Value of Project Management
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This document outlines a project management workshop that defines key concepts in project management. It discusses how projects differ from operations, the value of projects and project management for organizations. It also describes the project management process, including common phases of initiate, plan, execute, monitor/control and close. Finally, it discusses tools that can be used in project management practice and increasing demand for project management roles.
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Value of Project Management
- 1. THEVALUE OF PROJECT MANAGEMENT Project Management Workshop Brandon Olson, PhD
- 2. Purpose •Defineprojects and project management •Describethe project management phases and activities •Determinethe organizational value of effective project management practices •Developa plan to create a formalized project management practice
- 3. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 4. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 5. Definitions of Project Management • "...a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs (Gray & Larson, 2008) • "...a temporary endeavor undertaken to create a unique product, service, or result.“ (PMI, 2008) One-Time
- 6. Project Characteristics Kerzner, 2009 Specific Objective with Defined Specifications Defined Start and End Dates Funding Limitations Consume Human and Nonhuman Resources Multiple Disciplines
- 7. Operations vs. Projects Operations Projects Taking notes in class Writing a research paper Recording sales into ledger Setting up sales kiosk for convention Practicing a musical instrument Writing a new piece of music Manufacturing the iPhone Designing the new OS Attaching sales tags to merchandise Implementing a new RFID system Adapted from Gray & Larson, 2008
- 8. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 10. Project Sources Increase Revenue (expand services) Reduce Expenses Directive New product/services Market Expansion Increased Scalability Process Improvement Decision Making Government Compliance Self-Imposed Competitive Standards
- 11. Increased Demand for Projects •Compression of the Product Life Cycle •Global Competition •Knowledge Explosion •Corporate Downsizing •Increased Customer Focus
- 12. Why Projects? Kerzner, 2009 Top Mgt Policy Middle Mgt Planning Supervisor Scheduling LaborersOperations Management Gaps Functional Gaps
- 14. Why Projects?
- 15. Increase in Projects • Between 2010 and 2020 there will be 15.5 million new project management jobs globally with 2,348,830 of these located in the US (PMI, 2013a) 74,900 347,820 120,070 8,153,340 153,230 3,975,650 387,560 12,670 18,000 177,120 2,348,830 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 New Openings
- 16. Value of Project Management • 2012 PriceWaterhouseCoopers Survey (PMI, 2013b) • 97% consider project management critical to business performance • 94% believe project management enables growth • 54% feel their organization fully understands the value of project management • 6% have a project management-related role at the C-level
- 17. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 18. ProjectTeam and Stakeholders Project Champion Project Owner/Sponsor (client) Project Manager ProjectTeam (Multidisciplinary Specialists) Customers (Recipients of Outcomes)
- 19. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 21. Project Success • Delivered 100% functionality • On time • Within Budget
- 22. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 23. Project Maturity – Chaos Report 0% 10% 20% 30% 40% 50% 60% Successful Challenged Failed 1994 1996 1998 2004 2009 2011 Gale (2011)
- 24. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 25. Project Management Process Initiate Plan Execute Monitor & Control Close Time PMI (2008)
- 26. Project Management Process Initiate Plan Execute Monitor & Control Close Time PMI (2008)
- 27. Agenda • Definitions • Purpose of Projects • ProjectTeams • Purpose of Project Management • Project Management Maturity • Project Management Process • Tools for Project Management Practice
- 28. Tools Initiate Plan Execute Monitor & Control Close Time Project Charter Work Schedule Issue Log Risk Register Project Survey Progress Report
- 29. References • Gale, S. (2011). Failure rates finally drop. PM Network, 25(8), 10-11. • Gray, C.F., & Larson, E.W. (2008). Project management:The managerial process (4th ed.). Boston, MA: McGraw Hill. • Kerzner, H. (2009). Project management: A systems approach to planning, scheduling, and controlling. NewYork, NY: Wiley. • Project Management Institute (2008). A guide to the project management body of knowledge (4th ed.). Newtown Square: PA:Author. • Project Management Institute (2013a). Project management talent gap report. Newtown Square, PA: Author. • Project Management Institute (2013b). Pulse of the profession:The high cost of low performance. Newtown Square, PA: Author.