Project Management

5 steps that ensure the cost/schedule system is integrated

1. define the work using a WBS 2. Develop a work and resource schedule 3. Develop a time-phase budget using work packages 4. At the work package level collect the actual costs for the work performed 5. Compute the schedule variance and cost variance

Conditions for high performance teams to develop

10 or fewer members per team members volunteer to serve on the project team members serve on the project from beginning to end members are assigned to the project full time members report solely to the project manager

Planned value

the planned time-phased baseline of the value of the work scheduled

Budget cost at completion

uses the total originally budgeted cost of the baseline to calculate the estimated cost at completion

Percent complete index cost (PCIC)

AC/EAC -views percent complete in terms of actual dollars spent to accomplish the work to date and the actual expected dollars for the completed project

Management by wandering around

Act of a project manager physically walking around/interacting with team members and other stakeholders

Priorities

Actions speak louder than words

Actual cost

Actual costs of the work completed. This is the same of the costs incurred in accomplishing the work completed to date

BATNA

Best alternative to a negotiated agreement -Reflects how dependent you are on the other party -if STRONG: you can walk away and say no deal -if WEAK: take the loss and be forced to agree with the other party

Management & Leadership commonality

Both are means of getting people to do something that benefits a collective

Good management

Brings about order & stability by formulating plans and objectives, designing structures and procedures, monitoring results against plans, and taking corrective action when necessary

Norming

Close relationships develop and the group demonstrates cohesiveness. Feelings of camaraderie and shared responsibility are heightened

Dysfunctional Conflict

Conflict that harms the teams goals. Should be discouraged and eliminated

Functional Conflict

Conflict/disagreement that furthers project performance and goals. Encouraged

Disadvantages of outsourcing

Coordination breakdowns loss of control conflict security issues political hot potato

Leadership is:

Coping with CHANGE What and why Horizon Originates Challenges status quo Own person Innovation Development People-focused Inspires trust Long-range view

Management is:

Coping with COMPLEXITY How and when Bottom line Accepts status quo Administration Maintenance Systems-focused Relies on control Short-range

Inspiration Related Currencies

Creating a vision, doing important things really well, ethical correctness

External and Indirect Stakeholders

Customers, contractors, organizations, government agencies

5 stage model of team development

Forming Storming Norming Performing Adjourning

Task Related Currencies

Giving physical resources, assistance, undertaking unwanted tasks, providing informational & technical knowledge

Position Related Currencies

Giving task or assignment that can result in promotion, acknowledging effort, providing visibility, providing networking introductions

Example of dysfunctional conflict

Gossiping around the office that harms team members.

Matrix Arrangement Organization

Horizontal project management structure is overlaid on a functional hierarchy -Functional lines -Project lines -Project participants report to both PMs and FMs

Cooperation

How managers act towards outsiders influences how team members interact with outsiders

Problem solving

How managers respond to problems influences and sets the tone for subordinates responses to problems

Ethics

How others respond to ethical dilemmas is greatly affected by how leaders respond to similar dilemmas.

Considerations at the project level

Size of the project Strategic importance Novelty & need for innovation Need for integration Environmental complexity Budget and time constraints Stability of resource requirements

Ways to monitor time performance

Use schedule variance to monitor the overall direction of the project. Compare the project network schedule against the actual network schedule to measure if the project is on time

Considerations at the organizational level

What percentage of core work involves projects? What level of resources (human and physical) are available?

Advantages of Functional Organization Structure

no structural change flexibility in-depth expertise easy post-project transition

Synergy

"working together" -There is positive and negative -Positive: "the whole is greater than the sum of the parts" Defines how well a team performs together, important for a project team so they are high performing

Relationship Related Currencies

Providing closeness/friendship, giving personal/emotional backing, listening to others.

