9789152341148 by Smakprov Media AB

THIRD EDITION

Project Management is a complete concept. It has a companion workbook with discussion questions, exercises and tests, a general project model with templates and a website with presentation and training materials. The book is also available in Swedish, with the title Projektledning.

www.sanomautbildning.se/project

implement project methodology and agile work methods, with an aim to improve operational efficiency and sustainable resource usage. He was involved in development of IPMA’s certifications in Sweden and was previously a member of the local IPMA certification board.

ISBN 978-91-523-4114-8

(523-4114-8)

Bo Tonnquist

Bo Tonnquist is a lecturer and consultant with extensive operative experience in project management, organisational development and marketing. He helps companies and organizations develop and

certification and ISO 21500

Bo Tonnquist

ON ITI

Project Management has received an award as ”The best teaching material in business economics at the college level” – confirming the pedagogical disposition and high level of the book.

IPMA/PMI-

Portfolio management and project management offices have been given more space than in the previous editions, while the sections on project models and tools have been updated and expanded to include steering models, portals, schedules, mind maps and Kanban boards.

IRD TH

This third edition contains more information on agile work methods and how they should be applied alongside traditional project methodology. The purpose is to provide solid support, however you choose to execute your project.

Project Management

Project Management is aimed at anyone who works with projects, whatever the branch of industry and type of project. The book presents project methodology and management in a clear, comprehensible way, making it suitable as course literature, as reference literature in practical project management and ahead of certification for PMI, IPMA or Scrum.

Supports

A Guide to the Theory and Practice of Project Methodology and Agile Methods

Sanoma Utbildning Mailing address: Box 30091, 104 25 Stockholm, Sweden Visiting address: Alströmergatan 12, Stockholm, Sweden Website: www.sanomautbildning.se www.ekonomionline.se E-mail: info@sanomautbildning.se

Preface

Order/Information about educational materials Tel. +46 (0)8-587 642 10 / (0)8-587 642 50 Fax +46 (0)8-587 642 02 Editor/Project manager: Karin Sörensen Publisher: Amanda Schött Franzén Graphics: Jonas Olsson, Mobile Design Translation: Linnéa Holmén, Calyptic

Project Management ISBN 978-91-523-4114-8

good idea is no guarantee for success, it is the execution that counts. This is a fact that makes project management a key competence to master regardless of organisational structure, size or ownership form. Today, projects account for over 30 percent of the total worldwide gdp, a number that will increase in the coming year. Project management is a field that is continually developing, meaning that my book must also be developed. The fact that the book Project Management is continually tested against reality and all the feedback I get from lecturers, course managers, course participants and active project managers is probably one of the reasons it has been so successful thus far. It helps me keep the book up-to-date and useful, both as course literature and as a handbook in practical project work.

Copyright This work is under copyright protection. Copying without a teacher’s authorization to copy for educational purposes according to the Bonus-Presskopia agreement is prohibited. This type of agreement is signed between copyright organizations and representatives of educational providers, e.g., cities/universities. For information about this agreement, please refer to the educational provider representative or Bonus-Presskopia. Anyone who commits a copyright infringement may be prosecuted in a court of law and sentenced to a fine or imprisonment for up to two years, as well as be obliged to reimburse the author/copyright holder. Printed in Latvia by Livonia Print Riga 2016

With this book I try to spread knowledge on the benefits of the project as a work method, but also on the conditions necessary for success. A crucial factor for success in projects is the ability to select the right methods, models and tools for a task and to apply them effectively. Implementing a project-oriented work method affects the entire organization. Project organisational maturity means having control of both the individual project and the entire project portfolio of the operations.

Preface

Project Management ISBN 978-91-523-4114-8

Project Management – Workbook

THIRD EDITION

Web

Project Management has received an award as ”The best teaching material in business economics at the college level” – confirming the pedagogical disposition and high level of the book. Project Management is a complete concept. It has a companion workbook with discussion questions, exercises and tests, a general project model with templates and a website with presentation and training materials. The book is also available in Swedish, with the title Projektledning.

