Definition and Characteristics of Project

Project is a great opportunity for organizations and individuals to achieve their business and non-
business objectives more efficiently through implementing change. Projects help us make desired
changes in an organized manner and with reduced probability of failure.

A Project is a temporary, unique and progressive attempt or endeavor made to produce some
kind of a tangible or intangible result (a unique product, service, benefit, competitive advantage,
etc.). It usually includes a series of interrelated tasks that are planned for execution over a fixed
period of time and within certain requirements and limitations such as cost, quality, performance,
others.

Projects differ from other types of work (e.g. process, task, procedure). Meanwhile, in the
broadest sense a project is defined as a specific, finite activity that produces an observable and
measurable result under certain preset requirements.

Projects differ from other types of work (e.g. process, task, procedure). Meanwhile, in the
broadest sense a project is defined as a specific, finite activity that produces an observable and
measurable result under certain preset requirements.

Characteristics of a Project

(a) Project has a owner, who, in the private sector, can be an individual or a company etc., in the
public sector, a government undertaking or a joint sector organization, representing a partnership
between public and private sector.

(b) Project has a set objective to achieve within a distinct time, cost and technical performance.

(c) Project is planned, managed and controlled by an assigned team the project team planted
within the owner’s organization to achieve the objectives as per specifications.

(d) Project, in general, is an outcome in response to environments economies and opportunities.

As an example, we find that considering the changing pattern of modern living the domestic
appliances small e.g. grinders, mixers etc., and large, e.g. refrigerators, washing machines etc.
are on ever-increasing demand. This generates responses to avail opportunity to produce such
appliances.

(e) Project is an undertaking involving future activities for completion of the project within
estimates and involves complex budgeting procedure with a mission.

(f) Implementation of the project involves a co-ordination of works/supervisions by project

team/manager.
(g) Project involves activities to be carried out in future. As such, it has some inherent risk and,
in reality, the process of implementation may necessitate certain changes in the plan subject to
limitations and concurrence of the project owner.

(h) Project involves high-skilled forecasting with sound basis for such forecasting.

(i) Projects have a start and an end a characteristic of a life cycle. The organization of project
changes as it passes through this cycle the activities starting from—conception stage, mounting
up to the peak during implementation and, then, back to zero level on completion and delivery of
the project.

Types of Project
1. Construction Projects

The project produces an artifact. The value generated by the project is embedded in the artifact.
The artifacts may be a complex system with human and mechanical components.

Examples:

 Warship
 Jubilee line extension
 Millennium dome
 Customer call centre
 Method guidebook
 IT system

2. Research Projects

The project produces knowledge. The knowledge may be formally represented as models,
patterns or patents. Or the knowledge may be embedded in a working process or artifact.

Examples:

 Business modelling
 Developing a model of the UK economy
 Developing a new species of wheat
 Developing novel approaches to project management.
 Military intelligence/ codebreaking.
 The analysis, testing, QA or evaluation portions of a larger project.
 3. Reengineering Projects

The project produces a desired change in some system or process.

Examples:

 Taking sterling into the Euro

 Renumbering the UK telephone system
 Implementing PRINCE project management practices into a large organization.
 Designing and installing an Intranet.

4. Procurement Projects

The project produces a business relationship contractually based with a selected supplier for a
defined product or service based on a fixed specification and/or a defined specification process

Examples:

 Outsourcing a specific construction or research project

 Outsourcing a complete business function (such as IT).
 Imposing new rules and measures on a regulated industry.

5. Business Implementation Projects

The project produces an operationally effective process. The value generated by the project is
embedded in the process.

 Developing a new business process to repackage and exploit existing assets.

 Installing e-commerce

Some projects are difficult to classify under this scheme.

