBOK'S EXAMPLE OF A THREE-PHASE PROJECT FIGURE 10: PMBOK'S EXAMPLE OF OVERLAPPING PHASES FIGURE 11: CUSTOMISED PROJECT LIFE CYCLE FIGURE 12: POWER/INTEREST MATRIX FIGURE 13: SALIENCE MODEL FIGURE 14: STAKEHOLDER ANALYSIS TOOL FIGURE 15: WORK BREAKDOWN STRUCTURE (WBS) FIGURE 16: TOP-DOWN AND BOTTOM-UP ESTIMATING FIGURE 17: PROJECT MANAGEMENT IMPLEMENTATION AREAS FIGURE 18: THE RELATIONSHIP BETWEEN COST, TIME AND CHANGE FIGURE 19: MONITORING AND CONTROL LOOP FIGURE 20: FROM DATA TO REPORTING FIGURE 21: MATURITY MODEL

5 1. WELCOME TO REGENESYS Have a vision. Think big. Dream, persevere and your vision will become a reality. Awaken your potential knowing that everything you need is within you. Dr. Marko Saravanja At Regenesys, we assist individuals and organisations to achieve their personal and organisational goals, by enhancing their management and leadership potential. We approach education and development holistically, considering every interaction not only from an intellectual perspective but also in terms of emotion and spirituality. Our learning programmes are designed to transform and inspire your mind, heart and soul, and thus allow you to develop the positive values, attitudes and behaviours, which are required for success. Having educated over students based in highly reputable local and international corporations across over 100 countries since Regenesys' inception in 1998, we are now one of the fastest-growing and leading institutions of management and leadership development in the world. Regenesys ISO 9001:2008 accreditation bears testimony to our quality management systems meeting international standards. Regenesys is accredited with the Council on Higher Education. Our work is rooted in the realities of a rapidly changing world and we provide our clients with the knowledge, skills and values required for success in the 21 st century. At Regenesys, you will be treated with respect, care and professionalism. You will be taught by business experts, entrepreneurs and academics who are inspired by their passion for human development. You will be at a place where business and government leaders meet, network, share their experiences and knowledge, learn from each other and develop business relationships. You will have access to a campus, in the heart of Sandton, with the tranquillity of a Zen garden, gym and meditation room. We encourage you to embark on a journey of personal development with Regenesys. We will help you to awaken your potential and to realise that everything you need to succeed is within you. We will be with you every step of the way. We will work hard with you and, at the end celebrate your success with you. Areas of Expertise Regenesys Business School 1

6 2. INTRODUCTION Welcome to the module on Project Management. The purpose of this module is to analyse and evaluate the processes and techniques required to select and manage projects that will meet the strategic objectives of an organisation. Whilst project management may be perceived as a 'hard' skill, experienced project managers continue to emphasise that 'soft' skills are equally, if not more, important. Therefore, this module not only focuses on the current body of technical project management knowledge but also places a strong emphasis on leadership, team dynamics and stakeholder management. Current thinking also suggests that in our increasingly changing world we must work differently. "All of the world's trade in 1949 happens in a single day today, all of the foreign exchange dealings in 1979 happen now in a single day, as do all the telephone calls made around the world in A year in a day is exactly how it feels sometimes like navigating in permanent white water." (Handy in Laufer, 2012) As the speed of change increases it becomes harder to maintain centralised control and the previously accepted ideology of controlled environments (e.g. PRINCE2 PRojects IN Controlled Environments) is being regularly challenged. In this module we emphasise the need for both control and flexibility, and the inherent leadership challenges associated with these. Project managers must be adept at delegating responsibility (e.g. to risk owners), reprogramming schedules for the least incremental cost, and must use creative and innovative ways to meet seemingly impossible demands. In short, project managers must be able to solve both technical (controlled) and adaptive (uncontrolled) problems. The Project Management Body of Knowledge (PMBOK) remains the leading authority on the subject it is compiled by the world's largest and most respected institute of project managers. This study guide includes reference to many of their well-established principles and practices (latest version published in 2013). In addition to this we prescribe a comprehensive textbook and provide a range of recommended articles and multimedia to support a rich learning experience. The study guide begins (Section 7.1) by locating project management within our current world context challenging some of the long-established practices and drawing attention to a more systemic view of project management. This is followed by a section devoted specifically to project leadership (Section 7.2), incorporating the expertise of several experienced project managers. In Section 7.3, we cover the project life cycle project initiation, planning, implementation, monitoring and control, and closure. This section points to significant learning areas, including definitions, theories, models and principles, together with appropriate strategies and tools in use. Regenesys Business School 2