On the website, sanomautbildning.se/project, materials have been collected for anyone who wants to use the books as course literature. Most of the illustrations and figures, as well as the document templates from the books, are available for free use as course materials. www.sanomautbildning.se/project

ISBN 978-91-523-4114-8

Bo Tonnquist Stockholm in October 2016

(523-4114-8)

Project model The general project model in the book, ProjectBase, is currently used in many projects and organizations. It is free to download and use.

Guidance E-coach is a web service offering tangible support when the project methodology is to be applied in practice in a project. With the support of a coach, the project manager is guided through the pre-study and planning. The result is a solid project plan that increases the project’s chances for success.

Projektledning The books are also available in Swedish – Projektledning and Projektledning – Övningsbok.

Bo Tonnquist

Bo Tonnquist is a lecturer and consultant with extensive operative experience in project management, organizational development and marketing. He helps companies and organizations develop and implement project methodology and agile work methods, with an aim to improve operational efficiency and sustainable resource usage. He was involved in development of IPMA’s certifications in Sweden and was previously a member of the local IPMA certification board.

Supports

IPMA/PMI-

certification and ISO 21500

Bo Tonnquist

ON ITI

The book Project Management has a companion workbook/ student learning guide with discussion questions, exercises and tests. The book received the 2009 award for best project management book from the Swedish IPMA organization.

IRD TH

I hope you as a reader will find this book useful, regardless of if you use it as course literature, as a handbook in on-going project work or as support in organisational development.

A complete concept Project Management

As in earlier editions, project methodology is sandwiched between sections on leadership and personal development. The traditional way of conducting projects has been refined with new agile work methods and theories. Taken together, this creates a very interesting concept with every potential of making project management a natural way of governance and managing any type of operation.

A Guide to the Theory and Practice of Project Methodology and Agile Methods

Project Management – Workbook

THIRD EDITION

Web

ISBN 978-91-523-4114-8

Bo Tonnquist Stockholm in October 2016

(523-4114-8)

Project model The general project model in the book, ProjectBase, is currently used in many projects and organizations. It is free to download and use.

Projektledning The books are also available in Swedish – Projektledning and Projektledning – Övningsbok.

Bo Tonnquist

Supports

IPMA/PMI-

certification and ISO 21500

Bo Tonnquist

ON ITI

IRD TH

I hope you as a reader will find this book useful, regardless of if you use it as course literature, as a handbook in on-going project work or as support in organisational development.

A complete concept Project Management

A Guide to the Theory and Practice of Project Methodology and Agile Methods

Contents 1 Project Management – a work form 1. Governance

3 Planning

7. Time and resource planning

The purpose of the organization .. . . . . . . . . . . . . . . . . . . . . . . 13 Lean ........................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 A project – a temporary organization .. . . . . . . . . . . . . . . 19

2. The project methodology

The course of a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Organization and roles .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

3. Agile methods

What are agile methods? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Scrum – an agile development method .. . . . . . . . . . 48 Agile project management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

9. Calculation and budgeting

119

Communication strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Learning ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 New Labour – a study .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Rhetoric . ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Communication plan .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Progress reporting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Meetings . ................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Visual leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

10. Risks and quality

205

Distinguish risks from uncertainties . ............ 205 Risk management in projects . ....................... 207 Quality governance .......................................... 215 Quality in project work .................................... 218 Quality audit ...................................................... 223 Change management . . .................................... 225 Project review . .................................................. 230

Execution 11. Creating the project group

235

The composition of the group . ...................... 235 The developmental phases of the group . ... 244 Norms and rules ................................................ 250 Values and attitudes . ....................................... 253 Kick-off ................................................................ 256 Expectations and demands ............................ 258

12. Management in projects

260

Self-awareness . ................................................. 260 Feedback ............................................................ 264

293

Initiating work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 Reviewing the plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 Continuous follow-up .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 Different methods for status reports .. . . . . . . . . . . 299 Following up on costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 Earned value management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 Cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 Change management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314

14. Implementation and hand-over . 317

189

Project economy . ................................................ 189 Accrual-basis accounting .................................. 197 Pre-estimates and available funds ................... 200

Working with a pre-study .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 The pre-study as a separate project .. . . . . . . . . . . . . . . . . 78 The scope of the project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Choosing a solution – a strategic decision .. . . . . . 83 Situational analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Stakeholders .......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Business impact value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Agile methods ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Requirements specifications .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Requirements on the project owner .. . . . . . . . . . . . . . . 112 High-level planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Milestone plan ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

