What is a Project?

Before getting into details of how you would manage an Agile Project, its essential that we first understand what a Project is… 

In my previous series on PMP Certification I had published a couple of articles about Projects. They are very much relevant to the ACP Certification also so, it would be good if you could refer them and learn more about Projects. 

1. Introduction to Projects 
2. Understanding Projects  

Official definition of a project 

According to PMI, A project is defined as a temporary endeavor undertaken to create a unique product, service, or result.

Temporary Endeavor? 

PMIs definition of Temporary does not mean that the duration is very small. According to PMI every project must have a specific Start Date and an End Date. Anything that comes to an end is Temporary, would we be right to say that? PMI does not specify exactly when this End Dates needs to be. As long as we have one, we are fine. In fact, I have seen projects that run for years before it reaches its End Date. 

Projects are usually started to achieve a strategic or business objective and these objectives change over time. So, it is not practically possible for a project to go-on forever because business direction or objectives keep changing from time to time. For ex: Film Cameras were the hip thing to have when I was in college. Lets assume I started a project to manufacture those film rolls for 25 years and sell them, do you think I would need the project still? Film Cameras as antiques now with barely anyone using them. Everyone has moved onto Digital cameras. 

Get the picture? 

Unique Product, Service or Result? 

By the definition above, a project involves work that has not been attempted before and is therefore unique. However, unique does not mean that a project is completely so. We may use reusable components of past projects or existing systems to simplify our efforts. 

Suppose we develop a inventory management software that requires coding for 10 components. This requirement does not mean that we need to write the code (develop) for all 10 components of the software. We can reuse existing components from our previous projects, and write the remaining components afresh. But, as you may note, the resultant combination would still be unique.

Though we are reusing some old components, there are still many new components that we need to build in order to create the new Inventory Management software – right? At the beginning of the project, we would have the uncertainty about whether we can actually build those new components and also about whether these new components would work fine with the old ones. So, we are faced with an uncertainty about whether the Inventory Managemnet System will be fully functional at the end of the project – right? 

The Project Manager manages this Uncertainty. If we are able to anticipate the uncertainty to an event, we have a better chance of handling or managing it better. 

OUTCOME OF A PROJECT

The outcome of a project may be:

1. A product 

2. A capability to perform a service 

3. A result, such as an outcome or a document 

PROGRESSIVE ELABORATION

Most projects, especially those that involve building Products, all the requirements aren’t known at the start. The project features or characteristics get defined over a period of time. PMI uses the term Progressive Elaboration very often where we start small and slowly build and move forward to create valuable results. 

Progressive elaboration refers to developing in steps with continuous improvement. Goals and objectives that we set in the beginning are slowly elaborated and made clearer and more detailed as the project progresses. Progressive elaboration allows a project management team to manage at a greater level of detail as the project moves along. Basically, it is the process of identifying the characteristics of a project.

You could refer to my article on Progressive elaboration written as part of the PMP Exam Prep series which also includes an Example of how Progressive elaboration works. Check it out: Click Here

Difference between a PROJECT and OPERATIONS

One of the areas where people often get confused is about distinguishing between a Project and Operations. People use either tem interchangeably while they are both very different. 

While Projects are Temporary Endeavors, Operations are continual or ongoing activities which get repeated every day. A simple example would be – Designing the Honda Civic 2018 model would be a Project. Once the design is ready when the manufacturing plant starts producing them it becomes an operation. 

Why? 

A Project creates a unique outcome – we created the Honda Civic 2018 model and then the project Ended. Now during manufacturing we are rebuilding the same car over and over again which means its no longer unique. Therefore it becomes an Operation. 

Get the picture? 

Of course Projects and Operations do have some similarities for ex: Execution is done by people, resources are limited, a lot of planning happens beforehand etc. However like I said, the outcome of the two are very different.

It is very important that as a Project Manager (agile or traditional doesn't really matter) you clearly understand this difference. Of course from an exam perspective a question could show up where your ability to distinguish between a Project and Operations determines which is the best answer. 

