1. Manage Project Knowledge
• The process of using existing knowledge &
creating new knowledge to achieve the project’s
objectives and contribute to organizational
2. Manage Project Knowledge
1. Business Documents
• Business Case
4. Organization Process
1. Project Charter
1.Project manage. Plan
• All components
2. Project documents
• Lessons learned register
• Project team assignments
• Resource breakdown
• Source selection criteria
• Stakeholder register
4. Interpersonal &
• Active listening
• Political awareness
1. Lessons learned register
2. Project management Plan
3. OPA updates
3. Manage Project Knowledge
⮚ Networking, including informal social interaction and
online social networking.
⮚ Communities of practice (sometimes called communities
of interest or just communities) and special interest
⮚ Meetings, including virtual meetings where participants
can interact using communications technology;
⮚ Work shadowing and reverse shadowing
⮚ Discussion forums such as focus groups
⮚ Knowledge-sharing events such as seminars and
⮚ Workshops, including problem-solving sessions and
learning reviews designed to identify lessons learned;
⮚ Creativity and ideas management techniques
⮚ Training that involves interaction between learners.
4. Conduct Procurement
❑ Procurement can be defined as the acquisition of goods or services.
❑ Procurement (and contracting) is a process that involves two parties with
different objectives who interact on a given market segment.
❑ Good procurement practices can increase corporate profitability by taking
advantage of quantity discounts, minimizing cash flow problems, and
seeking out quality suppliers.
❑ Because procurement contributes to profitability, procurement is often
centralized, which results in standardized practices and lower paperwork
❑ All procurement strategies are frameworks by which an organization attains
5. Conduct Procurement
❑ There are two basic procurement strategies:
❑ Corporate Procurement Strategy: The relationship of specific procurement
actions to the corporate strategy. An example of this would be centralized
❑ Project Procurement Strategy: The relationship of specific procurement actions
to the operating environment of the project. An example of this would be when
the project manager is allowed to perform sole source procurement without
necessarily involving the centralized procurement group, such as purchasing
one ounce of a special chemical for an R&D project.
❑ Project procurement strategies can differ from corporate procurement strategies
because of constraints, availability of critical resources, and specific customer
❑ Corporate strategies might promote purchasing small quantities from several
qualified vendors, whereas project strategies may dictate sole source procurement.
6. Conduct Procurement
Procurement planning usually involves the selection of one of the following as
the primary objective:
❖ Procure all goods/services from a single source.
❖ Procure all goods/services from multiple sources.
❖ Procure only a small portion of the goods/services.
❖ Procure none of the goods/services.
Another critical factor is the environment in which procurement must
There are two environments: macro and micro. The macro environment
includes the general external variables that can influence how and when we do
procurement. The PMBOK® Guide refers to this as “Enterprise Environmental
Factors.” These include recessions, inflation, cost of borrowing money,
whether a buyer or seller’s market exists, and unemployment.
7. Conduct Procurement
As an example, a foreign corporation had undertaken a large project that involved
the hiring of several contractors. Because of the country’s high unemployment
rate, the decision was made to use only domestic suppliers/contractors and to
give first preference to contractors in cities where unemployment was the
greatest, even though there were other more qualified suppliers/contractors.
The microenvironment is the internal procurement processes of the firm,
especially the policies and procedures imposed by the firm, project, or client in the
way that procurement will take place. This includes the procurement/contracting
system, which contains three processes according to the PMBOK® Guide, six
• Plan Procurements
• Conduct Procurements
• Control Procurements
8. Plan Procurement
1. Define the need for the project
2. Develop of the procurement statement of work, specifications, and work
3. Prepare a WBS dictionary, if necessary
4. Perform a make or buy analysis
5. Lay out the major milestones and the timing/schedule
6. Determine if long lead procurement is necessary
7. Estimate Cost, including life-cycle costing
8. Determine whether qualified sellers exist
9. Identify the source selection criteria
10. Prepare a listing of possible project/procurement risks (i.e., a risk register)
11. Develop a procurement plan
12. Obtain authorization and approval to proceed
9. Procurement Management Plan
The procurement plan will address the following questions:
● How much procurement will be necessary?
