Division of Business Studies

Semester 1, 2021

Lecture #1
Topic: Overview of Project and
Project Management
 Objective
By the end of the session students will;

• Understand why project management is becoming such a

powerful and popular practice in business.
• Recognize the basic properties of projects, including their
definition.
• Understand why effective project management is such a
challenge.
• Differentiate between project management practices and
more traditional, process-oriented business functions.
• Recognize the key motivators that are pushing companies to
adopt project management practices.
 Introduction
• Projects are one of the principal means by which we
change our world. Whether the goal is to split the atom,
tunnel under the English Channel, introduce Windows 9, or
plan the next Summer Olympic Games , the means through
which to achieve these challenges remains the same:
project management.
• Project management has become one of the most popular
tools for organizations, both public and private, to improve
internal operations, respond rapidly to external
opportunities, achieve technological breakthroughs,
streamline new product development, and more robustly
manage the challenges arising from the business
environment.
• Project management has become a critical component of
successful business operations in worldwide organizations.
 What is a Project?

A project can be considered to be any series of

activities and tasks that:
• Have a specific objective to be completed within
certain specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman resources (i.e.,
money, people, equipment)
• Are multifunctional (i.e., cut across several
functional lines)
Let us examine the various elements of projects,
as identified by these set of definitions
1. Projects are complex, one-time processes
A project arises for a specific purpose or to meet
a stated goal. It is complex because it typically requires
the coordinated inputs of numerous members of the
organization.

2. Projects are limited by budget, schedule, and

resources.
Project work requires that members work with limited
financial and human resources for a specified time
period.
3. Projects are developed to resolve a clear goal or
set of goals
The project’s goals, or deliverables, define the
nature of the project and that of its team. Projects
are designed to yield a tangible result, either as a
new product or service

4. Projects are customer-focused

Whether the project is responding to the needs of
an internal organizational unit (e.g., accounting) or
intended to exploit a market opportunity external
to the organization, the underlying purpose of any
project is to satisfy customer needs
 General Characteristics of Projects

• Projects are ad hoc endeavors with a clear life

cycle
• Projects are building blocks in the design and
execution of organizational strategies
• Projects are responsible for the newest and most
improved products, services, and organizational
processes.
• Projects provide a philosophy and strategy for the
management of change
• Projects are terminated upon successful
completion of performance objectives
 Why are Projects Important?

There are a number of reasons why projects and project management

can be crucial in helping an organization achieve its strategic goals

1. Shortened product life cycles.

The days when a company could offer a new product and depend on
having years of competitive domination are gone. Increasingly, the life
cycle of new products is measured in terms of months or even weeks,
rather than years. One has only to look at new products in electronics
or computer hardware and software to observe this trend.

Interestingly, we are seeing similar signs in traditional service-sector

firms, which also have recognized the need for agility in offering and
upgrading new services at an increasingly rapid pace.
 2. Narrow product launch windows.

• Another time-related issue concerns the nature of

opportunity. Organizations are aware of the dangers of
missing the optimum point at which to launch a new
product and must take a proactive view toward the
timing of product introductions.

• For example, while reaping the profits from the

successful sale of Product A, smart firms are already
plotting the best point at which to launch Product B,
either as a product upgrade or a new offering. Because
of fierce competition, these optimal launch
opportunities are measured in terms of months.
 3. Increasingly complex and technical products

• It has been well-documented that the average automobile

today has more computing power than the Apollo 11 space
capsule that allowed astronauts to walk on the moon. This
illustrates a clear point: the world today is complex.

• Products are complicated, technically sophisticated, and

difficult to produce efficiently. The public’s appetite for “the
next big thing” continues unabated and substantially
unsatisfied. We want the new models of our consumer goods
to be better, bigger (or smaller), faster, and more complex
than the old ones. Firms constantly upgrade product and
service lines to feed this demand.
 4. Global Markets.

• The early twenty-first century has seen the emergence

of enormous new markets for almost every type of
product and service. Former closed or socialist
societies, as well as rapidly developing economies such
as Brazil, China, Vietnam, and India, have added huge
numbers of consumers and competitors to the global
business arena.

