Diploma of Project Management
Project ManagementEnvironment
Course Number 17872Qualification Code BSB51507
Recommended Reading
If you haven’t already done so, please take some time to review the PMBOK Chapters 2 and 3
Pay particular attention to table 3.1 on page 43
This could take 30 to 45 minutes
Project Management Environment
• Projects take place within environments that can greatly impact on the manner in which the project is executed and the achievement, or not, of the project’s objectives and success measures
• Success occurs when the –
expectations of the project sponsor or client are met
agreed project objectives have been met
business outcomes have been realised
timeframe and budget have been delivered
quality and scope requirements have been delivered
Project Tradeoffs
Cost
Time
Quality
Cheap
Quick
Good
Project success is often reliant on the project manager’s ability to manage stakeholder expectations and make trade offs between key project dimensions
Really means
Project Management Framework
Cost
Scope
Risk
Human Resources
Communication
Time
Quality
Procurement
Project Management Environment
Cost
Scope
Risk
Human Resources
Communication
Time
Quality
Procurement
Policies
Regulations
Organisational Maturity
Standards
Procedures
IndustrySkills
MethodologyExperience
PMBOK – Project Lifecycle 5 Process Groups
Figure 3-1 Project Management Process Groups (PMBOK 4th edition)
Initiation Planning Execution Close
Monitor
Control
Project management processes ensure the effective flow of the project throughout its existence. The processes encompass the tools and techniques involved in applying the 9 knowledge areas
Other Lifecycles and Methodologies
• Many organisations and industries have different project management methodologies and lifecycles
• It is critical to be flexible in the application of project lifecycles and methodologies and to work within the policies and procedures of the organisation
• It is important to develop a common language and understanding within the project team during the planning process
PMBOK Project Initiation Processes
Initiation Planning Execution Close
Monitor
Control– Develop Project Charter– Develop preliminary scope statement
PMBOK Project Planning Processes
– Develop Project Management Plan– Plan and define project scope– Create the Work Breakdown Structure– Estimate resources, budget and timeframes– Develop the project schedule– Identify risks and develop risk management plans– Plan and determine communication approach
Initiation Planning Execution Close
Monitor
Control
PMBOK Project Execution Processes
– Direct and manage project execution– Perform quality assurance– Assemble and develop the project team– Acquire project resources– Distribute information on project progress and
issues
Initiation Planning Execution Close
Monitor
Control
PMBOK Project Monitoring and Controlling
– Manage the project team– Verify and control project scope– Monitor and manage the project schedule– Monitor and manage project budget– Undertake quality control activities– Manage key stakeholders and project sponsor– Report on project performance and status– Monitor and control risks and issues
Initiation Planning Execution Close
Monitor
Control
PMBOK Project Closure Processes
– Close project– Review project against success measures– Transition from project to business as usual
Initiation Planning Execution Close
Monitor
Control
Enterprise Environmental Factors
• These can greatly influence the success of any project, examples –
Organisational culture, structure and processesGovernment or industry standards and regulationsExisting human resources and personnel policiesStakeholder risk tolerancesEstablished communication and approval channelsInfrastructure and facilitiesProject management information systemsPolitical and economic climateLevel of project management maturity
PMBoK Guide – Fourth Edition
Organisational Influences
• Organisational culture, style and structure influence how projects are performed
• The degree of project management maturity is particularly critical
• Internal project management systems, methodologies and frameworks are important
• Influences can be both internal and external
PMBoK Guide – Fourth Edition
Organisational Culture and Style
• Organisational culture is an enterprise environmental factor that can manifest in many ways, examples –
Shared vision and values
Common norms, beliefs and expectations
Policies, methods and procedures
View of authority relationships
Work ethic and work hours
PMBoK Guide – Fourth Edition
External Factors and Influences
Legislation
ScientificAdvances
Regulations Labour Market Public Opinion
Local & InternationalConditions
TechnologicalAdvances
Competitor ActionsStandards
Economic Climate
Political Climate
Supplier & PartnerStructures
Organisational Structure
• Organisational structure can greatly impact how projects are conducted
Organisational Structure vs Project Characteristics
Functional WeakMatrix
BalancedMatrix
Strong Matrix
ProjectBased
Project Manager’s Authority
Little or None Limited Low to Moderate
Moderate to High
High to Almost Total
Resource Availability
Little or None Limited Low to Moderate
Moderate to High
High to Almost Total
Control of Project Budget
Functional Manager
Functional Manager
Mixed Project Manager
Project Manager
Project Manager’s Role
Part-time Part-time Full-time Full-time Full-timeProject Management Support Staff Part-time Part-time Full-time Full-time Full-time
PMBOK 4th edition – Table 2-1
Templates
Organisational Project Processes
Approval Procedures
ProcurementGuidelines
Quality Procedures Standards
Project ManagementMethodology
Risk ManagementGuidelines
Project ManagementTools
Policies &Procedures
HR Policies &Procedures
Project ManagementTools
Project ReviewGuidelines
Post Implementation Review Guidelines
Status ReportingProcedures
Project HistoryProject Lessons
Learned
Risk and IssueLogs
Past Project Statistics
Influences of Organisation Size
• There is normally considerable task specialisation in large organisations, coupled with formal processes for delegating authority, business planning and managing performance
• In small organisations people often need to assume many roles and manage several functional areas. Management processes are often less formal
Example Project Management Methodology
Recommended Reading
If you haven’t already done so, please take some time to review the PMBOK Chapters 2 and 3
Pay particular attention to table 3.1 on page 43
This could take 30 to 45 minutes
