PROJECT MANAGEMENT
2008

DR GRAZYNA LESNIAK-
LEBKOWSKA

PROJECT MANAGEMENT

ORIGINS

 ANCIENT PROJECTS
 FIRST PROFESSIONAL

ATTITUDE TO PM

 ADDING COMPUTER SUPPORT

TO PM



ANCIENT PROJECTS



FIRST PROFESSIONAL
ATTITUDE TO PM



ADDING COMPUTER SUPPORT
TO PM

CONTEMPORARY PROJECT

MANAGEMENT

 CHANGED BUSINESS ENVIRONMENT

 UNCERTAINTY
 TURBULENCE
 INTERCONNECTIVITY
 COMPLEXITY
 CONTINGENCY
 RISKS
 COMPETITIVENESS



CHANGED BUSINESS ENVIRONMENT



UNCERTAINTY



TURBULENCE



INTERCONNECTIVITY



COMPLEXITY



CONTINGENCY



RISKS



COMPETITIVENESS

CONTEMPORARY PROJECT

MANAGEMENT

 CHANGING ORGANIZATIONS

 VALUE BUILDING GROWTH
 SEARCH FOR NEW COMPETITIVE

ADVANTAGES

 AMBITIOUS GOALS
 NEW TARGETS
 COMPLEXITY OF IMPLEMENTATION
 SEARCH FOR PRODUCTIVE RESOURCES



CHANGING ORGANIZATIONS



VALUE BUILDING GROWTH



SEARCH FOR NEW COMPETITIVE
ADVANTAGES



AMBITIOUS GOALS



NEW TARGETS



COMPLEXITY OF IMPLEMENTATION



SEARCH FOR PRODUCTIVE RESOURCES

WHY PROJECTS?

 MANAGERS’ NIGHTMARE
 THE END OF CENTRALIZED MANAGEMENT
 NEEDED:

 ACCOUNTABILITY
 FLEXIBILITY
 INNOVATION AND CREATIVITY
 KNOWLEDGE BASED BEHAVIOR
 RISKS MANAGEMENT
 EVER LASTING ENTHUSIASM
 LEADERSHIP



MANAGERS’ NIGHTMARE



THE END OF CENTRALIZED MANAGEMENT



NEEDED:



ACCOUNTABILITY



FLEXIBILITY



INNOVATION AND CREATIVITY



KNOWLEDGE BASED BEHAVIOR



RISKS MANAGEMENT



EVER LASTING ENTHUSIASM



LEADERSHIP

 INERTIA-BASED DEVELOPMENT IN TURBULENT

ENVIRONMENT- RISKY

 CONTINUOUS PROCESSES AND REPETITIVE GOALS,

TECHNOLOGIES, RESOURCES, METHODS AND
ASSUMPTIONS - DISFUNCTIONAL IN FRAGMENTED
MARKETS

 CONSTRAINED IMPLEMENTATION - TIME AND

MONEY IS AN ISSUE

 COMPLEX VENTURES - HEAVY TO MANAGE IN

TRADITIONAL SETTINGS



INERTIA-BASED DEVELOPMENT IN TURBULENT
ENVIRONMENT- RISKY



CONTINUOUS PROCESSES AND REPETITIVE GOALS,
TECHNOLOGIES, RESOURCES, METHODS AND
ASSUMPTIONS - DISFUNCTIONAL IN FRAGMENTED
MARKETS



CONSTRAINED IMPLEMENTATION - TIME AND
MONEY IS AN ISSUE



COMPLEX VENTURES - HEAVY TO MANAGE IN
TRADITIONAL SETTINGS

BUSINESS OPERATIONS

BUSINESS SUSTAINABLE

DEVELOPMENT

 STRATEGIC RESPONSES TO NEW CHALLENGES:

COMPETITIVE, SOCIAL, ENVIRONMENTAL

 STRATEGIC CHOICES AND VALUE PROPOSITION FOR

MAJOR STAKEHOLDERS

 SUSTAINING ABILITY TO FINANCE ONGOING

BUSINESS AND NEW VENTURES

 MASTERING ABILITY TO INTRODUCE CHANGES
 CONSTRAINED AVAILABILITY OF NONRENEWABLE

RESOURCES, GROWING SOCIAL PRESSURES

 NATURAL RESOURCES SUBSTITUTION BY

KNOWLEDGE BASED SOLUTIONS

 ACCOUNTABILITY: NEED-PROMISE-DESIGN-FLEXIBLE

RELOCATION-RESPONSIBLE IMPLEMENTATION



STRATEGIC RESPONSES TO NEW CHALLENGES:

COMPETITIVE, SOCIAL, ENVIRONMENTAL



STRATEGIC CHOICES AND VALUE PROPOSITION FOR

MAJOR STAKEHOLDERS



SUSTAINING ABILITY TO FINANCE ONGOING

BUSINESS AND NEW VENTURES



MASTERING ABILITY TO INTRODUCE CHANGES



CONSTRAINED AVAILABILITY OF NONRENEWABLE

RESOURCES, GROWING SOCIAL PRESSURES



NATURAL RESOURCES SUBSTITUTION BY

KNOWLEDGE BASED SOLUTIONS



ACCOUNTABILITY: NEED-PROMISE-DESIGN-FLEXIBLE

RELOCATION-RESPONSIBLE IMPLEMENTATION

PROJECTS AS VEHICLES FOR

SUCCESFUL COMPETITION

 COST AWARENESS
 FOCUS ON VALUE CHAINS AND SITUATIONAL

CONTEXT

 CUSTOMISED SOLUTIONS THROUGH

DIFFERENTIATION (QUALITY, TIME, PLACE, PRICE,
SERVICES) - UNIQUE VALUE FOR MONEY

 DEFINING NICHES AND SETTING FLEXIBLE

MANUFACTURING SYSTEMS

 UNIQUE CAPABILITIES IN EFFICIENT USE OF ALL

TYPES OF RESOURCES



COST AWARENESS



FOCUS ON VALUE CHAINS AND SITUATIONAL
CONTEXT



CUSTOMISED SOLUTIONS THROUGH
DIFFERENTIATION (QUALITY, TIME, PLACE, PRICE,
SERVICES) - UNIQUE VALUE FOR MONEY



DEFINING NICHES AND SETTING FLEXIBLE
MANUFACTURING SYSTEMS



UNIQUE CAPABILITIES IN EFFICIENT USE OF ALL
TYPES OF RESOURCES

PROJECTS AS INSTRUMENTS

OF STRATEGY IMPLEMENTATION

ENLARGE THE SCOPE

OF PRESENT ACTIVITY

INVEST IN NEW ACTIVITIES

COMPANY GROWTH LAGGING BEHIND THE

MARKET

RECOMMENDED STRATEGY

PRODUCTS

PROCESSES

PRODUCTS

PROCESSES

TYPES OF PROJECTS

• NEW INVESTMENTS IN PRODUCTION AND DISTRIBUTION CAPACITY INCREASE

• INCREASED EMPLOYMENT (EG. SALESFORCE)

• BROADER MARKET SCOPE, NEW SEGMENTS, NEW CUSTOMERS

• NEW IT SYSTEM, MORE EFFICIENT TECHNOLOGY

• MERGERS AND ACQUISITIONS

PROJECTS AS INSTRUMENTS

OF STRATEGY IMPLEMENTATION

WITHDRAW

DOWNSIZE

MARKET SLOWS DOWN, COMPANY CAPACITY EXCESSIVE

RECOMMENDED STRATEGY

TYPES OF PROJECTS

•ABANDONING LOW VALUE ADDED PRODUCTS, TECHNOLOGIES, MARKETS, CUSTOMERS GROUPS,CONTRACTS

•SALE OF NONEFFICIENTLY USED ASSETS, WHOLE COMPANY SALE

•FOCUSING ON SURVIVAL, RELOCATING RESOURCES TO BEST APPLICATIONS

•REDUCING THE SCOPE, FIREING PEOPLE,

•OUTSOURCING NON- CORE ACTIVITIES

PROJECTS AS INSTRUMENTS

OF STRATEGY IMPLEMENTATION-

LACK OF FIT

TYPES OF PROJECTS

•Designing new business model, new development strategy concept, new value
proposition

•Reorganization, new contractual and capital links, outsourcing, alianses
•New business processes map, reengineering (BPMS)

Innovatio
ns

Restructurin
g

Withdrawal

strategy

structure

processe
s

resources

relationships

RECOMMENDED
ACTIONS

PROJECTS IN THE CONTEXT OF STRATEGY

SOURCE: R.Buttrick „Project Workout”, FT/Prentice Hall, 2000

SOURCE: R.Buttrick „Project Workout”, FT/Prentice Hall, 2000

Strategic needs

Expected benefits

from new projects

Benefits from

current projects

Benefits from

regular operations

Select

criteria/priorities

for proposed

projects evaluation

Evaluate project

proposals and

select the best

ones for

implementation

Include approved

project proposals to

project portfolio

Portfolio of

projects and

programs

BENEFITS FOR ORGANIZATION

PROJECTS AS INSTRUMENTS OF

STRATEGY IMPLEMENTATION –

STRATEGIC FIT

Maintain strategic position,

consolidate resources,

strengthen competitive advantage

TYPES OF PROJECTS

• Costs rationalization, better process management (faster, simpler),
improved decision- making, training and developing people, analysis of
opportunities and threats, identifying new problems, bottlenecks

