Lessons in Project Management - 1- Foundation Principles

International Project Management

Prof. Dr. Frank Habermann

Lecture 1 –
Foundation Principles of Project Management

Content

 What is a project?
 A brief excursion to system theory
 Types of business projects
 When do we call a project a success?
 Standard project management lifecycle

© Becota GmbH | www.becota.com | 2010

first of all,

what is a

project ?
© Becota | www.becota.org | 2010

What is a project?

Picture Source: www.infrastructurist.com © Becota | www.becota.org | 2010

What is a project?

A construction…


What is a project?

A construction…

definite …


What is a project?

A construction…
which needs
definite …
special resources …
…


What is a project?

A construction…
which needs
definite …
…

aiming
at future
improvements …


What is a project?

A construction…
which needs
definite …
…

aiming
at future
improvements …
but meanwhile
causing
trouble!

In other words …

THE
BUSINESS
regular processes
providing regular values


In other words …

A
PROJECT
temporary process
with unique results
THE
BUSINESS
regular processes


In other words …

Negative side-effects:
- cost- and time-consuming
- occupies business resources (intellectual capacities)
- irritating and disturbing (distroys routines/comfort zones)
- unsure results (what, when, for whom, etc.)

A
PROJECT
temporary process
with unique results
THE
BUSINESS
regular processes


What characterizes a project?

PROJECT RESULT

1. Temporary 2. Unique
(a project got a (a project provides individual
clear start and end date) and substantial results)


a brief

excursion
to

system theory


Some brief thoughts about system theory
i- What is a system?

A set of elements which interact with each other
and build an „integrated whole“

system
boundary

A system is thus characterized by

- its elements (e.g. )
- as well as their relationships

ii- What are the characteristics of a system?

Each system
has a certain structure shows specific behavior!



Each system

SYSTEM Sub
System A

Sub Sub
System B System C

Sub-sub Sub-sub
System C1 System C2
...
Static relationships
(composition/decomposition)



Each system

SYSTEM Sub
System A

Sub Sub INPUT OUTPUT
system
System B System C (element)

acting as acting as
Sub-sub Sub-sub
„receiver“ „sender“
System C1 System C2
(customer) (provider)
...
Static relationships Dynamic relationships
(composition/decomposition) (communication/collaboration)


iii- How about business projects?
A specific business
(e.g. an automotive company)
is a system

involving elements such as
Products (Cars!)
Human Resources
Information Technology, etc.

A specific business A specific project
(e.g. an automotive company) related to the business
is a system is a system as well

involving elements such as involving elements such as
Products (Cars!) Products (Project Results!)
Human Resources Human Resources
Information Technology, etc. Information Technology, etc.


business project

The projects uses
From the business corporate resources and
perspective, the project is part of the business agenda
is a sub-system
of the business



business project

The business
sets constraints for and From the project
gets results from the project perspective, the
business is the
target system



business project

IT

Improve [IT] with regards to a concrete project
- effectiveness (business fit) aims at a specific
- efficiency (cost of ownership) element (sub-system) of
- availability the target system, e.g. IT
- other corporate values

so, what are the

types

?
projects
of business


Major types of projects (1/3)

1.- Projects providing results for the business

THE BUSINESS

i.e. projects aiming at improvements of the business
technical projects
organizational projects
product development projects, etc.


2.- Projects providing results as part of the business

THE BUSINESS

i.e. projects aiming at providing customer satisfaction
projects are the core business
corporate products are created within projects
or project services are the product itself


3.- Depending on the type of the main result

PROJECT RESULT Deliverable

COULD BE

SERVICE PRODUCT

e.g. consulting e.g. building
projects are a unique yacht is a
service projects product project

=> If the customer buys a combination of qualified
services and products we call this a hybrid project

Types of business projects

Organizing Internal
Major an event cost cutting
purchase Feasibility initiatives
study (pre-
Research
project)
Re-designing Outsourcing
processes Setting up a
regional Marketing Merging
subsidary campaigns firms
Building a new Re-building
plant structures Implementing
Piloting software / hardware
international
Finding a partnerships Constructing a
new CEO new product
Implementing new and many more…
management methods

What makes a project

?
a
successful

project

When do we call a project a success?