(i) National symbolic programmes

 Putting a man on the moon by the end of the decade

 Mitterand’s Grandes Projects
 New Labour

(ii) Large medical programmes

 Creating an artificial heart

 Mass inoculation programmes

(iii) Other hybrid or interdisciplinary projects

 Pilot projects
  Moving offices

Characteristics of Project Team

On this type of team, there is usually a strong trust bond, people work cooperatively together to
reach the common project goals, and often the project is even more successful than the project
manager and customer could have imagined.

These types of teams generally have some key characteristics in common that help make them
the effective, high-performing teams that they are.

Clearly defined goals

Clearly defined goals are essential so that everyone understands the purpose and vision of the
team. It’s surprising to learn sometimes how many people do not know the reason they are doing
the tasks that make up their jobs, much less what their team is doing. Everyone must be pulling
in the same direction and be aware of the end goals. Clear goals help team members understand
where the team is going. Clear goals help a team know when it has been successful by defining
exactly what the team is doing and what it wants to accomplish. This makes it easier for
members to work together – and more likely to be successful.

Clear goals create ownership. Team members are more likely to “own” goals and work toward
them if they have been involved in establishing them as a team. In addition, ownership is longer
lasting if members perceive that other team members support the same efforts. Clear goals foster
team unity, whereas unclear goals foster confusion – or sometimes individualism. If team
members don’t agree on the meaning of the team goals, they will work alone to accomplish their
individual interpretations of the goals. They may also protect their own goals, even at the
expense of the team.

Clearly defined roles

If the team’s roles are clearly defined, all team members know what their jobs are, but defining
roles goes beyond that. It means that we recognize individuals’ talent and tap into the expertise
of each member – both job-related and innate skills each person brings to the team, such as
organization, creative, or team-building skills. Clearly defined roles help team members
understand why they are on a team. When the members experience conflict, it may be related to
their roles. Team members often can manage this conflict by identifying, clarifying, and agreeing
on their individual responsibilities so that they all gain a clear understanding of how they will
accomplish the team’s goals. Once team members are comfortable with their primary roles on
the team, they can identify the roles they play during team meetings. There are two kinds of roles
that are essential in team meetings.

Open and clear communication

The importance of open and clear communication cannot be stressed enough. This is probably
the most important characteristic for high-performance teams. Many different problems that arise
on projects can often be can be traced back to poor communication or lack of communication
skills, such as listening well or providing constructive feedback. Enough books have been
written about communication to fill a library. And I’ve personally written several articles on this
subject alone for this site over the past few months.

Excellent communication is the key to keeping a team informed, focused, and moving forward.
Team members must feel free to express their thoughts and opinions at any time. Yet, even as
they are expressing themselves, they must make certain they are doing so in a clear and concise
manner. Unfortunately, most of us are not very good listeners. Most of us could improve our
communication if we just started to listen better—to listen with an open mind, to hear the entire
message before forming conclusions, and to work toward a mutual understanding with the
speaker.

Effective decision making

Decision making is effective when the team is aware of and uses many methods to arrive at
decisions. A consensus is often touted as the best way to make decisions—and it is an excellent
method and probably not used often enough. But the team should also use majority rule, expert
decision, authority rule with discussion, and other methods. The team members should discuss
the method they want to use and should use tools to assist them, such as force-field analysis,
pair-wise ranking matrices, or some of the multi-voting techniques.

Effective decision making is essential to a team’s progress; ideally, teams that are asked to solve
problems should also have the power and authority to implement solutions. They must have a
grasp of various decision-making methods, their advantages and disadvantages, and when and
how to use each. Teams that choose the right decision-making methods at the right time will not
only save time, but they will also most often make the best decisions. This completes the four
basic foundation characteristics: clear goals, defined roles, open and clear communication, and
effective decision making.

Balanced participation

If communication is the most important team characteristic, participation is the second most
important. Without participation, you don’t have a team; you have a group of bodies. Balanced
participation ensures that everyone on the team is fully involved. It does not mean that if you
have five people each is speaking 20 percent of the time. Talking is not necessarily a measure of
participation. We all know people who talk a lot and say nothing. It does mean that each
individual is contributing when it’s appropriate. The more a team involves all of its members in
its activities, the more likely that team is to experience a high level of commitment and synergy.