•Business plans for new projects

FOCUS ON OPERATIONS

Prepare new projects,
business plans, train
people, monitor
environment

MARKE
T
TRENDS

CLIENT
S

PROJECT TEAM

COMPLEXITY

OF PROJECTS

INTEGRITY

Solutions not
products

CUSTOMER FOCUS

new standards of

CRM

COMPETI

-

TIVENES

S

COMPETITION

Harvey Maylor, „Project Management”, Financial Times, Prentice Hall, 2 wyd., 1999

PROJECT EXTERNAL ENVIRONMENT

Project complexity dimensions

 RESOURCES: TANGIBLE, INTANGIBLE, HUMAN

(DIVERSITY AND SPECIFIC FEATURES OF EACH

RESOURCE)

 TECHNOLOGY AND KNOW HOW: PROFESSIONAL

KNOWLEDGE AND SKILLS, TECHNICAL

FACILITIES, INSTRUMENTS, STANDARDS

 ORGANIZATION: SCOPE, BUDGET, TIME SPAN,

METHODS

PROJECT COMPLEXITY = RC x TC

x OC



RESOURCES: TANGIBLE, INTANGIBLE, HUMAN

(DIVERSITY AND SPECIFIC FEATURES OF EACH

RESOURCE)



TECHNOLOGY AND KNOW HOW: PROFESSIONAL

KNOWLEDGE AND SKILLS, TECHNICAL

FACILITIES, INSTRUMENTS, STANDARDS



ORGANIZATION: SCOPE, BUDGET, TIME SPAN,

METHODS

PROJECT COMPLEXITY = RC x TC

x OC

PROJECT DEFINITION

PROJECT IS A NONREPETITIVE TYPE OF ACTIVITY AIMED AT ATTAINING SPECIFIC

GOALS IN THE SITUATION OF CONSTRAINTS, ESPECIALLY THE TIME AND

RESOURCES. ITS RESULTS ARE MEASURABLE AND ALWAYS BRING SOME

INNOVATIONS INTO ORGANIZATION

(H.Maylor, 1999)

PROJECTS ARE THE INSTRUMENTS OF STRATEGIC MANAGEMENT AND IMMEDIATELY

BECOME CORE COMPETENCES OF THE MOST DYNAMIC ORGANIZATIONS. SINCE

APX 50% OF

ACTIVITY IS RUN IN PPROJECTS THEY CAN’T STAY THE COMPETENCE OF

ENGINEERS AND SPECIALISTS, THEY SHOULD BECOME THE METHOD USEFUL TO ALL COMPANY

STAFF MEMBERS (R. Buttrick, 2000)

PROJEKT

IS A SEQUENCE OF ACTIVITIES HAVING ITS START AND END PRECISLY

DEFINED, AS WELL AS RESOURCES AND EXPECTED RESULTS. PROJECT IS

ISOLATED FROM ROUTINE WORK, CAN BE RUN PARALELLY OR WITH FULL

DELEGATION OF TEAM MEMBERS FROM THEIR REGULAR DUTIES. ACHIEVED

RESULTS COULD RENOVATE THE COMPANY PERFORMANCE

(GLŁ)

PROJECT IS A COMBINATION OF SEQUENTIAL AND SITUATIONAL ACTIVITIES, BASED

ON MODELLING OF 4 ELEMENTS: COMMON PROJECT LANGUAGE, COOPERATION

OF THE PROJECT TEAM MEMBERS, PROJECT CYCLE, METHODS AND TECHNIQUES

OF MANAGING THESE ACTIVITIES

(K.Forsberg,H.Mooz, ,H.Cotterman”VISUALIZING

Project Management, WILEY,2000)

PROJECT

IS A NONREPETITIVE TYPE OF ACTIVITY AIMED AT ATTAINING SPECIFIC

GOALS IN THE SITUATION OF CONSTRAINTS, ESPECIALLY THE TIME AND

RESOURCES. ITS RESULTS ARE MEASURABLE AND ALWAYS BRING SOME

INNOVATIONS INTO ORGANIZATION

(H.Maylor, 1999)

PROJECTS

ARE THE INSTRUMENTS OF STRATEGIC MANAGEMENT AND IMMEDIATELY

BECOME CORE COMPETENCES OF THE MOST DYNAMIC ORGANIZATIONS. SINCE

APX 50% OF

ACTIVITY IS RUN IN PPROJECTS THEY CAN’T STAY THE COMPETENCE OF

ENGINEERS AND SPECIALISTS, THEY SHOULD BECOME THE METHOD USEFUL TO ALL COMPANY

STAFF MEMBERS (R. Buttrick, 2000)

PROJEKT

IS A SEQUENCE OF ACTIVITIES HAVING ITS START AND END PRECISLY

DEFINED, AS WELL AS RESOURCES AND EXPECTED RESULTS. PROJECT IS

ISOLATED FROM ROUTINE WORK, CAN BE RUN PARALELLY OR WITH FULL

DELEGATION OF TEAM MEMBERS FROM THEIR REGULAR DUTIES. ACHIEVED

RESULTS COULD RENOVATE THE COMPANY PERFORMANCE

(GLŁ)

PROJECT

IS A COMBINATION OF SEQUENTIAL AND SITUATIONAL ACTIVITIES, BASED

ON MODELLING OF 4 ELEMENTS: COMMON PROJECT LANGUAGE, COOPERATION

OF THE PROJECT TEAM MEMBERS, PROJECT CYCLE, METHODS AND TECHNIQUES

OF MANAGING THESE ACTIVITIES

(K.Forsberg,H.Mooz, ,H.Cotterman”VISUALIZING

Project Management, WILEY,2000)

PROJECT MANAGEMENT BODY

OF KNOWLEDGE (PMI)

1. Project integration management
2. Project scope management
3. Project time management
4. Project costs management
5. Project quality management
6. Project human resources management
7. Project communication management
8. Project risks management
9. Project procurement management

1.

Project integration management

2.

Project scope management

3.

Project time management

4.

Project costs management

5.

Project quality management

6.

Project human resources management

7.

Project communication management

8.

Project risks management

9.

Project procurement management

Source: PMI, 130 South State Road, Upper Darby, PA 19082 USA

PROJECT MANAGEMENT VS LINE

MANAGEMENT

LINE MANAGEMENT



Status quo control and

maintainance



Authority defined by the

structure



Functional competences



Relative stability of

structure model and

specialization



Focus on optimizing the

standard functions



Success consisting of

successes of separate

actions and coordination

schemes



Limited complexity and

change

LINE MANAGEMENT



Status quo control and

maintainance



Authority defined by the

structure



Functional competences



Relative stability of

structure model and

specialization



Focus on optimizing the

standard functions



Success consisting of

successes of separate

actions and coordination

schemes



Limited complexity and

change

PROJECT MANAGEMENT



Change management



Fuzzy split of power



Changing tasks



Interfunctional

responsibility



Temporary project structure



Innovative approach in

problem solving



Success can be achieved

only through ongoing

collaboration of team

members



Uncertainty as a rule

PROJECT MANAGEMENT



Change management



Fuzzy split of power



Changing tasks



Interfunctional

responsibility



Temporary project structure



Innovative approach in

problem solving



Success can be achieved

only through ongoing

collaboration of team

members



Uncertainty as a rule

SOURCE: P. Hobbs, Project Management, Amacom, Portugal

2000

1

FULL EGO
SELF CONFIDENT IN HIS OWN SKILLS,
EASILY PASSING ORDERS AND
REQUIRING EXECUTION

2

AUTOCRAT
CAN IMPOSE HIS DECISIONS

3

LEADER
HAS VISION, INSPIRES PEOPLE,
CRATES CONDITIONS

MANAGER
MICRO MANAGEMENT OF PROJECT
DETAILS

4

ACCEPTS AMBIGUITY
SEARCH FOR PRECISION HAMPERS
PROGRESS

OBSESSED FOR PRECISION
SOME TASKS REQUIRE PRECISE
DEFINITION- GOOD MANAGERS
KNOWS WHICH ONES

LACK OF EGO
LEADER SERVING OTHERS

DELEGATOR
ENCOURAGES OTHERS TO SHOW
INITIATIVE AND TAKE RESPONSIBILITY

According to Tom Peters, good project manager has to balance features from the left column
with features from the right one

EIGHT PARADOXES OF PROJECT

MANAGEMENT

EIGHT PARADOXES OF PROJECT

MANAGEMENT(c’d.)

SOURCE: P. Hobbs, Project Management, Amacom, Portugal

2000

5

EFFECIIVE IN FACE TO FACE
COMMUNICATION
Convincing in direct cntacts, builds
bridges with people

EFFECTIVE IN WRITTEN
COMMUNICATION
EVERYTHING HAS A PAPER COVERAGE

6

FASCINATED BY COMPLEXITY
BELIEVES THAT DIRECT ROAD IS NOT
ALWAYS THE BEST ONE

PREFERS SIMPLICITY
BELIEVES THAT SIMPLE RULES ARE
EASY TO COMPLY AND SIMPLE
SOLUTIONS ARE OFTEN EFFECTIVE

7

ALWAYS HAS AN OVERALL PICTURE IN
MIND
CAN TAKE INTO CONSIDERATION ALL
SITUATIONAL ASPECTS OF PROJECT
ENVIRONMENT

CONCENTRATES ON DETAILS
PAYS ATTENTION TO DETAILS AND
BELIEVES THAT THE SUCCESS AND
FAILURE DEPEND FROM DETAILS

8

IMPATIENT
FREQUENTLY BREAKS THE
STEREOTYPES AND OVERCOMES
RESISTANCE TO ATTAIN THE GOAL

PATIENT
SOMETIMES LISTENING IS MORE
IMPORTANT THAN SPEAKING.
EXCESSIVE CONTROL SLOWS DOWN THE
PROGRESS

PROJECT CYCLE

SEQUENCE OF INTEGRATED ACTIVITIES PERFORMED

IN SUBSEQUENT STAGES LEADING TO FINAL

SUCCESS

 CONSISTS OF SUBSEQUENT STAGES

 HAS THREE PERSPECTIVES:

TECHNICAL, FINANCIAL AND

BUSINESS

 AS A RULE IS DIVIDED INTO STAGES,

BETWEEN THEM THE GATES ARE SET

UP. THEY OPEN WHEN THE PROJECT

STATUS AT THE GATE IS

SATISFACTORY.

