Project Managment Test 1

Absolute honesty

"school of no surprises" It is better to bring bad news early than try to hide it

How does the project leader communicate with stakeholders

-Meet with the project resources Meet with the stakeholders with decision authority Consult the stakeholders that can block a decision' Inform the remaining stakeholders

Six Criteria for IT Project Success

-System quality -information quality -use -user satisfaction -individual impact -Organizational impact

Emotional Intelligence

-self awarness -Self regulation -Motivation -Empathy -Social Skills

Customers:

47% of IT projects delivered but not used, 29% paid for but not delivered; 19% abandoned

Checklist Model

A checklist is a list of criteria applied to possible projects. Requires agreement on criteria Assumes all criteria are equally important Checklists are valuable for recording opinions and encouraging discussion

Providing self esteem

A feeling of pride or satisfaction for one's ego Approval/recognition Possibility of advancement/promotion Interesting and challenging work/stimulating work environment Tangible rewards Management assistance in problem-solving

Project stakeholder management

A means exists to identify all those significantly affecting or being affected by the project

Spider Web Diagram for Measuring Project Maturity

A more complex way Project scheduling personal development structural support Portfolio management Coaching, auditing, and evaluating projects Control practices Project stakeholder management Networking between projects Personnel development for projects

Traits of Effective Project Leaders

A number of studies on effective project leadership reveal these common themes: Good communication Flexibility to deal with ambiguity Work well with project team Skilled at various influence tactics

Internal Rate of Return

A project must meet a minimum rate of return before it is worthy of consideration

Are Champions Important?

A recent study found that out of 45 projects: Of the seventeen successful projects, only one did not have a project champion (94% did) Of the 28 projects that failed, only one had a project champion

History

A shared narrative of the past lays the foundation for corporate culture. The traditions of the past keep people anchored to the core values that the organization was built on.

Social Skills

Ability to be friendly, approachable and persuasive

Motivation

Ability to keep score of project progress Strive for greater challenges

General Project Characteristics

Ad-hoc endeavors with a clear life cycle Building blocks in the design and execution of organizational strategies Responsible for the newest and most improved products, services, and organizational processes Provide a philosophy and strategy for the management of change A project has breakthrough aspects, rather than incremental change

Balancing Technical / Human Skills

Balancing Technical / Human Skills

Financial Models

Based on the time value of money principle Payback period Net present value Internal rate of return Options models All of these models use discounted cash flows

Comparability

Broad enough to allow for comparison of multiple projects

Project management maturity models are used for benchmarking:

Center for Business Practices Kerzner's project management maturity model ESI International's project framework SEI's capability maturity model integration

Project Management Office (PMO)

Centralized units that oversee or improve the management of projects Resource centers for: Technical details Expertise Repository Center for excellence

Rituals and Ceremonies

Ceremonies are the things that employees do every day that bring them together. Examples include Friday afternoon get-togethers or simply saying goodbye to everyone before you leave for the day.

What are Project Champions?

Champions are fanatics in the single-minded pursuit of their pet ideas. Champions can be: creative originators entrepreneurs godfathers or sponsors project managers

Sample Project Screening Models

Checklist Simple scoring models Analytic hierarchy process Profile models Financial models

Functional with Project Leaders - Strengths

Clear responsibility over the project - Project Lead and functional manager. Better focus: Full time project leaders Better Technical control is possible Many IT projects are driven by the IT organization This can be good, or can be bad. for example: They may implement a system that IT likes but the end users hate

External

Clients (sometimes) Competitors (sometimes) Suppliers Environmental, political, consumer, and other intervenor groups

Elements of Projects

Complex, one-time processes Limited by budget, schedule, and resources Developed to resolve a clear goal or set of goals Customer-focused - A "new" characteristic

Stakeholder Management

Sets of project stakeholders may include: internal and external Each project may have its own set of unique stakeholders

Why are Projects Important in companies?

Shortened product life cycles Narrow product launch windows Increasingly complex and technical products Emergence of global markets Economic period marked by low inflation Zantinga: Projects are the breakthroughs that sets the stage for further incremental improvements

Profile Models

Show risk/return options for projects. Requires: Criteria selection as axes Rating each project on criteria

Stakeholder Management

Stakeholders are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.

How to handle a Monopolizer

The Monopolizer believes everyone else is there to hear him or her speak The facilitator should indicate an interest in hearing from others in the meeting, to remind the Monopolizer that others can speak as well as listen.

