Project Management Context
Introduction
Organisational Context
Lecturer: Abraham Muza
[Chartered Quantity Surveyor (Fellow) & Project Manager]
BSc(QS) Edin, MSc (PM) Syd, MZIPM, MAPMZ, AAIPM, MZIQS, RQS, FRICS
Abraham Muza
KEY PROFESSIONAL MEMBERSHIP
Director at Promanint International ( QS and Project Management Consultants)
Fellow of The Royal Institute of Chartered Surveyors (UK)
Past President of The Zimbabwe Institute Of Quantity Surveyors,
Current Chairman of The Education Committee ZIQS
Board Member: AAQS Education Committee
THE LECTURER
+ 20 years industrial experience
Projects include airport, hotels,
shopping malls, universities and
colleges, offices, residential, industrial
buildings etc.
+ 15 years as a lecturer
Taught PM, QS and MBA Courses at
several universities
Administration
Course overview
Outcomes
Assessments
Approach
Overview of Lecture
Introduction
Administration
Project Management Definitions
History of Project Management
Nature of projects
• Organisational Context
• Strategic Planning
• Systems
• Cultures
• Structures
• Project management Maturity
Case study –class exercise
Project Management Definitions
Definitions
Project Management
Project, Program, Portfolio
Features
Projects vrs Operations
What is project management
The application of knowledge, skills, tools and
techniques to project activities to meet
project requirements’.
Simply put, project management is a
formalised and structured approach to
managing projects.
Project
A human endeavor which creates change , is limited in time
and scope, has mixed goals and objectives, involves a
variety of resources and is unique
A complex effort to achieve a specific objective, within a
schedule and budget target which typically cuts across
organizational lines, is unique and is usually not repetitive
within the organizations
A one-time unique endeavor by people to do something
that has not been done that way before
Scope of work to deliver a unique product to a particular
quality with the constraint of cost and time
A temporary endeavor undertaken to create a unique
product or service
WHY PROJECT MANAGEMENT?
• Weak vision: IBM (1990’s) and General Motors (2000s) failed to respond
to new technology
• Failed execution: HP and Apple (1980s) failed to realise benefits of
their innovative vision
• Failed business case: Iridium satellites orbiting the earth lost to more
cost effective cellular networks
• Failed implementation: Heathrow Terminal 5 in 2008, lost bags for days
• Complexity: Channel Tunnel: Delayed by years and over budget
200 Financiers.
• Definition of success: Concorde in the 60s and Sydney Opera
Hse were over budget and delays
• Risk management: London’s Millenium bridge (1990s) closed after
opening – wind sways
• Local examples: Zimpost, Banks and ecocash, cinema houses, Camera
versus Phones
COMPETENCIES OF A HIGH PERFORMING PM
Research by Australian Institute of Project Management
EXPERIENCE
ATTITUDE
TRAINING
Nature of Projects
Method
Water Air
Clarity
Eg. Product Devt Eg. Organisational/Cultural
No
Change
Earth Fire
Eg. Construction/ Eg. Information Systems
Yes
Engineering
Yes No
Goal Clarity
Projects vs Operations
Projects Operations
Unique &Novel Repetitive
Ongoing
Finite &Temporary
Evolutionary change
Revolutionary
change Stable resources
Transient resources Stable processes
Flexible processes Security &
Risk and uncertainty
experience
History of Project Management
Non scientific PM eg great wonders, Noah’s
arc, Great Pyramids
Scientific PM started around WWII
Initially Construction and Defence oriented
Now across all walks of life & profession eg
medicine, education, IT etc
Most organisational goals are achieved
through projects
Why project management
Clarify and agreement to goals, required
resources, accountability for project
performance and achievement
public sector, private sector etc
In a rapidly changing environment with
diverse issues and challenges
Logical, consistent approach
Portfolio
What is a portfolio?
A portfolio is a collection of projects and / or programs
and other work grouped together to facilitate effective
management of that work to meet strategic business
objectives.
What is portfolio management?
Portfolio management is the selection and management
of all of an organisation’s projects, programs and related
business-as-usual activities taking into account resource
constraints. Portfolios can be managed at an
organisational, program or functional level.
Programs
What is program
A program is a group of related projects,
managed in a coordinated way to obtain benefits
and control not available from managing them
individually
What is program management?
Program management is the centralised
coordinated management of a program of
projects to achieve strategic objectives and
benefits
Organisational Context
PM is a vital component of many organisations
Organisational characteristics impact projects:
Strategic Plans – actioned through projects
Systems – may or may not be conducive eg
Financial systems
Cultures – reflected in project organisation
Structure – may or may not be a constrain on
projects
Functional Organizations
Functional Organization of Projects
Advantages Disadvantages
No Structural Change Lack of Focus
Flexibility Poor Integration
In-Depth Expertise Slow
Easy Post-Project Lack of
Transition Ownership
Project Management
Structures (cont’d)
Dedicated Teams within functional Org
Teams operate as separate units under the
leadership of a full-time project manager.
In a projectized organization where
projects are the dominant form of business,
functional departments are responsible for
providing support for its teams.
Dedicated Project Team
Project Organization:
Dedicated Team
Advantages Disadvantages
Simple Expensive
Fast Internal Strife
Cohesive Limited
Technological
Cross-Functional Expertise
Integration Difficult Post-Project
Transition
Project Organizational Structure
Project Management
Structures (cont’d)
Matrix Structure
Hybrid organizational structure (matrix) is overlaid
on the normal functional structure.
Two chains of command (functional and project)
Project participants report simultaneously to both
functional and project managers.
Matrix structure optimizes the use of resources.
Allows for participation on multiple projects while
performing normal functional duties.
Achieves a greater integration of expertise and project
requirements.
Matrix Organization Structure
Maturity Levels
Organizational maturity levels in project management.
Levels of Project Management Maturity
Level 5: Optimizing
Level 4: Managed
Level 3: Defined
Level 2: Repeatable
Level 1: Initial
Level 1 – Initial
•Project management is Informal
•Programs and projects are recognised
•Project/Program/Portfolio characteristics:
•informal list of investments in programs
and projects
•no formal tracking
•no reporting process.
Level 2 – Repeatable
• Minimum Standards are used
Program and/or project in portfolio have:
own processes and procedures to a minimum specified
standard
limited consistency
limited portfolio coordination
Level 3– Defined
There is Central control
Centrally controlled program and project
processes
Scalable
Portfolio management process
Level 4– Managed
There are metrics and capacity assessment
Obtain and retain specific management
metrics on whole portfolio of programs and
projects as a means of predicting future
performance
Assess capacity to manage programs and
projects and prioritise them accordingly
Level 5 – Optimised
There is Continuous Improvement
Proactive problem and technology
management for the portfolio in order to
better depict performance over time and
optimise processes
Class Exercise 1
Looking at the way your company is set
up, how does the organisational
structure influence projects?
What are the advantages and
disadvantages of the position of the
Projects Coordinator –in your
organisation?
Reading
Dinsmore, Paul C. Winning in Business With
Enterprise Project Management. AMACOM,
December 1998
Kerzner, Harold, PhD. Strategic Planning for
Project Management. John Wiley & Sons, January
2001.
Airedale Group. Handbook for Strategic
Planning. Forbes, December 1996.
Kotter, John P. Leading Change. Harvard Business
School Press, 1996.
PMI Standards Committee. A Guide to the Project
Management Body of Knowledge. PMI. 2004
Project Management Institute (PMI). OPM3. See
www.pmi.org.