 PROJECT STATUS EVALUATES

COMPLIANCE WITH: TIME

SCHEDULE, TECHNICAL STANDARDS,

PLANNED BUDGET, PROPER

RELATIONSHIPS WITH CUSTOMERS

AND SUPPLIERS IS MAINTAINED,

CURRENT PROBLEMS SOLVED, RISKS

UNDER CONTROL, AVAILABLE

RESOURCES FOR CONTINUATION



CONSISTS OF SUBSEQUENT STAGES



HAS THREE PERSPECTIVES:

TECHNICAL, FINANCIAL AND

BUSINESS



AS A RULE IS DIVIDED INTO STAGES,

BETWEEN THEM THE GATES ARE SET

UP. THEY OPEN WHEN THE PROJECT

STATUS AT THE GATE IS

SATISFACTORY.



PROJECT STATUS EVALUATES

COMPLIANCE WITH: TIME

SCHEDULE, TECHNICAL STANDARDS,

PLANNED BUDGET, PROPER

RELATIONSHIPS WITH CUSTOMERS

AND SUPPLIERS IS MAINTAINED,

CURRENT PROBLEMS SOLVED, RISKS

UNDER CONTROL, AVAILABLE

RESOURCES FOR CONTINUATION

PROJECT MANAGEMENT STAGES

INITIATION

PLANNING

EXECUTION

CONTROL

CLOSURE

Initiative
Priorities
Objectives
Project scope
Preliminary
analysis of
feasibilityi
Risks and
constraints
Proposed team
composition

WBS
Time scheme
Resources
planning and
budget scheme
Quality,
Communication
Contracts
Risks
Reserves
Project team
structure

Inauguration and
leadership
Team building and
development
Managment of the project
team and project cycle
Project operations and
tasks
Management of
communication and
decision-making
Introducing changes
Risk management and
learning
Integration and
coordination of project
activities
Managing contracts...

Achieved
intermediary
and final results
compared to
plan
Project status
at gates
Analysis of
deviations
Corrective
actions
Lessons learned

Transfer of
the project
results to
sponsor or
client
Project
closure
Dissolving of
the team
Integration of
project
results with
the
organization

MOST FREQUENT PROBLEMS WITH

MODELLING THE PROJECT LIFE CYCLE

 LACK OF UNIVERSAL APPROACH TO MANAGEMENT OF

PROJECT TECHNICAL (SEQUENTIAL MODEL, SPIRAL
MODEL, CASCADE MODEL, V MODEL)

 THE MAJORITY OF MODELS DO NOT DISTINGUISH

SEQUENTIAL FROM SITUATIONAL ASPECTS, WHAT
CAUSES THE INSUFFICIENT COORDINATION AMONG
ACTIVITIES OR THE LACK OF ADEQUATELY FAST
RESPONSE TO THREATS AND OPPORTUNITIES. THEY
ARE ESTIMATED PERIODICALLY AND NOT
CONTINUOUSLY

 LACK OF UNIVERSAL APPROACH TO MANAGEMENT OF

PROJECT TECHNICAL (SEQUENTIAL MODEL, SPIRAL
MODEL, CASCADE MODEL, V MODEL)

 THE MAJORITY OF MODELS DO NOT DISTINGUISH

SEQUENTIAL FROM SITUATIONAL ASPECTS, WHAT
CAUSES THE INSUFFICIENT COORDINATION AMONG
ACTIVITIES OR THE LACK OF ADEQUATELY FAST
RESPONSE TO THREATS AND OPPORTUNITIES. THEY
ARE ESTIMATED PERIODICALLY AND NOT
CONTINUOUSLY

Example: the spiral model of IT

project cycle

1.PROJECT DEFINITION
(CUSTOMER NEEDS,
REQUIREMENTS, MISSION)

2.RISKS ANALYSIS

3. SYSTEM
ANALYSIS

4. CONCEPT

5. REQUIREMENTS
DEFINITION

6.PLANNING OF
IMPLEMENTATION AND
SYSTEM INTEGRATION

7.
CONFIGURATION
MANAGEMENT

8.
TECHNICAL
CONTROL

9. WERYFIKACJA

I POPRAWKI

MISTAKES: 2.SITUATIONAL NOT SEQUENTIAL; 4. SHOULD BE AFTER 1.; 6.PLANNING SHOULD BE
AT THE BEGINNING WHILE INTEGRATION AT THE END; 6 AND 7 ARE CONTINUOUS ACTIVITIES,
NOT SEQUENTIALI

CASCADE MODEL OF IT PROJECT

CYCLE

ROYCE 1970

SYSTEM
REQUIREMENTS

SOFTWARE
REQUIREMENTS

DRAFT PROJECT

DETAILED PROJECT

ENCODING

TESTING

OPERATIONS AND
MAINTAINANCE

UNUSEFUL FOR COMPLEX
PROJECTS OF HIGH RISK

SUPPORTS UNREALISTIC TIME AND
COST ESTIMATIONS

CTREATES IMPRESSION OF AN
EASY SEQUENCE,

NEEDED COORDINATION OF
NONSEQUENTIONAL STAGES
(UNDERSTANDING, TECHNICAL
FEASIBILITY)

INITIATION PHASE

 Initiative

 Needs and Priorities

 Project objectives

 Project scope

 Preliminary feasibility

 Risks and constraints

 Proposed team

 Project placement within organizational

structure

 Initiative

 Needs and Priorities

 Project objectives

 Project scope

 Preliminary feasibility

 Risks and constraints

 Proposed team

 Project placement within organizational

structure

PROJECT IDEAS AND INITIATIVES

 EVERY IDEA TO IMPROVE

ORGANIZATIONAL PERFORMANCE AND

BETTER USE OF RESOURCES

 EVERY IDEA TO IMPROVE COMPETITIVE

POSITIONING AT THE MARKETPLACE

 EVERY IDEA OF NEW PRODUCT, PROCESS,

VENTURE, RESPONSE TO EXTERNAL

CHALLENGES

 TO PUT THEM INTO LIFE A PROJECT

INITIATOR HAS TO CONVINCE

SPONSORS/CUSTOMERS/USERS



EVERY IDEA TO IMPROVE

ORGANIZATIONAL PERFORMANCE AND

BETTER USE OF RESOURCES



EVERY IDEA TO IMPROVE COMPETITIVE

POSITIONING AT THE MARKETPLACE



EVERY IDEA OF NEW PRODUCT, PROCESS,

VENTURE, RESPONSE TO EXTERNAL

CHALLENGES



TO PUT THEM INTO LIFE A PROJECT

INITIATOR HAS TO CONVINCE

SPONSORS/CUSTOMERS/USERS

PRIORITIES SETTING

 PRODUCTS

 TARGET MARKETS

 CUSTOMERS

 COMPETITIVE POSITION

 COMPETITIVE ADVANTAGE AND

UNIQUENESS

 SCALE AND SCOPE OF ACTIVITY

 PARTNERS

 EFFECTIVENESS



PRODUCTS



TARGET MARKETS



CUSTOMERS



COMPETITIVE POSITION



COMPETITIVE ADVANTAGE AND

UNIQUENESS



SCALE AND SCOPE OF ACTIVITY



PARTNERS



EFFECTIVENESS

SELECTION OF PROJECTS TO BE

IMPLEMENTED

1. Identification of realized and

recommended new projects

2. Attributing to each project:

 Weight

 Time of implementation

 Budget

 Feasibility

 Risk level

3. Selection of projects:

 important

 realistic

1.

Identification of realized and

recommended new projects

2.

Attributing to each project:

 Weight

 Time of implementation

 Budget

 Feasibility

 Risk level

3.

