Gower Handbook Of Project Management 5ed Ch1 4x6u2i

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http://www.gowerpublishing.com/isbn/9781472422965

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Gower Handbook of Project Management we

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5th Edition

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Rodney Turner

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Edited by

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Project Management Practitioners

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1 A Handbook for

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Rodney Turner

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It may be an engineering construct, a new building, new infrastructure or a new product or production machinery; It may be an information system, involving new information and communication technology (ICT); Or it may be a social construct, new processes, a new organization’s structure or new skills in the work force.

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Projects and project management are now widely recognized by organizations as being essential to achieving their strategic objectives. Achieving the strategic objectives often involves change, and that change needs managing in a different way than managing the routine work of the organization. The change can take several forms:

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In each case, the organization that wants the new asset creates a temporary organization, a project, to which resources are assigned to do the work to deliver that beneficial change. The change itself is some new facility or asset. We have just seen that the facility or asset may be an engineering construct, an ICT system or a social construct. Once the project is finished, that asset will be operated to deliver benefit to the owning organization. During its life, the temporary organization needs managing to deliver the asset and achieve the benefit on completion. The asset and desired benefit (the objectives) must be defined, as must the process of achieving the objectives, and the work and delivery of the objectives must be monitored and controlled. The management of the project (the temporary organization) is the responsibility of project management practitioners. This book is intended as a handbook for project management practitioners. The aim is to give an introduction to and overview of the essential knowledge required for managing projects. Competence can be defined as the knowledge, skills and traits required to deliver desired results (Crawford, 2003). Through this book I introduce the reader to the knowledge required to manage projects. Competence the individual will develop through their experience, and through their essential traits they bring to the job. The project management professional societies throughout the world take several different approaches to defining the competence required to manage projects.

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a) Some focus on the knowledge and skills required. This is the approach taken by the

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Project Management Institute (PMI, www.pmi.org), a global organization based in North America, through its body of knowledge and certification program (Project Management Institute, 2013). This is an input based approach to competence. b) Some focus on what project managers have to be able to do to manage projects, what functions they have to perform. This is the approach taken by the Association for Project Management (APM, www.apm.org.uk), the UK’s national association, through its body of knowledge and certification program (Association for Project Management, 2012), and by the International Project Management Association (IPMA, www.ipma.ch), a global federation of 59 national associations of which APM is the largest (International Project Management Association, 2006; Association for Project Management, 2008). This is a performance based approach to competence. c) Some focus on what project managers must deliver. This is the approach adopted in the UK by the Engineering Construction Industry Training Board (ECITB, www.ecitb. org.uk), in its National Occupational Standards for Project Management (Engineering Construction Industry Training Board, 2003) and by the Australian Institute of Project Management (AIPM, www.aipm.com.au), in its National Competency Standards for Project Management (Australian Institute of Project Management, 2004).

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Lynn Crawford (2003) says that competence is the ability to perform according to defined standards. Those standards can take different forms:

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1. They may be global standards. The PMI Guide to the Project Management Body of Knowledge (PMBOK Guide) (Project Management Institute, 2013) is often presented as a global standard. The International Standards Organization has produced a standard for Project Management, ISO 21500 (International Standards Organization, 2012). Lynn Crawford herself is leading a global working party to produce global standards for project management, called GAPPS, the Global Alliance for Project Performance Standards (www.globalpmstandards.org). 2. They may be national standards. The PMBOK Guide (Project Management Institute, 20013 is also an American national (ANSI) standard. In the UK, the ECITB has produced the National Occupation Standards for Project Management (Engineering Construction Industry Training Board, 2003) and in Australia AIPM has produced the National Competency Framework for Project Management (Australian Institute of Project Management, 2004). 3. They may be standards produced by professional associations, such as the PMBOK Guide (Project Management Institute, 2004), the APM Body of Knowledge (Association for Project Management, 20012 and the IPMA Competency Baseline, ICB (International Project Management Association, 2006). 4. They may be job descriptions produced by individual organizations for specific jobs within the organization.

