Chapter 1: The Project Management Framework

Aim: To Understand the Project Management Framework

The Project Management framework is the first section of the PMBOK and serves as the foundation for the rest of the book. In short, the project management framework represents the structure used to discuss and organize projects. The PMBOK uses this structure to document all facets of a project on which consensus has been reached among a broadly diverse group of project managers. The PMBOK is not only the document that defines the methods to manage projects; it is also the most widely accepted project management foundation. This document provides a baseline of reference for managing projects and teaching the fundamental concepts of project management.
Note: The PMBOK is generic and does not address the project management aspect of any particular industry. Also, it does not address every possible area of Project Management. Most organizations have their own specific project management process that is built on top of the PMBOK.

Exam Watch:
The PMP exam tests your knowledge of project management in the context of the PMBOK and PMI philosophy. Regardless of the experience you might have in project management, your answers will only be correct if they concur with PMI philosophy. If the PMBOK presents a method that differs from your practical experience, go with the PMBOK’s approach for answering the PMP Exam questions.

What a Project Is and What It Is Not

The starting point in discussing how projects should be properly managed is to first understand what a project is and also what it is not. According to the PMBOK, a project has two main characteristics that differentiate it from regular, day-to-day operation. They are:
1. A Project Is Temporary
Unlike day-to-day operations, a project has specific starting and ending dates. Of the two dates, the ending date is actually more important. A project ends either when its objectives have been met or when the project is terminated due to its objectives not being met. If you can’t tell when an endeavor starts or ends, it’s definitely not a project. This characteristic is important because projects are, by definition, constrained by a schedule.
2. A Project Is an Endeavor Undertaken to Produce a Unique Product or Service
In addition to having a specific/definite timeframe, a project must also have one or more specific products or services it produces. A project must “do” something. A project that terminates on schedule might still not be successful, it must also produce something unique.

Exam Watch:
The PMP exam contains a few questions on the definition of a project. Simply put, if an endeavor fails to meet both of the project criteria, it is an operational activity. Remember this: Projects exist to achieve a goal. When the goal is met, the project is complete. Operations conduct activities that sustain processes, often indefinitely. (Like Cleaning of Washrooms in an office building)

You can learn more about Projects by visiting the chapter that deals exclusively with explaining them. Click Here

Programs, Portfolios, and the PMO

It is common practice for an organization to have more than one project running at any given time. In fact, several projects that share common characteristics or are related in some way are often grouped together to make management of the projects more efficient. A group of related projects is called a program. If there are multiple projects and programs in an organization, they can further be grouped into one or more portfolios. A portfolio is a collection of projects and programs that satisfy the strategic needs of an organization.

You can learn more about the Relationship between Programs, Portfolios & Projects by Clicking Here

Exam Watch:
The PMP exam and the PMBOK only cover techniques to manage single projects. You need to be aware of what programs and portfolios are, but you will only address single project management topics in regard to the exam.

Many organizations have found that project management is so effective that they maintain an organization unit with the primary responsibility of managing projects and programs. The unit is commonly called the project management office (PMO). The PMO is responsible for coordinating projects and, in some cases, providing resources & guidance for managing projects to the Project Managers. A PMO can make the project manager’s job easier by maintaining project management standards and implementing policies and procedures that are common within the organization. According to the PMBOK, the PMO supports project managers by

• Managing shared resources across all projects administered by the PMO.
• Identifying and developing project management methodology, best practices, and standards.
• Coaching, mentoring, training, and supervision.
• Monitoring compliance with project management standards policies, procedures, and templates via project audits.
• Developing and managing project policies, procedures, templates, and other shared documentation (organizational process assets).
• Coordinating communication across projects.

You can learn more about the Project Management Office by Clicking Here

What Project Management Is

According to the PMBOK, “Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.” In other words, project management is taking what you know and proactively applying that knowledge to effectively guide your project through its life cycle.
The purpose of applying this knowledge is to help the project meet its objectives. Sounds pretty simple, doesn’t it? The PMP exam tests your project management knowledge, but it’s more than that. It is also a test that evaluates your ability to apply your knowledge through the use of skills, tools, and techniques. The application of project management knowledge is what makes the exam challenging. Understanding project management is a lot more than just memorization.