Selection of projects:

 important

 realistic

DEFINING PROJECT GOALS AND

OBJECTIVES

 SPECIFIC
 MEASURABLE
 AMBITIOUS
 REALISTIC
 TIMELY



SPECIFIC



MEASURABLE



AMBITIOUS



REALISTIC



TIMELY

GLŁ

PRINCIPLES OF DEFINING THE PROJECT

SCOPE:

precIsion,, completness, responding to customer

needs and company capabilities

COMPONENTS

 SCALE OF THE PROJECT
 COMPLEXITY
 TIME OF EXECUTION
 ENGAGED RESOURCES
 QUALITY LEVEL
 EXPECTATIONS AND NEEDS OF

STAKEHOLDERS (IDENTIFIED AND
NOT IDENTIFIED)

 AGREED VERSION IN WRITTEN AS

THE STARTING POINT FOR
PLANNING (PIP)

COMPONENTS



SCALE OF THE PROJECT



COMPLEXITY



TIME OF EXECUTION



ENGAGED RESOURCES



QUALITY LEVEL



EXPECTATIONS AND NEEDS OF
STAKEHOLDERS (IDENTIFIED AND
NOT IDENTIFIED)



AGREED VERSION IN WRITTEN AS
THE STARTING POINT FOR
PLANNING (PIP)

ORGANIZATIONAL CAPABILITIES
IN PROJECT MANAGEMENT

 REFER TO: PROCESSES, BEST PRACTICES AND

ACTIVITIES BUILDING VALUE OF AN ORGANIZATION

 LEADERS SHOULD BE CAPABLE OF TRANSFORMING

VISIONS INTO DECISIONS, OBJECTIVES INTO
STRUCTURED PROCESES

 ORGANIZATIONAL CAPABILITIES ARE THE BASE OF

CORPORATE IDENTITY AND ITS DISTINGUISHING
FEATURE



REFER TO: PROCESSES, BEST PRACTICES AND
ACTIVITIES BUILDING VALUE OF AN ORGANIZATION



LEADERS SHOULD BE CAPABLE OF TRANSFORMING
VISIONS INTO DECISIONS, OBJECTIVES INTO
STRUCTURED PROCESES



ORGANIZATIONAL CAPABILITIES ARE THE BASE OF
CORPORATE IDENTITY AND ITS DISTINGUISHING
FEATURE

SOURCE: Sunny and Kim Baker „The Complete Idiot’s Guide to Project

Management”, Alpha Books, 1998

PLANNING PHASE

MODEL ICOMs OF PLANNING

PROCESS

PROCES PLANOWANIA

INFLUENCING FACTORS AND CONTROLS

standards/procedures

limitations

INPUTS

OUTPUTS

Informations

Plan

tools/techniques

project manager and

teamł

MECHANISMS

PLANNING PHASE THREE MAJOR

COMPONENTS

 WORK BREAKDOWN STRUCTURE
 TIME SCHEDULE
 FINANCIALS + BUDGET



WORK BREAKDOWN STRUCTURE



TIME SCHEDULE



FINANCIALS + BUDGET

PLANNING TASKS

IDENTIFY ACTIVITIES

IDENTIFY CAUSE-EFFECT RELATIONSHIPS

ESTIMATE TIME AND RESOURCES

PREPARE PLAN IN PRESENTATION FORM

WorkBreakdownStructure

decomposition of project goal into

objectives, milestones and tasks, setting

up the hierarchy

Install new computer system

Define needs

Select suppliers

Start up of new system

Define
Business
Case

Map

Organizational

processess

Redesign

Processes

Before

automation

Set up short list

Train

users

Instal

Hardware

And

software

Use

system

Test
system

Identify potential suppliers

Compare their offers and

Select the best one

PROCESS MAPPING

Dimancescu, 1992

1. PROJECT TEAM
MEMBERS

2. PROJECT

STAGES

WITH

IN-OUT

CRITERIA

B

C

D

4. STANDARDS FOR

EACH TASK

3. TASKS
IMPLEMENTATION
STREAM

KEY COMPONENTS OF PLANNING

Scope

planning

Scope

planning

Scope

definition

Scope

definition

Defining

activities

Defining

activities

Resources

planning

Resources

planning

Cause-effect

vrelationships

Cause-effect

vrelationships

Estimating

time duration

of activities

Estimating

time duration

of activities

Estymacing

costs of

each activity

Estymacing

costs of

each activity

Scheduling

Scheduling

Budgeting

Budgeting

PIP

PIP

supportive processes of
planning

PLANNING SUPPORTIVE PROCESSES

QUALITY

PLANNING

PLANNING OF

PROJECT

ORGANIZATION

COMMUNICATION

PLANNING

IDENTIFYING

RISKS

MEASURING

RISKS

RESPONSES

TO RISK

EXPOSURE

PROJECT

STAFFING

PROCUREMENT

PLANNING

CONTRACTS

PLANNING

INCL. ADVISORY

EXAMPLE: SEQUENTIAL VS

CONCURRENT PLANNING OF NEW

PRODUCTS

marketing

project

preparing

production

production

marketing

project

Preparing

production

production

Saved time

time

Concurrent planning model:

advantages and disadvantages

 SHORTER TIME TO

MARKET WITH NEW

PRODUCTS

 LOWER ENGINEERING

COSTS (LESS

CORRECTIONS)

 BETTER ADJUSTMENT

TO MARKET NEEDS



SHORTER TIME TO

MARKET WITH NEW

PRODUCTS



LOWER ENGINEERING

COSTS (LESS

CORRECTIONS)



BETTER ADJUSTMENT

TO MARKET NEEDS

 HIGHER OVERHEADS

(ADDITIONAL
ADMINISTRATION)

 REPLACEMENTS COSTS

AND ADDITIONAL
FURNISHING COSTS

 CULTURAL RESISTANCE
 METHOD NOT FITTING

TO TYPE OF PROJECT



HIGHER OVERHEADS
(ADDITIONAL
ADMINISTRATION)



REPLACEMENTS COSTS
AND ADDITIONAL
FURNISHING COSTS



CULTURAL RESISTANCE



METHOD NOT FITTING
TO TYPE OF PROJECT

+

-

+

PLANNING THE TIME SEQUENCE AND STRUCTURE

OF PROJECTS

 PDM (precedence diagramming

method)
(A-O-N)

 ADM (arrow diagramming method)

(A-O-A)

 CDM (conditional diagramming

method)



PDM (precedence diagramming
method)
(A-O-N)



ADM (arrow diagramming method)
(A-O-A)



CDM (conditional diagramming
method)

A-0-N

EST

EFT

LST

LFT

Finish –to- start

Start-to-
start

Finish-to-
finish

Start-to-
finish

NAME/

SYMBOL

DURATIO
N TIME

Activity on nodes network example

S

T

A

R

T

F

I

N

I

S

h

A
5

0

0

5

5

B
4

0

7

4

11

D 4

8

1
2

7

1
1

E 6

C 3

G 5

H 6

F 4

J 4

I 6

5

5

11

11

5

8

8

1
1

8

12

1
1

1
5

1
7

21

1
7

2
1

1
2

18

15

2
1

12

1
6

1
5

1
1

17

12

15

1
1

ACTIVITY ON ARROWS NETWORK EXAMPLE

TASK

PRECEDENT
ACTIVITY

a

-

b

-

c

a

d

b

e

b

f

c, d

g

e

S

t

a

r

t

a

b

start

a

b

c

d

e

f

g

FINISH

FIRST STAGE

COMPARISON

A-O-A

SIMPLER TO PLAN AND

MODIFY
EASIER TO

UNDERSTAND BY NON

EXPERTS
MILESTONES BETTER

VISUALIZED
CLEARER ILLUSTRATION

OF MULTILATERAL

RELATIONSHIPS

A-O-A

SIMPLER TO PLAN AND

MODIFY
EASIER TO

UNDERSTAND BY NON

EXPERTS
MILESTONES BETTER

VISUALIZED
CLEARER ILLUSTRATION

OF MULTILATERAL

RELATIONSHIPS

A-O-N

EASIER TO ILLUSTRATE

COMPLEX

RELATIONSHIPS AS

START –TO-FINISH
NO DUMMY ACTIVITIES
ALL INFO ON NODES,

EASIER NUMBERING OF

ACTIVITIES

A-O-N

EASIER TO ILLUSTRATE

COMPLEX

RELATIONSHIPS AS

START –TO-FINISH
NO DUMMY ACTIVITIES
ALL INFO ON NODES,

EASIER NUMBERING OF

ACTIVITIES

DETERMINISTIC AND PROBABILISTIC

METHODS

CPM



TIME DETERMINED IN ONE
VERSION



CRITICAL PATH
DISTINGUISHED

CPM



TIME DETERMINED IN ONE
VERSION



CRITICAL PATH
DISTINGUISHED

PERT

 TIME PLANNED IN THREE

VERSIONS: OPTIMISTIC,

PESIMISTIC AND MOST

LIKELY

 EXPECTED TIME=

(OPT+4MOST

LIKELY+PES):6

 ANALYSIS OF TIME

DURATION VARIATION

WARIANCJI =
[(P-O):6]2

 CLOSER TIME

ESTIMATION BASED ON

EXPERIENCE CURVE

PERT



TIME PLANNED IN THREE

VERSIONS: OPTIMISTIC,

PESIMISTIC AND MOST

LIKELY



EXPECTED TIME=
(OPT+4MOST

LIKELY+PES):6



ANALYSIS OF TIME

DURATION VARIATION

WARIANCJI =
[(P-O):6]2



CLOSER TIME

ESTIMATION BASED ON

EXPERIENCE CURVE

CDM

EXAMPLES:
 GERT (graphical evaluation and review technique)
 System Dynamics

APPLICATIONS:
 ModelLING OF NONSEQUENTIAL ACTIVITIES AND

LOOPS (E.G. REPETITIVE TESTS UNTIL POSITIVE

RESULTS OBTAINED),

 CONDITIONAL ACTIVITIES (EG. MODEL

VERIFICATION IF CONTROL REVEALS DEFECTS)

EXAMPLES:



GERT (graphical evaluation and review technique)



System Dynamics

APPLICATIONS:



ModelLING OF NONSEQUENTIAL ACTIVITIES AND

LOOPS (E.G. REPETITIVE TESTS UNTIL POSITIVE

RESULTS OBTAINED),



CONDITIONAL ACTIVITIES (EG. MODEL

VERIFICATION IF CONTROL REVEALS DEFECTS)