6. Communication

Self-leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Being a manager .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Situational management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 Delegation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282 Conflicts .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287

13. Project on track

Staffing . .................................................................. 175 Procurement . ....................................................... 178 Negotiation techniques . .................................... 183

Defining a project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Background, purpose and goals .. . . . . . . . . . . . . . . . . . . . . . . 60 The project owner’s demands . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 The supplier’s offer .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Contracts ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

5. Analysis and high-level planning

139

Planning management . ..................................... 139 The project management plan ......................... 141 Planning methods .. ............................................. 142 Planning in a changing world ........................... 145 The planning chain . ............................................ 146 Creating an activity plan .................................... 148 Assessment of resources and time . ................. 153 The critical path ................................................... 155 Creating the schedule . ....................................... 160 Identifying resource needs . .............................. 163 Resource allocation ............................................ 166 Planning agile projects . ..................................... 168

8. Staffing and resource acquisition 175

2 Pre-study 4. Idea and initiation

Implementation and hand-over .. . . . . . . . . . . . . . . . . . . 317 Planning implementation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 Hand-over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Administration .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329

Closure and impact realization 15. Closure and lessons learned

16. Benefits realization

348

Following up results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Evaluating the impact goal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Impact measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 New projects – an impact! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356

17. Change management

333

Closure – the work is done . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333 Evaluating a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334 Final report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 Managing closure .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Discontinuing a project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346

357

The need for change .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 The learning organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359 Collective memory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Knowledge management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361 The change manager .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 Evaluate the chance of success .. . . . . . . . . . . . . . . . . . . . . 370 Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Securing the results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374

6 Project operations 18. Organisational project maturity .379 Enterprise Project Management . . . . . . . . . . . . . . . . . . 379 The project operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Analysis models .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387

19. Portfolio management and PMO .394

Project, programme and portfolio . . . . . . . . . . . . . . . 394 Portfolio benefits .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 Prioritization and selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Portfolio follow-up .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 PULSE meetings .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Resource management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407 Programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Project management office .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 Establishing a PMO .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412

20. Models and tools

21. Standards and certifications

417

Project models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Examples of project models .. . . . . . . . . . . . . . . . . . . . . . . . . . 421 Project tools .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 Project portals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430 Mind maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435 Schedules .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437 Project boards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439 Implementing project tools .. . . . . . . . . . . . . . . . . . . . . . . . . 441

443

Standards in project management .. . . . . . . . . . . . . . 443 Certification of project managers . . . . . . . . . . . . . . . . . 448 PMI certifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 IPMA certifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451 PMI vs. IPMA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455 Certified Scrum Master . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456 Personal experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 Career ladder for project managers . . . . . . . . . . . . . 458

Appendix A – Project model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460 Appendix B – Assignment model . . . . . . . . . . . . . . . . . . . . . . . . . . 474 Glossary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496 Image list . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Bibliography .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 www.sanomautbildning.se/project

Contents 1 Project Management – a work form 1. Governance

3 Planning

7. Time and resource planning

2. The project methodology

3. Agile methods

9. Calculation and budgeting

119

10. Risks and quality

205

Execution 11. Creating the project group

235

12. Management in projects

260

Self-awareness . ................................................. 260 Feedback ............................................................ 264

293

14. Implementation and hand-over . 317

189

Project economy . ................................................ 189 Accrual-basis accounting .................................. 197 Pre-estimates and available funds ................... 200