Leader’s behavior

A leader’s behavior comes as much from attitude as from anything. Leaders who are effective in
obtaining participation see their roles as being a coach and mentor, not the expert in the situation.
Leaders will get more participation from team members if they can admit to needing help, not
power. Leaders should also specify the kind of participation they want right from the start.

Participants’ expectations

Participants must volunteer information willingly rather than force someone to drag it out of
them. They should encourage others’ participation as well by asking a question of others,
especially those who have been quiet for a while.

Participants can assist the leader by suggesting techniques that encourage everyone to speak, for
example, a round robin. To conduct a round robin, someone directs all members to state their
opinions or ideas about the topic under discussion. Members go around the group, in order, and
one person at a time says what’s on his or her mind. During this time, no one else in the group
can disagree, ask questions, or discuss how the idea might work or not work, be good or not
good.

Only after everyone has had an opportunity to hear others and to be heard him- or herself, a
discussion occurs. This discussion may focus on pros and cons, on clarifying, on similarities and
differences, or on trying to reach consensus.

Valued diversity

Valued diversity is at the heart of building a team. Thus, the box is at the center of the model. It
means, put simply, that team members are valued for the unique contributions that they bring to
the team.

Diversity goes far beyond gender and race. It also includes how people think, what experience
they bring, and their styles. The diversity of thinking, ideas, methods, experiences, and opinions
helps to create a high-performing team.

Managed Conflict

Conflict is essential to a team’s creativity and productivity. Because most people dislike conflict,
they often assume that effective teams do not have it. In fact, both effective and ineffective teams
experience conflict. The difference is that effective teams manage it constructively. In fact,
effective teams see conflict as positive.

Managed conflict ensures that problems are not swept under the rug. It means that the team has
discussed members’ points of view about an issue and has come to see well-managed conflict as
a healthy way to bring out new ideas and to solve whatever seems to be unsolvable. Here are
some benefits of healthy conflict:

 Conflict forces a team to find productive ways to communicate differences, seek common
goals, and gain consensus;
 Conflict encourages a team to look at all points of view, then adopt the best ideas from
each;
  Conflict increases creativity by forcing the team to look beyond current assumptions and
parameters.

Positive team atmosphere

To be truly successful, a team must have a climate of trust and openness, that is, a positive
atmosphere. A positive atmosphere indicates that members of the team are committed and
involved. It means that people are comfortable enough with one another to be creative, take risks,
and make mistakes. It also means that you may hear plenty of laughter, and research shows that
people who are enjoying themselves are more productive than those who dislike what they are
doing.

Cooperative relationships

Directly related to having a positive atmosphere are cooperative relationships. Team members
know that they need one another’s skills, knowledge, and expertise to produce something
together that they could not do as well alone. There is a sense of belonging and a willingness to
make things work for the good of the whole team. The atmosphere is informal, comfortable, and
relaxed. Team members are allowed to be themselves. They are involved and interested.

Cooperative relationships are the hallmark of top-performing teams. These top teams
demonstrate not only cooperative relationships between team members but also cooperative
working relationships elsewhere in the organization.

Participative Leadership

The participative leadership block is not at the top of the model because it is the most important.

It is at the top because it is the only block that can be removed without disturbing the rest.

Participative leadership means that leaders share the responsibility and the glory, are supportive
and fair, create a climate of trust and openness, and are good coaches and teachers.

In general, it means that leaders are good role models and that the leadership shifts at various
times.

In the most productive teams, it is difficult to identify a leader during a casual observation.

In conclusion, a high-performing team can accomplish more together than all the individuals can
apart.
Key Project Management Process (PMBOK)
Project Management Process Groups

PMBOK officially recognizes 47 typical project management processes, which can be organized
into five main process groups, collectively known as IPECC.

