PMI Chapter V5 - 02. Organization Influences & Project Life Cycle

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Organizational Influences and Project Life Cycle
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Contents
1. Organizational Influences on Project Management
2. Project Stakeholders and Governance
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3. Project Team
4. Project Life Cycle
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Organizational influences on Project Management
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20
Organizational influences on Project Management are

the characteristics, factors and assets influencing the
project.
1.
Organizational Culture & Styles
2.
Organizational Communication
3.
Organizational Structure
4.
Organizational Process Assets
5.
Enterprise Environmental Factors
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Organizational Culture and Style

Organization culture and style affects the way projects are
conducted
Culture and style are group phenomena which develops over

time by practice and common usage
Leads to acceptable practices and approach for project
management and can include but not limited to:

- Shared values, beliefs and expectations
- Policies, methods and procedures
- Work ethic and work hours

Organizational Culture and Style is an EEF
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Organizational Communications
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Effective Organizational communication is key to project

success
Becomes much more important for distant location projects
Timely updates help stakeholders in decision making
Electronic communication could be used effectively for

formal and informal communication
Organizational Structure
2.13
Organizational structure is an EEF

Can affect availability of resources for project work
Types can be:
- Functional, Matrix (Weak, Balanced, Strong), Projectized and
Composite
)
Structures determine project characteristics such as:

- Project Managers Role and Authority
- Project team composition

- Entity controlling project budget
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Organization Structures
;
Org1111!Zlttlon
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Moul,
Struaturo
: ProJoc:t
Ch=ctorl.ilcs
e,
Fu1iatlonnJ
,i~
Projectized
Weak Matrix
e-:t Mori~ter'
uU1out
Resou
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Pro;ect Men.iger's
Role
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Balanced Matrix
Strong Matrix
Little or None
Low
Low to
Moderate
Moderate
to High
Almost Tota!
Little or None
Low
Low to
Moderate
Moderate
to High
~!most Total
Functional
Manager
Functional
Manager
Proje,ct
~~ixed
Project
Manager
Manager
Parttime
Part-time
Fu!Hime
Full-time
Full-time
Parl'lirne
Part-t ime
Part-time
Fu!Hime
Fulllime
High to
High to
2,1.3 l
Organization Structure
Chief
Executive
Project
Coordination ~
- - - - ----- .....
- - -, .,- ------~---------------------~
Functional
Manager
-------
Functional
Manager
Functional
Staff
Staff
Staff
Stiiif
Staff
Staff
Staff
Staff
Staff
I
I
Manager
- - - - - - - - - - _. -
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(Gray box~s. r>=present.staff enii~.e:ed in project acti\'ities)
Figure 2-1. Functional Organization
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Chief
Executive
Project
Coordination\
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- - - - ....
Project
Manager
\
\
Stoff
Staft
S aff
Staff
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ll!fl
Project
Manager
Project
Manager
Staff
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Figure 2-5. Projectized Organization
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Sample Matrix Organization
functional authority
GENERAL
MANAGER
project reporting
SALES
MANAGER
CHIEF
ENGINEER
MANUFACT'G
MANAGER
CONTROLLER
Sales Rep
Project
En lneor
Line Manager
Accountant
Sales Rep
Project
En lneer
Line Manager
Accountant
Sales Rep
Project
E fnoer
Line Manager
Accountant
Rep
Project
En lneer
Line Manager
Accountant
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PROJECT
MANAGER
PROJECT
MANAGER
Sales
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2.1 .3
Matrix Organizations
- Weak Matrix
Project Manager as coordinator/expeditor
Balanced Matrix
Need for PM recognized
PM not given full control of project resources
- Strong Matrix
Full time PM
Dedicated project admin staff
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Chief
Executive
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Funct)onal
Manager
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Functional
Functional
Manager
Manoger
Staff
Manager of
Project Managers
Project Manager
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:'
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\
'
Staff
., -----:Staff
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'
taff
Staff-
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Pro.see\ lana~r
-----~-------------------;,----
" . Project B Coordination
Project A Coordination
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Figure 2-6. Composite Organization

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2.1 4]
Organization Process Assets (OPA)

Organizational Process Assets will include plans, procedures, guidelines,
policies, knowledge bases, etc which are used to conduct or govern the
project. Can be grouped as:
- Processes and Procedures
Organizational standards and policies
Guidelines and work instructions
Procedures
Templates
- Corporate Knowledge Base
Historical Information
Project files (calendars, network diagrams, risk registers, etc)
Lessonslearned
Issues and defects database
Configuration management database
Financial database (labor hours, rates, etc)
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21
Enterprise Environmental Factors (EEF)
sI
Enterprise Environmental Factors refers to both internal and

external conditions not under control of project team that can influence
and constrain the project
Considered as input for most of the planning processes