I don't deny that you have to memorize certain key things like definitions & formulae, but the more important aspect is the fact that, you must know how to apply all that you learnt from the PMBOK.

Exam Watch:
Some of the hardest questions on the exam look like they have two, or even three, correct answers. You really have to understand the PMBOK to choose the most correct answer. In fact, many questions on the exam will have multiple answers that can be considered correct. You need to be able to choose the one that best satisfies the question as asked. Read each question carefully, and always remember that the PMBOK is right from the exam perspective.

Next: Chapter 2

Chapter 15: Project Management Office - PMO

Every project has a project manager and every company that executes these projects has a Project Management Office (Mostly). In this chapter, we are going to learn about the project management office.

So, lets get started!!!

What is the Project Management Office?

The project management office (PMO) refers to an entity in an organization that is responsible for providing centralized & coordinated management and support for all the projects executed in the organization. The projects supported by the PMO may or may not be related to one another. The functions of the PMO depend upon the organization and its culture.

In general, a PMO is an interface between the business objectives of the organization and the projects. For example, depending on the organization, it may act as a stakeholder in projects and a key decision maker in the beginning of any project in order to ensure that the projects consistently support the business objectives of the organization. It may also be involved in selecting, prioritizing, allocating, and managing the project resources.

Simply put, the PMO can be considered as the office that manages all the project managers in the company.

The primary function of the PMO is to support project managers in multiple ways.
They include:

• Coaching - Provide coaching, training, mentoring, and oversight.
• Uniformity and consistency in standards :
      o Identify and develop management methodology, best practices, and standards for the projects.
      o Develop and manage procedures, policies, templates, and other documentation shared by the projects.
      o Audit projects to ensure the compliance of standards, policies, procedures, and templates.
• Resource management - Manage shared resources across all the projects administered by the PMO.
• Communication - Coordinate communication across projects.
To understand the relationship between the roles of a project manager and the PMO, remember the following three things:
• Scope - A project manager focuses on the objectives of the project, whereas the PMO manages the scope at the program level and handles scope changes at the program level that may be seen as potential opportunities to meet the strategic business objectives of the organization.
• Resources - The project manager controls and manages the project resources to best meet the project objectives, whereas the PMO works to optimize the use of project resources across all the projects.
• Project aspects - The project manager handles aspects such as cost, quality, risk, and schedule specific to the individual project he/she manages, whereas the PMO manages the interdependencies among the projects and the organization-level standards, such as project management methodologies, policies, and procedures.

Previous: Other Terms Related to Project Management

Next: Big Picture of Project Management

Chapter 8: Project Stakeholders

In the previous chapters, we have been using the term Project Stakeholders repeatedly and we havent had any clear cut definition or description as to who these people are. Well, you need to look no further, we are going to do it right away in this chapter.

So, lets get started!!!

Who are the Project Stakeholders?

Project stakeholders are individuals and organizations whose interests are affected (positively or negatively) by the project execution and completion. In other words, a project stakeholder has something to gain from the project or lose to the project. Accordingly, the stakeholders fall into two categories—positive stakeholders, who will normally benefit from the success of the project, and negative stakeholders, who see some form of disadvantage coming from the project. The implications obviously are that the positive stakeholders would like to see the project succeed and the negative stakeholder’s would be happy if the project was delayed or even better cancelled.

For ex: let us say, your state government wants to build a Government Hospital in your city. It is a good thing right? You, the citizens of your city and the chief minister are all positive stakeholders of this project. Lets say there is a private Hospital in the city that is having a thriving business currently. They would be negative stakeholders because, if the government hospital comes up, their business will be affected and hence they would be happy if the government scraps its project.

Negative stakeholders are often overlooked by the project manager and the project team, which increases the project risk. Ignoring positive or negative project stakeholders will have a damaging impact on the project. Therefore, it’s important that you, as the project manager, start identifying the project stakeholders early on in the project. The different project stakeholders can have different and conflicting expectations, which you need to analyze and manage.