 Initiating Group: Includes processes such as developing the project charter, identifying
stakeholders, and controlling stakeholder engagement.
 Planning Group: Everything having to do with planning, such as determining the
budget, creating the WBS, and defining scope.
 Executing Group: Processes involved with executing the project plan, including
managing communications, conducting procurements, and managing the project team.
 Controlling Group: Processes that track and oversee progress, including those that
control scope, cost, and quality.
 Closing Group: Everything necessary to complete a project, such as closing a project
phase or closing procurements.

The 10 Project Management Knowledge Areas

Those project management processes can also be organized into ten knowledge areas:

1. Project Communication Management

Processes that disseminate information among team members and external stakeholders,
ensuring that information is exchanged continuously, and more importantly, understood by all
concerned.

2. Project Cost Management

Processes regarding budgets, funding, spending allocation, and timing. Cost management is
dependent on activity estimates from time management.

3. Project Human Resources Management

Processes involving managing your project team, like sourcing, hiring, assigning roles,
professional development, and fostering team spirit.

4. Project Integration Management

Processes necessary to define, consolidate, and coordinate all the other processes and project
management activities. These processes are key to setting expectations and keeping
communication lines open.

5. Project Procurement Management

Processes for planning, budgeting, and purchasing resources — whether physical or
informational — in order to complete work.

6. Project Quality Management

Processes that define the success of a project or criteria for considering the project complete.
Quality is managed at every stage of the project from planning to the continuous performance
improvement.

7. Project Risk Management

Processes involved with preparing for and managing unexpected risks.

8. Project Scope Management

Processes managing the scope or parameters of a project. These processes ensure that the scope
is well-defined and that all requirements remain within the scope limits.

9. Project Stakeholder Management

Processes involved with identifying who will be impacted by the project and managing
relationships with them, including strategies for collaborating with stakeholders on project
direction and execution.

10. Project Time Management

Processes needed to ensure the project is completed before the specified deadline.

Tools and Techniques of Project

Management
20 Feb 201918 Feb 2020

Techniques in project management range from traditional to innovative ones. Which one to
choose for running a project, depends on project specifics, its complexity, teams involved, and
other factors. Most of them can be used in various fields, however, there are techniques that are
traditionally used in certain areas of activity, or are developed specifically for certain fields.
Below, we’ve listed the most popular techniques that are used in project management.

Classic Technique

The simplest, traditional technique is sometimes the most appropriate for running projects. It
includes preparing a plan of upcoming work, estimating tasks to perform, allocating resources,
providing and getting feedback from the team, and monitoring quality and deadlines.
Where to use: this technique is ideal for running projects performed by small teams, when it’s
not really necessary to implement a complex process.

Waterfall Technique

This technique is also considered traditional, but it takes the simple classic approach to the new
level. As its name suggests, the technique is based on the sequential performance of tasks. The
next step starts when the previous one is accomplished. To monitor progress and performed
steps, Gantt charts are often used, as they provide a clear visual representation of phases and
dependencies.

Where to use: this technique is traditionally used for complex projects where detailed phasing is
required and successful delivery depends on rigid work structuring.

Agile Project Management

Agile project management method is a set of principles based on the value-centered approach. It
prescribes dividing project work into short sprints, using adaptive planning and continual
improvement, and fostering teams’ self-organization and collaboration targeted to producing
maximum value. Agile frameworks include such techniques as Scrum, Kanban, DSDM, FDD,
etc.

Where to use: Agile is used in software development projects that involve frequent iterations and
are performed by small and highly collaborative teams.

Rational Unified Process

Rational Unified Process (RUP) is a framework designed for software development teams and
projects. It prescribes implementing an iterative development process, where feedback from
product users is taken into account for planning future development phases.

