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1-1 Introduction: Why Project Management? Chapter 1

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  • 1-*Introduction: Why Project Management?Chapter 1

  • 1-*IntroductionExamples of projectsChannel between England and FranceIntroduce Windows VistaPlan the next Olympic games in London

    Projects, rather than repetitive tasks, are now the basis for most value-added in business-Tom Peters

  • 1-*What is a Project?ProjectTake place outside the process worldUnique and separate from normal organization work

    ProcessOngoing, day-to-day activitiesUse existing systems, properties, and capabilitiesA project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality.

  • 1-*Elements of ProjectsComplex, one-time processesLimited by budget, schedule, and resourcesDeveloped to resolve a clear goal or set of goalsCustomer-focused

  • 1-*Process & Project Management (Table 1.1)ProcessRepeat process or productSeveral objectivesOn-goingPeople are homogeneousSystems in place Performance, cost, & time known

    Part of the line organizationBastions of established practiceSupports status quo

    ProjectNew process or productOne objectiveOne shot limited lifeMore heterogeneousSystems must be createdPerformance, cost & time less certainOutside of line organizationViolates established practiceUpsets status quo

  • 1-*Information Technology Project SuccessSoftware & hardware projects fail at a 65% rate

    Over half of all IT projects become runaways

    Up to 75% of all software projects are cancelled

    Out of 10,640 projects ($7.2B), only 2.5% achieve 100% project success

    Pentagon spent $600M for Iraq reconstruction, 42% terminated due to mismanagement

  • 1-*Why are Projects Important?Shortened product life cyclesNarrow product launch windowsIncreasingly complex and technical productsEmergence of global marketsEconomic period marked by low inflation

  • 1-*Project Life CyclesMan HoursConceptualizationPlanningExecutionTermination

  • 1-*Determinants of Project Success

  • Volvo YCC 1-*

  • 1-*Six Criteria for IT Project SuccessSystem qualityInformation qualityUseUser satisfactionIndividual ImpactOrganizational impact

  • 1-*Four Dimensions of Project Success

  • 1-*Steps in Project Management:Selecting a TeamDeveloping project objectives and a plan for executionPerforming risk management activitiesCost estimating and budgetingSchedulingManaging resources

  • 2-*The Organizational Context:Strategy, Structure, and CultureChapter 2

  • 2-*Projects and Organizational StrategyStrategic 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 statementsFormulating, implementing and evaluating cross functional decisionsAchieving objectives

  • VISION STATEMENTS FAMOUS COMPANIES

  • JOLLIBEE vision statement

    To be the best tasting QSR... (quick service restaurant) To be the most endearing brand that has ever been... To lead in product taste at all times... To provide FSC (food, service, cleanliness) excellence in every encounter... Happiness in every moment... By year 2020, with over 4,000 stores worldwide, truly a GLOBAL BRAND (and the Filipino will be admired worldwide)

  • COCA-COLA vision statement

    To bring to the world a portfolio of beverage brands that anticipate and satisfy peoples; desires and needs.

  • NIKE vision statement

    "To bring inspiration and innovation to every athlete in the world"

  • CEBU PACIFIC vision statement

    We are internationally renowned as the most successful low-cost carrier in the Asia-Pacific region. We take pride in being the best domestic airline and the Filipino travelers' first choice.

  • AMAZON.COM vision statement

    To be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.

  • BUDWEISER vision statement

    To be the world's beer company. Through all of our products, services and relationships, we will add to life's enjoyment.

  • FORD vision statement

    To become the world's leading Consumer Company for automotive products and services.

  • BOEING vision statement

    Become the dominant player in commercial aircraft and bring the world into the jet age.

  • UNILEVER vision statementTo touch the lives of over 2 billion people every day through our products whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

  • SONY vision statement

    To continue to be a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets.

  • To create experiences that combine the magic of software with the power of Internet services across a world of devices.

    MICROSOFT vision statement

  • To represent the most refined qualities of western art around the world and must continue to be the most synonymous with both elegance and creativity.

    LOUIS VUITTON vision statement

  • Inventing the future of play.We want to pioneer new ways of playing, play materials and the business models of play - leveraging globalization and digitalization...it is not just about products, it is about realizing the human possibility.

    LEGO vision statement

  • We fulfill dreams inspired by the many roads of the world by providing extraordinary motorcycles and customer experiences. We fuel the passion for freedom in our customers to express their own individuality.HARLEY DAVIDSON vision statement

  • We are the total information and entertainment company; a leading player and center of creativity in Asia, and a major player in the global market.