7 Sections 7.4 and 7.5 turn to project documentation, reporting techniques and important points relating to outsourcing, contract and tender management. Our study guide concludes with project success and failure factors and, importantly, includes reference to ethical standards and decisions faced by project managers. 2.1 TEACHING AND LEARNING METHODOLOGY Regenesys uses an interactive teaching and learning methodology that encourages self-reflection and promotes independent and critical thinking. Key to the approach utilised is an understanding of adult learning principles, which recognise the maturity and experience of participants and the way that adult students need to learn. At the core of this is the integration of new knowledge and skills into existing knowledge structures, as well as the importance of seeing the relevance of all learning via immediate application in the workplace. Practical exercises are used to create a simulated management experience to ensure that the conceptual knowledge and practical skills acquired can be directly applied within the work environment of the participants. The activities may include scenarios, case studies, self-reflection, problem solving and planning tasks. Training manuals are developed to cover all essential aspects of the training comprehensively, in a user-friendly and interactive format. Our facilitators have extensive experience in management education, training and development. Please read through this study guide carefully, as it will influence your understanding of the subject matter and the successful planning and completion of your studies. Regenesys Business School 3

8 2.2 ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES This course will draw on a model developed by Regenesys Management, which demonstrates how the external environment, the levels of an organisation, the team and the components of an individual are interrelated in a dynamic and systemic way. The success of an individual depends on his/ her self-awareness, knowledge and ability to manage successfully these interdependent forces, stakeholders and processes. The degree of synergy and alignment between the goals and objectives of the organisation, the team and the individual determines the success or failure of an organisation. It is, therefore, imperative that each organisation ensures that team and individual goals and objectives are aligned with the organisation s strategies (vision, mission, goals and objectives, etc.); structure (organogram, decision-making structure, etc.); systems (HR, finance, communication, administration, information, etc.); culture (values, level of openness, democracy, caring, etc.). Hence, an effective work environment should be characterised by the alignment of organisational systems, strategies, structures and culture, and by people who operate synergistically. Regenesys Integrated Management Model Regenesys Business School 4

9 3. ICONS USED IN THIS STUDY GUIDE Icons are included in the study guide to enhance its usability. Certain icons are used to indicate different important aspects in the study guide to help you to use it more effectively as a reference guide in future. The icons in this study guide should be interpreted as follows: Definition The definitions provide an academic perspective on given terminology. They are used to give students a frame of reference from which to define a term using their own words. Examples The example icon is used to indicate an extra/ additional text that illustrates the content under discussion. These include templates, simple calculation, problem solution, etc. Video clip or presentation This icon indicates a URL link to a video clip or presentation on the subject matter for discussion. It is recommended that students follow the link and listen/ read the required sources. Interesting source to consult The source icon is used to indicate text sources, from the Internet or resource centre, which add to the content of the topic being discussed In a nutshell This icon indicates a summary of the content of a section in the workbook and to emphasise an important issue. Calculations This icon indicates mathematical or linguistic formulae and calculations. Self-reflection Students complete the action of selfreflection in their own time. It requires students to think further about an issue raised in class or in the learning materials. In certain instances, students may be required to add their views to their assignments. Tasks The task icon indicates work activities that contact students must complete during class time. These tasks will be discussed in class and reflected upon by students and facilitators. E-learning students can use these tasks simply to reinforce their knowledge. Note This icon indicates important information of which to take note. Regenesys Business School 5

10 4. STUDY MATERIAL FOR THE MODULE You have received material that includes the following: Study guide Recommended reading Assignment These resources provide you with a starting point from which to study the contents of this module. In addition to these, other resources to assist you in completing this module will be provided online via the link to this module. Guidance on how to access the material is provided in the Academic Handbook that you received when you registered for this qualification. 5. RECOMMENDED RESOURCES A number of recommended resources have been identified to assist you in successfully completing this module. 5.1 RECOMMENDED BOOKS The following textbook is recommended and must be used to complete the module: Vaidyanathan, G. 2013, Project Management: Process, Technology and Practice: International Edition, New Jersey: Pearson Education Limited. The author provides valuable case studies to support learning. Please ensure that you order or download your textbook before you start with the module. Other useful sources include: Laufer, A. 2012, Mastering the Leadership Role in Project Management, New Jersey: Pearson Education Ltd. PMBOK. 2013, A Guide to the Project Management Body of Knowledge, 5 th ed., Pennsylvania: Project Management Institute. Regenesys Business School 6