Where to use: RUP technique is applied in software development projects, where end user
satisfaction is the key requirement.

Program Evaluation and Review Technique

Program Evaluation and Review Technique (PERT) is one of widely used approaches in various
areas. It involves complex and detailed planning, and visual tracking of work results on PERT
charts. Its core part is the analysis of tasks performed within the project. Originally, this
technique was developed by the US Navy during the Cold War to increase efficiency of work on
new technologies.
Where to use: this technique suits best for large and long-term projects with non-routine tasks
and challenging requirements.

Critical Path Technique

Actually, this technique is an algorithm for scheduling and planning project works that is often
used in conjunction with the PERT method discussed above. This technique involves detecting
the longest path (sequence of tasks) from the beginning to the end of a project, and defining the
critical tasks. Critical are tasks that influence the deadlines of the entire project, and require
closer attention and thorough control.

Where to use: Critical Path technique is used for complex projects where delivery terms and
deadlines are critical, in such areas as construction, defense, software development, and others.

Critical Chain Technique

Critical Chain is a more innovative technique that derives from PERT and Critical Path methods.
It is less focused on rigid task order and scheduling, and prescribes more flexibility in resource
allocation and more attention to how time is used. This technique emphasizes prioritization,
dependencies analysis, and optimization of time expenses.

Where to use: like the previous two techniques, it is used in complex projects. As it is focused on
time optimization and wise resource allocation, it suits best for projects where resources are
limited.

Extreme Project Management

Extreme project management technique (XPM) emphasizes elasticity in planning, open

approach, and reduction of formalism and deterministic management. Deriving from extreme
programming methods, it is focused on human factor in project management rather than on
formal methods and rigid phases.

Where to use: XPM is used for large, complex and uncertain projects where managing uncertain
and unpredictable factors is required.

Project Management Tools

When applying any of the techniques to the project you need to accomplish, you also need to use
specific tools for successfully implementing the technique. Here’s a list of software tools that are
used in project management on different work steps.
Organizing Workflow & Planning

This step is the core part of starting a project: it defines how the project will be performed, and
how the quality of its outcome will be ensured. Large companies often use such comprehensive
solutions as MS Project. For smaller teams, various alternatives are available. They don’t provide
all the rich functionality typical to complex and expensive tools, but they have planning and
roadmap features that are sufficient for visualizing future project progress.

Communication

Being the key point in many techniques and methodologies, communication within a project
team needs to be properly organized. While using email for formal communication and important
messages, it’s also essential to have a corporate messenger – Slack and Skype are the most
popular ones. And, if your team members use different tools to communicate, eliminate the pain
of having multiple messengers by integrating them.

Scheduling

When allocating resources and planning for future, it’s crucial to know who on the team is
available for specific dates. Use scheduling software for that! Such tools as actiPLANS provide a
clear visual chart of absences for upcoming dates, and allow to see all necessary details to team
members’ leaves and time off.

Time management

Knowing where your team’s time goes not just helps managing current project risks. It also
provides valuable information for future planning and estimating. Time management tools, such
as actiTIME, help managers understand both individual time expenses and team’s results for any
period. Informative reports with time & cost summaries and notes to the logged time provide
insights into how time is used and what can be optimized.

Finance & Accounting

For any project manager and business owner, understanding financial outcome of the projects is
crucial for analysis and future planning. Most used accounting tools – QuickBooks, Zoho,
Freshbooks – help collect this information. For smaller project teams, other accounting
solutions can be reasonable. They require less investment, but also provide insights on project
profitability, teams’ performance, and estimation accuracy.

Project Life Cycle

The project life cycle describes the stages a project goes through as it progresses from start to
finish. A well-defined life cycle brings order and structure to the project.
The Project Life Cycle refers to the four-step process that is followed by nearly all project
managers when moving through stages of project completion. This is the standard project life
cycle most people are familiar with. The Project Life Cycle provides a framework for managing
any type of project within a business. Leaders in project management have conducted research to
determine the best process by which to run projects. It has been found that following a project
life cycle is critical for any services organization.

