Project Management

Chapter 7
20th Century Organizations 21st Century Organizations

Structure Structure
• Bureaucratic • Not bureaucratic, with fewer rules and employees
• Multi-leveled • Limited to fewer levels
• Organized with the expectation that senior • Organized with the expectation that management
management will manage will lead, and lower-level employees will manage.
• Characterized by policies and procedures that create • Characterized by policies and procedures that
many complicated internal interdependencies produce the minimal internal interdependence
needed to serve customers.

Culture Culture
• Inwardly focused • Externally oriented
• Centralized • Empowering
• Slow to make decisions • Quick to make decisions
• Risk averse • More risk tolerant

Systems
• Depend on few performance information systems.
• Distribute performance data to executives only
• Offer management training and support systems to
senior people only
Systems
• Depend on many performance information system,
providing data on customers especially
• Distribute performance data widely
• Offer management training and support systems to many people
In order to have large scale changes in organizations, there are some
distinctive transformation processes. These are as follows:
• Reengineering
• Restructuring
• Quality programs
• Mergers and acquisitions
• Strategic changes
• Cultural changes
Project Management
• “A temporary endeavor undertaken to create a unique product or
service”
Why the emphasis on project management?
• Many tasks do not fit neatly into business-as-usual.
• Need to assign responsibility and authority for achievement of
organizational goals.
Characteristics of Projects
• Unique
• Specific Deliverable
• Specific Due Date
Types of projects
• Short term projects:
• Long term projects:
• Short Term Projects: They are completed within one year, and are
focused towards achieving the tactical objectives. They are less
rigorous; require less or no risk. They are not cross functional. These
projects require limited Project Management tools, and have low
level of sophistication. It is easy to obtain approval, funding and
organizational support for short range projects. For example, reduce
defect in shop number two from 6 to 4 percent.
• Long Term Projects: These projects involve higher risk and a proper
feasibility analysis is essential before starting such projects. They are
most often cross functional. Their major impact is over long period of
time, on internal as well as external environment. Large numbers of
resources are required to undertake long range projects and they
require breakthrough initiatives from the members.
Skill Requirements for Effective Project
Management
• Conflict Resolution
• Creativity and Flexibility
• Ability to Adjust to Change
• Good Planning
• Negotiation
• win-win versus win-lose
Project Targets:
Why Projects are initiated?

Projects are initiated in the following scenarios:

• When starting a new business.
• In order to develop/ modify a product or service.
• For relocating and/or closing a facility.
• For regulatory mandate.
• For some community issues.
• In order to re-engineer the process so as to reduce complaints, reduce
cycle time, and eliminate errors.
• For implementing a new system or process.
• To introduce new equipment, tools or techniques
Project Environment:
All projects are planned and implemented in a social, economic,
environmental, political and international context.
• Cultural and Social Environment is that how a project affects the people
and how they affect the project. This requires understanding of economic,
demographic, ethical, ethnic, religious and cultural sensitivity issues.
• International and Political Environment refers to the knowledge of
international, national, regional or local laws and customs, time zone
differences, teleconferencing facilities, level of use of technology, national
holidays, travel means and logistic requirements.

• Physical Environment is the knowledge about local ecology and physical

geography that could affect the project, or be affected by the project.
Key Stakeholders:

a) Project Manager
b) Customers, End Users
c) Performing Organization
d) Project Management Working on the Project:
e) Project Team Members
f) Sponsors
g) Influencers
h) Project Management Organization