CHAPTER ONE

OVERVIEW MANAGEMENT

The role of management is to plan, organize, control and integrate resources and tasks to help the
organization realize its goals.

Activities of a manager

i. The planning function of an organization sets the goal and purpose and establishes how they will
be achieved within the constraint of the environment and organizational resource base.
ii. Organizing function is meant to arrange how the work will be done. The manager must hire,
train, and gather people into a team with specific authority, responsibility and accountability
relationships.
iii. The third managerial function is that of directing and motivating the staff to attain the goal. It is
the leadership function of management in which the manager attempts to influence the work
performance and workers and group behavior.
iv. The fourth function is that of monitoring work progress and performance. It is the control
function and the manager tracks information regarding performance with respect to costs,
schedules, and goal criteria.
v. All the above four functions are aimed at realizing the organizational goal. Managing change is
yet another function viewed as critical to help the organization respond effectively to the
environment.

PROJECT MANAGEMENT

The purpose of project management is to manage a system of tasks, resources, people and organizations
to accomplish the project goals. This is why project management has been considered a systems approach
to management.
HISTORY OF MODERN PROJECT MANAGEMENT

 Mid-20th Century Origin: Project management emerged as a distinct discipline post-World War
II, initially through nuclear weapons programs.

 1960s Shift: Organizations adopted project-based approaches to improve collaboration and

integration across departments.

 Henri Gantt: Created the Gantt chart (task bars and milestones), a foundational scheduling tool.

 1955: PERT developed by the US military to estimate task and project completion time.

 1957: DuPont developed Critical Path Method (CPM) for task coordination using algorithms.

 Work Breakdown Structure: Introduced by the US military to divide projects into manageable
components.

 1970s: PMI (Project Management Institute) founded to formalize PM techniques; Earned Value
Analysis introduced for performance tracking.

 1980s: Risk management and total quality management added to best practices.

 1990s: PMI published PMBOK and introduced professional certification for project managers.
TYPES OF PROJECT MANAGERS IN ORGANIZATIONS

Here are the key points summarized:

 Davis (1962) Classification: Identified four types of project managers based on organizational
complexity and problem sophistication.

1. Project Expeditor

o Role: Speeds up project activities and unifies communication.

o Authority: No control over staff or budget.

o Context: Small, low-risk projects.

o Function: Translates technical to business concepts.

2. Project Coordinator

o Role: Controls project activities and manages budget disbursement.

o Authority: Budget control but no staff authority.

o Example: Construction project manager.

3. Matrix Manager

o Role: Provides unity of direction, planning, and control in a matrix structure.

o Authority: Shared authority across functional and project lines.

4. Pure Project Manager

o Role: Full authority over project team (unity of command).

o Function: Integrates technical, schedule, cost, and human factors.

o Interaction: Deals with all stakeholders including top management and vendors.

DEFINITION OF A PROJECT AND PROJECT MANAGEMENT

A project is a temporary endeavor undertaken to create a unique product or service.

It can be said that project management is the planning, organizing, directing and controlling of
resources for a relatively short-term objective that has been established to complete a specific goal /
objective. It involves project planning and project monitoring.

Project planning includes defining work requirements, quantity of work and resources needed. Project
monitoring on the other hand involves tracking progress, comparing actual to the predicted.

A project is a set of activities undertaken in a logical sequence to attain specified objectives within a
given period time, budget and quality specifications.
Process management refers to the administrative activity aimed at establishing responsibilities,
performance evaluation and identifying opportunities for improvement.

CHARACTERISTICS OF A PROJECT

Here’s a summarized list of the distinctive features of a project according to Nicholas & Steyn
(2012):

 Single Goal: Projects have one clear, definable purpose.

 Life Cycle Phases: Includes initiation, planning, execution, and closure.

 Time-Bound: Projects have a fixed start and end time.

 Uniqueness: Every project is different and not repeatable.

 Teamwork-Based: Requires collaboration across multiple disciplines and organizations.