• The increased globalization of the economy, coupled

with enhanced methods for quickly interacting with
customers and suppliers, has created a new set of
challenges for business
 Project Life Cycle

A project life cycle refers to the stages in a

project’s development. Life cycles are important
because they demonstrate the logic that
governs a project

Project life cycle is divided into four distinct

phases: conceptualization, planning, execution,
and termination.
 Conceptualization

• Conceptualization refers to the development

of the initial goal and technical specifications
for a project. The scope of the work is
determined, necessary resources (people,
money, physical plant) identified, and
important organizational contributors or
stakeholders signed on.
 Planning

Planning is the stage in which all detailed

specifications, schematics, schedules, and other
plans are developed. The individual pieces of the
project, often called work packages, are broken
down, individual assignments made, and the
process for completion clearly delineated.

For example, in planning our approach to complete

the term paper, we determine all the necessary
steps (research, drafts, editing, etc.) in the process
 Execution

During execution, the actual “work” of the

project is performed, the system developed, or
the product created and fabricated. It is during
the execution phase that the bulk of project
team labor is performed.
 Termination

• It occurs when the completed project is

transferred to the customer, its resources
reassigned, and the project formally closed
out. As specific sub activities are completed,
the project shrinks in scope and costs decline
rapidly
 Fig 1. Project Life Cycle Stages

Conceptualization Planning Execution Termination

Five components of a project may change over the
course of its life cycle
The project life cycle is also a useful means of visualizing the activities
required and challenges to be faced during the life of a project.
• Client interest: The level of enthusiasm or concern expressed by the
project’s intended customer.
• clients can be either internal to the organization or external.
• Project stake: The amount of corporate investment in the project. The
longer the life of the project, the greater the investment.
• Resources: The commitment of financial, human, and technical resources
over the life of the project.
• Creativity: The degree of innovation required by the project, especially
during certain development phases.
• Uncertainty: The degree of risk associated with the project. Riskiness here
reflects the number of unknowns, including technical challenges that the
project is likely to face. Uncertainty is highest at the beginning because
many challenges have yet to be identified, let alone addressed.
 Determinants of Project success
Time. Projects are constrained by a specified time frame during which they must be
completed. They are not supposed to continue indefinitely. Thus the first constraint
that governs project management involves the basic requirement: the project should
come in on or before its established schedule.

Budget. A second key constraint for all projects is a limited budget. Projects must
meet budgeted allowances in order to use resources as efficiently as possible.
Companies do not write blank checks and hope for the best. Thus the second limit on
a project raises the question: Was the project completed within budget guidelines?

Performance. All projects are developed in order to adhere to some initially

determined technical specifications. We know before we begin what the project is
supposed to do or how the final product is supposed to operate. Measuring
performance, then, means determining whether the finished product operates
according to specifications. The project’s clients naturally expect that the project being
developed on their behalf will work as expected. Applying this third criterion is often
referred to as conducting a “quality” check.
 Developing Project Management Maturity

• With the tremendous increase in project

management practices among global
organizations, a recent phenomenon has been
the rise of project maturity models for project
management organizations.
• Project management maturity models are
used to allow organizations to benchmark the
best practices of successful project
management firms.
 Developing Project Management Maturity

• The purpose of benchmarking is to

systematically manage the process
improvements of project delivery by a single
organization over a period of time.30 Because
there are many diverse dimensions of project
management practice, it is common for a new
organization just introducing project
management to its operations to ask, “Where
do we start?”
Steps in Managing a Project
Define the Problem

Develop the solution options

Plan the Project

What must be done?
Who will do it?
How will it be done?
When must it be done?
How much will it cost?
What do we need to do it?

Execute the Plan

Monitor & Control Progress

Are we on target?
If not, what must be done?
Should the plan be changed?

Close Project
What was done well?
What should be improved?
What else did we learn?
 What is Project Management?

• Project management is “application of

knowledge, skills, tools, and techniques to
project activities to meet the project
requirements.
• Project management is accomplished through
the application of project management
processes comprising the 5 Process Groups:
initiating, planning, executing, monitoring and
controlling, and closing
 Reference

• Lock, D. (2007). Project Management, Ninth

Edition. Hampshire
• Pinto J. (2016) Project Management,
Achieving Competitive Advantage. Pearson
Education Inc . USA
• Heagney, J, (2011) Fundamentals of Project
Management. Sayville, NY, USA