    ABS-CBN vision statement

  • To develop a perfect search engine.

    GOOGLE vision statement

  • Committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

    APPLE vision statement

  • To become most successful premium manufacturer in the car industry.

    BMW vision statement

  • To make great things possible.

    GLOBE TELECOM vision statement

  • GMA NETWORK vision statementTo be the most respected, undisputed leader in the Philippine broadcast industry and the recognized media innovator and pacesetter in Asia. To be the Filipinos favorite network. To be the advertisers preferred partner. To be a key partner in promoting the best in the Filipino

  • MC DONALDS vision statement

    To be the world's best quick service restaurant. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

  • STARBUCKS vision statement

    "To establish as the premier purveyor of the finest coffee...

  • DISNEYLAND vision statement

    To be the happiest place on earth.

  • TOYS R US vision statement

    Our Vision is to put joy in kids hearts and a smile on parents faces."

  • To be the most successful and respected professional sports league in the world.NBA vision statement

  • MAPUA vision statement

    Shall be a global center of excellence in education by providing instructions that are current in content and state-of-the-art in delivery.

  • MISSION STATEMENTS FAMOUS COMPANIES

  • COCA-COLA mission statement

    To refresh the world...To inspire moments of optimism and happiness...To create value and make a difference.

  • TWITTER mission statement

    to communicate and stay connected through the exchange of quick, frequent answers to one simple question: What are you doing?

  • FACEBOOK mission statement

    to give people the power to share and make the world more open and connected

  • MC DONALDS mission statement

    "be our customers' favorite place and way to eat."

  • NOKIA mission statement

    Connecting people.

  • DISNEYLAND mission statement

    To make people happy.

  • SPECIFIC FINACIAL CORPORATE OBJECTIVES

    To increase revenue by 10% annuallyTo increase gross profit by 15% annuallyTo increase sales by 10% annuallyTo decrease expenses by 5%

  • SPECIFIC FINACIAL CORPORATE OBJECTIVES

    Mc CORMICK & COMPANYImprove returns from each of our existing operating groups. Achieve a 20% return on equity. Achieve net sales growth rate of 10% per year. Maintain an average earnings per share growth rate of 15% per year.

  • SPECIFIC FINACIAL CORPORATE OBJECTIVES

    QUAKER OATS COMPANY

    To achieve return on equity at 20% or above, real earnings growth averaging 5% or better over time, be a leading marketer of strong consumer brands, and improve the profitability of low-return businesses or divest them.

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    To introduce new products into the marketTo expand sales to the global marketplaceTo continually improve internal process to realize efficienciesTo increase community outreachTo improve marketing, advertising and public relationsTo improve distributor and/or supplier relationships

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    NIKEProtect & improve Nikes position as the number one athletic brand in America. Build a strong momentum in growing fitness market. Intensify the companys effort to develop products that customers need and want.

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    ATLAS CORPORATION

    To become a low-cost, medium-size gold producer, producing in excess of 125,000 ounces of gold a year and building gold reserves of 1,500,000

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    COCA COLA COMPANY

    To accelerate carbonated soft-drinks growth led by coca cola To selectively broaden our family of beverage brands to drive profitable growth Grow system profitability and capability together with our bottling partners Serve customers with creativity and consistency to generate growth across all channels

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    BMW

    The BMW Group will invest substantially in future technologies with the goal of developing entirely new individual mobility solutions. This applies to design, concept and drive systems.

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    HONDA

    Maintaining an international viewpoint, we are dedicated to supplying products of the highest efficiency, yet at reasonable prices, for worldwide customer satisfaction."

  • SPECIFIC STRATEGIC CORPORATE OBJECTIVES

    MC DONALDS

    to serve good food in a friendly and fun environmentto be a socially responsible companyto provide good returns to its shareholdersto provide its customers with food of a high standard, quick service and value for money

  • 2-*Projects Reflect StrategyProjects are stepping stones of corporate strategyThe firms strategic development is a driving force behind project developmentSome examples include:

    A firm wishing tomay have a projectredevelop products or processesto reengineer products or processes.change strategic direction or product portfolio configurationto create new product lines.improve cross-organizational communication & efficiencyto install an enterprise IT system.

  • 2-*Relationship of Strategic ElementsFig 2.1

  • 2-*Stakeholder ManagementStakeholders are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.