Includes but not limited to:
- Organizational culture, structure and processes
- Government or industry standards
.)
Infrastructure (existing facilities, etc)
Existing human resources
- Personnel administration
- Marketplace conditions
-
Political climate
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14
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Name:
Date:
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MUMBAI CHAPTER
Project Stakeholders
.)
A stakeholder is an individual, group, or organization who may

)
affect, be affected by, or perceive itself to be affected by a

decision, activity, or outcome of a project
.)
Key Stakeholders : Project Manager, Customer (multiple

layers), Sponsor, Performing organization, Project Team,
Influencers, PMO
Other stakeholders need to be identified - Internal, External,

Suppliers, Society
Needs and Expectations ( sometimes conflicting) to be
identified
Stakeholder conflict- Normally differences resolved in favor of

customer
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Stakeholder inter-relationship
ProJoct
uro cycle and Organization
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Project Stake~cldcrs
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Project Governance
Project Governance is oversight function

Responsible for providing processes and guidelines ensuring
stakeholder requirements and organizational strategic objectives are
achieved
Fits within larger context of Portfolio and Program management
Some elements of project governance which may be included in

project management processes:
-
Project life cycle approach
Product acceptance criteria
Escalations
Phase End Reviews
Change control approvals
Project communication methods
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Project Team and its Composition

The project team includes the project manager and the
group of individuals who act together in performing the
work of the project to achieve its objectives
Team characteristics vary widely based on type of
)
organizational structure
- Part time staff - Functional structure
- Dedicated Staff - Projectized structure
.)
Project Managers role is considered always as leader of

the team
Project Roles can be: Project Staff, Project Management
Staff, Experts, Users, Sellers, Business Partners
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MUMBAI CHAPTER
Project Life Cycle
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Project
Time~
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Figure 2-8. Typical Cost and staffing Levels Across a Generic Project Life Cycle Structure
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A project life cycle is the series of phases that a project passes through from its
initiation to its closure
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19
Project Life Cycle (PLC) Characteristics
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2.4.1 j
Sequential activities: Phases follow each other
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Probability of success : Lowest at start and gets progressively
higher at the end of the project
Project risk and uncertainty : Highest at start and gets
progressively lower at the end of the project
Ability to influence product and cost : Highest at start and gets
progressively lower at the encl of the project
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Cost & staffing levels : Low at start, higher near end and drop at
closure
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PLC Characteristics
Max.
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Ability io
Cl)
Ch ang+ Easily
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Starting the
Project
Organizing
And
Preparing
Carrying out the work
Closing the
project
TIME
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PLC and Product Life Cycle

Project Life Cycle creates a Product
Project Life Cycle is subset of the Product Life Cycle
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rr~d11ct_,
Lffo
Cycle
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Project Phases
Projects involve degree of uncertainty
Projects are divided into phases for better management & control of the
project
Project phase is marked by completion of one or more deliverables
Deliverable
- Tangible, veri fiabl e work product e.g: Feasibility study, Detailed design,
working prototype
Phases are in sequential logic, designed to ensure proper definition of

the product
Phase is concluded by review of key deliverable and project

performance to date
Continuation of the project to the next phase is decided on review

results
23
Project Phases
Phase review is used to detect and correct errors and hence control
cost
Phase end reviews are called as

- Phase exit, Phase gates, Stage gates, Kill points, Decision
gates or milestones
Phase formally initiated, desired output generated, review carried

out and phase closed
Phase closure not a signal for authorizing next phase.
Generally four to five phases
Phases are named from its deliverable such as Design, Test etc.
Collectively project phases are called Project Life Cycle

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24 2 1
Project Phases - Phase to Phase relationships
Two Basic Types of phase to phase relationships:
1. Sequential relationship
- Phase can start only when previous phase is complete
- Reduces uncertainty but limits the options for reducing the
schedule
2. Overlapping relationship
- Phase can start prior to the completion of previous phase
- Helps in schedule compression by fast tracking but may
increase the risk of rework
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Project Phases :Project Life Cycle Models

1. Predictive Life Cycles
Used where scope, time and cost is clearly known
Carried in sequential phases where each phase focus on subset of project

activities
.)
)
Scope changes are carefully managed and requires re-planning
2. Iterative and Incremental Life Cycles
Iterations develop the product through a series of repeated cycles
Helps in delivering incremental work product
Advantageous for uncertain work projects or rapidly changing environment
3. Adaptive Life Cycles

Agile methods intended for immediate change and stakeholder involvement
_)
Also iterative but iterations are rapid (usually duration of 2 to 4 weeks) with
fixed time and cost
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Name:
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Project Management Professional Certification Examination Training Material