● Will they be standard or specialized procurement activities?
● Will we make some of the products or purchase all of them?
● Will there be qualified suppliers?
● Will we need to prequalify some of the suppliers?
● Will we use open bidding or bidding from a preferred supplier list?
● How will we manage multiple suppliers?
● Are there items that require long lead procurement?
● What type of contract will be used, considering the contractual risks?
● Will we need different contract types for multiple suppliers?
● What evaluation criteria will be used to score the proposals?
11. Conduct Procurement
The solicitation package usually provides bidders with information on how the bids
will be evaluated. Contracts are not necessarily awarded to the lowest bidders. Some
proposal evaluation scoring models assign points in regard to each of the following,
and the company with the greatest number of points may be awarded the contract:
● Understanding of the requirements
● Overall bid price
● Technical superiority
● Management capability
● Previous performance (or references)
● Financial strength (ability to stay in business)
● Intellectual property rights
● Production capacity (based upon existing contracts and potential new
12. Conduct Procurement
▪ Bidder conferences are also held as part of debriefing sessions whereby
▪ are informed as to why they did not win the contract.
▪ Under some circumstances, bidders who feel that their bid or proposal
was not evaluated correctly can submit a “bid protest,” which may require
a detailed reappraisal of their bid.
▪ The bid protest is not necessarily a complaint that the wrong company
won the contract, but rather a complaint that their proposal was not
13. Conduct Procurement
❖ Selecting the appropriate seller is not necessarily left exclusively to the
❖ A negotiation process can be part of the selection process because the buyer
may like several of the ideas among the many bidders and then may try to have
the preferred seller take on added work at no additional cost to the buyer.
❖ The negotiation process also includes inclusion and exclusions.
❖ The negotiation process can be competitive or noncompetitive.
❖ Noncompetitive processes are called sole-source procurement.
❖ On large contracts, the negotiation process goes well beyond negotiation of the
bottom line. Separate negotiations can be made on price, quantity, quality, and
timing. Vendor relations are critical during contract negotiations.
❖ The integrity of the relationship and previous history can shorten the
14. Conduct Procurement
The three major factors of negotiations are:
❑ Compromise ability
❑ Good faith
Negotiations should be planned for. A typical list of activities would include:
⮚ Develop objectives (i.e., min-max positions)
⮚ Evaluate your opponent
⮚ Define your strategy and tactics
⮚ Gather the facts
⮚ Perform a complete price/cost analysis
15. Conduct Procurement
• If you are the buyer, what is the maximum you will be willing to pay?
• If you are the seller, what is the minimum you are willing to accept?
• You must determine what motivates your opponent.
• Is your opponent interested in profitability, keeping people employed,
developing a new technology, or using your name as a reference?
• This knowledge could certainly affect your strategy and tactics.
• Hygiene factors include where the negotiations will take place. In a
restaurant? Hotel? Office? Square table or round table? Morning or
afternoon? Who faces the windows and who faces the walls?
16. Conduct Procurement
There are certain basic elements of most contracts:
• Mutual Agreement: There must be an offer and acceptance.
• Consideration: There must be a down payment.
• Contract Capability: The contract is binding only if the contractor has
the capability to perform the work.
• Legal Purpose: The contract must be for a legal purpose.
• Form Provided by Law: The contract must reflect the contractor’s legal
obligation, or lack of obligation, to deliver end products.
17. Conduct Procurement – Decision Making
How Can the PM reach a decision about which Specific Supplier to
1. Prepare the independent estimates
2. Finalize the source selection criteria
3. Document all alternatives & decisions made
4. Answer all questions (bidder conferences.. etc.)
5. Collect Proposals & check the lessons-learned
6. Screen the proposals to short-list them. Use your independent estimates,
7. Apply the criteria to do extensive scoring of proposals. Involve Stakeholders
8. Get the top 3 proposals & prepare for contract negotiation
9. Negotiate with the 3 suppliers & do not decline any of them unless the right
one is chosen
10.Tell the other 2 that they are stand-by alternatives should anything go wrong
with the chosen supplier
19. Understanding Conflict
• Conflict is "a situation of competition between parties .