11 5.2 RECOMMENDED ARTICLES Antonioni, D. 2009, 'Crafting the art of stakeholder management', Industrial Management, January 2009 ed. Ebbesen, J.B. and Hope, A.J. 2013, 'Re-imagining the Iron Triangle: Embedding sustainability into project constraints', PM World Journal, 2 (3). Green, S. 2005, Strategic project management: From maturity model to star project management, Projects Center, (accessed 28 October 2013). Jetu, F.T., Riedl, R. and Roithmayr, F. 2011, 'Cultural patterns influencing project team behavior in Sub- Saharan Africa: A case study in Ethiopia', Project Management Journal, 42 (5), Pasian, B., Sankaran, S. and Boydell, S. 2012, 'Project management maturity: A critical analysis of existing and emergent factors', International Journal of Managing Projects in Business, 5 (1), PMI. 2013a, Code of ethics and professional conduct, Project Management Institute, (accessed 25 October 2013). Sharma, V.K. 2013, 'Earned value management: A tool for project performance', Advances in Management, 6 (5). Shenhar, A.J., Dvir, D., Levy, O. and Maltz, A.C. 2001, 'Project success: A multidimensional strategic concept', Long Range Planning, 34 (2001), Ward, J. and Daniel, E.M. 2012, 'The role of project management offices (PMOs) in IS project success and management satisfaction', Journal of Enterprise Information Management, 26 (3), Additional articles that may prompt discussions and further assist you in completing this course will be saved on Regenesys Online under the relevant course. Please visit the site regularly to access these additional sources. Regenesys Business School 7

12 5.3 RECOMMENDED MULTIMEDIA izenbridge Consultancy Pvt Ltd. 2013, 'Project life cycle, PMBOK 5, Lesson 2: Part 4, [video], (accessed 9 September 2013). Litten, D. 2012, 'Learn PMP critical path in 17 minutes flat!', [video], (accessed 11 July 2013). Litten, D. 2011, 'Learn PMP earned value in 10 minutes flat on [video], (accessed 11 July 2013). PMI. 2013b, 'PMI's code of ethics and professional conduct', [video], Us/Ethics/Movie-PMI-Ethics-Video.aspx (accessed 25 October 2013). PUBP , 'Excel cost benefit tutorial', [video], (accessed 11 July 2013). Regenesys Business School 8

13 5.4 ADDITIONAL SOURCES TO CONSULT As a higher education student, you are responsible for sourcing additional information that will assist you in completing this module successfully. Below is a list of sources that you can consult to obtain additional information on the topics to be discussed in this module: Emerald: NetMBA: MindTools: Brunel Open Learning Archive: ProvenModels: 12manage.com: Alliance Online: The Free Management Library: The Charity Village: Project Management Lexicon This is an online database containing journal articles that are relevant to your modules. Please refer to the attached Emerald manual to assist you to download required articles. Information on how to access Emerald is provided to you in your Academic Handbook. You will receive access to the database once you register as a student. This is one of several web addresses that provide a selection of MBA constructs and discussion. It is one of the better of these addresses. MindTools.com is a very useful source of ideas, constructs, management models, etc. with even more useful commentary and description. A Brunel University support-site that provides an easily accessible library of ideas, concepts, constructs techniques, tools, models, etc. ProvenModels' Digital Model Book presents digitalised management models categorised in a clear, consistent and standardised information structure to improve the usability and reusability of management literature. Management models are important generalisations of business situations when applied in context and are powerful tools for solving business issues. This is a website on which one can access numerous models as well as global comments on the models and principles. This could also serve as a place where you could voice your ideas and get feedback from all over the world. The Alliance for Non-profit Management's general introduction to strategic planning is built around 15 questions that cover just about all aspects in brief. (Click on Strategic Planning ) The Free Management Library can be used to improve your organisation, and for your own personal, professional and organisational development. This is by far the most comprehensive overview of all aspects of strategic planning covering all stages of the process. A series of twelve very short articles, by Ron Robinson, an independent Canadian consultant, appeared on Charity Village between November 2001 and October These articles are refreshing in that they do not advocate a one best way for all types of non-profit organisations. They discuss various way of approaching the strategic planning process. This is a comprehensive online dictionary of project management terms, which are largely consistent with the Project Management Body of Knowledge terminology. There are many more sites and articles available that can help you to successfully complete this module. You are encouraged to post the website addresses or URLs of any additional interesting sites that you come across on the Regenesys Learning Platform. In this way, you can assist other students to access the same wonderful information that you have discovered. Regenesys Business School 9