Four key points of principled negotiation

1. Separate the people from the problem 2. Focus on interests, not positions 3. Invent options for mutual gain 4. When possible, use objective criteria

2 reasons why "management by wandering around" is useful to project managers

-Effective project managers initiate contact with key players to keep abreast of developments, anticipate potential problems, provide encouragement, and reinforce the objectives and vision of the project. -They are able to intervene to resolve conflicts and prevent statements from occurring

Best practices in outsourcing project work

-Extensive training and team-building activities -Project partnering charter -Well-established conflict management charter -Frequent review and status updates -Co-location when needed -Long-term outsourcing relationship

Symptoms of groupthink

-Illusion of invulnerability: the team feels invincible -Whitewash of critical thinking: Group members discuss only a few solutions -Negative stereotypes of outsiders: Good/bad guy stereotypes emerge in which the group considers any outsiders who oppose their decisions as bad. -Direct pressure: When team members don't speak out or question the direction which the team is headed, direct pressure is applied to the dissenter

Partnering contracted relationships

-Mutual trust forms the basis for strong working relationships -Shared goals and objectives ensure common direction -Open communications avoid misdirection and bolster effective working relationships. -Long term commitment provides the opportunity to attain continuous improvement -Risk is shared jointly among the partners, encouraging innovation and continuous improvement

Six aspects of leading by example

-Priorities -Urgency -Problem Solving -Cooperation -Standards of performance -Ethics

How to make sure an outsource thoroughly understands his or her requirements

-Recognizing cultural differences -Choose the right words -Confirm requirements -Set deadlines

Guidelines to follow when conducting a project meeting?

-Start meetings on time regardless of whether everyone is present -Prepare and distribute an agenda prior to the meeting -Identify an adjournment time -Periodically take time to review how effective previous meetings have been -Solicit recommendations & implement changes -Assign good record keeping -Review the agenda before beginning and tentatively allocate time for each item -Prioritize issues so that adjustments can be made given time constraints -Encourage active participation of all members by asking questions instead of making statements -Summarize decisions and review assignments for the next meeting -Prepare and distribute a summary of the meeting to appropriate people -Recognize accomplishments and positive behavior

Traditional contracted relationships

-Suspician and distrust; each party is wary of the motives of the other -Each party's goals and objectives, while similar are geared to what is best for them -Communications are structured and guarded -Single project contracting is normal -Risk is transferred to the other party

Projectitis

A we-they attitude can emerge between project team members and the rest of the organization

Why assess the culture of an organization before deciding what PM structure to use?

Certain aspects of the culture of an organization would support successful project management while other aspects would deter or interfere with effective management

Urgency

Deadlines, frequent status updates, aggressive solutions

Projectized Organization

Dedicated project teams to complete projects -Often made up of a group of specialists that are led by a PM who manages the project and who reports back to management. -Used when there is a large percentage of work being done as project (housing development)

Cost Variance

EV-AC -Positive variance indicates desirable condition -Negative variance suggests problems or changes have taken place

Schedule Variance

EV-PV -Positive variance indicates desirable condition -Negative variance suggests problems or changes have taken place shows the PM whether the project is on schedule in a $$$ equivalent for time format

Cost performance index (CPI)

EV/AC -shows the percent of work planned to date that has been completed for each dollar spent. -if CPI is .75 then for every dollar we have spent we accomplished 75% of the investment we expected to. -## greater than 1 indicate progress is better than expected and vice versa

Percent complete index (PCIB)

EV/BAC -indicates the work accomplished/represents a certain percentage of what we budgeted it would take to complete the whole project to date

Schedule performance index (SPI)

EV/PV -percent worth of work that has been accomplished for each dollar worth of scheduled work to date. -if SPI of .75 then for every dollar we have spent we have accomplished 75% of the work we expected to. -## greater than 1 indicates progress is better than expected and vice versa

Advantages of matrix form organization

Efficiency strong project focus easy post-project transition flexible

Principled Negotiation

Emphasizes win/win solutions while protecting yourself against those who would take advantage of your forthrightness

Disadvantages of Projectized organizations

Expensive internal strife limited expertise post-project transition

Standards of performance

If managers want participants to exceed project expectations then they have to exceed others expectations of a good project manager

Advantages of establishing long-term partnerships

Improved innovation improved communication Efficient resource utilization Reduces administrative costs Improved performance

Project monitoring system

Involves determining what data to collect; how, when and who will collect the data; analysis of the data, and reporting current progress