The Project Life Cycle (Phases)

The project manager and project team have one shared goal: to carry out the work of the project
for the purpose of meeting the project’s objectives. Every project has a beginning, a middle
period during which activities move the project toward completion, and an ending (either
successful or unsuccessful). A standard project typically has the following four major phases
(each with its own agenda of tasks and issues): initiation, planning, implementation, and closure.
Taken together, these phases represent the path a project takes from the beginning to its end and
are generally referred to as the project “life cycle.”

1. Initiation Phase

During the first of these phases, the initiation phase, the project objective or need is identified;
this can be a business problem or opportunity. An appropriate response to the need is
documented in a business case with recommended solution options. A feasibility study is
conducted to investigate whether each option addresses the project objective and a final
recommended solution is determined. Issues of feasibility (“can we do the project?”) and
justification (“should we do the project?”) are addressed.

Once the recommended solution is approved, a project is initiated to deliver the approved
solution and a project manager is appointed. The major deliverables and the participating work
groups are identified, and the project team begins to take shape. Approval is then sought by the
project manager to move onto the detailed planning phase.

2. Planning Phase

The next phase, the planning phase, is where the project solution is further developed in as much
detail as possible and the steps necessary to meet the project’s objective are planned. In this step,
the team identifies all of the work to be done. The project’s tasks and resource requirements are
identified, along with the strategy for producing them. This is also referred to as “scope
management.” A project plan is created outlining the activities, tasks, dependencies, and
timeframes. The project manager coordinates the preparation of a project budget by providing
cost estimates for the labor, equipment, and materials costs. The budget is used to monitor and
control cost expenditures during project implementation.

Once the project team has identified the work, prepared the schedule, and estimated the costs, the
three fundamental components of the planning process are complete. This is an excellent time to
identify and try to deal with anything that might pose a threat to the successful completion of the
project. This is called risk management. In risk management, “high-threat” potential problems
are identified along with the action that is to be taken on each high-threat potential problem,
either to reduce the probability that the problem will occur or to reduce the impact on the project
if it does occur. This is also a good time to identify all project stakeholders and establish a
communication plan describing the information needed and the delivery method to be used to
keep the stakeholders informed.

Finally, we will want to document a quality plan, providing quality targets, assurance, and
control measures, along with an acceptance plan, listing the criteria to be met to gain customer
acceptance. At this point, the project would have been planned in detail and is ready to be
executed.

3. Implementation (Execution) Phase

During the third phase, the implementation phase, the project plan is put into motion and the
work of the project is performed. It is important to maintain control and communicate as needed
during implementation. Progress is continuously monitored and appropriate adjustments are
made and recorded as variances from the original plan. In any project, a project manager spends
most of the time in this step. During project implementation, people are carrying out the tasks,
and progress information is being reported through regular team meetings. The project manager
uses this information to maintain control over the direction of the project by comparing the
progress reports with the project plan to measure the performance of the project activities and
take corrective action as needed. The first course of action should always be to bring the project
back on course (i.e., to return it to the original plan). If that cannot happen, the team should
record variations from the original plan and record and publish modifications to the plan.
Throughout this step, project sponsors and other key stakeholders should be kept informed of the
project’s status according to the agreed-on frequency and format of communication. The plan
should be updated and published on a regular basis.

Status reports should always emphasize the anticipated end point in terms of cost, schedule, and
quality of deliverables. Each project deliverable produced should be reviewed for quality and
measured against the acceptance criteria. Once all of the deliverables have been produced and
the customer has accepted the final solution, the project is ready for closure.