14 A word of caution not all information available on the Internet is necessarily of a high academic standard. It is, therefore, recommended that you always compare information that you obtain with that contained in accredited sources such as articles that were published in accredited journals. 6. LEARNING OUTCOMES Upon completing this course, students should be able to: Review current project management research and identify current issues and trends Interrogate the link between strategic, programme and project management Examine the skills and processes necessary to manage group dynamics and lead project teams effectively Critically evaluate project management definitions, theories, models and principles Select and apply relevant strategies and tools used in the project management life cycle: o Initiate o Plan o Execute o Monitor and control o Close a project Identify, understand and involve stakeholders appropriately in the project management life cycle Manage time, costs and quality effectively and efficiently in complex and dynamic environments Critically analyse the impact that human resources have on projects Evaluate project risks and develop a proactive risk management plan Review project management software as a project management tool Make autonomous ethical decisions and contribute to the development of ethical project management standards Compile professional project documents and reports Critically review key issues relating to outsourcing, contract and tender management Evaluate key project success and failure factors Critically evaluate current project management policies and procedures Regenesys Business School 10

15 7. CONTENT SCOPE AND LEARNING GUIDANCE A number of topics will be covered to assist you in successfully achieving the learning outcomes of this module. It is important to study each of these sections to ensure that you expand your knowledge in the subject and are able to complete the required assessments. The sections that will be dealt with include: Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Locating Project Management within the Current Context Project Leadership Project Management Life Cycle Project Documentation and Reporting Outsourcing, Contract and Tender Management Project Success Factors A more detailed framework of what is required for each of these topics follows under each section heading. A number of questions to probe discussion and guide you towards comprehension and insight are also provided. The timetable under each section heading provides guidance on the time to be spent to study each section. It is recommended that you follow the given timetable to ensure that you spend the appropriate amount of time on each section. Following the timetable will ensure that you have covered the required sections relevant to each assignment and have appropriate time to prepare for the examination. Regenesys Business School 11

16 7.1 LOCATING PROJECT MANAGEMENT WITHIN THE CURRENT CONTEXT Timeframe: Learning outcomes: Recommended reading: Section overview: Minimum of 20 hours Review current project management research and identify current issues and trends. Interrogate the link between strategic, programme and project management. Chapter 1: Vaidyanathan, G. 2013, Project Management: Process, Technology and Practice: International Edition, Pearson Education Limited. Ebbesen, J.B. and Hope, A.J. 2013, 'Re-imagining the Iron Triangle: Embedding sustainability into project constraints', PM World Journal, 2 (3). Jetu, F.T., Riedl, R. and Roithmayr, F. 2011, 'Cultural patterns influencing project team behavior in Sub-Saharan Africa: A case study in Ethiopia', Project Management Journal, 42 (5), Ward, J. and Daniel, E.M. 2012, 'The role of project management offices (PMOs) in IS project success and management satisfaction', Journal of Enterprise Information Management, 26 (3), In this opening section we define project management and locate it within the broader concepts of strategic goals, portfolio and programme management. Given the evolving nature of project management, we consider some of the current issues and trends, and explore the complex and systemic nature of the project environment Defining Project Management The concept of projects has been around since the beginning of history, enabling leaders to initiate, plan and manage projects within the designated constraints of time, cost and quality. Projects exist in all sectors government, private, not-for-profit and development and in some cases they involve multiple entities (e.g. consortiums on collaborative projects). These projects range from a single day to twenty years or more. China's Three Gorges Dam: Their largest engineering project since the Great Wall (and the world s largest hydroelectric dam) spans 2.4km, creates a reservoir big enough to bring cargo ships 2 414km inland and has turbines that generate nearly 10 percent of China's electricity supply. It was constructed using a team of workers scheduled in round-the-clock shifts; 1.3 million people were relocated to make way for the dam, and 100 towns were levelled in the process. After the dam's completion in 2012 (taking approximately 16 years), China continues with its post-construction project work, which includes ecomanagement and helping people resettle. Some of the project's primary objectives include the reduction of China's carbon emissions and economic ascension. (Zhou, 2013) Regenesys Business School 12