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As I say, in this book I can only give a guide to the knowledge required by project management practitioners in their work, not to the performance required by project managers. Table 1.1 shows the content of this book, and how it relates to three of the standards, the APM Body of Knowledge, the PMBOK Guide and the IPMA ICB3. © Copyrighted Material

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A Handbook for Project Management Practitioners © Copyrighted Material

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In the next section I give a brief description of the contents of each chapter, and in the following section a brief description of knowledge areas not covered in this book.

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The Gower Handbook of Project Management

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The book consists of five parts: •

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The first describes projects and considers various elements of project management and its successful implementation. The second part describes the functions that a project manager has to perform in execution of the project, and how they deliver performance. The third part describes the process that needs to be followed in managing the project The fourth part describes various issues relating to the management of multiple projects. The fifth part considers a few perspectives of projects and their management.

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Part 1: Projects

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In the first part of the book, we consider the nature of projects and their management. After an introduction to projects and project management, we look at various issues relating to the success of project management, including project strategy, the value of project management, project management maturity and auditing. Chapter 2: Projects and their management: Chapter 2 describes projects and their management. This is of course the core topic of this book, and so is from where we start. This chapter gives an overview of projects and project management, by describing a theory of project management. We start with five simple premises, and show that much of what we understand as project management follows naturally from those five premises. We find that if we assume those premises are correct then we need many of the tools and techniques described in this book to manage our projects. Chapter 3: Implementing strategy through projects: Chapter 3, describes how to develop a strategy for implementing a project. Before even starting planning a project, you should have a basic idea of how to go about it – this is the strategy. The project strategy should be driven by corporate strategy, and sets the basic framework for undertaking the project. We consider the elements of a project strategy and how it should be formulated, and give an example. Chapter 4: The value of project management: Is it worthwhile adopting project management as an organization? Chapter 4, describes the results of a project done for PMI® into the value of project management. Organizations adopting project management show value from its adoption, from among other things, improvement in the performance of projects. Value results from the fit of the project management methodology adopted to the organization, its context and needs, and not necessarily from the maturity of the practices adopted. Chapter 5: Maturity models in project management: Unfortunately, it has been difficult to show a correlation between project management maturity and project performance. We saw in the previous chapter that it is important that the project management methodology adopted should fit the organization’s needs: some organizations will © Copyrighted Material

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need simple procedures and some more bureaucratic. However, it is still worthwhile to understand what constitutes good practice, and to try to improve the procedures adopted to meet the organization’s needs for the successful delivery of projects. Chapter 5 describes project management maturity, how to assess maturity and the contribution of maturity to success. Chapter 6: Auditing projects and programs: Is the project management we have adopted likely to lead to project success? We can audit the adoption of project management to determine if we have adopted the best project management procedures and that they are being applied on a given project in a way likely to deliver success. Chapter 6 describes project and project management auditing, and their contribution to project governance.

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Part 2: Performance

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The second part of the book looks at what the project manager must do and produce. The parent organization undertakes the project to achieve beneficial change. In order to achieve that it must deliver some outputs or requirements, and they must be delivered within constraints of time, cost and quality. The project involves risks which must be managed, and particular risks are threats to health and safety and potential impacts on the environment. Chapter 7: Measuring performance: Managing the project management functions is about delivering performance. Chapter 7 describes how to measure and assess performance as an introduction to this part. Chapter 8: Benefits realization management: The parent organization undertakes the project to achieve development objectives, to achieve some business need. It is expected that the project will deliver benefit, and without that benefit the project is not worth doing. Not only does the parent organization need to define what the expected benefit is, it needs to make sure that it is actually achieved once the project is completed. Chapter 9: Requirements management: To achieve that benefit the project must deliver certain outcomes, or requirements. Those requirements must be defined, and that initiates the project planning process. The requirements must also be delivered and converted into the expected benefits. Chapter 10: Managing scope and configuration: To achieve those requirements the project team needs to do work to deliver products. The products and their components need to be defined through a product breakdown structure, and the work to make and assemble those components identified through a work breakdown structure. Configuration management is a tool to control the identification and delivery of work and products. Chapter 11: Managing value: The benefits only have any value to the parent organization if they can be produced at a cost that allows it to make a profit. Further the higher the benefit for a given cost, or the lower the cost for a given benefit the better the project’s value. Value management is a tool for optimizing the project’s outcome. Chapter 12: Managing quality: To perform effectively, the project’s products must be delivered to certain standards. First, the product must perform to provide the functionality expected, and to solve the problem, deliver the benefit and value expected of it. It must also meet other performance requirements, or service levels, such as availability, reliability and maintainability, and have acceptable finish or polish. Chapter 13: Organizing for projects: In order to be able to do the work, it is necessary to determine what people are required, the roles and responsibilities they will fulfil, © Copyrighted Material