4. Closing Phase

During the final closure, or completion phase, the emphasis is on releasing the final deliverables
to the customer, handing over project documentation to the business, terminating supplier
contracts, releasing project resources, and communicating the closure of the project to all
stakeholders. The last remaining step is to conduct lessons-learned studies to examine what went
well and what didn’t. Through this type of analysis, the wisdom of experience is transferred back
to the project organization, which will help future project teams.

Example: Project Phases on a Large Multinational Project

A U.S. construction company won a contract to design and build the first copper mine in
northern Argentina. There was no existing infrastructure for either the mining industry or large
construction projects in this part of South America.

During the initiation phase of the project, the project manager focused on defining and finding
a project leadership team with the knowledge, skills, and experience to manage a large complex
project in a remote area of the globe. The project team set up three offices. One was in Chile,
where large mining construction project infrastructure existed. The other two were in Argentina.
One was in Buenos Aries to establish relationships and Argentinian expertise, and the second
was in Catamarca—the largest town close to the mine site. With offices in place, the project
start-up team began developing procedures for getting work done, acquiring the appropriate
permits, and developing relationships with Chilean and Argentine partners.

During the planning phase, the project team developed an integrated project schedule that
coordinated the activities of the design, procurement, and construction teams. The project
controls team also developed a detailed budget that enabled the project team to track project
expenditures against the expected expenses. The project design team built on the conceptual
design and developed detailed drawings for use by the procurement team. The procurement team
used the drawings to begin ordering equipment and materials for the construction team; develop
labor projections; refine the construction schedule; and set up the construction site. Although
planning is a never-ending process on a project, the planning phase focused on developing
sufficient details to allow various parts of the project team to coordinate their work and allow the
project management team to make priority decisions.

The implementation phase represents the work done to meet the requirements of the scope of
work and fulfill the charter. During the implementation phase, the project team accomplished the
work defined in the plan and made adjustments when the project factors changed. Equipment and
materials were delivered to the work site, labor was hired and trained, a construction site was
built, and all the construction activities, from the arrival of the first dozer to the installation of the
final light switch, were accomplished.

The closeout phase included turning over the newly constructed plant to the operations team of
the client. A punch list of a few remaining construction items was developed and those items
completed. The office in Catamarca was closed, the office in Buenos Aries archived all the
project documents, and the Chilean office was already working on the next project. The
accounting books were reconciled and closed, final reports written and distributed, and the
project manager started on a new project.

Project Organization
The project organization consists of a number of horizontal organizational units to complete
projects of a long duration.
Each project is vitally important to the organization. Therefore, a team of specialist from
different areas is created for each project.

The size of the project team varies from one project to another. The activities of a project team
are coordinated by the project manager who has the authority to obtain advice and assistance of
experts both inside and outside the organization.

The core concept of project organization is to gather a team of specialists to work on and
complete a particular project. The project staff is separate and is independent of the functional
departments. Project organization is employed in aerospace, construction, aircraft manufacture
and professional areas like management consultancy etc.

Project organization is appropriate when the enterprise is undertaking tasks that have definite
goals that are frequent and unfamiliar to the present structure, that are complex because of
interdependence of tasks and that are crucial for the success of the firm. A project team is a
temporary set up. Once the project is complete, the team is dissolved and the functional
specialists are assigned some other projects.

Merits of Project Organization

1. It provides concentrated attention that a complex project demands.

2. It permits the timely completion of the project without disturbing the normal routine of
rest of the organization.
3. It provides a logical approach to any challenge in fulfilling a large project with definite
beginning, end and clearly defined result.

Demerits of Project Organization

1. There is an organizational uncertainly as a project manager has to deal with professionals

drawn from diverse fields.
2. Organizational uncertainties may lead to interdepartmental conflicts.
3. There is a considerable fear among personnel that the completion of the project may
result in loss of job. This feeling of insecurity may create considerable worry about career
progress.

Project Planning Process

The key to a successful project is in the planning. Creating a project plan is the first thing you
should do when undertaking any project.