COSTS ESTIMATES

 INITIAL based on rough figures,

uncertain, not precise nor

detailed, used for first

orientation before feasibility

study (25%)

 GENERAL based on major

contingencies and quantitative

data, used for presenting

proposals (15%)

 DETAILED based n precise project

and contingencies analysis, used

for offers (10%)

 FINAL used to obtain additional

funds necessary to complete

project (5%)



INITIAL based on rough figures,

uncertain, not precise nor

detailed, used for first

orientation before feasibility

study (25%)



GENERAL based on major

contingencies and quantitative

data, used for presenting

proposals (15%)



DETAILED based n precise project

and contingencies analysis, used

for offers (10%)



FINAL used to obtain additional

funds necessary to complete

project (5%)

Costs components

 BASE ESTIMATE

TOTAL COST OF ALL ACTIVITIES PLANNED
Salaries+ purchases of goods and

services

 SCOPE RESERVE

Reserve for not undentified but likely

scope changes

 CONTINGENCY RESERVE FOR NOT

IDENTIFIED RISKS
Released when the risks appears. Not

used for compensation of wrong

forecasts and plans



BASE ESTIMATE
TOTAL COST OF ALL ACTIVITIES PLANNED
Salaries+ purchases of goods and

services



SCOPE RESERVE
Reserve for not undentified but likely

scope changes



CONTINGENCY RESERVE FOR NOT

IDENTIFIED RISKS
Released when the risks appears. Not

used for compensation of wrong

forecasts and plans

PROJECT BUDGETING METHODS

COST PLUS

BOTTOM-UP

COST PLUS

BOTTOM-UP

LUMP SUM
TOP-DOWN

LUMP SUM
TOP-DOWN

DIRECT COSTS:
LABOUR+MATERIA
LS AND SERVICES
PURCHASED

COMPANY
OVERHEADS

PROJECT
OVERHEADS

TOTAL COSTS
OF PROJECT

PLANNED
PROFITS

TOTAL
COMPETITIVE
COST OF PROJECT

-DIRECT COSTS

-OVERHEADS

-PROFIT

CHANGES IN COST STRUCTURE

 INPUTS : THE LONGER PROJECT DURATION THE MORE

CHANGES IN INPUTS

 CONTINGENCIES: THE LONGER THE PROJECT DURATION THE

MORE CHANGES AFFECTING PROJECT COMPLETION (BANK
RATES OF CREDITS, CASH AVAILABILITY, TRUST OF
INVESTORS

 MECHANISMS: CONINUOUS CHANGE OF STAFF AND

TECHNOLOGY



INPUTS : THE LONGER PROJECT DURATION THE MORE
CHANGES IN INPUTS



CONTINGENCIES: THE LONGER THE PROJECT DURATION THE
MORE CHANGES AFFECTING PROJECT COMPLETION (BANK
RATES OF CREDITS, CASH AVAILABILITY, TRUST OF
INVESTORS



MECHANISMS: CONINUOUS CHANGE OF STAFF AND
TECHNOLOGY

FINANCIAL PLANNING METHODS AS BASE

FOR AUTHORIZING FUNDS FOR PROJECT

RUN

 VALUATION OF INVESTMENT PROJECTS (CF)
 PREFERRED (DCF)
 INTERNAL PROJECTS: LEASR COST METHOD, NPV
 EXTERNAL PROJECTS (IRR)
 SCENARIO PLANNING
 SENSITIVITY ANALYSIS
 COST-BENEFIT ANALYSIS (WHEN ALSO NON FINANCIAL GOALS)



VALUATION OF INVESTMENT PROJECTS (CF)



PREFERRED (DCF)



INTERNAL PROJECTS: LEASR COST METHOD, NPV



EXTERNAL PROJECTS (IRR)



SCENARIO PLANNING



SENSITIVITY ANALYSIS



COST-BENEFIT ANALYSIS (WHEN ALSO NON FINANCIAL GOALS)

IMPORTANT ISSUES RELATED TO

PROJECT TEAM CONSTRUCTION

COMMON LANGUAGE

 EVERY PROJECT NEEDS ITS OWN LINGO
 THERE IS NO UNIVERSAL TERMINOLOGY FOR PROJECTS
 THE MAJORITY OF FIRMS DO NOT HAVE COMMON LANGUAGE (SILOS)
 THE SAME WORDS HAVE DIFFERENT MEANINGS IN DIVERSE

PROJECTS, FIRMS, INDUSTRIES

 PROJECT MANUALS ARE NEITHER PRECISE NOR COMPLETE
 ATTENTION PAID TO TERMINOLOGY IN PROJECT IS NOT SUFFICIENT

 EVERY PROJECT NEEDS ITS OWN LINGO
 THERE IS NO UNIVERSAL TERMINOLOGY FOR PROJECTS
 THE MAJORITY OF FIRMS DO NOT HAVE COMMON LANGUAGE (SILOS)
 THE SAME WORDS HAVE DIFFERENT MEANINGS IN DIVERSE

PROJECTS, FIRMS, INDUSTRIES

 PROJECT MANUALS ARE NEITHER PRECISE NOR COMPLETE
 ATTENTION PAID TO TERMINOLOGY IN PROJECT IS NOT SUFFICIENT

TEAM WORK

EFFECTIVE TEAM WORK DEPENDS
FROM MANY FACTORS:
„CHEMISTRY”, ATTITUDE,
MOTIVATION

BUT

THREE COMPONENTS ARE CRUCIAL:



GATHERING THE GROUP OF
PEOPLE CAPABLE TO TRANSFORM
INO TEAM



CREATION AND SUSTAINING THE
ENVIRONMENT FACILITATING
TEAM WORK



INSPIRING THE TEAM WORK BY
LEADERSHIP

EFFECTIVE TEAM WORK DEPENDS
FROM MANY FACTORS:
„CHEMISTRY”, ATTITUDE,
MOTIVATION

BUT

THREE COMPONENTS ARE CRUCIAL:



GATHERING THE GROUP OF
PEOPLE CAPABLE TO TRANSFORM
INO TEAM



CREATION AND SUSTAINING THE
ENVIRONMENT FACILITATING
TEAM WORK



INSPIRING THE TEAM WORK BY
LEADERSHIP

FRIENDLY ENVIRONMENT FOR TEAM

WORK



COMMON GOALS AND OBJECTIVES (GOALS – COMMITMENT –

RESPONSIBILITY)



EACH TEAM MEMBER IS INTERDEPENDENT FROM OTHERS IN ATTAINING

GOALS AND DESERVES RESPECT (1.define functions, tasks, individual

scope of responsibility2. design organizational structure and define

interdependencies 3. define job descriptions and decision power of

each team member



COMMON CODE OF CONDUCT (ethical principles and legal regulations

covering all potential sources of conflicts and unclear situations. Main

cathegories of issues to be regulated: attitude toward customers, way

of using company / project resources, presence and time of work,

safety, sexual harassment, drinking, smoking, gambling, cheating,

corruption, stealing, quality standards, behavior standards)



COMMON GOALS AND OBJECTIVES (GOALS – COMMITMENT –

RESPONSIBILITY)



EACH TEAM MEMBER IS INTERDEPENDENT FROM OTHERS IN ATTAINING

GOALS AND DESERVES RESPECT (1.define functions, tasks, individual

scope of responsibility2. design organizational structure and define

interdependencies 3. define job descriptions and decision power of

each team member



COMMON CODE OF CONDUCT (ethical principles and legal regulations

covering all potential sources of conflicts and unclear situations. Main

cathegories of issues to be regulated: attitude toward customers, way

of using company / project resources, presence and time of work,

safety, sexual harassment, drinking, smoking, gambling, cheating,

corruption, stealing, quality standards, behavior standards)

CONTINUED



TEAM SPIRIT AND ENERGY depends
from individual attitude and
company culture. The following
issues should be agreed on:

 Sharing of resources
 Interdependence not independence

of each team member (role of
assertiveness, avoiding dominance,
subtle leadership techniques if
strong individuals)

 Undertaking any possible efforts

needed to succeed

 Team needs are more important

than individual in the project

 Unwanted individual tasks shouldn’t

be transferred to team (avoiding
individual responsibility)



TEAM SPIRIT AND ENERGY depends
from individual attitude and
company culture. The following
issues should be agreed on:

 Sharing of resources
 Interdependence not independence

of each team member (role of
assertiveness, avoiding dominance,
subtle leadership techniques if
strong individuals)

 Undertaking any possible efforts

needed to succeed

 Team needs are more important

than individual in the project

 Unwanted individual tasks shouldn’t

be transferred to team (avoiding
individual responsibility)

TECHNIQUES OF BUILDING AND

SUSTAINING THE PROJECT TEAM.