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what skills they need and the numbers required. These people need to be structured into the temporary organization that is the project, and the relationship of that temporary organization with the parent organization identified. Chapter 14: Managing for stakeholders: The wider project team encomes people beyond those doing work. There are people whose lives are affected by the project and its outcomes, and most of these have a view on it. Some people view it positively, some negatively. Some can influence the outcome, some cannot. Where they view the project negatively, and can influence the outcome, they will work to undermine the project. The project manager needs to communicate the vision, communicate the process, to win everybody over to the project. He or she also needs to negotiate everybody’s involvement, making them aware of how the project can lead to positive outcomes for them, and what contribution is expected from them. Chapter 15: Managing the schedule: To provide benefit, the project’s products must be obtained within a certain time to satisfy the need, and to cover both interest and capital payments on the finance. Hence, the timing of the work must be managed. Sometimes very tight time constraints must be met, but normally they are more flexible. Also on many projects, the work of different resources must be carefully coordinated, and that will also be achieved through the management of the timing of the work. Chapter 16: Managing cost and earned value: Likewise, to be of value, the functionality must not cost more than a certain amount. Clearly the more benefit it delivers, the more that can be spent on its delivery. The cost of the product, and the value it gives, must be estimated, and the cost controlled within those limits while the work is done. Chapter 17: Managing resources: The actual resources required (money, materials and people), must be identified and estimated, and their assignment to the work managed. Chapter 18: Managing risk: Projects being unique, novel and transient are inherently risky. More so than the routine work of organizations. This is what differentiates project management from the management of normal operations. Risk management is therefore an essential part of project management. Chapter 19: International projects: The application of the management techniques to manage the project functions can be different on international projects. Chapter 19 considers the management of risk and quality (including safety). It also considers how to establish an offshoring arrangement. Chapter 20: Sustainable development: The impact of the project on the environment must also be carefully managed. It is now common to talk about sustainability. I sometimes say I think this is old wine in new bottles. But the new thing that sustainability adds over and above environmental management is the idea of the triple bottom line, environmental, social and economic impact. Also the new bottles make the idea more attractive and gets more people to take an interest in it.

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Part 3: Process

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Because projects are transient, their delivery follows a development process, from germination of the idea, through initiation, design and delivery, to commissioning, handover to the client and close-out of the work. As we progress through the process, the plans and design of the product or objectives are developed in increasing detail. We gain greater understanding of the objectives and how they will be delivered, and that © Copyrighted Material