Chapter 2

The Organizational Context: Strategy, Structure, and Culture

Main dimensions:

Uncertainty Avoidance and 2) Power Distance

Self Awareness

Understand your own strengths and weaknesses

Four competencies determine a project leader's success:

Understanding and practicing the power of appreciation. Reminding people what is important. Generating and sustaining trust. Aligning with the led.

Ease of use

User -friendly for people in all areas of the organization Selection criteria easily understood

User satisfaction

User satisfaction

Originally, a project was "deemed" successful if at completion it:

Was within budget Was within time Contained planned scope/quality

Forms of PMOs

Weather station - monitoring and tracking Control tower - project management is a skill to be protected and supported Resource pool - maintain and provide a cadre of skilled project professionals

Work Hard - Play Hard Culture

Where can you find this culture -Sales (especially high dollar B2B among others). -Employees themselves take few risks; Feedback on how well they are performing is almost immediate. -Employees have high levels of energy and stay upbeat. -Heroes in such cultures are high volume salespeople. What is special about the culture -Recognition that one person alone cannot make it. -team effort and everyone is driven to excel. -Contests among employees are common here, as they drive everyone to reach new heights.

Tough Guy - Macho Culture

Where can you find this culture Entertainment industry, sports teams, M&A Departments, advertising agencies Individualists who have unique skills, enjoy risk and who get quick feedback on their decisions What is special about the culture All-or-nothing culture successful employees are the ones who enjoy excitement and work very hard to be stars. All others are second class citizens Teamwork is not highly valued Difficult environment for people who blossom slowly. higher turnover, which impedes efforts to build a cohesive culture.

Process Culture

Where can you find this culture Large retailers, banks, insurance companies, government No single transaction has much impact on the organization's success and it takes years to find out whether a decision was good or bad What is special about the culture Employees find it very difficult to measure what they do so they focus instead on how they do things. High value on technical excellence Pay attention to getting the process and the details right Not always measuring the actual outcome Projects often need to be isolated from the corporate structure in order to succeed

Bet-Your-Company Culture

Where can you find this culture Pharmaceutical, Oil and Gas companies, Architectural Firms and organizations in other large, capital-intensive industries. decisions are high risk but employees may wait years before they know whether their actions actually paid off. What is special about the culture long-term focused collective belief in the need to plan, prepare and perform due diligence at all stages of decision making. Long Term projects are an integral part of company processes

Empathy

Willingness to consider other team members' feelings

Stakeholders

are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.

Software & hardware projects

fail at a 65% rate Over half of all IT projects become runaways Up to 75% of all software projects are cancelled

ERP Software modules

finance, sales orders, human resources, procurement, inventory, manufacturing,

ERP software modules

finance, sales orders, human resources, procurement, inventory, manufacturing

Project Managers (Leaders)

focus on interpersonal relationships rather than administration

Coordinator

has some power to make decisions has some authority and reports to a higher level manager

Line Managers

have official titles and power in an organization

What would make certain people poor project managers?

inability to delegate? inability to shift from a "big picture" focus to being detail-oriented and vice versa? Low emotional intelligence / emotional maturity

The types of personality characteristics that are best associated with project management success, include:

interpersonal skills communication skills political skills negotiation skills technical competency etc.

Personnel development

systematic methods for improving the skills for project management personnel

Traditional Duties

technical understanding leadership coordination & control obtaining resources administrative

Strategic management

the science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives.

Culture Affects Project Management

Departmental interaction Employee commitment to (project) goals Project planning Performance evaluation Your corporate culture may be: Projects are the dumping ground for low performing employees Projects are a pre-requisite for promotion

Organizational Structure consists of three key elements

Designates formal reporting relationships number of levels in the hierarchy span of control Groupings of: individuals into departments departments into the total organization Design of systems for effective communication coordination integration across departments

Payback Period

Determines how long it takes for a project to reach a breakeven point Cash flows should be discounted (but it does not always happen) Lower numbers are better (faster payback The method assumes that cash flows persist long enough to pay back investment and ignores additional cash flows. The method serves as a (inadequate) proxy for risk

How to lead international projects

Develop a detailed understanding of the environment Do not stereotype Be genuinely interested in cultural differences Do not assume there is one way (yours) to communicate Listen actively and empathetically

Project Leaders

Develop a project vision Do the right thing Develop new processes Innovate Focus on people Inspire trust Focus on potential

Consists of:

Developing vision and mission statements Formulating, implementing and evaluating Cross functional decisions Achieving objectives

Managing team behavior: How to handle a Joker

Don't let the Joker's good nature fool you, Jokers can be meeting monsters A facilitator can designate several minutes at the start or middle of a business meeting specifically for humor, but be serious the rest of the time

Simple Scoring Models

Each project receives a score that is the weighted sum of its grade on a list of criteria. Scoring models require: agreement on criteria agreement on weights for criteria a score assigned for each criteria

Classical Structure Advantages

Easier budgeting and cost control are possible. Better technical control is possible. It facilitates mass production activities within established specifications. It provides good control over personnel, since each employee has one and only one person to report to. Communication channels are vertical and well established.

