1、IntroductionThis chapter introduces projectmanagement in detail,which is highlycorrelated to strategy.Project management is also very closelylinked to process change,IT and qualityissues.1 Nature of project managementA project is an undertaking that has a beginningand an end and is carried out to me
2、etestablished goals within cost,schedule andquality objectives.The objective of project management is asuccessful project.A project will be deemed successful if it iscompleted at the specified level of quality,ontime and within budget.Quality means that the result should conform tothe project specif
3、ication.Project should be accomplished with authorizedbudget.Timescale is another key element.CorrectiveactionCompareProcess involved in project managementcan be summarized below:Plan projectPerformtasksMeasureprogressProjects present management challengesTeambuildingExpected problemsUnexpected prob
4、lemsDelayed benefitSpecialistsPotential for problemsProjects and strategyLinking projects and strategy:Many projects are undertaken as consequences ofthe overall strategic planning process.Some important projects arise on a bottom-upbasis-must be given careful consideration toensure that their overa
5、ll effect is congruent withthe current strategy.Strategic thinking is also required at the level ofthe individual project.Project managing strategyAdaptation to environment changes makesproject management an important feature ofstrategic implementation.Also,strategic management thinking can bea usef
6、ul input into project management.Strategic project management envisagesstrategy as a stream of projects intended toachieve organizational breakthroughs.Project management as a corecompetenceProject management can be a core strategiccompetence for companies working in suchindustries as consulting and
7、 construction.Project management maturity model:Level 1 Common knowledgeLevel 2 Common processLevel 3 Singular methodologyLevel 4 BenchmarkingLevel 5 Continuous improvementStrategic project managementThe link between strategy and project is mostlyseen in the concept of the breakthrough project.Visio
8、n gives rise to ideas for strategicbreakthroughs.These lead to the establishment ofstrategic performances and these,in turn generatestrategic projects.2 Project lifecycleDefinition,objectives and scope,projectselectionDesign,detailed plans for activities,cost,quality and risk.Delivery,get the design
9、 doneDevelopment,experience crystallizedProject definitionWhat opportunities and threats does theproject present?What are its objectives?What are its potential benefits,cost,andrisks?What is its overall implementation difficulty?Who are the key stakeholders?Techniques used to define projectsFishbone
10、Determining performance driversPerformance driver analysis is used toidentify the factors that account for pastperformance.Performance driversPerformance brakesTop managementCommitmentSemi-skilled laborNo marketingexperienceCash surplusReputationIt is widely used in business strategy tofocus attenti
11、on on the anticipated gapbetween desired future strategicperformance and likely future performance ifthere is no intervention.From to analysisFrom-to analysis is appropriate forestablishing the scope of strategic projectsconcerned with organizational changes oroperational improvement.From-to analysi
12、s would supplement gapanalysis by looking at the gap from adifferent perspective.Stakeholders analysisStakeholder analysis will reveal the distinctinterests,which will discriminate the projectspackage.Initiating a projectProject selectionProject can be judged by the successcriteria established by JS
13、&W.Various techniques may supplement thejudgment.Project initiation tasks.Pre-initiating tasks:Determination of project scope,quality,time and cost goalsIdentification of the project sponsorSelection of the project managerInitiating tasks:Identification of project stakeholders andtheir characteristi
14、csPreparation of a business case for theprojectDrafting of a project charterDrafting an initial statement of projectscopeHolding a project initiation meetingBusiness case is a reasoned account of whythe project is initiated,what it will achieveand how it will proceed.Business case can maintain focus
15、 andprevent mission creep.Project charterThe project charter(or project initiationdocument)complements the business case:while the business case explains the needfor work on the project to start,the chartergives authorization for work to be done andresources used.Statement of project scopeUnder the
16、PRINCE2 methodology,thebusiness case performs the role of astatement of project scope.change to project scope should approved bythe interested stakeholdersRisk managementRisk management is concerned withidentifying potential problems and takingaction to eliminate or reduce the damagethat will result
17、 if risks materialize.Two aspects of risk management:Risk preventionMinimizing the effect of a risk event if it doesoccur.3 Strategic aspects of the projectplanProject should be carefully planed.Project management and strategicmanagement are likely to merge into oneanother.Failure of projects:Unprov