• “Conflict is viewed as a cycle: "As with any social process, there are causes;
also, there is a core process, which has results or effects. These effects feed
back to effect the causes."
• To understand conflict further, the situation must include elements of
interdependence, emotions, perceptions, and behaviors. For example,
conflict occurs between parties whose tasks are interdependent, who are
angry with each other, who perceive the other party as being at fault, and
whose actions cause a business problem.
20. Constructive Conflict
• Conflict can be constructive and healthy for an organization. It can aid in
developing individuals and improving the organization by building on the
individual assets of its members.
• Conflict can bring about underlying issues. It can force people to confront
possible defects in a solution and choose a better one.
• The understanding of real interests, goals and needs is enhanced and
ongoing communication around those issues is induced. In addition, it can
prevent premature and inappropriate resolution of conflict.
• Constructive conflict occurs when people change and grow personally from
the conflict, involvement of the individuals affected by the conflict is
increased, cohesiveness is formed among team members, and a solution
to the problem is found.
21. Destructive Conflict
• However, if conflict is not managed properly, it can be detrimental to an
organization by threatening organizational unity, business partnerships,
team relationships, and interpersonal connections.
• Destructive conflict occurs when a decision has not been found and the
problem remains, energy is taken away from more important activities or
issues, morale of teams or individuals is destroyed, and groups of people
or teams are polarized.
• Destructive conflict has a predictable pattern known as the Drama
• By learning how to identify these unproductive roles and how to effectively
handle each role player, managers can prevent some conflicts from
occurring and resolve those that do.
23. Understanding Conflict
• It is important for a project manager to understand the dynamics of conflict
before being able to resolve it.
• Perception of the goal becomes a problem when success becomes
competitive or "doing better than the other guy“.
• View of other's actions can be a problem when the situation is competitive
instead of cooperative. Behavior can be suspicious.
• Communication in a competitive environment can cause mistrust and
information may be withheld or may be lacking. Communication is not
open and honest.
• Internal group dynamics can be negative when the group structure is
centralized and rigid rather then safe and open.
• In some instances, the project manager's lack of skills to effectively manage
and resolve conflict can be the problem.
24. The most common types of conflict are change, value, and
• Change conflicts stem from a fear of change and uncertainty. Change represents
a loss of control and a disruption to the team. To embrace change, the team
must be convinced of the benefits of change and move forward together. Not
everyone will be convinced, and this leads to conflict. In addition, we need to
recognize that people adapt to change at different rates.
• Value conflicts occur when people’s personal values are challenged. The type of
values tested may include honesty, integrity, ethics, or cultural differences.
People do not compromise their values readily. Value conflicts are the things
that people believe in and are the most difficult to reconcile when challenged.
• Behavioral conflicts are personality conflicts, which reduce teamwork and
performance. People have unique styles in how they communicate, express their
feelings, process information, and interact with others. These differences in
behaviors may be received differently by others. Aggressive behaviors may not
be welcomed by passive personalities and vice versa. These personality conflicts
may promote avoidance behaviors and discontent rather than teamwork.
Most Common Types of Conflicts
25. Causes of Conflicts
• Technical Opinions
• Admin Procedures
• Inform the team of
• Where we’re heading
• Goals and objectives
• Key decisions
• Clearly assign tasks with no overlaps or
• Make work assignments interesting and
26. • In Project Management: A Systems Approach to Planning, Scheduling, and
Controlling, five modes for conflict resolution are explained and the
situations when they are best utilized are identified.
• These modes are Confronting, Compromising, Smoothing, Forcing, and
Approaches to Conflict Resolution
27. • Confronting is also described as problem solving, integrating, collaborating
or win-win style. It involves the conflicting parties meeting face-to-face and
collaborating to reach an agreement that satisfies the concerns of both
parties. This style involves open and direct communication which should
lead the way to solving the problem.