Flexibility

Easily modified e.g., changes in interest rates, tax laws, etc.

Cost effectiveness

Effective in terms of both cost and time with respect to both gathering and assessing information

General Project Characteristics

Entail crossing functional and organization boundaries Traditional management functions of planning, organizing, motivating, directing, and controlling apply Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule constraints Terminated upon successful completion

Fence Sitter

Fence Sitters are unable to make decisions The facilitator tries to cajole the Fence Sitter into action. Remind them that they have a vote and should use it. Ask them their opinions on matters to draw them out and get them on record. A good facilitator will create ground rules (norms) for business meetings, including turning off electronics during the meeting. It's hard to compete with human distractions, let alone electronic ones as well.

Keys to Successful Project Portfolio Management

Flexible structure and freedom of communication Low-cost environmental scanning Time-paced

Functional with Project Leaders - Weaknesses

Functional organizations tend to emphasize the separate functional elements at the expense of the whole organization. Under functional departmentalization there is no group that effectively integrates the various functions of an organization and monitors them from the "big picture standpoint." Many IT projects are driven by the IT organization This can be good, or can be bad. for example: They may implement a system that IT likes but the end users hate

How the project manager fights fires

Get the panicky phone call Do discovery Evaluate what needs to get done (Re)-assign resources (Re)-work the project plan and budget

Estimating Challenges

Getting accurate input — particularly if people doing the estimating will not also be delivering Project scope may be unclear Uncertainty about future resource constraints Sample plans based on "best case" Customer dependencies and skills unclear Overlooked project administrative work Even analytical methods require subjective inputs

Providing self - actualization

Giving assignments that provide challenges Clearly defining performance expectations Giving proper criticism as well as credit Giving honest appraisals Providing a good working atmosphere Developing a team attitude

Exchange of purpose

Help define, or at least 'buy into' the project vision

Screening models

Help managers pick winners from a pool of projects. Screening models are numeric or nonnumeric

Use

How 'sticky' or hours used per day by the customer

Creating Project Managers

Match personalities with project work Formalize commitment to project work with training programs Develop a unique reward system Identify a distinct career path

Networking between projects

Methods are employed to ensure clear lines of communication between projects within the parent organization

Skills of a project manager

People who: can see the forest for the trees while at the same time are intimately familiar with each variety of tree in the forest know how to fix a sick tree

Stakeholders are

Persons and organizations such as customers, sponsors, the performing organization, and the public that Are actively involved in the project, or have interests that may be positively or negatively affected by execution or completion of the project. may also exert influence over the project and its deliverables.

IRR Calculation - Estimation Method

Pick an arbitrary discount rate (e.g. 15%) Compare the present value of the inflows with the initial investment If they are equal, you have found the IRR If the present value is larger than the initial investment, select a higher discount rate for the computation (e.g. 20%) If the present value is less than the initial investment, select a lower discount rate f or the computation (for example 10%) Determine the present value of the inflows and compare it to the initial investment

Project Stakeholder Management Cycle is what aspect of project managment?

Political

Organizational impact

Positive ROI?

Legitimate Power

Power by virtue of your job title Conveys a legitimate right or authority to be in charge If the subordinate refuses to recognize the authority of the title, then the power does not exist

French and Raven's Five sources of power

Power is the extent to which one person can influence another to do something Expert Power Referent Power Legitimate Power Reward Power Coercive Power

What is the first filter for all projects?

Process selection

Control practices

Processes exist for the systematic determination of project status

How the project manager does both at the same time.... Time Management

Project Leaders are great at managing their own time

How the Project Manager Leads

Project managers function as mini-CEOs and manage both "hard" technical details and "soft" people issues.

Project Management and Organizational Structure

Projects are special Projects are outside the current organizational structure How does project management (and project managers) fit into the organizational structure?

Projects Reflect Strategy

Projects are stepping stones of corporate strategy The firm's strategic development is a driving force behind project development Some examples include

Net Present Value

Projects the change in the firm's stock value if a project is undertaken.

What should screening models have?

Realism of the screening model Capability of the screening model Flexibility of the screening model Ease of use of the screening model Cost effectiveness of the screening model Comparability of the screening model

Realism

Reflects organizational objectives Incorporates resource constraints Accounts for technical and financial risks

Heroic Figures

Related to stories are the employees and managers whose status is elevated because they embody organizational values. These heroes serve as role models and their words and actions signal the ideal to aspire to.