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feeds into increasing detail in the plans. Because we develop the lower level definition at successive stages of the process, the levels are essentially linked to the stages. Chapter 21: Managing the process: There are many versions of the project process, but they all essentially contain the steps of germination of the idea, proposal and initiation, design and appraisal, mobilization of the team, execution and control and integration of the team and their work, testing, commissioning and handover of the project’s product and close-out of the work. We consider processes at many levels: the project’s goals, outcome’s, outputs and the management of the project functions. Chapter 22: Project start-up: The difference between project start and start-up has been likened to the difference between starting the engine of a car to the complex sequence of activities required to start the diesel engine of a ship. A complex sequence of activities are required to start the project, to mobilize the team, to initiate the project definition process, to obtain agreement to the project objectives and plan to deliver them. Chapter 23: Feasibility, design and planning: The problem the project is to solve (or opportunity it is to exploit) is identified. Several options are developed, functional designs produced and respective costs and benefits estimated to the current level of accuracy. The best solution is chosen for further definition. A high level, strategic plan for the design and execution of the project is developed. A systems design is produced, and the costs and benefits estimated in more detail. The project is appraised and if found acceptable, it is sanctioned. The project team, including contractors, need to be mobilized. Chapter 24: Managing implementation: Work is undertaken to deliver the project’s products. The first step is to produce detailed plans to control execution, as opposed to the systems level plans required for appraisal. As work progresses, it must be measured and controlled to ensure the project delivers the required performance. A key feature of project management, which sets it apart from normal operations, is the integrative function. Operations management emphasizes discrete functions; project management integrated teams. This is in evidence throughout the life-cycle, but particularly at this stage. The work of the project must be integrated, the work of the design, execution and commissioning teams must be integrated, the work of project team and client must be integrated. Chapter 25: Project close-out: The work of the project is brought to a timely and efficient conclusion. The product is tested and commissioned, and handed to the operations team, who must be trained in its use, and operational and logistical procedures must be put in place. The client ensures they receive the benefit required to repay the project finance, and the contractor obtains sign off from the client and receives final payment. The project team is disbanded, and debriefed. The project performance is audited, and lessons learnt for future projects.

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Part 4: Portfolio

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Few projects take place as an isolated, stand-alone project. They are part of a larger portfolio in one form or another. Part 4 considers the several different forms of portfolio the project can exist in. We start with complex infrastructure projects, which have many of the features of programs. We then consider program management and portfolio management, and how programs and portfolios link projects to corporate strategy. We consider the nature of the project-oriented organization, and the governance of project © Copyrighted Material

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management. Finally, we consider the PM Office, where P can stand for project, program or portfolio, and its role in the coordination of different constellations of projects. Chapter 26: Complex projects: Chapter 26 describes the management of complex projects. First it introduces the practitioner view of what constitutes complexity, identifying six elements of complexity. Then it describes the academic view, with two dimensions of complexity, the complicatedness of the technology and the complexity of the social system. That leads to four management styles, ranging from the routine management of the simple to the dynamic management of the complex. Chapter 27: Managing programs of projects: Often an organization will undertake an extended program of change, beyond the scope of a single project. They need to undertake several related projects to achieve their overall change objectives. To achieve the best results the organization should manage those projects as an integrated program. The projects in a program contribute to a common, shared objective, or outcome. Chapter 28: Managing portfolios of projects: Often an organization will be undertaking a portfolio of projects with unrelated objectives, but which need to draw on a common pool of resources (labour, money and information). To achieve the best results the organization should manage the portfolio in a coordinated way, prioritizing resources and coordinating interfaces between the projects. A portfolio of projects shares common inputs. Chapter 29: Managing the project-oriented organization: The project-oriented organization is one undertaking several portfolios or programs of projects. Chapter 29 describes the management of the project-oriented organization, including the management of human resources in such an organization. Chapter 30: The governance of projects and project management: The organizations at all levels of this cascade, project, program, portfolio and project-oriented organization, whether temporary (project and program), or permanent (portfolio and project-oriented organization), require governance. Chapter 30 outlines the governance of project management, including the institutions of the governance of projects and how to link corporate governance to project governance. Chapter 31: The project management office: Many organizations have a project or program office to ister the systems either for individual large projects, or all the projects in programs or portfolios they are undertaking.

