Lessons in Project Management - 1- Foundation Principles

International Project Management

Prof. Dr. Frank Habermann

Lecture 1 –

Foundation Principles of Project Management

© Becota GmbH | www.becota.com | 2010

What is a project?

A brief excursion to system theory

Types of business projects

When do we call a project a success?

Standard project management lifecycle

Content

© Becota | www.becota.org | 2010

first of all,

what is a

project?


What is a project?

Picture Source: www.infrastructurist.com


What is a project?


A construction…


What is a project?


A construction…

definite …


What is a project?


A construction…

definite …which needs

special resources … …


What is a project?


A construction…



aimingat future

improvements …


What is a project?


A construction…



aimingat future

improvements …

but meanwhilecausingtrouble!


In other words …

THEBUSINESS

regular processesproviding regular values


In other words …

THEBUSINESS


APROJECT

temporary processwith unique results


In other words …

THEBUSINESS


APROJECT

temporary processwith unique results

Negative side-effects: - cost- and time-consuming- occupies business resources (intellectual capacities)- irritating and disturbing (distroys routines/comfort zones)- unsure results (what, when, for whom, etc.)


What characterizes a project?


PROJECT RESULT

1. Temporary(a project got a

clear start and end date)

2. Unique(a project provides individual

and substantial results)


a brief

excursionto

system theory


Some brief thoughts about system theoryi- What is a system?

A set of elements which interact with each otherand build an „integrated whole“

A system is thus characterized by

- its elements (e.g. )- as well as their relationships

systemboundary


Some brief thoughts about system theoryii- What are the characteristics of a system?

Each systemhas a certain structure shows specific behavior!




Sub System C

Sub System B

Sub System A

SYSTEM

Sub-subSystem C1

Sub-subSystem C2

. . .

Static relationships(composition/decomposition)




Sub System C

Sub System B

Sub System A

SYSTEM

Sub-subSystem C1

Sub-subSystem C2

. . .

Static relationships(composition/decomposition)

system(element)

INPUT OUTPUT

acting as„receiver“(customer)

acting as„sender“(provider)

Dynamic relationships(communication/collaboration)


Some brief thoughts about system theoryiii- How about business projects?

A specific business(e.g. an automotive company)

is a system

involving elements such as

Human Resources

Information Technology, etc.

Products (Cars!)



A specific business(e.g. an automotive company)

is a system


Human Resources


Products (Cars!)

A specific projectrelated to the business

is a system as well


Human Resources


Products (Project Results!)



business project

From the businessperspective, the project

is a sub-systemof the business

The projects usescorporate resources and

is part of the business agenda



business project

From the projectperspective, thebusiness is thetarget system

The businesssets constraints for and

gets results from the project



IT

business project

a concrete projectaims at a specific

element (sub-system) ofthe target system, e.g. IT

Improve [IT] with regards to- effectiveness (business fit)- efficiency (cost of ownership)- availability- other corporate values


so, what are the

typesof business

projects?


Major types of projects (1/3)

THE BUSINESS

1.- Projects providing results for the business

i.e. projects aiming at improvements of the businesstechnical projectsorganizational projectsproduct development projects, etc.



THE BUSINESS

2.- Projects providing results as part of the business

i.e. projects aiming at providing customer satisfactionprojects are the core businesscorporate products are created within projectsor project services are the product itself



3.- Depending on the type of the main result

PROJECT RESULT Deliverable

SERVICE PRODUCT

COULD BE

e.g. consultingprojects are

service projects

e.g. buildinga unique yacht is a

product project

=> If the customer buys a combination of qualifiedservices and products we call this a hybrid project


Implementing newmanagement methods

Types of business projects

Mergingfirms

Research

Implementingsoftware / hardware

Building a newplant

Re-designingprocesses

Re-buildingstructures

Major purchase

Organizingan event

Feasibilitystudy (pre-

project)

Marketing campaigns

Setting up a regional

subsidary

Outsourcing

Internalcost cuttinginitiatives

Pilotinginternationalpartnerships Constructing a

new product

and many more…

Finding a new CEO


What makes a project

asuccessful

project?