1. 2. 3.


it disappears
on due date!



we only use
it disappears
the resources
on due date!
previously agreed



we only use
it disappears
the resources
on due date!
previously agreed

we deliver the
expected results
(type and
quantity)


on time on budget on quality


Project scoping

scoping
is the procedure of setting the parameters for each criteria



Project controlling

scoping
is the procedure of setting the parameters for each criteria


controlling
is the procedure of managing performance against predefined parameters


Project scoping and controlling need understanding
the cost-time-quality equilibrium

changing only one criteria
strongly impacts the others!


In corporate practice … what do you think,
how many projects fail at least one of the three criteria?

Picture source: http://learn-wealth-creation.com/blog/ © Becota GmbH | www.becota.com | 2010

In corporate practice … what do you think,
how many projects fail at least one of the three criteria?

30-70%
*depending on the type of project
*

Picture source: http://learn-wealth-creation.com/blog/ © Becota GmbH | www.becota.com | 2010

And even in case of (officially) successful projects,
one criteria actually very often isn‘t met!

The official version
(told by the project manager)


And even in case of (officially) successful projects,
one criteria actually very often isn‘t met!

The official version
(told by the project manager)

The business reality
(told by the customers/users)


?
What about the

project

lifecycle


Standard project management life cycle

Project

Every project has three major phases!

Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23 © Becota | www.becota.org | 2010


INITIATE RUN COMPLETE




… which can be drilled down!




Define Plan Execute Close out





Envision

Approve

Plan

Set-up

Kick-off





Envision

Approve Conceptualize

Plan Produce

Set-up Test

Kick-off Train





Envision

Approve Conceptualize

Plan Produce

Set-up Test Document

Kick-off Train Hand-over

Control & Communicate

project effort during the lifecycle

PROJECT EFFORT

TIME


PROJECT EFFORT

Define

TIME


PROJECT EFFORT

Plan

Define

TIME



Execute
PROJECT EFFORT

Plan

Define

TIME



Execute
PROJECT EFFORT

Plan

Close out
Define

TIME

needed resources versus actual investment

PROJECT EFFORT

TIME


PROJECT EFFORT

Should-be
(in theory)

TIME



Releasing
resources, handing
Staffing,
PROJECT EFFORT

over to business
understanding,
gaining speed
Highest
concentration,
Should-be
getting things done
(in theory)

TIME



As-usually-is
(in practice)
PROJECT EFFORT

TIME



As-usually-is
(in practice)
Underestimating
PROJECT EFFORT

amount of work or
being frustrated by
lack of understanding

Facing the deadline,
finally realizing that
Initial excitment, things must be
quickly followed by done
losing interest

TIME



As-usually-is
(in practice)
PROJECT EFFORT

! Should-be
(in theory)

TIME

Typical project douments


Project
Contract
Project
Charter Rough
Require-
Project
ments
Plan
Definition




Project
Contract
Detailed
Project Require-
Charter Rough ments
Require- Definition Test
Project Conceptual Plan
ments
Plan Solution
Definition
(Models)
Solution
Documentation
Training
Plan




Project
Contract
Detailed
Project Require-
Charter Rough ments
Project Plan Hand-over
ments Conceptual Approvals Documention
Plan Solution (technical & (e.g. Support
Definition
(Models) organizational) Info)
Solution Closure
Documentation Report
Training
Plan




Project
Contract
Detailed
Project Require-
Charter Rough ments
Project Plan Hand-over
ments Conceptual Approvals Documention
Plan Solution (technical & (e.g. Support
Definition
(Models) organizational) Info)
Solution Closure
Documentation Report
Training
Plan

Progress Progress
Report Report


Thank you very much!

presentation by

Frank Habermann
founder of Becota and Professor of Business

http://de.linkedin.com/in/frankhabermann/en

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Lessons in Project Management - 1- Foundation Principles

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