1.

You and Project Management

Based upon the course readings and lecture material, please respond to the following prompts in your initial posting:

Why you are studying Project Management?  For example, I am studying Project Management to further shape my career goals and to accomplish them more effectively and efficiently in a planned manner. I hope project management will shape my career path and tune me into perfection.

Identify three areas of knowledge that you would like to improve in terms of your Project Management skill set. For example, would you like to know more about influencing others, negotiation, risk management?

How will this program enable you to achieve you Professional goals:  For example, I believe that the Project Management Practices, Scope Management, Risk Management and Negotiation skills will entirely nurture me into a professional aiming for a better Strategies for Development Projects in a Medical device or a Pharmaceutical Industry. 

Please note:  I expect a minimum of 2 -3 paragraphs for your initial post complete with external references. Your response postings are expected to be at least a full paragraph using cited material. 

2. 

In this week’s readings and course materials, we have focused on project initiation processes, and we have specifically talked about where projects come from and how they may be generated.

Thinking of either the organization you work within or an organization that you hope to work within someday, I want you to identify at least four sources of projects.  Select at least one internal driver of a project and at least one driver of a project from an external source.

In addition to identifying these four sources, provide an overview of the path these ideas may take until they arrive as being chartered projects assigned to a project managers.  What type of evaluation or pre-assessment may be taking place?  Provide some insight into who are the major stakeholders and influencers as these ideas transition into actual projects.

Please note:  I expect a minimum of 2 -3 paragraphs for your initial post complete with external references. Your response postings are expected to be at least a full paragraph using cited material. 

PJM6000
Project Management Practices

Week Two

Deb Cote, MS, Professor Al Grusby, MBA, PMP®

Review

2

➢ PMI definitions: project, program, portfolio

➢ What is work effort if it’s NOT a project?

➢ Examples of each

➢ Progressive elaboration – new?

➢ Five process groups of PMI lifecycle

➢ Waterfall vs agile

➢ Framework vs methodology – new?

➢ Project management knowledge areas

➢ Organizational structures – functional, projectized,
matrixed (weak, strong, balanced)

➢ PM knowledge/skills, characteristics, certifications

Agenda – Week 2

• Discuss the beginning phases of a project and how
they link to the overall successful outcomes of the
initiative.

• Analyze what a business case is and how it supports
the sponsor’s decision making process

• Calculate

Net Present Value (NPV)

• Apply Project Selection and Prioritization Techniques

• Review Organizational Structure and Culture

• Discuss the Concentrations within the Curriculum

• Discuss the PMI Talent Triangle
3

Birth of a Project

Projects start at initiation. But how do they get there?

4

5

Project Management Processes

Initiating Planning Executing Monitoring and Controlling Closing

Develop Project Charter Develop Project Management Plan Direct and Manage Project Work
Manage Project Knowledge

Monitor and Control Project Work
Perform Integrated Change Control

Close Project or Phase

Plan Scope Management
Collect

Requirements

Define Scope
Create WBS

Validate Scope
Control Scope

Plan Schedule Mgmt.
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule

Control Schedule

Plan Cost Mgmt.
Estimate Costs
Determine Budget

Control Costs

Plan Quality Management Manage Quality Control Quality

Plan Resource Management
Estimate Activity Resources

Acquire Resources
Develop Project Team
Manage Project Team

Control Resources

Plan Communications Manage Communications Monitor Communications

Plan Risk Management Implement Risk Responses Control Risks

ID Stakeholde

rs

Plan Procurement Conduct Procurements Control Procurements

Plan Stakeholder Mgmt. Manage Stakeholder Engagement Control Stakeholder Engagement

P
ro

je
c
t
S

e
le

c
ti
o
n

Project Lifecycle
• Process Group I: Initiation

• Process Group II: Planning

• Process Group III: Execution

• Process Group IV: Monitoring and Controlling

• Process Group V: Closure

What happens BEFORE initiation?

How does the idea become a project?

6
6

PMI Initiation Planning Execution, Monitoring, & Controlling Closure

How do you justify a project?

• Do projects just begin in an ad hoc (random) fashion within
the organization or should they be approved?

• If they should be approved, what types of information would
you want to have in order to approve the project?
– Return on Investment?

– How does it align with our strategy?

– What is the estimated cost, or budget, needed to support the project?

– What are the risks?

– What is the scope?