    Sets of project stakeholders include:

    Internal StakeholdersTop managementAccountantOther functional managersProject team members

    External StakeholdersClientsCompetitorsSuppliersEnvironmental, political, consumer, and other intervenor groups

  • 2-*Organizational StructureConsists of three key elements:

    Designates formal reporting relationshipsnumber of levels in the hierarchyspan of control

    Groupings of:individuals into departmentsdepartments into the total organization

    Design of systems foreffective communicationcoordinationintegration across departments

  • Organization Structures with Narrow and Wide Spans

    NameTitle

    NameTitle

    NameTitle

    Team Title

    Company Name

    Company NameDepartment Name

    Organization with narrow spans

    Organization with wide spans

    Advantages:Close supervisionClose controlFast communication between subordinates and superiors

    Disadvantages:Superiors tend to get too involved in subordinates workMany levels of managementHigh costs due to many levelsExcessive distance between lowest level and top level

    Advantages:Superiors are forced to delegateClear policies must be madeSubordinates must be carefully selected

    Disadvantages:Tendency of overloaded superiors to become decision bottlenecksDanger of superiors loss of controlRequires exceptional quality of managers

  • Factors Determining an Effective Span

    Page

    Title/Company Name

    Title

    Table 1

    Factors influencing the span of management

    Narrow spans (a great deal oftime spent with subordinates)

    Wide spans (very little time spent with subordinates)

    Little or no training of subordinatesInadequate or unclear authority delegationUnclear plans for nonrepetitive operationsNonverifiable objectives and standardsFast changes in external and internal environmentsUse of poor or inappropriate communication techniques, including vague instructionsIneffective interaction of superior and subordinateIneffective meetingsGreater number of specialties at lower and middle levelsIncompetent and untrained managerComplex taskSubordinates unwillingness to assume responsibility and reasonable risksImmature subordnates

    Thorough training of subordinatesClear delegation and well-defined tasksWell-defined plans for repetitive operationsVerifiable objectives used as standardsSlow changes in external and internal environmentsUse of appropriate techniques, such as proper organization structure and written and oral communicationEffective interaction between superior and subordinateEffective meetingsGreater number of specialties at upper levels (top managers concerned with external environment)Competent and trained managerSimple taskSubordinates willingness to assume responsibility and reasonable risksMature subordinates

  • 2-*Forms of Organization StructureFunctional organizations group people performing similar activities into departments

    Project organizations group people into project teams on temporary assignments

    Matrix organizations create a dual hierarchy in which functions and projects have equal prominence

  • The Communication Process

    Feedback

    Encoding

    Thought

    Transmissionof message

    Decoding

    Understanding

    Reception

    Receiver

    Sender

    A Communication Process Model

    Noise

  • Communication in an OrganizationDownward CommunicationIt flow from people at higher levels to those at lower levels in the organizational hierarchy.

    Upward CommunicationTravels from subordinates to superiors and continues up the organizational hierarchy.

    Crosswise CommunicationIt includes the horizontal flow of information (among people on the same or similar organizational levels) and the diagonal flow of information (among people at different levels who have no direct reporting relationships with one another).

  • Communication in an Organization

    NameTitle

    NameTitle

    Team Title

    Company Name

    Company NameDepartment Name

    Horizontal

    UpwardDownward

    Diagonal

    Information Flow in an Organization

  • Forms of CommunicationWritten CommunicationCommunication in written formIncludes pictograms or visuals, letters, memorandums, reports, text messages, electronic messages (e-mail).

  • Forms of CommunicationOral or verbal CommunicationPrimarily refers to spoken verbal communicationIncludes discussion, speeches, presentations, interpersonal communication and many other varieties. The body language and voice tonality plays a significant role and may have a greater impact on the listener than the intended content of the spoken words.

  • Forms of CommunicationNonverbal CommunicationDescribes the process of conveying meaning in the form of non-word messages through e.g. gestures, body language, or posture; facial expression and eye contact, object communication such as clothing, hairstyles, architectures, symbols, and infographics, as well as through an aggregate of the above. Non-verbal communication is also called silent language and plays a key role in human day to day life.

  • Communication MethodsPrimitive or conventional methodregular mail (snail mail), morse code

    Use of information technology wired and wireless telephone, fax machine, voice mail, internet (for e-mail, chatting, etc), teleconference , and videoconference

  • 2-*Organizational CultureThe unwritten rules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company.

    Key factors that affect culture developmentTechnologyEnvironmentGeographical locationReward systemsRules and proceduresKey organizational members

  • 2-*Culture Affects Project Management Departmental interactionEmployee commitment to goalsProject planningPerformance evaluation

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