 Complexity: Involves many interrelated activities like tech selection, procurement, staffing,
financing, and scheduling.

 Temporary Nature: Ends upon completion; activities are not ongoing.

 Subcontracting: Common due to complexity; helps simplify management.

 Inherent Risk & Uncertainty: Risk is always present, even if not immediately visible.

 Customer Specific: Designed to meet the unique needs of clients.

 Subject to Change: Projects evolve due to internal and external factors.

 Environment-Driven: Initiated in response to environmental changes.

 Control Mechanisms: Systems are in place to ensure time, cost, and quality goals are met
efficiently.

KEY FEATURES OF PROJECT MANAGEMENT

A single person, the project manager, heads the project organization and works independently of the
normal chain of command.
 The project manage is responsible for bringing together all efforts to meet the project objectives.
 The project given its goal and design might be performed by experts from various functional
areas and even by outside contractors.
 The project manager is responsible for integrating efforts from various staff working in the
project.
 Depending on the organizational structure adopted, the project may have two chains of command
i.e. the functional and project chains of command.

PROJECT MANAGEMENT KNOWLEDGE AREAS

1. Integration Management

 Oversees coordination of all project elements to ensure consistency and proper execution.

2. Scope Management

 Defines and controls what is included and excluded in the project.

3. Communication Management

 Ensures timely, appropriate creation, distribution, storage, and disposal of project info.

 Identifies who needs what information, when, and how it should be delivered.

4. Risk Management

 Involves identifying, assessing, planning, and managing project risks.

5. Human Resource Management

 Focuses on assigning roles, responsibilities, and relationships.

 Involves acquiring and developing the project team to boost performance.

6. Procurement Management

 Determines what to procure, when, and how.

 Involves documentation, sourcing, contracting, and managing vendor relationships.

7. Time Management

 Defines deliverables and sequences activities.

 Estimates required effort, creates schedules, and manages time effectively.

8. Cost Management

 Plans resources, estimates costs, allocates them to activities, and manages the budget.

9. Quality Management

 Ensures deliverables meet customer expectations.

 Defines standards, evaluates performance, and improves processes if needed.

10. Issue Management

 Identifies and resolves issues affecting scope, time, cost, and quality.

 Tracks issues, assigns ownership, sets deadlines, and manages resolution.

11. Change Management

 Controls changes to project scope.

 Involves request initiation, impact evaluation, formal approval, and communication of changes.
BENEFITS OF PROJECT MANAGEMENT

 Due to identification of functional responsibilities, all activities are accounted for regardless of
personnel turnover.
 Minimizes the need for continuous reporting.
 Provides methodology for trade off analysis.
 Provides for measurements of a accomplishments against plans.
 Allows for early identification of problems so as to take corrective actions.
 Allows for improvement in estimation capability for future planning.
 Allows the firm to know when objectives have been met or not.

CHALLENGES FACING PROJECT MANAGEMENT

 Complexities of projects present specifics challenges.

 Customers’ special requirements may sometimes be difficult to meet.
 Organizational structure presents particular challenges in the sense that projects must be
implemented within the existing organizational structure. This at times may not be suitable for
the project.
 Projects face risks which if not managed properly may impede the achievement of objectives.
 Rapid technological changes may render project deliverables obsolete is not looked at carefully.
 It is difficult to do forward planning and pricing in a project environment.

SITUATIONS WHERE MANAGEMENT BY PROJECT ARE APPROPRIATE

✅ When to Use Project Management:

1. Unfamiliarity

o When the task is new, unique, or requires doing things differently.

o The more unfamiliar the activity, the more critical project management becomes.

2. Magnitude of Effort

o When the work demands substantial resources (e.g., many people, large budget, special
equipment).

o Project management helps coordinate and allocate these resources effectively.

3. Changing Environment

o In dynamic industries with:

 Rapid innovation

 Intense competition

 Unpredictable markets and customer demands

 o Examples: software, biotech, and pharmaceutical industries.

o Project management ensures flexibility and adaptability in such settings.