• Confronting should be used when:
o Both parties need to win.
o You want to decrease cost.
o You want create a common power base.
o Skills are complementary.
o Time is sufficient.
o Trust is present.
o Learning is the ultimate goal.
Approaches to Conflict Resolution - Confronting
28. • Compromising is also described as a "give and take" style. Conflicting
parties bargain to reach a mutually acceptable solution. Both parties give
up something in order to reach a decision and leave with some degree of
• Compromising should be used when:
o Both parties need to win.
o You are in a deadlock.
o Time is not sufficient.
o You want to maintain the relationship among the involved parties.
o You will get nothing if you do not compromise.
o Stakes are moderate.
Approaches to Conflict Resolution - Compromising
29. • Smoothing is also referred to as accommodating or obliging style. In this
approach, the areas of agreement are emphasized, and the areas of
disagreement are downplayed. Conflicts are not always resolved in the
smoothing mode. A party may sacrifice its own concerns or goals in order
to satisfy the concerns or goals of the other party.
• Smoothing should be used when:
o Goal to be reached is overarching.
o You want to create obligation for a trade-off at a later time.
o Stakes are low.
o Liability is limited.
o Any solution is adequate.
o You want to be harmonious and create good will.
o You would lose anyway.
o You want to gain time.
Approaches to Conflict Resolution - Smoothing
30. • Forcing is also known as competing, controlling, or dominating style.
Forcing occurs when one party goes all out to win it's position while
ignoring the needs and concerns of the other party. As the intesity of a
conflict increases, the tendency for a forced conflict is more likely. This
results in a win-lose situation where one party wins at the expense of the
• Forcing should be used when:
o A "do or die" situation is present.
o Stakes are high.
o Important principles are at stake.
o Relationship among parties is not important.
o A quick decision must be made.
Approaches to Conflict Resolution - Forcing
31. • Avoiding is also described as withdrawal style. This approach is viewed as
postponing an issue for later or withdrawing from the situation altogether.
It is regarded as a temporary solution because the problem and conflict
continue to reoccur over and over again.
• Avoiding should be used when:
o You can not win.
o Stakes are low.
o Stakes are high, but you are not prepared.
o You want to gain time.
o You want to maintain neutrality or reputation.
o You think problem will go away.
o You win by delaying.
Approaches to Conflict Resolution - Avoiding
32. 1. Address the substance of the conflict.
2. Address the procedures for dealing with the conflict ( policies, intervention
3. Separate the relationship that people have with the conflict, from the
substance of the conflict.
4. Discuss everyone’s perception of the conflict.
5. Be sensitive to the emotions which may be stirred as a result of the
6. Address the options and acknowledge them as legitimate.
7. Listen actively – listen to what is being said before developing a response.
8. Focus on interests, not positions.
9. Look for compatible interests and points of agreement.
10.Be hard on the conflict, soft on the people.
11.Brainstorm your options to solve the conflict.
12.Look for mutual gain.
13.Reason and be open to reason.
14.Use equity and fairness in your standards and procedures.
15.Check to see if all parties are comfortable with the outcomes.
Conflict Resolution - Summary
34. Leadership Vs. Management
• Managing is producing results expected by stakeholders or management
team in general.
• Leadership is about:
– Developing a vision & strategy
– Establishing direction
– Aligning people
– Motivating and inspiring
• Management is efficiency in climbing the ladder of success; leadership
determines whether the ladder is leaning against the right wall. ~ Stephen
• Successful project management required strong leadership skills.
• It is especially important to communicate the vision and inspire the project
team to achieve high performance.
36. Leadership Vs. Management
What is leadership? It’s the action of leading a group towards a common
goal. People who lead have three common attributes:
• They inspire others to share their vision.
• They motivate others to act on that vision.
• They encourage others and help them overcome obstacles in pursuit of
President Dwight D. Eisenhower said, “Leadership is the art of getting
someone else to do something you want done because he wants to do it.”