• Not an all inclusive list of questions, but need to justify the
request to support a project

7

Business Case

• Answers to many of the questions on the previous
slide would be content to be presented in what’s
known as the business case

• Generally results in a go/no-go decision for the
project

• The business case is an input to the project charter
and defines the expected outcomes the project will
achieve, like a new product, along with the
requested investment needed to support the project

8

Business Case Process

Business
Case

A need has been
identified perhaps
for a new product

Investment
Needed

Some sort of
investment is

needed by the
initiating

organization

Output

The output will
generate some
type of benefit for
the organization

9

A business

case generates

key information

elements

Business Approval Gained or Denied

Business Case Structure

10

Business Problem: Describe problem the project will address

Strategic Case: How does proposed project align w/ strategy?

Project Overview: High-level description of the project

Expected Benefits: How will the business benefit?

Financial Aspects: Financial benefits of the project
(cost/benefit analysis); Net Present Value (NPV)

Risks: Any risks of solution not addressing business problem?

Timeline: High-level timeline (milestones)

Recommendation(s): Next steps based on analysis

Net Present Value (NPV)

• NPV = sum of the present value of cash flows
– Can calculate by hand or using Excel (Plug “NPV” into the Help function for tutorial). Be

careful! The initial investment is NOT part of the formula if using Excel)

– Formula:

NPV = “ Year N CF + Year N CF + Year N CF “

(1 + DR)N (1 + DR)N (1 + DR)N ………

CF = CASH FLOW

DR = DISCOUNT RATE

N = YEAR CF IS BEING DISCOUNTED

• What is generally the YEAR “0” CASH FLOW?

• What is a good value project?

– NPV > 0 &

– Project IRR > Expected IRR “Hurdle Rate”

– Project IRR = Solve NPV equal to zero (trial and error)
11

Class Exercise

• Work in teams to determine if the following is a good
value project:

– Initial Investment = $70,000

– CF (year 1) = $16,000

– CF (year 2) = $18,000

– CF (year 3) = $22,000

– CF (year 4) = $

28

,000

– Discount Rate = 5%

– Expected IRR = 8%

• What is the NPV?

• Is this a good project?
12

Project Sources

13

Projects can start from:

• Operational needs

• Strategic initiatives (growth)

• Capability gaps

• Scalability requirements

• Mergers and acquisitions

Oversized Project Portfolios

14

Business Case and Project Selection

• Many organizations have formal teams to
review the business case:

– Finance (labor rates/validate assumptions)

– EPMO

– Department PMO’s

– P&L Leaders

– Steering Committee’s

– Project & Portfolio Management Review Board
(PPMRB)

15

Factors that influence Project Success

Government or
Industry

Standards

Legal or
Regulatory

Requirements

16

E
n

v
ir
o

n
m

e
n

ta
l
F

a
c
to

rs

Class Exercise

17

You are CEO of an organization that is implementing a more rigorous approach
to approving projects. In the past, no formal process for approving projects was
in place, leading to inconsistent outcomes and misuse of investment funds. A
manager has approached you to approve a project that she believes will lead to
a 6% revenue growth for the organization. The project involves developing a
new prototype for a product that will revolutionize the drone market. The
manager is not sure yet of all of the requirements, but has approached you to
approve her moving forward with prototype development. This seems to be
the perfect opportunity for you as CEO to implement your new process of
approving projects.

• What guidance will you give her in terms of information you will need in
order to approve the prototype?

• What validation process would you have once she submits the documents?

• Work on your own – 15 minutes

• Discuss in your groups – 15 minutes

Project Charter

• Once the business case is approved, a project charter will be created.

Retaining your perspective as the business owner:

– Why would you want a project charter?

– How will the organization benefit from the creation of the project
charter?

18

Creates a formal
approval document

Process driven
agreement

between requestor
and sponsor.

Serves as a
foundational

artifact for the
project team

Project Charter

• The Project Charter is critical as it outlines the
following:

– Provides alignment between the project outcomes and the
strategic objectives of the organization

– Creates a formal artifact of the project goals

– Underscores the support by the organization for the
project based upon the sponsors approval and
engagement

– A charter can be a document between internal operating
units or can be used between an internal performing
organization and external customer.

