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