17 Woolworths (South Africa) staff transport project: As part of Woolworths' Enterprise Development Programme, they financed a project that would not only support entrepreneurial development in South Africa, but would create jobs and decrease the distance and time travelled by Woolworths employees. Jabulani, a taxi driver in KwaZulu-Natal, was granted a loan of R3.3 million to purchase his fleet of vehicles and employ drivers. This was a pilot project for Woolworths, which they aim to replicate across the country. Jabulani's fleet regularly loops 15 collection points (14 stores and the distribution centre), collecting staff and dropping them off where they can connect with other forms of transport to get them home faster. (Woolworths, 2013) Electric Vehicles Accelerated Development in the North East (England) Consortium of several companies to develop the electronic car industry: They were awarded 5.4 million by the Technology Strategy Board in 2009 for a four-year project. The objective was the scaling up of electric vehicles from trials to mass market and the integration of recharging with the energy supply grid. The project was completed in April 2013, providing valuable information that a single company could not justifiably have achieved on its own. (Technology Strategy Board, 2013) Projects exist to bring about a product, service and/or result that did not exist before. Consider the following definitions. A project is an endeavour undertaken to create a unique product, service or result. A project has a definite beginning and end that is reached when the project's objectives have been achieved (in some cases the project may end if the objectives will not or cannot be met or if the need for the project no longer exists). (Adapted from PMBOK, 2013:3) ISO defines a project as a "unique set of processes consisting of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective". (ISO in Bernitz, 2013) "A project is a unique activity that adds value, expends resources, has beginning and end dates, and has constraints and requirements that include scope, cost, schedule performance, resources, and value." (Vaidyanathan, 2013:2) Regenesys Business School 13

18 Task Questions 1. Brainstorm projects that you have been involved with (or are familiar with) under the categories of: a) Product b) Service, and c) Result 2. Select one of each and determine the following: a) Project's objectives, and b) Start and end dates 3. Determine what distinguishes a project from day-to-day activities. Projects are unique; they are temporary in nature (definitive beginning and ending dates), have specific objectives and are deemed successful when the project objectives are achieved. However, bear in mind that in some instances projects may be discontinued because the project is no longer viable (e.g. innovations in the industry render the product obsolete). Importantly, projects are planned to include decision points, at which time 'go/ no go' and other important decisions are made. We will look closely at these decision points in this study guide when we discuss the life cycle of a project. A successful project is one that meets or exceeds the expectations of its stakeholders (e.g. funders, shareholders, management, client, community, employees, etc.) those who care about or who have a vested interest in the project. As Watt (2013) states: "Key stakeholders can make or break the success of a project. Even if all the deliverables are met and the objectives are satisfied, if your key stakeholders aren't happy, nobody's happy." Given the importance of stakeholder management, we will analyse stakeholder identification, assessment and engagement in detail when we discuss project planning. Distinguishing between portfolios, programmes and projects In project management, a portfolio refers to a collection of programmes and projects (including sub portfolios and sub programmes where appropriate). A portfolio is a set of projects and/ or programmes that are not necessarily related but are brought together for the sake of control, coordination and optimisation. Regenesys Business School 14

19 A portfolio is a collection of programmes and projects that are grouped together to facilitate effective and efficient management of the work required to meet the organisation's strategic objectives. The projects, or programmes of the portfolio, may not necessarily be interdependent or directly related. (Adapted from Pinto, 2007: ) A programme is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. (Adapted from Pinto, 2007:479) Consider the hierarchy in the following diagram. Note that portfolios, programmes and projects derive their purpose from overarching strategic objectives, e.g. satisfying organisational needs and priorities. And note that projects within a programme are related as inferred by the definitions given above (horizontal connectors between projects under a programme). Figure 1: Hierarchy Strategic Objectives, Portfolios, Programmes and Projects (Adapted from PMBOK, 2013:5) Soltis (2013) provides a useful way of viewing the differences, as shown in the figure below. Regenesys Business School 15