THE ROLE OF PROJECT MANAGER

 CLEAR DEFINITION OF RESPONSIBILITY,

WHEREVER POSSIBLE

 DEFINING AND COMMUNICATING THE

ORGANIZATION OF PROCESS AND

MANAGING STYLE

 EMPOWERMENT WHEREVER POSSIBLE
 TEACHING THE TEAM THE

RESPONSIBILITY

 BALANCED SUPPORT AND DIRECTION
 TRAINING PEOPLE ON THE JOB, IN TEAM

WORK AND BY PERSONAL EXAMPLE

 PAYING MORE ATTENTION TO

UNDERPERFORMERS (PACE, QUALITY) IN

TEAM WORK

 SETTING UP TEAM REWARDS
 WORK PACKAGES FORMULATED IN A WAY

ENCOURAGING FOR COOPERATION

 CLEAR DEFINITION OF RESPONSIBILITY,

WHEREVER POSSIBLE

 DEFINING AND COMMUNICATING THE

ORGANIZATION OF PROCESS AND

MANAGING STYLE

 EMPOWERMENT WHEREVER POSSIBLE
 TEACHING THE TEAM THE

RESPONSIBILITY

 BALANCED SUPPORT AND DIRECTION
 TRAINING PEOPLE ON THE JOB, IN TEAM

WORK AND BY PERSONAL EXAMPLE

 PAYING MORE ATTENTION TO

UNDERPERFORMERS (PACE, QUALITY) IN

TEAM WORK

 SETTING UP TEAM REWARDS
 WORK PACKAGES FORMULATED IN A WAY

ENCOURAGING FOR COOPERATION

CAREFULL PLANNING OF THE FIRST

MEETING OF A PROJECT TEAM

 OCCASION FOR PRESENTING THE VISION OF

PROJECT AND WINNING THE BRAINS AND HEARTS

FOR JOINT STRIVING TO ATTAIN PROJECT GOALS

 FIRST MEETING AGENDA. COMPONENTS:

-presentation of team members
-project definition (goals, objectives,

intended

strategy of execution)

- key requirements, milestones,

contingencies,

opportunities and threats

-links with other teams, reporting lines
-information channels and interfaces
-draft project implementation lan
-major risks and most likely problems
-responsibility split and sharing
-needed commitment and contribution

 OCCASION FOR PRESENTING THE VISION OF

PROJECT AND WINNING THE BRAINS AND HEARTS

FOR JOINT STRIVING TO ATTAIN PROJECT GOALS

 FIRST MEETING AGENDA. COMPONENTS:

-presentation of team members
-project definition (goals, objectives,

intended

strategy of execution)

- key requirements, milestones,

contingencies,

opportunities and threats

-links with other teams, reporting lines
-information channels and interfaces
-draft project implementation lan
-major risks and most likely problems
-responsibility split and sharing
-needed commitment and contribution

PLANNING THE TEAM WORK AND

SOLVING PROBLEMS

PLANNING IS A CONTINUOUS

ACTIVITY, NOT A ONE TIME

ONE

Communication patterns

such as „papers on the

wall”, e-mails, team

agreements, updates,

corrections facilitate team

development and raises

motivation.
Problem solving- algorythmic

and heuristic techniques.

Talents appear, different

approaches. Joint solutions

lead to team integration

PLANNING IS A CONTINUOUS

ACTIVITY, NOT A ONE TIME

ONE

Communication patterns

such as „papers on the

wall”, e-mails, team

agreements, updates,

corrections facilitate team

development and raises

motivation.
Problem solving- algorythmic

and heuristic techniques.

Talents appear, different

approaches. Joint solutions

lead to team integration

DEFINING AND COMMUNICATING STYLE AND

DECISION MAKING PROCESS ORGANIZATION

THREE MODELS

TIME TO
ACHIEVE
RESULTS

TOTAL TIME

TIME FOR
DECISION
EXECUTION

TIME FOR
DECISION
MAKING

AUTHORITARIAN
MODE

MUTUAL
AGREEMENTS
MODE

UNINIMITY
MODE

DECISION MAKING THROUGH

CONSENSUS AND MUTUAL

AGREEMENTS



MAY REQUIRE COMPROMISE BUT
NEVER THROUGH VOTING,
AVERAGING, BARGAINING,
EXCHANGE OF FAVOURS,
RANDOM CHOICE WITH THE
COIN



IS THE MOST EFFECTIVE IN
THREE TYPES OF SITUATIONS,
WHEN:



NO ONE IS AN EXPERT IN THE
FIELD



INSUFFICIENT DATA SUPPORT
AND TEAM JUDGEMENT IS
NEEDED



STRONG TEAM SUPPORT IS
NEEDED AT IMPLEMENTATION
PHASE



MAY REQUIRE COMPROMISE BUT
NEVER THROUGH VOTING,
AVERAGING, BARGAINING,
EXCHANGE OF FAVOURS,
RANDOM CHOICE WITH THE
COIN



IS THE MOST EFFECTIVE IN
THREE TYPES OF SITUATIONS,
WHEN:



NO ONE IS AN EXPERT IN THE
FIELD



INSUFFICIENT DATA SUPPORT
AND TEAM JUDGEMENT IS
NEEDED



STRONG TEAM SUPPORT IS
NEEDED AT IMPLEMENTATION
PHASE

OTHER CONDITIONS FOR EFFECTIVE

TEAM WORK



CREATION OF PROJECT INFO CENTER

the need for information evolves

alongside the project cycle. Information

has to be constantly updated to keep

project on track and people oriented and

motivated



UNDERPERFORMERS SHOULD BE

ELIMINATED FROM THE TEAM ASAP NOT

TO RUIN THE HARD WORK OF OTHERS.

Standards of expected results or

behavior are important to create the

clear situation of compliance or

noncompliance. Fireing a person from

the team should be clearly

communicated to others with arguments.



CELEBRATING SUCCESSES AT

MILESTONES integrates the team, allows

to forget problems and supports

optimistic expectations as to the future



LEADER keeps training people, rewards

them and strengthens the team

members self confidence (you can do it!)



CREATION OF PROJECT INFO CENTER

the need for information evolves

alongside the project cycle. Information

has to be constantly updated to keep

project on track and people oriented and

motivated



UNDERPERFORMERS SHOULD BE

ELIMINATED FROM THE TEAM ASAP NOT

TO RUIN THE HARD WORK OF OTHERS.

Standards of expected results or

behavior are important to create the

clear situation of compliance or

noncompliance. Fireing a person from

the team should be clearly

communicated to others with arguments.



CELEBRATING SUCCESSES AT

MILESTONES integrates the team, allows

to forget problems and supports

optimistic expectations as to the future



LEADER keeps training people, rewards

them and strengthens the team

members self confidence (you can do it!)

INDICATORS OF HIGH QUALITY OF

TEAM WORK

POSITIVE



CLIMATE FOR COOPERATION



FREE INFORMATION FLOWS
AMONG TEAM MEMBERS



ALL TASKS ARE COVERED,
NOBODY THROWS ITS OWN
TASKS ONTO OTHERS,
INITIATIVE IN UNDERTAKING
DIFFICULT TASKS



SPONTANIC AND POSITIVE
INTERPERSONAL
INTERACTIONS



HIGH LEVEL OF POSITIVE
ENERGY IN THE TEAM

POSITIVE



CLIMATE FOR COOPERATION



FREE INFORMATION FLOWS
AMONG TEAM MEMBERS



ALL TASKS ARE COVERED,
NOBODY THROWS ITS OWN
TASKS ONTO OTHERS,
INITIATIVE IN UNDERTAKING
DIFFICULT TASKS



SPONTANIC AND POSITIVE
INTERPERSONAL
INTERACTIONS



HIGH LEVEL OF POSITIVE
ENERGY IN THE TEAM

NEGATIVE



CLIMATE OF SUSPECTION
AND LACK OF TRUST



INFORMATION FLOW
BLOCKED



AVOIDING UNWANTED
TASKS (WHY ME? WHY NOT
HE/SHE? NOT- MY-JOB
SYNDROM)



ANTIPRODUCTIVE GROUPS,
COLLUSIONS



THE FAILURE AWARENESS
HAMPERS ACTIVITY AND
PARALYSE THINKING

NEGATIVE



CLIMATE OF SUSPECTION
AND LACK OF TRUST



INFORMATION FLOW
BLOCKED



AVOIDING UNWANTED
TASKS (WHY ME? WHY NOT
HE/SHE? NOT- MY-JOB
SYNDROM)



ANTIPRODUCTIVE GROUPS,
COLLUSIONS



THE FAILURE AWARENESS
HAMPERS ACTIVITY AND
PARALYSE THINKING

KEY SUCCESS FACTORS OF

PROJECT TEAM WORK

 COMMUNICATION
 COOPERATION
 COORDINATION



COMMUNICATION



COOPERATION



COORDINATION

„7 S” OF PROJECT

MANAGEMEN(McKinsey)



STRUCTURE of organizing project activities



SYSTEMS covering: methods of planning and

organizing the work of a project team, progress

monitoring and controlling of final results



STAFF - recruitment, manahement, leadership



SKILLS– tools and techniques of management

available to project manager and team members



STYLE – way of shaping interactions within a project

team and with a mother company



STAKEHOLDERS – individuals or groups interested or

affected by a project having influence on its

development



STRUCTURE

of organizing project activities



SYSTEMS

covering: methods of planning and

organizing the work of a project team, progress

monitoring and controlling of final results



STAFF

- recruitment, manahement, leadership



SKILLS

– tools and techniques of management

available to project manager and team members



STYLE

– way of shaping interactions within a project

team and with a mother company



STAKEHOLDERS

– individuals or groups interested or

affected by a project having influence on its

development

HOW TO ORGANIZE PROJECT

ACTIVITIES

 Type of project

and goals

 Context (internal

and external
situation)



Type of project
and goals



Context (internal
and external
situation)

Three types of projects

 External client
 Internal client
 Project pro

publico bono



External client



Internal client



Project pro
publico bono

EXTERNAL CLIENT

ORGANIZATIONAL
PROBLEM:

HOW TO MEET
EXPECTATIONS OF
THE CUSTOMER AT
LOWEST POSSIBLE
COSTS

ORGANIZATIONAL
PROBLEM:

HOW TO MEET
EXPECTATIONS OF
THE CUSTOMER AT
LOWEST POSSIBLE
COSTS

INTERNAL CLIENT

PROBLEM OF

MANAGER-

ORGANIZER:



How to maximize

organizational

benefits from existing

resources in short

term (operational

effectiveness) and in

long-term (strategic

effectiveness)



Where to allocate

resources

PROBLEM OF

MANAGER-

ORGANIZER:



How to maximize

organizational

benefits from existing

resources in short

term (operational

effectiveness) and in

long-term (strategic

effectiveness)



Where to allocate

resources

INNOVATIONS MAP

New clients

Slow
evolution of
existing
products and
operations

Fundamental
changes in a
few areas of
activity

Revolution
in product
range and
operations

Old clients

ORGANIZATIONAL STRUCTURES FOR

PROJECT

MANAGEMENT



TEAM STRUCTURE
IMPOSED ON
FUNCTIONAL STRUCTURE



MATRIX STRUCTURE



PURE PROJECT
STRUCTURE



AMBIDEXTROUS
STRUCTURE



TEAM STRUCTURE
IMPOSED ON
FUNCTIONAL STRUCTURE



MATRIX STRUCTURE



PURE PROJECT
STRUCTURE



AMBIDEXTROUS
STRUCTURE

TEAM STRUCTURE IMPOSED ON

FUNCTIONAL STRUCTURE

Example of project:

How to supply client

with desired

products

and services at

competitive time, price,

quantity, quality, place,

Interfunctional team

has to decide on the

most effective way.

Example of project

:

How to supply client

with desired

products

and services at

competitive time, price,

quantity, quality, place,

Interfunctional team

has to decide on the

most effective way.

MKTG

PROD.

SALES

FINANC
E

ADM.
& HR

P

CEO

MATRIX STRUCTURE

CEO

F
2

F1

F3

F4

P1

P
2

P
3

Stable part of the structure: functional
Changing project teams employ specialists
from the stable permanent units or from
outside

PURE PROJECT STRUCTURE

TOP
MGT

P1

P2

P3

P4

Finance Finance Finanse
Finance

Operations Operations Operacje
Operations

Mktg and sales Mktg &sales Mktg & Sales
Mktg & Sales

HR HR HR

HR

Investments and

Purchasing

Investments

Purchasing

Purchasing

R&D Legal Designing
Technical service techn.

Project structures may differ from project to project

AMBIDEXTROUS STRUCTURE

FUNCTIONAL CORE, PROJECT

DAUGHTER

ceo

Production Sales

R&D

EXISTING BUSINESS

EMERGING BUSINESS

Production Sales

R&D

Ch. O. Reilly III, M. L. Tushman, The Ambidextrous Organization, HBR April
2004

BENEFITS FROM AMBIDEXTROUS

ORGANIZATION

Strategic benefits



more retained customers



higher market share



strategy

implementation capability



capability to expand on new markets

Market benefits



lower prices



higher customer satisfaction



differentiated offer



closer links with customers



more efficient performance

Operational benefits



lower fixed costs



better use of resources



shorter materials cycles



increased value added



simplified processes

Ch. O. Reilly III, M. L. Tushman, The Ambidextrous Organization, HBR April
2004

BUILDING THE PROJECT TEAM

 NOMINATING THE PROJECT MANAGER
 RECRUITING PROJECT TEAM MEMBERS
 INTEGRATION



NOMINATING THE PROJECT MANAGER



RECRUITING PROJECT TEAM MEMBERS



INTEGRATION

PROJECT TEAM FUNCTIONING

 ACTIVE ROLE PLAYING
 LEARNING
 TAKING RESPONSIBILITY



ACTIVE ROLE PLAYING



LEARNING



TAKING RESPONSIBILITY

PROJECT TEAM INTERNAL STRUCTURE

Steering committee or project

board:

sponsor, project manager,
other project management
team members

External

consultants

managers

Project team members

specialists

Project team management structure

Company

Manageme

nt team

lub

Project

manageme

nt team

Program

manageme

ntteam

Sponso

r

or

Client/user

coach

External

consultant

s

Project

manage

r

Managers and team members

o
r

PROJECT LIFE CYCLE MANAGEMENT

EXECUTION PHASE

PROJECT
IMPLEMENTATION PLAN
(pip)

PROJECT IMPLEMENTATION PLAN



      executive summary



      project goals and objectives



      assumptions for design and risk areas



      milestones



      WBS



      schedule



     project resources



     draft budget



      project organization and management



      operational procedures



      key performance indicators



      contact persons, info



      signatures of persons responsible for project acceptance



      executive summary



      project goals and objectives



      assumptions for design and risk areas



      milestones



      WBS



      schedule



     project resources



     draft budget



      project organization and management



      operational procedures



      key performance indicators



      contact persons, info



      signatures of persons responsible for project acceptance

Example: assessing leadership

effectiveness in GE

Vision

Customer and quality focus

Integrity

Accountability/commitment

Communication and influence

Responsibility sharing/borderless

Team building/empowerment

Knowledge/experience/intellect

Initiative/Speed

Global mindset



Vision



Customer and quality focus



Integrity



Accountability/commitment



Communication and influence



Responsibility sharing/borderless



Team building/empowerment



Knowledge/experience/intellect



Initiative/Speed



Global mindset

D. Ulrich, J. Zenger, N. Smallwood, Results-Based Leadership, Harvard Business School Press, Boston, USA

1999

Project human resources

management issues

 Planning of organization:

identification, formalization, design,

job descriptions, responsibility,

relationships

 Project staffing
 Leadership, communication,

negotiations

 Coaching, mentoring, HR

development, motivation

 Team building, integration,

coordination, conflict management

 Performance appraisal, employees

retention, complementary staffing,

relationships with trade unions, job

safety precautions,etc.



Planning of organization:

identification, formalization, design,

job descriptions, responsibility,

relationships



Project staffing



Leadership, communication,

negotiations



Coaching, mentoring, HR

development, motivation



Team building, integration,

coordination, conflict management



Performance appraisal, employees

retention, complementary staffing,

relationships with trade unions, job

safety precautions,etc.

Team processes

 leadership
 Decision-making
 Problem-solving
 Communication
 Meetings
 Planning
 Feedback and evaluation
 Conflicts management



leadership



Decision-making



Problem-solving



Communication



Meetings



Planning



Feedback and evaluation



Conflicts management

IMPLEMENTATIONPHASE

COMPONENTS

 Official project

inauguration and

activation pf plan

 Setting up of leadership

by project manager

 Creating the project

structure

 Starting up operational

procedures

 Staring up information

and decision-making

procedures

 Management according

to plan

 



Official project

inauguration and

activation pf plan



Setting up of leadership

by project manager



Creating the project

structure



Starting up operational

procedures



Staring up information

and decision-making

procedures



Management according

to plan

 

Leadership style in project

management

planning

organizing

motivating

controlling

Manag
erial
functi
ons

interpersonal
informational
decisional

Manag
erial
roles

Leadershi

p style

LEADERSHIP ROLE DESCRIPTION

Sunny and Kim Baker „The Complete Idiot’s Guide

to Project Management”, Alpha Books, 1998

Delineates direction

(vision, mission, values,

aspirations, future, clients,

partners, etc.)

Mobilizes people

- recruits

- inspires

- designs roles

- empowers

Builds

organizational

capabilities

- creats teams

- manages change

- builds
infrastructure

Demonstrates personality

Analytical thinking,

integrity, trust,

honesty,solidity,etc.

CONFLICTS AND PERFORMANCE

IN PROJECTS

Conflicts stemming from the search for best solutions
can be used to accelerate project implementation, cost
reduction or attaining more ambitious goals

Conflicts based on negative premises lower the
discipline and commitment, can lead to project failure.
There are no people who cannot be replaced but
loosing rare specialists may lead to failure too.

TYPICAL CONFLICT SOURCES IN

PROJECTS

objectives inconsistent

no focus on tasks
ineffective administrative procedures
roles uncertainty
technical uncertainty
inadequate staffing and positioning
unproportional resources to tasks
unrealistic work time assumptions
interpersonal problems

CONFLICT MANAGEMENT IN

PROJECTS

withdrawal from unimportant

conflicts through agreeing on common
interests of parties involved

compromis but priorities secured,

concessions reduced

forcing the solutin beneficial for one

party

confrontation of forces but joint

formulating and solving of problem

Additional persons and project time

managemet

Number of persons

czas

1

2

3

4

Introducing one additional personbrings important shortening of
activity completion time , the next – less effective improvement
while fourth- extending the time of completion as more time is
needed for learning and team management.