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Part 5: Perspectives

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I end with two chapters looking at the history of project management and what we can learn from it. Chapter 32: The common story of great projects: Chapter 32 describes research into the management of great projects, projects that were very successful, suring all expectations and having a significant impact on industry and markets. Through the study of these projects, we can identify seven common contributors to their phenomenal success. Chapter 33: Project history: Chapter 33 gives another view of project history. There are many memes of project management, beliefs about what constitutes good project management which remain untested and unproven; where these memes came from, we can begin to challenge them, and understand project management better. We consider the example of the Manhattan project to develop the first nuclear bomb, a successful © Copyrighted Material

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project of which the management violated many of the currently held beliefs of project management. A study of the history of project management can help us understand our discipline, how it developed and perhaps challenge some deeply held beliefs.

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Other Project Management Knowledge Areas

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In compiling the book, choices had to be made about what was to be included. I have decided to leave out the parts relating to people, commercial and contractual issues. People might say these three issues are important. Projects cannot happen without people, finance and contracts. That is true, but I think they constitute books in their own right. This book is the core management of projects. Gower is producing a Gower Handbook of People In Project Management, giving a much wider view than my earlier book (Turner, 2003a), and with time we may see a Gower handbook covering the commercial and contractual issues. For completeness of this overview of the project management body of knowledge, I include brief descriptions of these areas. They are summarized in Table 1.1.

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Requirements management

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IPMA ICB3 IPMA, 2006

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Measuring performance Benefits realization management

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Success and maturity Strategy

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What is a project What is project management Projects and strategic planning Project success

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Project orientation

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Project management success

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Project requirements and objectives

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Implementing strategy through projects 4 The value of project management 5 Maturity models in project management 6 Auditing projects and programs Performance

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Project management

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Gower Handbook of Project Management 5th edition, Chapter 1 Introduction Projects

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Table 1.1 The structure of this book and its relationship to the project management bodies of knowledge of leading professional institutions

Success and maturity

3.6.2

Reviews

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Business case

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Business case Benefits management Requirements management Solutions development

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Organizational influences

4.1 5.2

Develop charter Collect requirements

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P3 assurance Reviews Organization

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Managing for stakeholders

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Stakeholder management

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Time scheduling Budgeting, cost control Resource scheduling

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Managing the schedule Managing cost and earned value Managing resources

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Managing risk

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Project quality management Project human resource management Project stakeholders Project stakeholder management Project time management Project cost management Estimate activity resources Project human resource management Project risk management

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International projects Sustainable development

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Managing value Managing quality

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Scope and deliverables Changes Results orientation

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Scope management Change control Configuration management

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Managing scope and configuration

Quality

Project organization

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Interested parties

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Time and phases Cost and finance Resources

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1.04

Risk and opportunity

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Health, safety, security and the environment

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Environment Sustainability

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Risk context Risk techniques

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Process Managing the process

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Project start-up

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Feasibility, design and planning

Life-cycle

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3.1.5

Planning

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3.1.5 3.7.3 3.7.4

Planning Mobilization Provider selection

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Organizational process assets The project lifecycle Project management processes Develop project charter Develop project management plan Develop project management plan

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Project close-out

3.1.2 3.2.2

Control Change control

4.2 4.3

Direct and manage project work Monitor and control project work Close project or phase

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1.20

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Managing the project-oriented organization The governance of projects and project management

3.03

Program orientation Portfolio orientation

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The common story of great projects Project history

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Perspectives 32

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Program management Portfolio management

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Program management Portfolio management

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Control and reports

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Project management may be viewed as a systems science or a social science. I believe it is more social science than systems science, but in most of what appears above you may have gained the impression that it is more systems science. The people issues are about the social science, managing the needs of all the people involved in the project. I have decided to leave this out and it will be the subject of a separate book, expanding on my earlier book (Turner, 2003a). People in project management may cover the following issues: Managing human resources in the project-based organization: Projects are unique, novel and transient, and hence standard Human Resource Management concepts do not apply to project-based firms. Every project requires a new structure, and every time a new project is created the human resource configuration of the parent organization changes. Thus, some of the core concepts of HRM need rethinking. There are three core concepts of HRM theory in particular which need novel approaches in a project organization. These are the selection of people to work for the organization, the management of their careers and their and the organization’s learning and development. There are also three new processes required: the assignment of people to projects, their development on projects and their dispersement after projects have been completed. Developing project management competence of individuals: To undertake its projects, an organization needs competent individuals. It needs to develop people competent in the technology of the project and people competent in the management of projects. © Copyrighted Material