37. Leadership Vs. Management
10 Leadership Skills
Here is a list of the skills that make up great leadership. We know that
there are more, but these are some of the core values of a strong leader:
1. Communication: The ability to disseminate information and listen
2. Motivation: Getting people to want to do what you need them to do.
3. Delegation: Knowing that you can’t do everything and trusting others
to help you carry the load by completing assigned tasks
4. Positivity: Keeping a positive attitude, regardless of the situation, helps
5. Trustworthiness: People aren’t going to listen to you or do what you
ask if you don’t first instill a sense of trust.
38. Leadership Vs. Management
6. Creativity: There will always be problems that can’t be solved by rote;
you must think creatively and be open to taking chances.
Employ divergent thinking to find unique solutions.
7. Feedback: Leadership doesn’t take place in a vacuum. Listen to your
team, stakeholders, advisors, mentors, etc., and take their opinions
8. Responsibility: You can’t expect people to follow you if you’re not
taking responsibility for the bigger picture and your behavior.
9. Commitment: You also cannot expect to lead others if you are not
committed to the project.
10. Flexibility: Things change, and rigidity can ruin a project, so you must
be willing to adapt and not hold too tightly to anything.
39. Leadership Vs. Management
• What is management? It’s the process of dealing with or controlling things
or people. But the emphasis does tend to be on things rather than people.
• Managers are people who plan, organize and coordinate. They are
methodical and are always reassessing their process to make sure they’re
progressing as planned. If not, they tweak to get back to their baseline
• Management consultant, educator and author Peter F. Drucker, who said,
“What’s measured gets improved.”
• So, you can see that managers approach things more systematically,
seeking metrics and tools to measure their progress and adapt their
40. Leadership Vs. Management
Top 10 Management Skills
To further highlight the differences and the complementary nature of
leadership and management, we list 10 of what are considered the most
important skills for any manager to have.
1. Interpersonal Skills: While managers aren’t exclusively dealing with people,
they still must interface with them, and the better they do so, the smoother the
2. Communications: Being able to manage is being able to communicate what you
need to who needs to do it.
3. Motivation: The same is true for motivating people to follow your management
4. Organization: You must be organized. Management is made up of many parts,
and they cannot be handled on the fly.
5. Delegation: No one can manage everything themselves, and if they try, they’re
going to fail. So, share responsibilities and tasks with others.
41. Leadership Vs. Management
6. Forward Planning: A manager is a planner who looks towards the
future and how to set themselves up for it today.
7. Strategic Thinking: Part of that planning is thinking strategically
about the project, the organization and how to align them moving
8. Problem Solving: Managers face issues daily, and they must think
creatively to solve them.
9. Commercial Awareness: Managers are not working in a vacuum and
need to have a keen sense of the business and commercial
environment in which they operate.
10.Mentoring: In order to get things done, sometimes a manager must
become a mentor, offering guidance or training where it’s needed.
43. Ethical Principles
1. Beneficence: To do what is right and good
2. Least Harm: If no benefit can be realized think of the Least
3. Respect for Autonomy: People should control their own lives
4. Justice: We have to do what is fair for everyone
44. Ethics Defined
• The word ethics has its roots in the Greek word ethos, which translates to cus-
toms, conduct, or character.
• Ethics is concerned with the kinds of values and morals an individual or a
society finds desirable or appropriate.
• Furthermore, ethics is concerned with the virtuousness of individuals and their
• Ethical theory provides a system of rules or principles that guide us in making
decisions about what is right or wrong and good or bad in a particular situation.
It provides a basis for understanding what it means to be a morally decent
• In regard to leadership, ethics has to do with what leaders do and who leaders
are. It is concerned with the nature of leaders' behavior, and with their
• In any decision-making situation, ethical issues are either implicitly or explicitly
involved. The choices leaders make and how they respond in a given
circumstance are informed and directed by their ethics.
45. • What are the virtues of an ethical person? A moral person demonstrates the
virtues of courage, temperance, generosity, self-control, honesty, sociability,
modesty, fairness, and justice.
• Applying ethics to leadership and management, managers should develop
virtues such as perseverance, integrity, truthfulness, and humility.
Ethical Theories - Character