4. Interrelatedness

o When multiple functional departments need to collaborate.

o Project management:

 Breaks down silos.

 Fosters cross-functional communication.

 Coordinates both internal efforts and external vendors/subcontractors.

5. Reputation at Stake

o For high-stakes projects that can impact the organization’s brand, image, or credibility.

o Project management helps minimize risk, manage complexity, and increase chances of
success.

In short, project management is especially valuable for complex, unfamiliar, cross-functional,

resource-heavy, and high-risk initiatives, offering structure, clarity, and control.

PROJECT PARAMETERS

📌 Core Project Parameters (Triple Constraints)

1. Quality of the Project

o Refers to how well the final deliverables meet the agreed specifications.

o Must be defined by both the client and project team from the start.

o Success is evaluated based on how closely the project outcomes align with the expected
standards.

2. Cost

o Involves all budgetary provisions for the project.

o Must be planned and agreed upon before execution.

o Cost Overruns may occur due to:

 Inaccurate budget estimates

  Inflation

 Political instability

o Cost Underruns may result from:

 Overestimated budgets

 Foreign exchange gains

o Consequences include the need for more funding or project stalling.

3. Time (Schedule)

o Entails creating a project schedule with clearly defined timelines.

o Project success is partly determined by on-time delivery.

o Time Overruns may result from:

 Poor project management

 Natural disasters or weather issues

 Changes in laws or regulations

o Solutions include:

 Project crashing (shortening duration with extra resources)

 Penalties for late delivery

 Bonuses for early completion

These three parameters—Quality, Cost, and Time—form the foundation of effective project
management. A balance among them is essential to ensure project success. If one shifts, the others
are likely to be affected.

CHAPTER TWO

2.1 portfolios, programs, & projects.

Portfolio
 A portfolio is the highest level in the hierarchy.
 It includes:
o Multiple projects
o Multiple programs
o Sub-portfolios and operations
 Purpose: To align all efforts with the organization’s strategic objectives.
 Projects and programs may or may not be related, but all contribute to overall business goals.
📦 Program
 A program is a group of related projects (and possibly subprograms) managed in a coordinated
way.
 Programs are grouped within portfolios.
 Managing them together provides benefits and efficiencies not available if managed separately
(e.g., shared resources, reduced risk).

🧱 Project
 A project is a temporary effort undertaken to create a unique product, service, or result.
 Projects can:
o Exist within a program
o Be independent but still belong to a portfolio
 Each project is tactical, while programs and portfolios are more strategic.

🔗 How They Connect

 Portfolios align with organizational strategy.
 Programs coordinate related projects for synergy.
 Projects deliver specific outcomes that fulfill program or portfolio goals.
 Organizational planning prioritizes projects/programs based on:
o Risk
o Funding
o Strategic fit
o Resource availability

2.2 Program Management

📘 Definition of Program Management
According to Meredith & Mantel (2011), program management is:
“The application of knowledge, skills, tools, and techniques to a program in order to meet its
requirements and to obtain benefits and control not available by managing projects individually.”

🧩 What is a Program?
 A program is a group of related projects, subprograms, and other program activities managed
in a coordinated way.
 It is created to realize benefits not possible if the projects were managed separately.
 Programs may include related work outside the direct scope of the projects involved.
 Unlike portfolios, projects in a program are interdependent and contribute to a common
outcome or capability.

🔄 Project vs. Program

Feature Program Portfolio
Relation
Projects are interrelated Projects may be unrelated
of components
Focus Collective benefits & coordination Strategic alignment
Example
A satellite design and launch program A mix of IT, HR, and construction projects
of grouping

🧠 Key Aspects of Program Management (Nicholas & Steyn, 2012)

 Managing interdependencies, such as:
o Shared resources
 o Strategic alignment of goals
o Governance and change management
 Optimizing performance across all projects within the program.

🚀 Example
A communications satellite program might include:
 Project 1: Designing the satellite
 Project 2: Building the satellite
 Project 3: Constructing ground stations
 Project 4: System integration
 Project 5: Launching the satellite
All these contribute to one shared goal—a working satellite communications system.