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Developing enterprise-wide project management capability: The organization also needs to be competent itself in the technology used and in the management of projects, and so needs to develop enterprise project management capability. The competence of the people is a component of this, but there are also other things the organization can do to develop its capability and to innovate in the processes it uses. These include the use of procedures, reviews and benchmarking, knowledge management and the development of a project management community. Managing teams: Project teams are formed to undertake a unique and novel task, and are transient in their existence. The team needs to be formed and raised to peak performance. This is part of the mobilization process. Achieving peak team performance is critical to project success. The team needs to be composed of a balanced set of individuals with complementary strengths and weaknesses. The team also needs to be properly disbanded at the end of the project so that its can look forward to their future work, and they need to be properly debriefed so that the organization can learn from their experiences. Leadership: Volumes have been written on the elusive quality of leadership, and volumes devoted to the question of whether leaders are born or made. My view is that the majority of people are born with inherent leadership skills, and they can learn to develop these. Understanding the skills and styles of good leadership can improve the performance of a project manager in leading the team and motivating the individuals in the team to great things. One of the most important skills of a good leader is to be able to communicate the vision for the project, and the process of achieving that vision. Managing communication: Communication between the project manager and the client, between the client and the project manager and between both and the other stakeholders is essential for maintaining cohesion of the project team. The client in particular wants to be comfortable about project progress and to trust the project manager. The right type of communication from the project manager is essential to maintain that comfort and trust. But in order for the client to be able to trust the project manager, the latter must know what the client wants and needs, and so communication in the opposite direction is also essential. Communication with all the stakeholders is essential for keeping them committed and resolving conflict. Managing conflict, persuasion and negotiation: Conflict often arises on projects, either because people have differences of opinion about the expected project outcomes, or because some people misunderstand or fear the expected outcomes, or because there are personality clashes. Unresolved conflict can be damaging to the project’s performance and so must be managed. If people fear or misunderstand the expected project outcomes, then if they are properly explained they may be persuaded to accept them. Managing culture: The team is composed of many individuals, with different backgrounds. International teams are now common, and the project manager and team need to be aware of cultural differences. However, there is a view that the cultural differences between different professions can be greater than that between nations. Hence even people working within a single country need to be aware of difference that can arise from a person’s professional, religious, class, educational, gender, age and other backgrounds. Managing health and safety: In all working environments, the safety and health of people doing the work must be of paramount concern to managers, mainly for moral reasons. However, a safe working environment usually results in more cost effective © Copyrighted Material

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outcomes. Since some managers do not seem to behave ethically towards their employees, this area is now also tightly controlled by law. Ethics: Several times I have said people should behave morally, especially with regard to health, safety and the environment. So often the law has to intervene. Experience shows that even though many people think the moral road is the more expensive road, it often leads to greater rewards, and on earth, not just in heaven. The ethical approach usually leads to the greater good for everyone, and people respect that and respond in like fashion.