K. Lockyer, J. Gordon, Project Management and Project Network Techniques, wyd. 6, Financial Times – Prentice Hall, 1996, s. 65

Project implementation- supporting

processes

 Information distribution
 Team development
 Consulting
 Choice of suppliers
 Management of contracts
 Quality assurance
 Project scope verification



Information distribution



Team development



Consulting



Choice of suppliers



Management of contracts



Quality assurance



Project scope verification

QUALITY MANAGEMENT IN PROJECTS

•Quality assurance through systematic
evaluations and controls
•Planning of quality standards and
assurance systems
•Quality deviations immediately
corrected
•Important qualitative issues in project
management:

–Customer satisfaction (matching
with specification and real value
–Prevention is much cheaper than
compensation of demage
–Project manager overall
responsibility
–Logic of commonly used methods
(DEMING, CROSBY, TQM, ISO...),
continuous improvement

COMMUNICATION MANAGEMENT IN

PROJECTS

 PLANNING OF

COMMUNICATION SYSTEM

 DISTRIBUTION OF

INFORMATION

 REPPORTING
 IMPORTANT PROJECT

DOCUMENTS



PLANNING OF
COMMUNICATION SYSTEM



DISTRIBUTION OF
INFORMATION



REPPORTING



IMPORTANT PROJECT
DOCUMENTS

CONTROLLING::

IDENTIFYING DEVIATIONS FROM PLAN

ANTICIPATING PROBLEMS

PREVENTIVE ACTIONS OR COMPENSATING

ACTIVITIES

WHAT IS CONTROLLED:



DEADLINES OF TASKS COMPLETION (LATE OR EARLY DELIVERY)



COSTS AGAINST PLENNED (HIGHER, LOWER)



CHANGE MANAGEMENT ALONGSIDE PROJECT LIFE CYCLE



ACTIVITIES COMPLETENESS



PROJECT SCOPE CHANGES



PROJECT SCHEDULE CHANGES



BUDGETARY CHANGES



QUALITY CHANGES



RISKS REPORTING



REACTING TO RISKS



LESSONS LEARNED



DEADLINES OF TASKS COMPLETION (LATE OR EARLY DELIVERY)



COSTS AGAINST PLENNED (HIGHER, LOWER)



CHANGE MANAGEMENT ALONGSIDE PROJECT LIFE CYCLE



ACTIVITIES COMPLETENESS



PROJECT SCOPE CHANGES



PROJECT SCHEDULE CHANGES



BUDGETARY CHANGES



QUALITY CHANGES



RISKS REPORTING



REACTING TO RISKS



LESSONS LEARNED

CONTROLLING DEVIATIONS

FROM PLANNED TIME AND

COSTS OF PROJECT

 COST VARIANCE [BCWP-ACWP]

DEVIATION OF REAL COSTS VS PLANNED

(WITHOUT REFERENCE TO PROJECT

PROGRESS)

 SCHEDULE VARIANCE [BCWP-BCWS]

DEVIATION OF REAL PROJECT PROGRESS VS

PLANNED

(ALLOWS TO CALCULATE THE COST OF

DELAY)

 3 MEASURES OF DEVIATIONS:

 BCWS (BUDGETED COST OF WORK

SCHEDULED)

 BCWP (BUDGETED COST OF WORK

PERFORMED)= EARNED VALUE (IF TASKS

COMPLETED AT PLANNED COST)

 ACWP (ACTUAL COST OF WORK PERFORMED),

CUMULATED SALARIES IN SPECIFIED PERIOD



COST VARIANCE [BCWP-ACWP]
DEVIATION OF REAL COSTS VS PLANNED

(WITHOUT REFERENCE TO PROJECT

PROGRESS)



SCHEDULE VARIANCE [BCWP-BCWS]
DEVIATION OF REAL PROJECT PROGRESS VS

PLANNED

(ALLOWS TO CALCULATE THE COST OF

DELAY)



3 MEASURES OF DEVIATIONS:



BCWS (BUDGETED COST OF WORK

SCHEDULED)



BCWP (BUDGETED COST OF WORK

PERFORMED)= EARNED VALUE (IF TASKS

COMPLETED AT PLANNED COST)



ACWP (ACTUAL COST OF WORK PERFORMED),

CUMULATED SALARIES IN SPECIFIED PERIOD

PROJECT STAGES AND CONTROL

GATES

Cooper, 1990

CONCEPT

G1

STAGE 1

G2

STAGE S

STOPPING PROJECT AT GATE WHEN::

 Main benefits already achieved

 Initial plans and estimations not

sufficiently accurate

 New more attractive opportunity appeared

 Company strategy changed

 Key project team members left the

company

 Project requires much more advanced

capabilities than available

 Project continuation may ruin company

finance



Main benefits already achieved



Initial plans and estimations not

sufficiently accurate



New more attractive opportunity appeared



Company strategy changed



Key project team members left the

company



Project requires much more advanced

capabilities than available



Project continuation may ruin company

finance

BCWS curve

J. P. Lewis, Project Manager’s Desk Reference, wyd. 2, McGraw-Hill, 1999, s. 200

C

u

lu

m

a

ti

v

e

L

a

b

o

r

C

o

s

t

Time

D

e

a

d

lin

e

BCWS

Labor Budget

Cumulated planned expenditures

J. P. Lewis, Project Manager’s Desk Reference, wyd. 2, McGraw-Hill, 1999, s. 201

6

2

0

0

1

0

8

0

0

3

8

0

0

4

6

0

0

8

0

0

8

0

0

5

4

0

0

1

6

2

0

0

5

4

0

0

2

1

6

0

0

2

4

0

0

2

4

0

0

0

2

4

0

0

2

6

4

0

0

2

4

0

0

2

8

8

0

0

TaskA

TaskB

TaskC

Weekle

expenditur

es

Cumulated

expenditure

s

(40 H/T)(20$/H)=$800/T

(100 H/T)(30$/H)=$3 000/T

(60 H/T)(40$/H)=$2 400/T

Budgeted Cost of Work Scheduled

(BCWS) curve

J. P. Lewis, Project Manager’s Desk Reference, wyd. 2, McGraw-Hill, 1999, p. 202

0

C

u

m

u

la

te

d

e

x

p

e

n

d

it

u

re

s

i

n

t

h

o

u

s

a

n

d

s

Working time in weeks

1

2

3

4

5

6

7

8

0

5

10

15

20

25

30

BCWS Curve:

Project Behind Schedule and Overspent

J. P. Lewis, Project Manager’s Desk Reference, wyd. 2, McGraw-Hill, 1999, p. 203

60k

Time

D

e

a

d

lin

e

BCWS

Labor Budget

40k

20k

Date of Analysis

SV

CV

CV – Cost Variance
SV – Schedule Variance

ACWP
BCWP

BCWS curve:

Trends for the Project if Nothing Changes

J. P. Lewis, Project Manager’s Desk Reference, ed. 2, McGraw-Hill, 1999, sp
205

60k

Time

D

e

a

d

lin

e

Labor Budget

40k

20k

Date of Analysis

SV

CV

CV – Cost Variance
SV – Schedule Variance

ACWP
BCWP

Project

Delay

Project
Overspen
d

BCWS curve:

Project Ahead of Schedule, But Spending

Okay

J. P. Lewis, Project Manager’s Desk Reference, ed. 2, McGraw-Hill, 1999, sp 207

CV – Cost Variance
SV – Schedule Variance

ACWP
BCWP

60k

Time

D

e

a

d

lin

e

BCWS

Labor Budget

40k

20k

Date of Analysis

SV

BCWS curve:

Project Behind Schedule, But Spending

Okay

J. P. Lewis, Project Manager’s Desk Reference, ed. 2, McGraw-Hill, 1999, p 209

CV – Cost Variance
SV – Schedule Variance

ACWP
BCWP

60k

Time

D

e

a

d

lin

e

BCWS

Labor Budget

40k

20k

Date of Analysis

SV

BCWS curve:

Project Ahead of Schedule and

Underspent

J. P. Lewis, Project Manager’s Desk Reference, ed. 2, McGraw-Hill, 1999, p. 203

60k

Time

D

e

a

d

lin

e

BCWS

Labor Budget

40k

20k

Date of Analysis

SV

CV

CV – Cost Variance
SV – Schedule Variance

ACWP
BCWP

PROJECT TERMINATION (CLOSURE)

PHASE



ACTIVITIES BEFORE PROJECT CLOSURE:



EVALUATION OF RESULTS FOR DIVERSE

STAKEHOLDERS



FINAL REVIEW (POST IMPLEMENTATION

REVIEW-PIR): EVALUATION OF ACHIEVED

BENEFITS VS PLANNED, ADDITIONAL

BENEFITS, RECCOMMENDATIONS OF

CHANGE, LESSONS LEARNED



ACTIVITIES CLOSING THE PROJECT:



FINAL REPORT



DECISION TO FINISH THE PROJECT



CLOSING PROJECT BOOKS, CONTRACTS,

DISSOLVING PROJECT TEAM



ACTIVITIES AFTER PROJECT COMPLETION



INTEGRATION OF RESULTS WITH MOTHER

ORGANIZATION OR TRANSFER OF PRODUCT

TO CLIENT



MANAGING PROJECT RESOURCES



PROJECTS FILES STORAGE



PROJECT RECYCLING (IN CASE OF PARTIAL

SUCCESS)



ACTIVITIES BEFORE PROJECT CLOSURE:



EVALUATION OF RESULTS FOR DIVERSE

STAKEHOLDERS



FINAL REVIEW (POST IMPLEMENTATION

REVIEW-PIR): EVALUATION OF ACHIEVED

BENEFITS VS PLANNED, ADDITIONAL

BENEFITS, RECCOMMENDATIONS OF

CHANGE, LESSONS LEARNED



ACTIVITIES CLOSING THE PROJECT:



FINAL REPORT



DECISION TO FINISH THE PROJECT



CLOSING PROJECT BOOKS, CONTRACTS,

DISSOLVING PROJECT TEAM



ACTIVITIES AFTER PROJECT COMPLETION



INTEGRATION OF RESULTS WITH MOTHER

ORGANIZATION OR TRANSFER OF PRODUCT

TO CLIENT



MANAGING PROJECT RESOURCES



PROJECTS FILES STORAGE



PROJECT RECYCLING (IN CASE OF PARTIAL

SUCCESS)