19

Project Charter

• The business case is an important input to the
charter

• Enterprise Environmental Factors must be
considered and risk analysis conducted to
ensure the charter is properly reflective of the
desired outputs

• A sponsor will want absolute transparency in
both the business case and charter document

20

Project Charter Structure
• Project Purpose:

– Reason for the project – tied to the business case

• Project Objectives:

– Measurable (SMART)

• Project Scope:

– What are the deliverables?

• Milestone Schedule:

– High-level; points in time (dates); not a full schedule!

• Budget:

– High-level summary budget

• Requirements

– How do we know the project is successful?

• Project Manager

– Name, level of responsibility and authority

• Approval

– Authorizing names, titles and signatures 21

PM Warnings

22

Rough estimates
can become

anchors

Business Cases and
Charters can end

up in the drawer –
they should be

referenced

As a PM you should
completely

understand the
‘why…’

23

Each environment and its structure may require

additional customization of your stakeholder

register

Organizational Structures

Adaptive Projectized Functional Matrix

Project Managers As Change Agents

24

Project managers
help shepherd

change

through the
organization

By nature of the
projects you lead,

you are introducing
change in some
fashion to the
organization

Change Initiatives
often encounter

resistance

It is important to be
a champion for

change

The Talent Triangle

25

Source: https://www.pmi.org/learning/training-development/talent-triangle

Do project managers need to be subject matter

experts of the product, service, or result they are

delivering?

Northeastern PJM Concentrations

26

For more information, talk with your advisor or go to:
https://cps.northeastern.edu/academics/program/master-science-project-

management-online

https://cps.northeastern.edu/academics/program/master-science-project-management-online

Lecture Review

27

✓ Look at the beginning stages of a project and how
they link to overall successful outcomes

✓ Analyze what a business case is and how it supports
the sponsor’s decision-making process

✓ Calculate Net Present Value (NPV)

✓ The Project Charter

✓ Review organizational structures and culture

✓ Discuss the concentrations within the CPS curriculum

✓ Discuss the PMI Talent Triangle

What’s Next

• Reading

• Business Case articles (links) *Important!

• Net Present Value refresher (link)

• Instructor Perspective video

• Discussion Board question – responses due by
Saturday, 11:59pm

• Individual Assignment Wk2: due by Sunday, 12:00pm
(Noon)

– Preparing a Business Case

28

1

PJM6000 Week 1

Project Management Practices

Professor Al Grusby, MBA, PMP®

Notes:

• Attendance

• Format of the class

• Discussion Boards

– Introduce Yourself

• Intro to Course

2

Lecture Overview

1. What is Project, Program & Portfolio
Management?

2. Discuss the Importance of Project

Management

3

. Where Does the PMI Framework fit in?

4. The

Project Management Profession

5. How Does Organizational Structure Impact
Project Management?

3

Program & Portfolio Management

4

Project, Program & Portfolio Management consists of three main areas

Portfolio

Management

(PfM)

Program

Management

(PgM)

Project

Management

(PjM)

Focus of this class

Project vs. General Management
• General Management and Project Management

have much in common, but also have significant
differences
– General Business Operations:

• repetitive activities, generate the same product or service, go on
indefinitely (considered daily business)

– Projects:
• Not necessarily defined by Size or Duration
• May involve a single person or many thousands
• May take 100 hours to complete or 10 million hours
• Have a beginning and end

• Manage project activities through the use of project
management Knowledge and Methods 5

What Is a Project ?

“A project is a temporary endeavor undertaken

to create a unique product, service, or result.”

6

— Project Management Institute
(PMI®) “PMBOK© Guide”

What Is Project Management ?
“The application of knowledge, skills, tools, and
techniques to project activities to meet the project

requirements.”

7

— Project Management Institute
(PMI®) “PMBOK© Guide”

Project Management

• Purpose: Organize & get work done

– Work gets done in a company through projects

– Determine what to do

• Do the first things first

• Determine best order to complete all the elements
involved in the project

8

Project Management Thought Process
• Walk through a project mentally before starting the work –

Visualization (Example: Athletes)
– “Begin with the end in mind” – Stephen R. Covey

» What is the “product, service, or result” desired at the END of the
project?

» Get a clear picture of this first

– Then work backwards

9

School of Hard Knocks Lesson Learned

All too often people want to start the work
on a project before planning the work
resulting in making the project more
difficult, costing more and taking longer to
complete.

Class Activity

• Individually, identify what you consider to be the

greatest achievements of mankind in the last five
decades – 10 minutes.

• Get together with your groups and,
– Agree on the top 3 achievements.