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On anything but the smallest projects, the sponsor will not have the necessary resources in-house to undertake the project. Hence, it is almost always necessary to buy in external goods and services. On a project there is an essential difference between the procurement of a service, such as works or labour, which is used over an extended period of time, and the procurement of goods and materials, which are delivered at an instant in time. The term ‘procurement’ tends to be used for the latter and ‘project contract management’ for the former, even though both involve procurement and contracts. These issues were covered by my book (Turner, 2003b). Project contract management: The client must develop a contract strategy, deciding the best form of contract from several available to appropriately motivate the contractor and govern the relationship between them. They must choose an appropriate contractor to do the work and govern the relationship with the contractor. Contractors must bid for work and ister the relationship with the client. Both the client and contractor need ways of managing variations, to minimise claims arising, and to try to prevent claims becoming disputes. Procurement: The word ‘procurement’ strictly applies to the purchasing of all goods and services, but in projects it does tend to be limited to the procurement of goods and materials. Similar processes apply as applied to the selection of contractors as described above, but at a more detailed level. Contract law: In most countries the law of contract involves concepts of offer, acceptance, consideration, functions, validity, mistakes, and conditions, termination and remedies.

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There are several commercial and financial issues relating to the way the project is financed. Project appraisal: The value for the project must be appraised, by comparing projected cash inflows (revenues and savings) to expected cash outflows (costs) using investment appraisal techniques. Finance: Finance must be raised from any of a number of sources. The simplest is to obtain money from the parent organization. Alternatively, money can be obtained from other equity shareholders, or as loans from banks. There are also a number of specialist sources of finance. The costs and benefits of different sources of finance must be compared, and a financial package produced for the project. © Copyrighted Material

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Taxation: Even rich people have to pay their taxes. It is important to understand the tax laws of the country. What counts as capital expenditure and what as revenue? What tax exemptions and grants are available? How can capital exemptions be worked to the best advantage? How can expenditure be phased to best tax advantage? Insurance: The sponsor’s investment needs to be protected against unexpected loss. Some risks are insurable, such as fire, civil strife, transport losses. Severe weather can be insured, but not inclement weather. Projects may be insured with insurance companies. However, there are also ways of insuring the projects, such as setting aside a contingency in the budget, or buying currency futures. That is related to risk management.

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General Management Knowledge Areas

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Most versions of the project management body of knowledge also deal with some of the general management skills required by project managers. Some of these are directly related to knowledge topics above, the knowledge topics above just being their interpretation in the unique, novel and transient context of projects or project-based organizations. The general management issues are also summarized in Table 1.2.

Other areas of knowledge relevant to project management not covered in this book PMI Guide to the PMBOK

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People 4.3

Human resource management

9.1

Human resource planning

Developing people

2.1.3 2.2.2 2.2.4

Delegation Competence Learning and development

1.7.1 9.3

Responsibilities and competencies of the project manager Develop project team

Enterprise PM capability

1.1.5 2.2.1

2.3 9.4

Project team Manage project team

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Teamwork

2.1.3 2.1.5

Delegation Leadership

2.1.1 3.1.3

Communication Information management

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Managing communication

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Managing teams Leadership

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Table 1.2

2.1.2 10

Organizational communications Project communications management

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Personnel management

1.07

Teamwork

2.01 2.02

Leadership Engagement and motivation

1.18

Communication

Gower Handbook of Project Management © Copyrighted Material 2.1.2 2.1.6 2.1.4

Conflict management Negotiation Influencing

Managing culture

1.7.2

Interpersonal skills of a project manager

2.10 2.11 2.12

Consultation Negotiation Conflict and crisis

2.1.1

Organizational cultures and styles

2.06 2.14

Openness Values appreciation

4.2

Health and safety

Ethics

2.2.3

Ethics frameworks

Contractual Contracts

3.7.1

Contracts

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Procurement

3.7.3

Procurement

12

Legal Commercial Appraisal

4.4

Law

3.1.1 3.4.3

Finance Taxation Insurance General management areas Organizational behavior and Human resource management Operations

3.4.2

Business case Investment appraisal Funding

3.09 Health, safety, security and the environment

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Managing conflict, negotiation, politics

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1.14

Procurement and contract

1.14

Procurement and contract

3.11

Legal

3.10

Finance

2.03 2.04 2.05 2.09 2.13 3.05

Self-control Assertiveness Relaxation Efficiency Reliability Permanent organization

1.08

Problem resolution Creativity Systems, products, technology

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Organizational structures Human resource management