6. Communication

13. Project on track

5. Analysis and high-level planning

139

8. Staffing and resource acquisition 175

2 Pre-study 4. Idea and initiation

Closure and impact realization 15. Closure and lessons learned

16. Benefits realization

348

17. Change management

333

357

19. Portfolio management and PMO .394

20. Models and tools

21. Standards and certifications

417

443

Process model

covering the contents of the book

1. Project Management – a work form

Coordination

2. Pre-study

3. Planning

4. Execution

Chapter 1 Governance

Chapter 2 The project methodology

Chapter 3 Agile methods

Chapter 4 Idea and initiation

Chapter 5 Analysis and high-level planning

Chapter 6 Communication

Chapter 7 Time and resource planning

Chapter 8 Staffing and resource acquisition

Chapter 9 Calculationand and Estimates budgeting

Chapter 10 Risks and quality

Chapter 11 Creating the project group

Chapter 12 Management in projects

Chapter 13 Project on track

Business model Lean Strategies Project should deliver results

The project process Project levels Project model Roles

The agile manifesto Scrum Agile project management

Define the project project Initiate the the project project Business Case case Preconditions Preconditions

Analysing the assignment Pre-study process Brainstorming Rough plan

Communication strategy Learning Project support

Planning methods The planning chain Planning agile projects

Staffing Negotiation technique

Project economy

Risks and opportunities in projects Project management maturity

Behavioural profiles Group development

Personal insight and practicing management

Project follow-up and change management

The wishes of the project owner

Map stakeholders

Handling stakeholders

Corporate culture

Situational leadership

Handling stakeholders

Product backlog backlog Sprint backlog log Burn rate

Background description Delimitations Project goals The project triangle

Scope - WBS Mind map Selecting a solution User stories

Project owner Supplier

Stakeholders

Portfolio management Project management office

Scope

Processes Vision and business goals

Organization and resources

Organisational forms Organizational forms Project - a temporary temporary organization

Project organization Roles and responsibilities

Self-organising teams The Scrum process Roles in Scrum

Time

Flow efficiency

Project phases Decision points

Sprints

Cost

Resource assessment Resource needs Resource conflicts

Plan preparatory work Choose a method Prioritization Milestone plan

Progress reporting

Logical network plan Creating an activity plan Schedule The critical path Sprints Agile schedule Schedule adjustments

Business/operational benefits Benefits evaluation - PENG

What does a meeting cost?

Resource histogram

Planning poker

Situational analysis SWOT analysis

Quality

User stories Story points

Requirements management Governing parameters Product and project requirements User stories

Procurement

Governance documents

Kanban boards Daily Scrums Burndown chart Demo

The negotiation process

Visual management Meeting techniques

Uncertainties

Communication

The The process process model model follows follows the the structure structure in in ISO ISO 21500 21 500Guidance Guidanceon onproject projectmanagement, management, PMI’s PMBOK The Project Management Knowledge Areas and IPMA’s ICB. PMI’s Guide and IPMA’s ICB.

Request for proposal Offer Contract types

Purchaser competence

Project charter Goal setting

Directives Aligning goals Pre-study report

Risk identification

Change board Project management maturity analysis

Crashing

Resource procurement Purchasing

Uncertainty assessment Lichtenberg’s method PERT

Scope creepage QTR governance

Group composition Belbin’s team roles DISC analyses Myers-Briggs Norms and rules Values and attitudes The rules of the game Expectations

Deviations

Continuous follow-up Milestone chart Current date Project boards Burndown charts Implementing changes

Project calculations Basic economic terms Advance estimate Budget The net present value method Uncertainty assessment

The Johari windows Feedback Delegation Motivation The stress funnel Conflict management

Reporting costs The earned value method Work remaining Cash flow Expected value Risk assessment Risk response planning Change management Project audit

Risk treatment Updating risk analysis Responses Changes

Quality governance Quality audit PDCA FMEA Routines for changes

Review planning Quality audit Continuous improvement The theory of constraints Six sigma

Staffing the project group Recruitment Communication plan Learning styles Rhetoric Reports Meetings Project room Project portal Project diary

The project management plan The planning meeting Original plan

Contracts Resource contracts

Budget

The mini risk method Risk maps

Kick-off Communication profiles

Decision log Progress reporting Daily scrums Revision handling

Process model

covering the contents of the book

1. Project Management – a work form

Coordination

2. Pre-study

3. Planning

4. Execution

Chapter 1 Governance

Chapter 2 The project methodology

Chapter 3 Agile methods

Chapter 4 Idea and initiation

Chapter 5 Analysis and high-level planning

Chapter 6 Communication

Chapter 7 Time and resource planning

Chapter 8 Staffing and resource acquisition

Chapter 9 Calculationand and Estimates budgeting

Chapter 10 Risks and quality

Chapter 11 Creating the project group

Chapter 12 Management in projects

Chapter 13 Project on track

Business model Lean Strategies Project should deliver results

The project process Project levels Project model Roles

The agile manifesto Scrum Agile project management

Define the project project Initiate the the project project Business Case case Preconditions Preconditions