~ersion 5.0 Copyright 2013 by PMI Mumbai Chapter. All rights reserved. '
Organization Influences and Project Life Cycle

Question No.
QVostion Elank
A project is considered successful when
.J
A
the product of the project has been manufactured
B.
the project sponsor announces the completion of the project
C.
the product of the project is turned over to the operations area to

handle the ongoing aspects of the project
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D.
the project meets or exceeds the expectations of the stakeholders
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,_)


Date:
Name:
BAI CHAPTER
Question No.
The amount of authority a project manager possesses can be related to

which of the following?
The project manager's communication skills
A.
B.
The organizational structure
C.
The amount of authority the manager of the project manager

possesses
D.
The key stakeholder's influence on the project
29

Question No.
Qililstlon Bank'
You have been assigned to a project in which the objectives are to direct customer ca lls lo an
Interactive voice response system before being connected to a live agent. You are in charge of
the media communications for this project. You report to the project manager In ctiarge of this
project and the VP of marketing, who share respons iblllty for th is project. Which organlzatlona l
structure do you work in?
A.
Functional organization
B.
Weak matrix organization
C.
Projectized organization
D.
Balanced matrix organization
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30
15

Name:
Date:
TER
Question No.
C:luestion Bal)k
The first phase of your project has come to an end. What should you
ensure is done BEFORE beginning the next phase?
A.
Verify that the resources are available for the next phase.
B.
Check the progress compared to its baselines
C. Confirm thc!t the phase has reached its objectives, and have its
deliverables formally accepted.
o.
Recommend corrective action to bring the project results inline with

project expectations
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Question No.
31
2
QuesliQn Bank
The project life cycle differs from product life cycle in that the project life
cycle:
)
A.
Does not incorporate methodology.

)
B.
Is different for each industry
C.
Can spawn many projects
)
D.
Describes project management activities
)
_)
32

_)
16
_)

Name:
Date:
Al CHAPTER

Question No.
Question Bank
In a projectized organization, the project team :
A.
Reports to many bosses
B.
Has no loyalty to the project
C.
Reports to the functional manager
D.
Will not always have a "home"
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Ans ers.to Questions
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PMI Chapter V5 - 02. Organization Influences & Project Life Cycle

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Attendee PMPCE Course Material

MUM BAI CHAPTER

Project Management Professional Certification Examination Training Material

Organizational Influences and Project Life Cycle

........,1,~~ ?.(l l.:JbvPMl Mu.rnD:11r:.._,...,1N Alltlnhlsres.erved

Project Management Professional Certification

Attendee PMPCE Course Material

Organizational influences on Project Management are

Organizational Culture & Styles

Organizational Process Assets

Enterprise Environmental Factors

2013 hu PMI Mumoal Ct,onti,r. All"""" ,-nt

Organizational Culture and Style

Culture and style are group phenomena which develops over

management and can include but not limited to:

- Work ethic and work hours

Attendee PMPCE Course Material

Effective Organizational communication is key to project

Becomes much more important for distant location projects

Timely updates help stakeholders in decision making

Electronic communication could be used effectively for

Organizational structure is an EEF

Structures determine project characteristics such as:

- Project team composition

Project Management Professional Certification

Attendee PMPCE Course Material

PIQ!ec Mar.ageroiil\1Adqllnf~Jratlve Slaff

(Gray box~s. r>=present.staff enii~.e:ed in project acti\'ities)

Figure 2-1. Functional Organization

Projeci Mor,agamonl Professional Certification Examination Training Material V~ion 5 O Copyright e

Project Management Professional Certification

Attendee PMPCE Course Material

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hn 1 r.r. II rl ht.iu-ese ec1

Mumbai Chanter. A\! righ)~ resir,rveg

Project Management Professional Certification

Attendee PMPCE Course Material

" . Project B Coordination

Figure 2-6. Composite Organization

Project Management Professional Certification

Attendee PMPCE Course Material

Organization Process Assets (OPA)

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"""" ,J.1m 2013 ""P~11 "'""'hnj Olmnl<!f Ali -"'ht. r,i,ecved

Enterprise Environmental Factors (EEF)

Enterprise Environmental Factors refers to both internal and

Considered as input for most of the planning processes

Infrastructure (existing facilities, etc)

Existing human resources

Project Management Professional Certification

Attendee PMPCE Course Material

A stakeholder is an individual, group, or organization who may

affect, be affected by, or perceive itself to be affected by a

Key Stakeholders : Project Manager, Customer (multiple

Other stakeholders need to be identified - Internal, External,

Stakeholder conflict- Normally differences resolved in favor of

uro cycle and Organization

Attendee PMPCE Course Material

Project Governance is oversight function

Fits within larger context of Portfolio and Program management

Some elements of project governance which may be included in

Project life cycle approach

Product acceptance criteria