Why do organizations start projects? 

Organizations start Projects for a Variety of Reasons. The most common reasons why Organizations start projects are: 

1. Market Demand (For a Product or Service) – Whenever there is a demand for a product or service it is only a matter of time before someone starts a project to produce that product or service. With the advent of smart phones, almost all banks wanted to tap into the mobile banking craze and enlisted the help of software firms to build an iphone or android app for their bank. This is a classic example of Market Demand Driven Projects. 

2. Business Needs – Companies initiate projects all the time to meet strategic business needs. For ex: A company may have a need to expand into newer markets. A project could be started where a few senior staff members visit different/new markets and test out the waters before the company decides to open a branch in the place. 

3. Customer Requests – As a continuation to the Market Demand item, when customers request a specific product or service, companies start projects all the time. Going back to the example from point no.1, when a bank approaches an IT company to build a mobile app, the IT company would start a project too. 

4. Technological Advances – With the technology landscape evolving super-fast, industries and companies are forced to start new projects to upgrade themselves to use the latest technologies. 

5. Legal or Regulatory Requirements – Whenever the Legal or Regulatory landscape changes, it results in a ton of new projects. Every year the governments worldwide try to adjust the income tax policies. When the tax rates change, the accounting software have to be updated to reflect the right taxation rules. Even though this is a recurring pattern almost each year, it would be considered a project as the change every year is different. 

Prev: Project Management Basics - PMBOK

Next: Project Life Cycle

PMI ACP Certification Study Home Page

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 3: Understanding Projects

Well, we have taken the first baby step towards getting our PMP Certification. In the previous chapter, we learnt what a Project is and many other important terms that are essential for us to know in our quest of the elusive PMP title.

In this chapter, we are going to get a better understanding of what a project is and what a project lifecycle is.

So, lets get started!!!

What makes Projects Different?

You might have been wondering, what makes projects different. From the previous chapter, we learnt that the project is a temporary endeavor to accomplish a defined task. You might ask me, any organization might have so many activities that are executed on a daily basis. What makes projects different?

The activities taken up by any organization fall into two distinct categories:
1. Projects &
2. Operations

An Operation is an ongoing and repetitive set of tasks like cleaning the washrooms daily, or maintenance of the power back up in the building once every month etc. It has no end (unless the company goes bust) whereas; a Project has a lifecycle, a beginning and a definite end.

Understanding a Project

A project is a work effort made over a finite period of time with a start and a finish to create a unique product or service or result. Because a project has a start and a finish, it is also called a temporary effort or endeavor. In other words, a project is a temporary endeavor taken to create a unique product, service or result. So, a project has two defining characteristics: It is temporary, and it creates a unique result.

Let’s try to understand these two defining concepts: temporary and unique.

Temporary - The temporary nature of projects refers to the fact that each project has a definite beginning and a definite end. A project can reach its end in one of two possible ways:
• The project has met its objectives—that is, the planned unique product has been created or the results achieved.
• The project has been terminated before its successful completion for whatever reason.
The temporary nature of projects can also apply to two other aspects:
• The opportunity to market the product that the project will produce is temporary—that is, the product needs to be produced in a limited timeframe; otherwise, it will be too late.
• A project team is temporary—that is, the project team is disbanded after the project ends, and the team members may be assigned to other projects eventually.
However, remember that the temporary nature of a project does not refer to the product it creates. The results or outcomes of a project are usually long lasting. Go back to the building your home example. Even though the construction process ends after say 9 months, your house is going to stand forever (Unless you plan on renovating or rebuilding it from scratch, which by themselves will be separate projects)

The second defining characteristic of a project is that it must create a unique product.

Unique product - The outcome of a project must be a unique product, service, or result.
How do these 3 terms differ from one another?
• Product - This is a tangible, quantifiable artifact that is either the end item or a component of outcome. The LCD TV in your living room or the fast BMW Car you drive or the nice diamond pendant you got your wife on her birthday are some examples of products.
• Service - Actually, when we say a project can create a service, we really mean the capability to perform a service. For example, a project that creates a website for a bank to offer online banking has created the capability for the bank to offer the online banking to its customers.
• Result. This is usually the knowledge related outcome of a project—for example, the results of an analysis performed in a research project.