20 Figure 2: A Portfolio of Projects for an Organisation (Soltis, 2013) As you can see from Soltis' (2013) diagram, the portfolio of projects represents all the projects in the pipeline for the current year in the organisation, including the beginning of the next year. Three projects fall under one programme and there are three further projects running independent of each other. Using a timeline assists in understanding the potential need for competing resources (e.g. human and financial). The project management office For organisations running multiple projects, on an ongoing basis, a Project Management Office (PMO) is justified. As Soltis (2013) emphasises, "It is not enough to say you completed your project on time, and to schedule or budget if you can't prove those projects brought value to the company." Consider how Soltis (2013) views the role of the Project Management Office (PMO), especially in terms of adding value: Strategic role: PMO works with senior leadership to select projects that best align with the strategic goals of the organisation and have sound business cases (e.g. provide the best returns on investment) especially when there are resource constraints. The technique to achieve this is: Regenesys Business School 16

21 o Portfolio optimisation: "Allows you to find a set of projects that yields the maximum portfolio value when you have cost, resource, and other constraints" (Huhn, 2010). For example, imagine that you have 30 potential projects that would cost a total of $40 million and require 30 full-time employees but you only have a budget of $20 million and 22 full-time employees. Consider too that you must achieve a minimum return on investment of 15% and you must control the average portfolio risk a possible solution to this challenge is 'portfolio optimisation' (Huhn, 2010). Governance role: Projects are monitored to ensure process and procedures are followed (e.g. using electronic portfolio dashboards and other tools such as Microsoft Project). Where projects fall short of their scheduled deliverables in terms of, for example, time and cost they are flagged and escalated up the chain of command. Historical role: This provides a learning platform for future projects (archive) and most importantly validates that what was delivered was according to the project charter (to be discussed further in this study guide). The archive (all the project documents created during the project) is an electronic and/ or paper-based repository. This is particularly important if the organisation is in a regulated industry. The types of questions that should be asked include: o Did the project meet the objectives it set out to achieve? o What lessons can be learned from the project? o Did the project deliver the benefits that were defined in the business case did it add value? Task Questions 1. Argue for and against the concept of a Project Management Office (PMO). 2. Is a PMO justified in your organisation? Why/ why not? 3. Conduct your own search on 'portfolio optimisation'. Significant to the above hierarchy is aggregate performance. Aggregate performance: The success of a project will be measured by its deliverables in terms of specific variables, e.g. cost, time, quality, etc. The success of the portfolio or programme will be measured by the aggregate performance of the components against the strategic objectives. For the purposes of this module our focus is on 'project management'. However, keep in mind the overarching framework within which projects are located, their aggregate performance and the contributions that projects make to business value. Regenesys Business School 17

22 Task Questions 1. Brainstorm a portfolio and related programmes and projects that you have been involved with in your organisation (or one with which you are familiar). 2. Sketch a diagram that shows the relationship between the strategic objectives, portfolio and its programmes and projects. 3. Consider the integrity between the stated strategic objectives (or overarching goals) and the objectives that flow from this into the portfolio, programmes and projects (e.g. deliverables and potential timeframes, budgets, costs, resources, quality and risks). Read the following journal article before continuing with the next discussion. In the last few years PMOs have been the subject of an increasing number of research studies. Ward, J. and Daniel, E.M. 2012, 'The role of project management offices (PMOs) in IS project success and management satisfaction', Journal of Enterprise Information Management, 26 (3), The Iron Triangle For many years academics and practitioners have attempted to define the criteria against which project success should be measured. The 'Iron Triangle', based on the criteria of quality, time and cost, has provided such a framework. Figure 3: The Iron Triangle Quality Time Cost Regenesys Business School 18

23 The Iron Triangle includes three mutual constraints, e.g. increasing quality will increase the amount of time needed, which will also lead to an increase in cost. A change in one variable has implications for the other two (uses the basic principle that constraints automatically involve tradeoffs). Consider the diagram below. Figure 4: Time, Cost and Quality Project Scope A allows for relatively low cost and little time; therefore, the quality achieved will also be relatively low. Project Scope B allows just as little time, but by greatly increasing cost, managers achieve a high level of quality. And Project Scope C achieves the same high level of quality at a much lower cost by increasing the timeline for the project. Current thinking suggests that whilst these three constraints are important, they can narrow the focus away from other crucial project success factors sustainability being one such factor (Ebbesen and Hope, 2013). Read the following recommended journal article, which discusses the emerging prominence of sustainability within the field of project management. It is argued that key stakeholders may not perceive projects that are delivered on time, within budget and quality specifications as necessarily successful on their own. Ebbesen, J.B. and Hope, A.J. 2013, 'Re-imagining the Iron Triangle: Embedding sustainability into project constraints', PM World Journal, 2 (3). Regenesys Business School 19