– Write down how each of these achievements conform to
the definition of a project – be specific.

– Explain the importance of project management based on
your review. – 10 minutes

10Larson, Gray, Project Management; the Managerial Process

11

What is Program Management?

What Is a Program ?
“A group of related projects, other programs, and program

activities managed in a coordinated manner to obtain
benefits not available from managing them individually.”

12

— Project Management Institute
(PMI®) “PMBOK© Guide”

PgM & Organizations
• A program is a temporary thing

• Used to manage organizational change

• Creates a business-supporting strategic focus

• Programs take a systemic view of planning &
reporting

• Programs deal with links between projects

• Programs concentrate on business benefits

13

Real World Examples of Programs

• New airplane

• New computing enterprise architecture

• Olympics

• Learner Experience Enhancements

14

How can you tell a Project from a Program?

15

Unique Elements
• Operates at an strategic level

• Manages multiple Projects and/or
Programs

• Coordinates interrelated projects

– Same goal/objective

– Dependent on one another

• Measure of value from
responsiveness

• Operates at a tactical level

• Manages multiple tasks

• Coordinates tasks & activities to
meet project requirements

• Efficiency & reliability are key

Program
Management
Project
Management

Projects and Programs have commonality and uniqueness

What Is a Portfolio ?

“Projects, programs, subsidiary portfolios, and operations
managed as a group to achieve strategic objectives.”

16

— Project Management Institute
(PMI®) “PMBOK© Guide”

Why Is Project Management Important?

• Projects are initiated at all levels of the
organization. They provide:

– Strategic outputs

– Unique products

– A new service

– And other assets that the organization will benefit
from as measured by revenue, ROI, NPV, or other
indicators of success.

17

Why Use the Project Management

Framework?

Initiation

Planning

Execution
Monitor &

Control

Closing

18

19

— Project Management Institute
(PMI®) “PMBOK© Guide”

Project Management Profession

20

Project Management Profession

• What skills do you need to be a successful Project Manager?
– Master the Project Management Knowledge Areas

– Your organization will look to you for project plans, status
reports, kickoff meetings, etc.

– Know the application area
– Domain, industry, markets, your organization’s role

– Project environment
– Your organization’s ideas about project management, culture,

processes, goals

– General management
– Financial management, strategic planning, etc.

– Leadership
– People skills: negotiations, motivation, conflict resolution, etc.

21

Project Management Profession
• What skills do you need to be a successful Project

Manager & Team Member?

22

Project Management

Knowledge

Subject Matter

Expertise

Leadership Skills

Project Management Profession

• Effective Project Managers:

– Lead by example

– Are visionaries

– Are technically competent

– Are decisive

– Are good communicators

– Are good motivators

23

Project Management Profession

• Project Management Certification

– Important factor in ensuring quality and consistency in project
management

– PMP® (Project Management Professional) issued by PMI (Project
Management Institute

– Education & Training

– Hands-on Work

– Standardized Examination

• PMI – Project Management Institute

– http://pmi.org

24

PMP is a registered mark of the Project Management Institute, Inc.

Project Management Profession

• Ethics in Project Management
– Because Project Management uses resources, produces critical

deliverables for the organization, directs the work of the organization’s
staff, it deals on a daily basis with ethical questions

– PMI – Code of Ethics

– Decisions based on best interests of society, safety,
environment

– Accept assignments consistent with background and skills

– Fulfill our commitments

– Demonstrate transparency in our decision making

– Constantly examine impartiality & objectivity

– Fully disclose any conflict of interest

– Are truthful in our communications

25

Organizational Structures

Functional Weak
Matrix

Projectized
Strong
Matrix

26

Lecture Review

1. What is the difference between project,
program, and portfolio management?

2. Why is Project Management Important?

3. Describe the PMI Framework

4. Assess how the organizational structure can
impact projects?

27

Class Activity

• Name that P_M!!!

• Use PjM, PgM, PfM

– PjM – Project

– PgM – Program

– PfM – Portfolio

28

What’s Next?

• The project initiation process

– Business Case, Charter, Stakeholder Analysis

• Academic Honesty and Integrity module – complete
right away!

• Introduce yourself Discussion Post

• Week 1 Discussion posts – 2 responses (different days!)
due by Saturday, 11:59pm.

• Individual Assignment Wk1 Paper – due by Sunday,
12:00PM (Noon).

29