We might use these 3 terms product or service or result interchangeably during the course of our study and remember that, though they might be 3 different things, from a project perspective, they all signify one thing – the project is completed successfully.

In the previous paragraph, we had seen the fact that projects are different from operations and we even saw a simple example. In order to manage projects efficiently you must first be able to identify if an activity is a Project or an Operation. To do that, you must be able to distinguish the two clearly.

Distinguishing a Project from an Operation

An organization executes a wide variety of activities as part of its work to achieve its business objectives. Some of these activities are to support projects and others are to support what are called operations. An operation is a set of tasks that does not qualify to be a project. In other words, an operation is a function that performs ongoing tasks: It does not produce a unique product and nor does it have a beginning or an end or both.

For example, Building your house is a project, whereas maintaining/cleaning it regularly is an operation.

It is important to understand that projects and operations share some characteristics, such as the following:
• Both require resources, including human resources (people).
• Both are constrained to limited, as opposed to unlimited, resources.
• Both are managed—that is, planned, executed, and controlled.
• Both have objectives.

The distinctions between projects and operations can be made by sticking to the definition of a project—that it is temporary and unique. Operations are generally ongoing and repetitive. Although both projects and operations have objectives, a project ends when its objectives are met, whereas an operation continues toward attaining a new set of objectives when the current set of objectives has been attained.

Go back to our example, building your house is a one time activity (Project) whereas, cleaning the house once every week to keep dirt and rodents away is a recurring activity (Operation) that has to be done every week, unless you intend on sharing your residence with rats and cockroaches!!!

Some Example Projects:

Projects can be performed at various levels of an organization; they vary in size, and accordingly can involve just one person or a team. Some examples are:

Project	Project Outcome
Constructing Your House	Product
Running an election campaign	Results: win or lose; Products: documents
Developing a website to offer online banking	Service
Setting up a new Office	Service
Moving your office to a new building	Result: office is moved
Study the genetic makeup of a new species of birds in a forest	Results (of the research); Product: research paper

How do projects come into existence? In other words, how do you come up with a project? Sure, you have an idea, a concept of some final product, but how exactly do you write it down and declare it as a project? A project is born and brought up through a procedure called progressive elaboration. This is what we are going to learn in the next chapter!!!

Previous: Introduction to Projects

Next: What is Progressive Elaboration

Chapter 2: Introduction to Projects

Well, I am very excited to start writing this series of articles to help us prepare for the PMP Certification. We will be taking small steps one after the other and slowly reach our goal of the PMP certification. This is the first step in our pursuit.

So, lets get started!!!

What is a Project?

Anything and everything around us can be considered a project. For ex: building a nice home for you and your family is a project, same is the case if a government is trying to build a big power plant in your city. Irrespective of the size or the amount of money involved, both of them are projects.

What is common between these 2 examples? Your house and a power plant? Both involve, people, money and time. They both have a start and end and most importantly someone has to supervise the whole way to ensure that the project proceeds as planned and is completed on time and within budget.

The important point to note here is – someone has to supervise the whole way!!!

Yes, you read it right, any project has to be managed and controlled by an expert if it has to be a success. Failing which, the project will most probably be a failure.

Exam Trivia:
Miracles do happen. But, in terms of the PMP Exam, Miracles are like the UFOs. Everyone has a doubt, but no one will risk their life to prove their existence. Similarly, there might be a rare case where an ill managed project becomes successful, our goal is to manage a project properly and as per the guidelines laid down by the PMI Institute to ensure that the project we are managing is a Success.