Joint accountability

Responsible for their tasks

How does the project manager develop the vision for the project

Review the project documentation Create an Elevator Pitch

How does a project leader acquire project resources?

Review the project documentation Negotiate with top management to get the resources needed Negotiate with the line managers to get the resources needed Find alternative and creative ways of funding and resources Internships with students Recent retirees People about to get laid off

Screening & Selection Issues

Risk unpredictability to the firm Commercial market potential & financials Internal operating changes in firm operations Additional image, patent, fit, etc.

Principle of Escalation

Conflicts escalate to equal power levels

Problems in Implementing Portfolio Management

Conservative technical communities Out of sync projects and portfolios Unpromising projects Scarce resources

Stories

Corporate stories typically exemplify company values, and capture dramatically the exploits of employees who personify these values in action. Stories allow employees to learn about what is expected of them and better understand what the business stands for.

Pure Project Structure Disadvantages

Cost of maintaining this form in a multi-product company would be prohibitive due to duplication of effort, facilities, and personnel; inefficient usage. There exists a tendency to retain personnel on a project long after they are needed. Upper-level management must balance workloads as projects start up and are phased out. Technology suffers because, without strong functional groups, outlook of the future to improve company's capabilities for new programs would be hampered (i.e., no perpetuation of technology). Control of functional (i.e., organizational) specialists requires top-level coordination. There is a lack of opportunities for technical interchange between projects. There is a lack of career continuity and opportunities for project personnel.

Values and Beliefs

Cultural identity is formed around the shared beliefs of what is really important, and the values that determine what the organization stands for.

Line Manager

Execute the current vision Do things right Maintain the status quo Administer policies and procedures Focused on the bottom line Incremental improvements

IRR Evaluation

IRR Works if You want to compare the return of 2 projects One initial cash outflow, then multiple inflows Stable environment (e.g. same interest and inflation expectations during a 5 year period IRR does not work if There are multiple investments cycles E.g. new car, get sales, re-invest in an model upgrade, sell more Will lead to multiple IRR values

Creating Project Champions

If institutionalized in the organization: Identify and encourage their emergence Encourage and reward risk takers Remember the emotional connection Free champions from traditional management

Individual Impact

Increase productivity? Better decision making?

Five Dimensions of Culture

Individualism Masculinity/femininity Short-term/long-term orientation Power distance Uncertainty avoidance

Pure Project Structure Advantages

It provides complete line authority over the project (i.e., strong control through a single project authority). The project participants work directly for the project manager. Unprofitable product lines are easily identified and can be eliminated. There are strong communications channels. Staffs can maintain expertise on a given project without sharing key personnel. Very rapid reaction time is provided.

Providing belonging

Letting people know why they are where they are Making individuals feel that they belong where they are Placing individuals in positions for which they are properly trained Letting employees know how their efforts fit into the big picture

Line and Staff Employees

Line Managers - legitimate power over their employees Staff Managers - other powers over these employees

Capability

Long-term versus short-term projects Different technologies/capabilities Large range of project types

Matrix Structure Disadvantages

Multidimensional information flow. Multidimensional work flow. Dual reporting. Continuously changing priorities. Potential for continuous conflict and conflict resolution. Difficulty in monitoring and control.

Options Models

NPV and IRR methods don't account for failure to make a positive return on investment. Options models allow for this possibility. Options models address: Can the project be postponed? Will future information help decide?

System quality

No bugs or crashes in the system

Information quality

No need for additional spreadsheets

Classical Structure Disadvantages

No one individual is directly responsible for the total project (i.e., no formal authority; committee solutions). It does not provide the project-oriented emphasis necessary to accomplish the project tasks. Coordination becomes complex, and additional lead time is required for approval of decisions. The General Manager (GM) is the only person with the "Big Picture" for the entire project but The General Manager does not have a detailed view, or time to go into the details

Partnership between the project manager and project team members

Partnership between the project manager and project team members

Process

Ongoing, day-to-day activities Use existing systems, properties, and capabilities

Essential project manager abilities

Organizing under conflict -Delegate and handle criticism Experience Decision Making -Analytical ability and decision making skills in a team setting Productive Creativity -Develop and implement innovative ideas in a team setting Organizing with Cooperation -Team members as well as stakeholders and champions Cooperative Leadership -Motivate others, express ideas clearly Integrative Thinking -Think analytically and involve others