18、en technologyChanging client specificationsPoliticsForce field analysisThe emphasis of force field analysis is anassessment of the degree of difficulty thatimplementing a project is likely to encounter.It is very similar to determining performancedrivers.Management of constraints:Turn around constra
19、intsLatent enablers should be called into play.4 Practical aspects of projectplanningWork breakdown structureIts essence is the analysis of the workrequired to complete the project intomanageable components.Dependences and interactions mustdetermined.The project budgetTwo main methods of establishin
20、g theproject budget:Top-down budgeting describes the situationwhere the budget is imposed from above.Bottom-up describes the situation where theproject manager consults the project team,and others,to calculate a budget based onthe tasks that make up the project.Gantt chartsNetwork analysisResource h
21、istogram5 Project managementHigher managementProject sponsor takes responsibility for theresources invested into the project.Project owner,sometimes,is appointed byproject sponsor to review project plans.The project managerThe person who takes ultimate responsibilityfor ensuring the desired result i
22、s achievedon time and within budget is the projectmanager.The responsibilities of a project managerResponsibilities to managementResponsibilities to the project and theproject teamDuties of a project managerOutline planningDetailed planningObtain necessary resourcesTeambuildingCommunicationCoordinat
23、ing project activitiesMonitoring and controlProblem-resolutionQuality controlSkills required of a project managerLeadership and team buildingOrganisationalCommunication and negotiationTechnicalPersonal qualityProblem solvingChange control and managementLeadership styleThe key is adopting a style tha
24、t suits boththe leader and the team and that isapproaching to the current situation.The project teamA team is a small number of people withcomplementary skills who are committed toa common purpose,performance goals andapproach for which they hold themselvesmutually accountable.Multi-disciplinary tea
25、msAwareness of their overall objectivesAids coordinationHelps to generate solutions to problemsDevelopment of the teamStep 1 FormingStep 2 StormingStep 3 NormingStep 4 PerformingCharacteristics of the ideal functioning teamEach individual gets the support of the team and asense of identity and belon
26、ging that encouragesloyalty and hard work on the groups behalf.SynergyDecision making&problem solving,creativity&innovationControl and disciplineGoodwill,trust and respectProblems with teamsAwareness of group norms restrict individual effortToo much discordPersonality problemsRigid leadershipDiffere
27、nces of opinionToo much harmonyCorporate culture and reward systemsToo many meetingsPowerlessnessRisky shiftBelbins model:CoordinatorShaperPlantMonitor-evaluatorResource-investigatorImplementerTeam workerFinisherControlling projectsA progress report shows the current statusof the project,usually in
28、relation to theplanned status.In the progress of the project,slippage mayoccur.Dealing with slippage:Do notingAdd resourcesWork smarterReplanRescheduleIntroduce incentivesChange the specificationFast-tracking involves taking activities thatare normally done in sequence,and doingthem in parallel inst
29、ead.Crashing involves assigning additionalresources to critical path.Project change procedureThe earlier a change is made the less expensive itshould prove.When considering a change an investigationshould be conducted to discover:The consequence of not implementing theprocessed change.The impact of
30、the change on time,cost and quality.The expected costs and benefits of the change.The risks associated with the change,and with thestatus-quo.Risk managementStage 1 Plan the risk managementapproach.Stage 2 identify and record risksStage 3 Assess the risksStage 4 Plan and record risk responses.Stage
31、5 Implement risk managementstrategiesStage 6 Review the risk managementapproach and actions for adequacy.Risk is assessed on two dimensions:thepossibility of occurrence and the impact.Strategies towards risk:AbsorptionTransferenceReductionAvoidanceProject completionThe completion report summarizes t
32、heresult of the project,and includes client sign-off.The post-completion auditIt is the formal review of the project thatexamines the lessons that may be learnedand used for the benefit of future projects.7 Project management softwareAdvantage:Enables quick re-planningDocument qualityEncourage const
33、ant progress trackingSensitivity analysisDisadvantageDifficult to useBuried in producing documents rather thanmanaging the projectSpend too much time looking at software.Plan projectProject definitionProject designFishbonePerformance driverGap analysisFrom to analysisWBSGanttMaturity modelReschedule
34、Project managementPerform tasksProject deliveryCPAResource histogramMeasure progressControl Compare actual with planHighMiddle TeamResponsibilityDutiesSkillsStage modelForcefiled analysisStrategic issuesRisk managementCorrective actionSlippageBelbins modelNothingSmarterNegotiation ReplanFixedCrashingFast-trackingSummaryThe content of the chapter can beelaborated around the concept of projectmanagement.Relationship between project and strategymust be grasped.