Requirements for an effective project vision

Involves less tangible aspects of project performance & answers the question of "what do we want to create"? -Essential qualities must be communicated -Must be challenging but realistic -Project manager must believe in the vision -Should be a source of inspiration for others

Good leadership

Involves recognizing & articulating the need to significantly alter the direction and operation of the project, aligning people to the new direction, and motivating them to work together to overcome hurdles produce by the change and to realize new objectives. Desirable but not always necessary to successfully complete a project

Characteristics that capture an organization's culture

Member identity Team emphasis Management Focus Unit integration Control Risk tolerance Reward criteria Conflict tolerance Means versus end orientation Open-system focus

Storming

Members discover and adapt to their roles and personalities -Marked by a high degree of internal conflict

Forming

Members get acquainted with each other & understand the scope of the project. Establish ground rules

Why should a PM emphasize group rewards over individual rewards?

Most project work is collaborative effort, only makes sense that reward system would encourage teamwork. Recognizing individual members regardless of their accomplishments can distract from team unity.

Functional Organization

Normal Structural Hierarchy -Once management decides to implement a project, pieces of the project are sent to each respective functional unit that will be responsible for completion. (finance, marketing, engineering) -Normally used when one dominant functional unit plays a dominant role in the success of the project

What are the unique challenges to managing a virtual project team?

Not located in the same time and space. Biggest challenge is developing trust and effective patterns of communication

Formula for customer satisfaction?

Perceived Performance/Expected performance -Shoot for 1.05

3 data elements required to conduct an earned value analysis

Planned Value (PV) Actual Cost (AC) Earned Value (EV)

Elements of Good Negotiation

Preparation Exchange Information Bargaining Closing and commitment

Control process

Process of comparing actual performance against planned to identify deviations, evaluate possible alternative courses of actions and take appropriate corrective action

Strong Matrix

Project Managers: Controls most aspects of the project including scope, assignment of functional personnel, etc. Functional Managers: Has control over their people and is consulted on an as needed basis.

Balanced Matrix

Project Managers: Responsible for DEFINING what needs to be done Functional Managers: Responsible for getting it ACCOMPLISHED. As well as assigning personnel & executing their segment of the project. Requires joint approval for many operations

Weak Matrix

Project Managers: Works as staff assistant to draw schedules, collect project information, and monitor project. indirect authority to expedite projects Functional Managers: call most of the shots and are basically in charge

Example of functional conflict

Project manager telling an engineer to focus on a certain (originally planned) product feature rather than add more to reduce scope creep while the engineer is disappointed because they want to add the new feature

Core Stakeholders

Project team

Estimated cost at completion (EAC)

Provides a revised estimate of the total cost at completion date AC+ETC (revised estimated cost)

Steps to creating a control process

Set a baseline plan Measure progress and performance Compare plan against actual results

Personal related currencies

Sharing tasks that increase abilities, letting others have ownership, expressing appreciation

Advantages of Projectized Organizations

Simplicity Fast Cohesiveness Cross-functional integration

Performing

Team dynamic and structure is fully functional and accepted. There is a high level of group energy, efficiency, and output

Exchange model of influence

Suggests trading different things of value for an expected exchange/return of value later when you need them. "I scratch your back you scratch mine"

8 Traits/skills associated with being an effective project manager?

Systems thinker Personal integrity Proactive High emotional intelligence (EQ) General business perspective Effective time management Skillful politician Optimist

Earned Value

The percent complete times its original budget. Essentially the percent of the original budget that has been earned by completing the actual work so far

Adjourning

The team disbands. The focus of this stage is on process reflection and group/personal evaluation/feedback

Groupthink

The tendency of members in highly cohesive groups to lost their critical evaluative capabilities. Appears when pressures for conformity are combined with an illusion of invincibility

Why do firms outsource project work?

They can transfer their business functions/processes to foreign companies

Middle Level (internal but indirect) Stakeholders

Top management, project sponsors, functional managers, admin support

Advantages of outsourcing

cost reduction faster project completion high level of expertise flexibility

Disadvantages of matrix form organization

dysfunctional conflict infighting stressful slow

Disadvantages of functional organization structure

lack of focus poor integration slow lack of ownership