1. 2. 3.







it disappearson due date!




we only usethe resources

previously agreed





we deliver theexpected results

(type andquantity)

we only usethe resources

previously agreed




on time on budget on quality


Project scoping


scopingis the procedure of setting the parameters for each criteria


Project controlling


scopingis the procedure of setting the parameters for each criteria

controllingis the procedure of managing performance against predefined parameters


Project scoping and controlling need understandingthe cost-time-quality equilibrium

changing only one criteriastrongly impacts the others!


In corporate practice … what do you think, how many projects fail at least one of the three criteria?

Picture source: http://learn-wealth-creation.com/blog/


In corporate practice … what do you think, how many projects fail at least one of the three criteria?

30-70%*depending on the type of project

Picture source: http://learn-wealth-creation.com/blog/

*


And even in case of (officially) successful projects,one criteria actually very often isn‘t met!

The official version(told by the project manager)


And even in case of (officially) successful projects,one criteria actually very often isn‘t met!

The official version(told by the project manager)

The business reality(told by the customers/users)


What about the

project

lifecycle?


Standard project management life cycle

Project

Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23

Every project has three major phases!



INITIATE RUN COMPLETE






… which can be drilled down!




Plan Execute Close outDefine






Approve

Envision

Plan

Set-up

Kick-off






Approve

Envision

Plan

Set-up

Produce

Conceptualize

Test

TrainKick-off






Approve

Envision

Plan

Set-up

Produce

Conceptualize

Test

TrainKick-off

Document

Hand-over

Control & Communicate



Standard project management life cycleproject effort during the lifecycle


PR

OJE

CT

EFFO

RT

TIME




PR

OJE

CT

EFFO

RT

Define

TIME




PR

OJE

CT

EFFO

RT

Plan

Define

TIME




TIME

PR

OJE

CT

EFFO

RT

Plan

Define

Execute




TIME

PR

OJE

CT

EFFO

RT

Plan

Define

Execute

Close out


Standard project management life cycleneeded resources versus actual investment


PR

OJE

CT

EFFO

RT

TIME




PR

OJE

CT

EFFO

RT

Should-be(in theory)

TIME




PR

OJE

CT

EFFO

RT


TIME




PR

OJE

CT

EFFO

RT


Staffing,understanding, gaining speed

Highestconcentration,

getting things done

Releasingresources, handing

over to business

TIME




PR

OJE

CT

EFFO

RT

As-usually-is(in practice)

TIME




PR

OJE

CT

EFFO

RT


Initial excitment, quickly followed by

losing interest

Underestimatingamount of work orbeing frustrated by

lack of understanding

Facing the deadline, finally realizing that

things must bedone

TIME




PR

OJE

CT

EFFO

RT



!

TIME


Standard project management life cycleTypical project douments


Project Contract

Project Charter Rough

Require-ments

Definition

Project Plan




Project Contract


Require-ments

Definition

SolutionDocumentation

Test PlanConceptual

Solution(Models)

DetailedRequire-ments

Definition

TrainingPlan

Project Plan




Project Contract


Require-ments

Definition


Test Plan Approvals

(technical &organizational)

Hand-overDocumention(e.g. Support

Info)

ClosureReport

ConceptualSolution(Models)


Definition

TrainingPlan

Project Plan




Project Contract


Require-ments

Definition


Test Plan Approvals

(technical &organizational)

Hand-overDocumention(e.g. Support

Info)

ClosureReport

ConceptualSolution(Models)


Definition

TrainingPlan

ProgressReport

ProgressReport

Project Plan

Thank you very much!

presentation by

Frank Habermann

founder of Becota and Professor of Business

http://de.linkedin.com/in/frankhabermann/en

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