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3.2.4

Operations Organizational process assets ing

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Operations and project management

Information management Change management

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Project procurement management Project procurement management

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ing and finance Markets Information technology Innovation and change

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Governance Strategy

Ethics

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2.15

1.2.3

Strategy

1.5.2

Organizations and project management

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Organizational behaviour and Human Resource Management: Elements of organization behaviour include: work and organizational design; organizational learning; leadership; team development; individual empowerment and motivation. Elements of human resource management include: assignment, appraisal, reward, development, dispersal, and conditions of employment and industrial relations. Marketing and Customers: Marketing is the process by which an organization identifies its customers the products they want to buy, and how to influence their buying habits. There are ways of identifying the marketing mix (the four P’s: product, price, promotion and place of sale), and the product portfolio, and making improvements to both. Marketing is significant to projects in two ways. The project-based firm, selling bespoke products and services, needs to identify its customers and the products and services they want to buy, like anyone else. In routine organizations, the marketing process will lead to the identification of new products, technologies or organizational structures needed to service the market, and the implementation of those changes is undertaken through projects (or at least it ought to be). Operations: Above we have identified the processes required to manage projects. Organizations also need to define the processes required to manage their routine operations. Information Technology: I talked above about identifying the information management needs of projects. Organizations need to identify the information needs of all their business processes across all areas of management and all functions. ing and finance: Organizations must manage the cash. Firms in the private sector need to generate cash to operate and to grow, and they need to make profits to provide returns to shareholders. Organizations in the public and voluntary sectors need to ensure that they do not over-spend their budgets, and ensure that they get value for money. That will not happen by accident; it must be planned and controlled. Innovation, technology and change: Technology may be viewed as part of operations and innovation part of marketing. I have included this separately, because I see operations as being about defining the business processes. The knowledge of the technology that adds value for the organization is a key part of its competitive advantage, and so that knowledge, that technology, should be managed carefully, and separately from routine operations. Innovation and change are essential to maintain competitive advantage. Innovation usually refers to improvements in the products and technology of the organizations, and change to improvements in the process and effectiveness of the organization. Governance: Absolutely nothing happens in an organization without governance. In a narrow sense governance (in the private sector) is the legally defined roles of directors and the company secretary. In a wider sense governance is the process by which the organization defines its objectives, and the means of obtaining those objectives and the means of monitoring performance. It is strategic planning and implementation through projects, and it is leadership (communicating the vision, communicating the process). Strategy: At the end we are back where we started. Projects are undertaken to help organizations deliver their strategic plans. The strategic planning process is essential for the survival of organizations, and it is the strategic planning process that generates projects. There is not one without the other, and there is no organization without either.

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References and Further Reading

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Association for Project Management, 2008, APM Competence Framework, High Wycombe, UK: Association for Project Management. Association for Project Management, 2012, APM Body of Knowledge, 6th edition, High Wycombe, UK: Association for Project Management. Australian Institute of Project Management, 2004, National Competency Standards for Project Management, Hawthorn, VA, AU: Innovation and Business Skills Australia. Crawford, L.H., 2003, Assessing and developing the project management competence of individuals, in Turner, J.R., (ed.) People in Project Management, Aldershott, UK: Gower. Engineering Construction Industry Training Board, 2003, National Occupational Standards for Project Management, Kings Langley, Herts, UK: Engineering Construction Industry Training Board. International Project Management Association, 2006, ICB3: IPMA Competence Baseline, 3rd edition, Zurich, CH: International Project Management Association. International Standards Organization, 2012, ISO 21500, Guidance on Project Management, Geneva: International Standards Organization. Project Management Institute, 2013, A Guide to the Project Management Body of Knowledge, 5th edition, Newtown Square, PA: Project Management Institute. Turner, J.R., (ed.) 2003a, People in Project Management, Aldershott, UK: Gower. Turner, J.R., (ed.) 2003b, Contracting for Project Management, Aldershott, UK: Gower.

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