24 As Ebbesen and Hope (2013) argue, when placing sustainable development in an organisational or business project context, the concept of the 'triple bottom line' becomes increasingly relevant. Task Questions 1. Referring back to our Woolworths example (the staff transport project), the concept of 'sustainability' is evident. Consider that the pilot project's success was measured against time, cost and quality alone. What would the likely consequences be for the longevity of Jabulani's business and the strategic objectives of Woolworths? 2. Based on the article by Ebbesen and Hope (2013), what are the drivers for sustainability? Do you agree that Project Management is then ideally placed to contribute to sustainability and the 'triple bottom line'? When referring to success as defined by PMBOK (2013), it is clear that the original framework for success (the Iron Triangle) may be limited in its scope: Defining project success: "The success of a project should be measured in terms of completing the project within the constraints of scope, time, cost, quality, resources, and risk as approved between the project managers and senior management Project success should be referred to the last baselines approved by the authorised stakeholders." (PMBOK, 2013:35) As suggested by PMBOK (2013), there are more than the three original constraints (time, cost and quality), as depicted in the framework below. Depending on the nature and goals of the project, an organisation may add, for example, 'sustainability' to this framework. Note, too, that project management together with stakeholders are central to the framework. Regenesys Business School 20

25 Figure 5: Extended Framework for Project Management Success Scope Risk Time Project management and stakeholders Resources Cost Quality (Adapted from PMBOK, 2013:35) This study guide explores each of the components, which are typically included in the Project Plan. Refer to Appendix 1 for an overview of the project plans Laufer's View on Project Management Consider the following excerpt by Laufer (2012): The classical model of project management, in which standards are developed for virtually all situations, expects the project manager to serve primarily as controller: to ensure that team members adhere to the established standard. This role entails only a minimal requirement for judgment and no requirement for adaptation. In reality, the project manager must constantly engage in making sense of the ambiguous and changing situation, and he must adjust the common practices to the unique situation. This process requires a great deal of interpretation and judgment " (Laufer, 2012:218) Laufer (2012) emphasises that the external environment of contemporary projects is full of surprises, can produce novel problems (e.g. the partial shutting down of US government for 16 days in October 2013), and this environment can be described as messy and ill-structured. Regenesys Business School 21

26 It is useful to reflect on two sorts of 'order' together they provide the context for modern day project management. 'Geometric order' and 'living order' Bergson (in Laufer, 2012) states that there are two sorts of order: geometric order (the traditional concept of order) and living order (created by constantly changing environments and uncertainty). In a perfectly ordered world projects can be initiated, planned, executed and closed with little interference and unquestionably this is the aim of project management. However, given the permanent white waters of our world today, it is unlikely that geometric order will prevail throughout the project. Laufer (2012) rather describes it as follows: "All projects aim to reach a perfectly functioning product with geometric order. At the start, they may face great uncertainty living order that does not completely disappear over the entire course of the project. Gradually, some parts of the project approach geometric order, though in an era of 'permanent white water', the project as a whole does not assume geometric order until late in its life." (Laufer, 2012:214) Several significant factors emerge as a consequence of this 'new order', including issues relating to: leadership, context, project teams, anticipation of problems, communication, culture and ways in which to navigate projects during uncertainty. Guided by the work of Laufer (2012), we have highlighted some of these below. Leadership qualities and context Firstly, project managers must be able to demonstrate strong leadership qualities. Whereas managers seek order and control, leaders can tolerate and navigate chaos/ lack of structure and uncertainty. For this reason we have dedicated a full section specifically to understanding and evaluating leadership qualities in complex and dynamic projects. "Lead so you can manage." (Laufer, 2012:236) The second important factor pertains to context. The traditional one best way approach to project management may not work in all situations. The successful project manager, and team, must be flexible and make necessary adjustments to their practices on the one hand they must rely on the accumulated knowledge of the organisation, but on the other hand they must be comfortable with switching to creative and innovative practices. And, at times, this will include challenging the status quo. "Adjust your practices to the uniqueness of each situation." (Laufer, 2012:218) Regenesys Business School 22