2.3 Portfolio Management

📚 2.3 Portfolio Management
Definition: Portfolio management is the centralized management of projects, programs, sub-portfolios,
and operations to achieve strategic objectives.
🔑 Key Points:
 Projects/programs in a portfolio may not be interdependent.
 Focuses on strategic alignment and value maximization.
 Involves prioritization of resources, risk assessment, and performance tracking.
Example:
An infrastructure firm aiming to maximize ROI could:
 Include projects across oil & gas, power, water, roads, rail, and airports in one portfolio.
 Group related ones, e.g., Power Projects → Power Program, Water Projects → Water
Program.
 The portfolio = the combination of all these programs and projects.
📈 Success Measurement:
 Based on aggregate investment performance and benefit realization.
 Portfolio managers monitor strategic shifts, resource allocation, performance, and risks.

2.4 Comparative Overview of Project, Program, and Portfolio Management in Organizational

Project Management
Aspect Project Management Program Management Portfolio Management
Specific objectives and Coordinated management of Strategic alignment and value
Focus
deliverables related projects realization
Organization-wide, based on
Scope Narrow, well-defined Broader, benefits-focused
strategic goals
Change Manages and controls Monitors internal/external
Expects and manages change
Handling change environment changes
Detailed, progressively High-level program plans; Strategic planning and
Planning
elaborated guides detailed planning portfolio-level oversight
Program manager provides
Management Project manager leads the Portfolio manager oversees
vision and leadership over
Role team strategy, resource allocation
projects
Timeliness, budget, Performance of all
Success
quality, customer Realization of program benefits investments in terms of ROI
Criteria
satisfaction and strategy
Aspect Project Management Program Management Portfolio Management
Education development
National education investment
Example Build a school program (building school,
portfolio
training teachers)

2.5 Projects and Strategic Planning

Projects are essential tools used to implement an organization’s strategic plan. They help in achieving
both direct and indirect organizational goals. Organizations typically initiate projects based on various
strategic drivers:
📌 Strategic Drivers for Project Authorization:
Driver Example
Market Demand Car company launches fuel-efficient vehicle project due to fuel shortages.
Strategic Opportunity Training firm creates a new course to boost revenue.
Social Need NGO launches clean water and sanitation project.
Environmental Need Company initiates electric car-sharing service.
Customer Request Utility builds a substation for a new industrial park.
Technological Advance Electronics company develops a new, faster laptop.
Legal Requirement Chemical firm sets handling guidelines for new toxic materials.

2.6 Project Management Office

A Project Management Office (PMO) is a centralized structure designed to standardize project
governance, share resources and tools, and align projects with strategic goals (Kerzner, 2004).
🧩 Types of PMOs:
Type Role Control Level
Supportive Offers templates, training, best practices; acts as a project knowledge base. Low
Controlling Enforces compliance with tools, standards, methodologies, and governance. Moderate
Directive Directly manages and controls projects on behalf of the organization. High
🔗 Key PMO Responsibilities:
 Align projects/programs with strategic goals.
 Act as a liaison between portfolios, programs, and corporate performance systems (e.g., Balanced
Scorecard).
 Monitor, evaluate, and report on how strategic objectives are being met.
Functions of a PMO:
 Manage shared project resources.
 Define and improve project management methodologies and standards.
 Train, coach, and mentor project managers.
 Monitor compliance via audits.
 Maintain project policies, templates, and documentation.
 Coordinate communication across multiple projects.