Before we proceed any further, let me give you the technical definition of what a project is:

A project is a work effort made over a finite period of time with a start and a finish to create a unique product, service, or result. Because a project has a start and an end, it is also called a temporary effort or endeavor

The definition is simple, isnt it? Now recollect, building your house is a project. You start it with a Grihapravesham (The Initial Pooja’s you do before beginning the construction), then you identify a builder, start buying raw materials like cement, steel, bricks etc, and go step by step and at the end of 9 months, voila your new and beautiful house is ready.

Since, you will no longer be building your house after 9 months, it is a temporary Endeavour and has a finite end at the end of construction.

Now I guess you understand the definition :-)

What is meant by Managing a Project?

Managing a project means managing the lifecycle of the project, starting from the beginning (initiating) and going to the end (closing); this is accomplished using processes, which constitute what are called project management knowledge areas. Although you use your knowledge in terms of processes to manage the projects, the management will be greatly influenced by the environment in which the project runs, such as the structure and culture of the performing organization.

If you want a quick synopsis of the various stages in the life of Managing a Project, just go back to the previous chapter and read it…

Terms you need to understand to begin your preparation:

Well, we have started our preparation for the PMP Exam. In the course of this and subsequent articles, we will be using various important terms. Each has a meaning and purpose. Now, let us go through each of them one by one.

Exam Trivia:
All these terms are simple and very important. You need to understand them in order to make sense of the subsequent topics. So pay attention!!!

• Organization

An organization is a group of individuals organized to work for some purpose or mission. Computer companies, telephone companies (to whom you pay your phone bills), and cable companies are examples of organizations. An organization might offer products, such as books, or services, such as Internet access or online banking. A project is usually performed inside an organization. Organization is a very broad concept that includes groups for profit and nonprofit, public and private, and government and nongovernment.

• Project stakeholder

A project stakeholder is an individual or an organization that can be positively or negatively affected by the project execution. A project can have a wide array of stakeholders, like the project sponsor, the customer for whom you are executing the project, the end user who is going to use the system etc.

• Process

A process is a set of related tasks performed to manage a certain aspect of a project, such as cost or quality. Each process belongs to a knowledge area and corresponds to a process group. There are a bunch of set guidelines that can help you achieve a goal and they are usually termed as processes.

• Knowledge area

A knowledge area in project management is defined by its knowledge requirements related to managing a specific aspect of a project, such as cost, by using a set of processes. PMI recognizes a total of nine knowledge areas, such as cost management, human resource management etc.

• Performing organization

The performing organization is the organization that is performing the project.

• Project management

Project management is the usage of knowledge, skills, and tools to manage a project from start to finish with the goal of meeting the project requirements. It involves using the appropriate processes. Remember the Supervisor who is going to oversee your house construction

• Program

A program is a set of related projects managed in a coordinated fashion to improve overall efficiency and effectiveness and to obtain benefits and control that would not be obtained by managing them individually. For example, a program could be delivering a product (or service) that consists of sub-products (or service components) delivered by the constituent projects. Also, a program might include related work that is not included in the scope of any of the constituent projects.

• Program management

Program management is the centralized, coordinated management of a specific program to achieve its strategic goals, objectives, and benefits.

• Program management office (PMO)

The program management office is an entity in an organization that is responsible for providing centralized, coordinated support to the program managers managing programs and unrelated projects.

• Project management office

Project management office (PMO) refers to an entity in an organization that is responsible for providing centralized coordinated management and support for projects in the organization.

Exam Trivia:
Although both have the same abbreviation, PMO, the project management office and program management office are not identical. For example, only an organization that runs programs will have a program management office, whereas an organization that runs individual projects can have a project management office.

What is a Portfolio:

A portfolio is a set of projects, programs, and related work that is managed in a coordinated fashion to obtain business objectives in the strategic plan of the organization.
Portfolio management is the centralized management of one or more portfolios that includes identifying, authorizing, prioritizing, managing, and controlling projects, programs, and other related work in order to obtain specific business objectives in the strategic plan of the organization.

Now that we know the key terms that are required to continue our preparation, lets move on to the next topic…

Previous: Main parts in Managing a Project

Next: Understanding Projects