Identifying Project Stakeholders

Identifying all the project stakeholders might be a difficult task, but the following are the obvious stakeholders in any project:

1. Project manager - Include yourself first. The project manager in charge of the project, in the list of the stakeholders to start with.
2. Project management office (PMO) - If your organization has a PMO, and it is directly or indirectly responsible for the outcome of a project, then the PMO is a stakeholder in that project.
3. Project team - This team consists of the project manager, the project management team, and the individuals who perform the work of the project to produce the project outcome. This team may consist of individuals from different groups and departments with different subject matter expertise and skills.
4. Program manager - If your project is part of a program, then the program manager is certainly a stakeholder of your project.
5. Portfolio managers - A portfolio manager is an individual who performs high-level management (governance) of a set of projects or programs and interfaces between the projects/programs and the business strategy of the organization for which the projects and programs are being run.
6. Portfolio review board - A portfolio review board is a committee that selects and rejects the projects by reviewing them for factors such as the project value, return on investment, and risks involved in performing the project.
7. Functional managers - These are the individuals who play the management roles within administrative or functional areas of the organization. For example, the VP of marketing is a functional manager and so is the director of engineering. The level of authority depends on their position in the hierarchy and also the organizational structure. For example, if you are using resources that are under a functional manager, that functional manager is a stakeholder of your project.
8. Operational management - These are the individuals who are performing management roles in the operational areas of the organization. For example, the director of IT, who is responsible for maintaining the computer network that your team is using, is a stakeholder in your project. Depending on your project, you might be handing over the product of the project to an operations group that will be responsible for providing the long-term support for it.
9. Sellers – Sellers are entities external to the performing organization, such as contractors and suppliers, who enter into a contractual agreement with the performing organization to provide certain components for the project. These components are the products, services, or results that you procure.
10. Business Partners - Business partners are the external organizations that fill a specific role for the project, such as installing the product of the project, providing training and support for the product, or providing specialized expertise for the project. Business partners are different from vendors in that they have a special ongoing relationship with the organization, which sometimes is attained by satisfying some requirements, such as certifications.
11. Customer/user - In general, customers are the entity that will acquire the project’s outcome, such as product, and users are the entity that will use the product. In some cases the customers and users may be the same entity, and in other cases there may be a whole chain (with different layers) of customers and users.
12. Project sponsor - This is the individual or group that provides financial resources for the project. A sponsor has a major stake in the project and may perform an active role in the project team from time to time.

Following are some of the functions of a sponsor:

1. The sponsor champions the project when it’s conceived. This includes gathering support for the project by performing actions such as acting as project spokesperson to the higher-level management and spelling out the benefits of the project.
2. The sponsor leads the project through the selection process until the project is finally authorized, at which point the leadership role goes to the project manager.
3. The sponsor plays an important role in developing the initial project scope and charter.
4. The sponsor serves as an authority and a catalyst for issues beyond the control of project managers, such as authorizing some critical changes and other yes/no decisions.

Identifying Other Stakeholders

We have just identified the easy bunch of stakeholders that every project would have. In addition to these key stakeholders, who are easy to identify, there can be a number of other stakeholders, who might be more difficult to identify, inside and outside your organization. Depending upon the project, these might include investors, sellers, contractors, family members of the project team members, government agencies, media outlets, lobbying organizations, individual citizens, and a whole myriad of other individuals who might have an interest in this project and its outcome.

While dealing with the stakeholders, the keyword is influence. Watch out for influencers who are not direct customers or users of the product or service that will come from the project, but who can influence the course of the project due to their position in the customer organization or the performing organization. The influence can be positive or negative.

So, not only are the stakeholders affected positively and negatively by the project, but the project can also be impacted positively or negatively by them. It is critical for the success of the project that you identify positive and negative stakeholders early on in the project, understand and analyze their varying and conflicting expectations, and manage those expectations throughout the project.

Trivia:

Do not confuse the project management team with the project team. The project management team consists of individuals involved in the project management tasks. It is a subset of the project team, which includes the members of the project management team and also other members, such as those who perform the actual work of the project.

In the next chapter, we shall take a look at one of the most important and influential stakeholder in any project. The person who can make or break the project.

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Next: The Most Influential Stakeholder