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Session 1

Entrepreneurship and Project Management

Dr. Maneesha Pednekar

23rd July 2014

Objectives
The objective of this session is to :

Introduction to Project Management

Project v/s Operations
Project Manager v/s Manager
Need for Projects
Selection of Projects
Organization Structure

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Introduction to Project Management

Man on moon

New International Airport,

Mumbai

Mumbai Metro

All of mankinds greatest accomplishments- from building the great

pyramids to putting a man on the moon- began as a project

Some more Project examples

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Making a movie
Restructuring a hospital
Implementing a new MIS system
On merger of 2 companies; implementing a cultural assimilation
program
Implementing a new Software security system
Building a new office

..

Some examples from industry..

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Company: Nike
Project: Online supply chain link to manufacturing partners
Payoff: Lead time for new shoe development has been reduced from 9 months to 6
months. Better forecasting has reduced speculation on what to produce from 30% to
3 %. GM has increased by 2.1%
Company: FBI
Project: Digitizing millions of fingerprint cards and connecting law enforcement
agencies to the data base
Payoff: Local law enforcement departments can have the FBI check against 46
million sets of finger prints and respond within 2 hrs. In addition, the FBI conducts
background checks for pvt enterprises(eg. schools, insurance). this later resulted in
revenues of 152 million per year

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What is a Project

A project is a temporary endeavor designed to produce a

unique product, service or result with a defined beginning and
end (usually time-constrained, and often constrained by
funding or deliverables), undertaken to meet unique goals
and objectives, typically to bring about beneficial change or
added value.

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Characteristics of a Project
Temporary
Has a start & end date
Unique
Progressively elaborated
Time, cost and performance requirements

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Project v/s Operations

Operations:
An
organizational
function
performing the Ongoing execution of
activities
that
provide
a Repetitive service and/or produce
the same product.
Project:
A Temporary endeavor undertaken
to create a Unique result, service or
product."

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Project v/s Operations

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Operations are a permanent feature and remain there until

changed. The change in an operation will be bought about by
the project and the new process will be the outcome of the
project
Operations are repetitive in nature; projects are unique

Project Manager v/s Manager

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Both Managers and Project managers are planning, monitor, control,

motivate. But Project Managers:
Create a project team and organization where none existed
handle challenges posed by the nature of projects -Unique and progressive elaboration
often work with part time participants loyal to their functional departments
work with diverse stakeholders
must balance the tension between customer expectations & what can be provided
must ensure tradeoffs are made between time, cost and performance
lack of technical knowledge

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Project Manager v/s Manager

Project Manager

Manager

Role ends with project

Routine

Temporary team

Stable organization

Many different skills

Specialist skills

Work not done before

Work repeatable

Time, cost and scope constraints

Annual planning cycle

Difficult to estimate time and budget

Budgets set and fixed events

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Exercise 1

Exercise 1 A day in
the life of the Proje

Importance of Project Management

Compression of the product lifecycle
Global competition
Knowledge explosion
Corporate downsizing
Increased Customer focus

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Need for Project Management

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Business need: Setting up a new business, entrepreneurial vision for new

technology
Market need
Customer request for project management-eg IT projects, civil, electrical projects
Technological push: developing new technology or making products compatible to
new technology
Organizational Structure change or expansion
Legal or social requirement

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Prioritizing Projects
Where did this project come from?
Why are we doing this project?
How can all these projects be first priority?
Where are we going to get the resources to
do all these projects?
Many organizations have not been able to create a coherent link between
their strategy and project selection

Project link to Strategy

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If Project Managers do not understand the link to strategy:

Focusing on problems and solutions low in priority
Focusing on the immediate customer rather than the largest entire market
Overemphasizing on technology rather than focusing on objective
Trying to solve every customer issue with a product or service rather than a
80:20 rule
Engaging in a never ending search for perfection

Organization Strategy and Project selection

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Apples mission statement:

Apple is 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

Strategy is implemented through projects. Every project should have a clear

link to the organizations strategy.

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Classification of projects

Compliance
(Must do)

Operational

Strategic

Project, Program and Portfolio

Projects
are
vehicles
for
implementing the organizations
vision, short and long term plans
and organization strategy

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Program

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The term program is applied to a group of related projects managed in a coordinated

way to obtain benefits and control not available from managing them individually.
Program must be managed in such a way that the quantum and timing of
allocating the resources is optimized for most efficient use of resources.
Must take into account the interdependencies of the products of the projects for
delivery strategic thrust
Eg: Interconnected highways network connecting 4 metros of india

Portfolio

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The term Portfolio is applied to a collection of projects and programs that are
grouped together for pursuing objectives focused on some specific business strategy
- Portfolio is much larger than projects and programs
- need not be limited to inter-related programs
- much wider scope
- eg. the portfolio of diversified large companies may include projects and programs
in a wide spectrum- eg. petrochemicals, textile, telecom etc

Selection of projects
Non-Financial Criteria

To capture larger market share

To make it difficult for competitors to enter the market
To develop an enabler product
To develop core technology
To reduce dependency on unreliable suppliers
To prevent government intervention and regulation

Financial Criteria
Payback model
Net Present Value

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Project selection Criteria

(multi model)
Checklist

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Multi-weighted scoring model

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Organization Structure
Functional
Dedicated Project teams
Matrix

Functional Organization
Advantages

No Change
Flexibility
In-Depth experience
Easy Post project transition

Disadvantages

Lack of focus
Slow
Poor integration
Lack of ownership

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Dedicated Project Teams

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Advantages

Simple
Fast
Cohesive
Cross functional integration

Disadvantages

Expensive
Internal Strife
Limited Technological Expertise
Difficult Post Project Transition

Project
team

Matrix
Advantages

Efficient
Strong Project focus
easier post project transition
flexible

Disadvantages

Dysfunctional conflict
infighting
stressful
slow

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Project Organization

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Structure considerations
Size of project
Strategic importance
Novelty and need for innovation
Need for integration(number of departments)
Environmental complexity(number of external interfaces)
Budget and time constraints
Stability of resource requirements

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