🎯 Project Manager vs PMO: Key Differences

Aspect Project Manager PMO
Focus Individual project objectives Enterprise-wide strategic alignment
Resource
Controls project-specific resources Optimizes shared resources across projects
Management
Change Manages scope, cost, schedule changes Manages major changes with potential
Management within the project strategic impact
Aspect Project Manager PMO
Responsibility Oversees methodology, risk, metrics, and
Delivers the project as planned
Level interdependencies

2.7 Relationship between Project & Operations Management and Organizational Strategy
Operations Management involves overseeing, directing, and controlling business operations to ensure
the efficiency and effectiveness of processes. These operations are crucial in supporting day-to-day
business activities and are aligned with achieving the organization's strategic and tactical goals.
Key Examples of Operations:
 Production Operations: Manufacturing products efficiently.
 Manufacturing Operations: Overseeing the production process in factories.
 Accounting Operations: Managing financial records and transactions.
 Software Support: Providing ongoing technical support and maintenance.
 Maintenance: Ensuring equipment and facilities are running smoothly.

Projects and Operations: Complementary Roles

Although projects and operations have different roles, they can work together to drive the organization’s
success:
1. Projects are typically temporary efforts designed to achieve specific goals that align with the
organization’s strategy. They help introduce changes to operations, products, or systems.
2. Operations, on the other hand, are ongoing and are essential for maintaining and running the
business on a daily basis. They provide the foundation for implementing and supporting the
results from projects.
Difference in Focus:
 Projects: Require project management skills to ensure specific outcomes are achieved, often
involving unique, time-bound goals.
 Operations: Require business process management skills to maintain smooth, continuous
operations that support broader business goals.

In Summary
 Operations ensure daily business continuity and align with long-term goals.
 Projects provide the means to introduce strategic changes, with a temporary but focused
approach. When well-aligned with organizational strategy, projects can transform business
operations, systems, and products.

2.8 Operational Stakeholders in Project Management.

 Operations Management vs. Project Management: Although different, operations management
needs to be considered in project management to avoid issues and ensure smooth transitions.
 Engaging Operational Stakeholders: Including operational stakeholders in all project phases
helps gain insights and prevent future problems.
 Stakeholder Register: Operational stakeholders should be identified and their needs tracked as
part of the stakeholder register.
 Risk Management Plan: Address their influence (positive or negative) within the risk
management plan.
 Examples of Operational Stakeholders: Includes plant operators, manufacturing supervisors,
help desk staff, customer service reps, salespersons, maintenance workers, retail workers, and
more.
This ensures that projects align with both strategic goals and operational needs.
The following list includes examples of operational stakeholders (depending upon the business):
• Plant operators
• Manufacturing line supervisors
• Help desk staff
• Production system support analysts
• Customer service representative
• Salespersons
• Maintenance workers
• Tele-sales personnel
• Call center personnel
• Retail workers
• Line managers
• Training officers.
Key Points:
1. Project Management and Organizational Governance:
o Projects aim to achieve strategic business outcomes but must adhere to organizational
governance processes and procedures.
o Project success is often judged by how well it aligns with organizational governance,
especially when the product or service is subject to strict governance policies (e.g.,
sustainability in building construction).
o Project managers must understand and follow relevant governance policies and
procedures.
2. Project Management and Organizational Strategy:
o Organizational strategy provides guidance for projects, as projects exist to support
strategic goals.
o Project sponsors or managers identify any conflicts between project goals and
organizational strategy, addressing these conflicts early.
o Sometimes, projects themselves develop organizational strategy, requiring a clear
definition of what constitutes an appropriate strategy for sustainability.
3. Projects and Business Value:
o Business Value is both tangible (e.g., assets, equity) and intangible (e.g., brand
recognition, goodwill), and its scope can vary (short, medium, long-term).
o Business value is enhanced through effective project, program, and portfolio
management.
o Strategy and mission guide business growth, with performance metrics for success.
o Portfolio, program, and project management are essential for aligning projects with
organizational strategy and achieving business value.
4. Role of Portfolio, Program, and Project Management:
o Portfolio Management: Aligns projects and programs with organizational strategy to
optimize objectives, costs, resources, and risks.
o Program Management: Aligns multiple projects to optimize interdependencies and
realize desired benefits.
o Project Management: Focuses on delivering successful outcomes (products, services,
results) within the strategic context.
o Strengthening organizational enablers (structure, culture, technology, human resources)
facilitates better alignment and successful business value realization.