27 The 'right' people Then there is arguably one of the most important considerations recruiting the right people (at the right time) onto the project (including the project manager). People matter most because they make the systems work. And making the systems work means using insightful and systemic thinking that will ensure the project is successful even in turbulent waters. "With the right team, almost anything is possible with the wrong team failure awaits." (Laufer, 2012:229) Anticipation Traditionally, monitoring and control has been the central pillar of project management. Whereas planning establishes the targets and how these will be achieved, monitoring and control ensures that these targets are reached. Given the argument that we work in turbulent waters, greater significance is being given to anticipation and the concept of 'feed forward'. Whilst techniques such as 'Earned Value Management' provide predictions about the future costs and timeframes for project completion, different tactics are required to foresee the passage of the project through turbulent waters (e.g. the type of feedback that will help the project team to learn faster and perform better tomorrow). "Anticipating problems leaves sufficient time to attenuate and often eliminate their impact on the project." (Laufer, 2012:229) Communication Communication is a long-established debate over the past decade technology has enabled reach and speed, but arguably it has also diminished the value of face-to-face communication. Large projects spanning vast distances make face-to-face communication expensive, but without it active listening is impoverished and without active listening many of the issues we have raised above have little chance of happening leadership, understanding the context, recruiting the right people, establishing an appropriate culture in a relatively short timeframe and anticipating problems. "Use communication appropriately, from high tech to high touch." (Laufer, 2012:230) Regenesys Business School 23

28 Culture To drive a specific culture in an organisation is a substantial task even more so in a project, which has a relatively short lifespan. The project manager and team may come from multiple professional backgrounds, each contributing divergent assumptions, values and perceptions of reality that combine to create sometimes serious implications for project performance (Laufer, 2012). In support of Laufer (2012), Balden, Price and Dainty (in Jetu, Riedl and Roithmayr, 2011) argue that, "the behaviour of people needs to change in order to create an appropriate project culture for successful project delivery." However, as Jetu et al's (2011) framework suggests, project team behaviour has its roots, in part, in cultural patterns, values and habits. The theoretical framework provided by Jetu et al. (2011) explains how cultural patterns, values and habits translate into behavioural manifestations that in turn affect project team behaviour and ultimately affect project success. Figure 6: Theoretical Framework for Team Culture Cultural Patterns Project Team Project Team Behaviour Context Values Habits Behavioral Manifestation (Interactions, Activities, and Sentiment) Teamwork Behaviour Task Behaviour Project Success (Jetu, Riedl and Roithmayr, 2011) Significant to the model is an understanding of the fundamental cultural patterns, values and habits of the team members and how these flow to and impact on the project team and, consequently, the success of the project. Consider, for example, the cultural patterns, values and habits in Sub- Saharan Africa in the table below (Jetu et al., 2011). Regenesys Business School 24

29 Table 1: Sub-Saharan Africa - Cultural Patterns, Values and Habits Cultural patterns Cultural values Cultural habits For example, cultural patterns such as respect for elders, consensus decisions, respect for authority, family orientation, collectivism, etc. are apparent across most African countries. There are well-perceived cultural values commonly referred to in existing literature that characterise project environments in Sub-Saharan Africa including: Traditionalism Extended family orientation High-context communication Autocratic leadership, and Bureaucratic controls and procedures The above prevailing cultural patterns and values are believed to largely inhibit productivity, undermine proper communication and transparency, restrain individual initiatives and commitment, and instead encourage the habits of shirking accountability and responsibility. (Jetu, Riedl and Roithmayr, 2011) In considering project team behaviour (refer to the framework provided above), two complementary elements are important: Task behaviour (inherent in the technical aspects of the tasks and contribute to task accomplishment), and Teamwork behaviour (characteristics of work teams and needed to ensure shared understanding and the viability of working teams) Cultural patterns, values and habits have a direct impact on project team behaviour and tend to manifest themselves in both teamwork and task behaviour an understanding of which is central to project success. Read the full journal article by Jetu et al. (2011). Whilst the article uses Sub-Saharan Africa as the basis for research, arguably the same principles governing culture in project management across other continents (cultural patterns, cultural values and cultural habits) apply. Jetu, F.T., Riedl, R. and Roithmayr, F. 2011, 'Cultural patterns influencing project team behavior in Sub-Saharan Africa: A case study in Ethiopia', Project Management Journal, 42 (5), Regenesys Business School 25