What now? The notes you scribbled down on the back of the napkin at lunch are a start, but not exactly good project management practice. Unfortunately, many projects follow this poorly constructed path, and that is a primary contributor to a large percentage of projects not meeting their original objectives, as defined by performance, schedule, and budget.
The Standish Group a Boston-based leader in project and value performance research released the summary version of their CHAOS Report that tracks project failure rates across a broad range of companies and industries Figure 2. When are companies going to stop wasting billions of dollars on failed projects?
The vast majority of this waste is completely avoidable: simply get the right business needs requirements understood early in the process and ensure that project management techniques are applied and followed, and the project activities are monitored. Applying good project management discipline is the way to help reduce the risks. Having good project management skills does not completely eliminate problems, risks, or surprises. The value of good project management is that you have standard processes in place to deal with all contingencies.
Project management is the application of knowledge, skills, tools, and techniques applied to project activities in order to meet the project requirements. Project management is a process that includes planning, putting the project plan into action, and measuring progress and performance. What are the objectives for your project? Make sure you set goals that everyone agrees on to avoid team conflicts later on.
Understanding and addressing the needs of everyone affected by the project means the end result of your project is far more likely to satisfy your stakeholders. Last but not least, as project manager, you will also be balancing the many competing project constraints. On any project, you will have a number of project constraints that are competing for your attention. They are cost, scope, quality, risk, resources, and time.
These are the primary competing project constraints that you have to be most aware of. In this triangle, each side represents one of the constraints or related constraints wherein any changes to any one side cause a change in the other sides. The best projects have a perfectly balanced triangle. Maintaining this balance is difficult because projects are prone to change. For example, if scope increases, cost and time may increase disproportionately. Alternatively, if the amount of money you have for your project decreases, you may be able to do as much, but your time may increase.
Your project may have additional constraints that you must face, and as the project manager, you have to balance the needs of these constraints against the needs of the stakeholders and your project goals. You get the idea; the constraints are all dependent on each other. Think of all of these constraints as the classic carnival game of Whac-a-mole Figure 2. Each time you try to push one mole back in the hole, another one pops out. The best advice is to rely on your project team to keep these moles in place.
Here is an example of a project that cut quality because the project costs were fixed. The P oil platform Figure 2. In March , the P was producing around 84, barrels of oil and 1.
The sinking is attributed to a complete failure in quality assurance, and pressure for increased production led to corners being cut on safety procedures. The following quotes are from a Petrobras executive, citing the benefits of cutting quality assurance and inspection costs on the project. The dynamic trade-offs between the project constraint values have been humorously and accurately described in Figure 2.
In order for you, as the project manager, to manage the competing project constraints and the project as a whole, there are some areas of expertise you should bring to the project team Figure 2. They are knowledge of the application area and the standards and regulations in your industry, understanding of the project environment, general management knowledge and skills, and interpersonal skills. It should be noted that industry expertise is not in a certain field but the expertise to run the project.
So while knowledge of the type of industry is important, you will have a project team supporting you in this endeavor. For example, if you are managing a project that is building an oil platform, you would not be expected to have a detailed understanding of the engineering since your team will have mechanical and civil engineers who will provide the appropriate expertise; however, it would definitely help if you understood this type of work.
By standards, we mean guidelines or preferred approaches that are not necessarily mandatory. In contrast, when referring to regulations we mean mandatory rules that must be followed, such as government-imposed requirements through laws. Every industry has standards and regulations. Knowing which ones affect your project before you begin work will not only help the project to unfold smoothly, but will also allow for effective risk analysis.
Some project types recur but differ in their goals. Routine business activities are those that take place on a regular basis and are often necessary for the successful ongoing operations of the business. Examples include opening and closing procedures for a retailer; bookkeeping for any company; computer, building and machinery maintenance; ongoing marketing; weekly or bimonthly payroll; and quarterly budget reviews or financial audits. If a company stopped any of these activities, it would likely shut down.
Projects are activities that are helpful to a business or tasks the business needs completed that are performed once or on an irregular basis. Projects can be part of routine business, such as one-time promotions that are part of ongoing marketing strategies. Project and routine work has a different. In a project, all stakeholders and resources will work to achieve a goal in certain time limits with a certain resource.
Project is unique because the problem in Project A will not the same as the problem in Project B. In routine, the sample of these activities mostly like manufacturing industries. We already have work instructions and procedure which is already proved by the researcher or the expert. There are 3 major different stages for Project Life Cycle :. First is Initiating. Project work and BAU work can sit nicely alongside each other, but there can often be tension.
It happens because projects try to change the status quo. Second, when you are asking people to join your project team, they can suffer from a conflict of loyalties. Is their first responsibility to their day job or to the project? Clear objectives and a strong commitment to the project from management can help here, as well as keeping lines of communication open so they know what the priorities should be. Third, keeping the business running is always the priority. It has an implication for project teams who might see their funding cut, key resources pulled back to BAU roles and timelines delayed because keeping the day-to-day operations of the organization going is pulling focus.
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