Project Planning Process

Step 1: Project Goals

A project is successful when it has met the needs of the stakeholders. A stakeholder is anybody
directly, or indirectly impacted by the project.

As a first step, it is important to identify the stakeholders in your project. It is not always easy to
determine the stakeholders of a project, particularly those impacted indirectly. Examples of
stakeholders are:

 The project sponsor.

 The customer who receives the deliverables.
 The users of the project output.
 The project manager and project team.

Once you understand who the stakeholders are, the next step is to find out their needs. The best
way to do this is by conducting stakeholder interviews. Take time during the interviews to draw
out the requirements that create real benefits. Sometimes stakeholders will talk about needs that
aren’t relevant and don’t deliver benefits. These can be recorded and set as a low priority.

The next step, once you have conducted all the interviews and have a comprehensive list of
needs is to priorities them. From the prioritized list, create a set of easily measurable goals. A
good technique for doing this is to review them against the SMART principle. This way, the
achievement of the goal will be easy to identify.

Once you have established a clear set of goals, they should be recorded in the project plan. It can
be useful also to include the needs and expectations of your stakeholders.

Now you have completed the most difficult part of the planning process; it’s time to move on
and look at the project deliverables.

Step 2: Project Deliverables

Using the goals you have defined in step 1, create a list of things the project needs to deliver to
meet those goals. Specify when and how to deliver each item.

Add the deliverables to the project plan with an estimated delivery date. You will establish more
accurate delivery dates during the scheduling phase, which is next.

Step 3: Project Schedule

Create a list of tasks that need to be carried out for each deliverable identified in step 2. For each
task determine the following:

 The amount of effort (hours or days) required for completing the task.
 The resource who will carry out the task.
Once you have established the amount of effort for each task, you can work out the effort
required for each deliverable, and an accurate delivery date. Update your deliverables section
with the more precise delivery dates.

At this point in the planning, you could choose to use a software package such as Microsoft
Project to create your project schedule. Alternatively, use one of the many free templates
available. Input all of the deliverables, tasks, durations and the resources who will complete each
task.

A common problem discovered at this point is when you have an imposed delivery deadline
from the sponsor that is not realistic based on your estimates. If you discover this is the case, you
must contact the sponsor immediately. The options you have in this situation are:

 Renegotiate the deadline (project delay)

 Employ additional resources (increased cost)
 Reduce the scope of the project (less delivered)

Use the project schedule to justify pursuing one of these options.

Step 4: Supporting Plans

This section deals with the plans you should create as part of the planning process. These can be
included directly in the plan.

(I) Human Resource Plan: Identify, by name, the individuals and organizations with a leading
role in the project. For each, describe their roles and responsibilities on the project. Next, specify
the number and type of people needed to carry out the project. For each resource detail start
dates, the estimated duration and the method you will use for obtaining them.

(ii) Communications Plan: Create a document showing who is to be kept informed about the
project and how they will receive the information. The most common mechanism is a weekly or
monthly status report, describing how the project is performing, milestones achieved and the
work you’ve planned for the next period.

(iii) Risk Management Plan: Risk management is an important part of project management.
Although often overlooked, it is important to identify as many risks to your project as possible
and be prepared if something bad happens.

Here are some examples of common project risks:

 Time and cost estimate too optimistic

 Customer review and feedback cycle too slow
 Unexpected budget cuts
 Unclear roles and responsibilities
 No stakeholder input obtained
 Not clearly understanding stakeholder needs
  Stakeholders changing requirements after the project has started
 Stakeholders adding new requirements after the project has started
 Poor communication resulting in misunderstandings, quality problems and rework
 Lack of resource commitment

Risks can be tracked using a simple risk log. Add each risk you have identified to your risk log;
write down what you will do in the event it occurs, and what you will do to prevent it from
happening. Review your risk log on a regular basis, adding new risks as they occur during the
life of the project. Remember, if you ignore risks, they don’t go away.