How project management differs from process

Outside of line organization Violates established practice Upsets status quo

Sample meeting agenda

Owner / Sponsor states the problem and background Team asks clarification of the problem Team brainstorming for alternatives Set up / review criteria Pick the best alternative Set up next steps Assign people to execute Assign a timeline

Common Team Roles

Owner of the problem (e.g. Sponsor) Team Facilitator / Manager Team members / executors / Sme's (people that do the work)

Portfolio management

Strategic integration of a firm's complete portfolio of projects

Expert Power

Supervisor's special knowledge and expertise Subordinates will come to their supervisor to help solve technical problems Some people are better than others at appearing to be experts Education Titles Experience

Project Trade-Offs

Take a quarter and place it where you want a bit of everything Reasonably expensive Reasonably long time Reasonably high quality

Project

Take place outside the process world Unique and separate from normal organization work A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality.

A right to say no

Team members are also SME' (Subject Matter Experts) SME's know about the details

Key factors that affect culture development

Technology Environment Geographical location Reward systems Rules and procedures Key organizational members Critical incidents

Analytic Hierarchy Process

The AHP is a four step process: Construct a hierarchy of criteria and subcriteria Allocate weights to criteria Assign numerical values to evaluation dimensions Scores determined by summing the products of numeric evaluations and weights Unlike the simple scoring model, these scores are comparable.

Managing team behavior: Attacker aka Negative Nancy

The Attacker deftly mixes negativity with personal attacks, challenging others' ideas with vigor. Without regard to hurting others' feelings, the Attacker uses a confrontational style to object to others' ideas and go against the flow. A good facilitator can refocus the Attacker to be positive, to remove the sting from their words and avoid an adversarial approach

Channel Tunnel aka Chunnel

The Channel Tunnel is a 50.5-kilometre rail tunnel linking Folkestone, Kent, in the United Kingdom, with Coquelles, Pas-de-Calais, near Calais in northern France, beneath the English Channel at the Strait of Dover. Construction started: 1873, 1988 Finished: Yes, in 1994 On Budget: No The project cost £4.65 billion (equivalent to £12 billion today), 80 per cent more than expected. Construction took six years (1988-1994)

Examples of projects

The Manhattan Project - Splitting the atom Chunnel between England and France Introduction of Windows 10 Implement an ERP information system "Projects, rather than repetitive tasks, are now the basis for most value-added in business"

Timeline and Cost for an ERP Project

Timeline: 1 year to 10 years Cost: $5,000 - 10,000 per user Example: Multinational Pharmaceuticals company $ 50 million implementation over 3 continents (Asia, Europe and Africa)

Referent Power

The extent to which the subordinate likes and identifies with the supervisor This power can be developed through personal relationships

Coercive power

The extent to which the supervisor can hand out punishments

Reward power

The extent to which the supervisor can hand out rewards Salary increase Bonus Desirable job assignment Promotions

The Cultural Network

The informal network within an organization is often where the most important information is learned.

Principle of Unity of Command

The legitimate power resides with the functional boss Exception: matrix organization Employees have multiple bosses (incl. you)

Structural support

The organization has created a structure that supports the practice of project management

Project Scheduling

The organization has tools and techniques for creating project schedules (e.g. Microsoft Project)

Matrix Structure Advantages

The project manager maintains maximum project control (through the line managers) over all resources, including cost and personnel. Policies and procedures can be set up independently for each project, provided that they do not contradict company policies and procedures.

Organizational Culture

The unwritten rules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company.

Internal

Top management Accountant Other functional managers Project team members

Champion Roles

Traditional Duties Nontraditional Duties

Which Structure Is Best For Project Management?

Zantinga observation: Project Size is also a factor Zantinga observation: Functional: ok less than $50-100k Project Organization: ok more than $15-20 million+

Project managers:

acquire project resources motivate and build teams have a vision and fight fires communicate

Self Regulation

act, but not act impulsively

Expeditor

acts primarily as a staff assistant and communications coordinator cannot personally make or enforce decisions

Champions can be:

creative originators driving force behind an idea; resident expert entrepreneurs person who actively works to sell the idea throughout the organization godfathers or sponsors senior level executive who facilitates and promotes the project (including obtaining resources) project managers can assume role of champion with sufficient authority (in the organization) to effectively advocate the project

Nontraditional Duties

cheerleader visionary politician risk taker ambassador

New product introduction

collect and organize data from across the company brainstorm and develop the new product Prepare each department for the introduction and support of the new product

ERP Implementation

collect and organize data from across the company provide management with insight into key performance indicators (KPIs) in real time

Overruns:

cost overrun is 45%; schedule overrun is 63%; 67% of originally contracted features