Analysing the assignment Pre-study process Brainstorming Rough plan

Communication strategy Learning Project support

Planning methods The planning chain Planning agile projects

Staffing Negotiation technique

Project economy

Risks and opportunities in projects Project management maturity

Behavioural profiles Group development

Personal insight and practicing management

Project follow-up and change management

The wishes of the project owner

Map stakeholders

Handling stakeholders

Corporate culture

Situational leadership

Handling stakeholders

Product backlog backlog Sprint backlog log Burn rate

Background description Delimitations Project goals The project triangle

Scope - WBS Mind map Selecting a solution User stories

Project owner Supplier

Stakeholders

Portfolio management Project management office

Scope

Processes Vision and business goals

Organization and resources

Organisational forms Organizational forms Project - a temporary temporary organization

Project organization Roles and responsibilities

Self-organising teams The Scrum process Roles in Scrum

Time

Flow efficiency

Project phases Decision points

Sprints

Cost

Resource assessment Resource needs Resource conflicts

Plan preparatory work Choose a method Prioritization Milestone plan

Progress reporting

Logical network plan Creating an activity plan Schedule The critical path Sprints Agile schedule Schedule adjustments

Business/operational benefits Benefits evaluation - PENG

What does a meeting cost?

Resource histogram

Planning poker

Situational analysis SWOT analysis

Quality

User stories Story points

Requirements management Governing parameters Product and project requirements User stories

Procurement

Governance documents

Kanban boards Daily Scrums Burndown chart Demo

The negotiation process

Visual management Meeting techniques

Uncertainties

Communication

Request for proposal Offer Contract types

Purchaser competence

Project charter Goal setting

Directives Aligning goals Pre-study report

Risk identification

Change board Project management maturity analysis

Crashing

Resource procurement Purchasing

Uncertainty assessment Lichtenberg’s method PERT

Scope creepage QTR governance

Group composition Belbin’s team roles DISC analyses Myers-Briggs Norms and rules Values and attitudes The rules of the game Expectations

Deviations

Continuous follow-up Milestone chart Current date Project boards Burndown charts Implementing changes

Project calculations Basic economic terms Advance estimate Budget The net present value method Uncertainty assessment

The Johari windows Feedback Delegation Motivation The stress funnel Conflict management

Reporting costs The earned value method Work remaining Cash flow Expected value Risk assessment Risk response planning Change management Project audit

Risk treatment Updating risk analysis Responses Changes

Quality governance Quality audit PDCA FMEA Routines for changes

Review planning Quality audit Continuous improvement The theory of constraints Six sigma

Staffing the project group Recruitment Communication plan Learning styles Rhetoric Reports Meetings Project room Project portal Project diary

The project management plan The planning meeting Original plan

Contracts Resource contracts

Budget

The mini risk method Risk maps

Kick-off Communication profiles

Decision log Progress reporting Daily scrums Revision handling

Process model (continued)

The process model follows the structure in ISO 21500 21 500Guidance Guidanceon onproject projectmanagement, management, The Project Management Areas and IPMA’s ICB. PMI’s PMBOK Guide and IPMA’s Knowledge ICB.

6. Project operations

5. Closure and impact realization

Coordination

Chapter 14 Implementation and hand-over

Chapter 15 Closure and lessons lessonslearned learning

Chapter 16 Benefits realization

Chapter17 Change management

Chapter 18 Organizational projectmaturity maturity Organisational project

Chapter 19 Portfolio management and PMO

Chapter 20 Project models Models and toolsand tools

Chapter 21 Standards and certifications

The result Implementation Hand-over

The closure phase Evaluating the project

Impact realization

Knowledge management The learning organization Kotter’s eight steps

Enterprise Project Management The project ability of the organization Project operation

Project, programme and portfolio, Portfolio handling Project management office

Project models Development models Project tools

International standards Certification of project managers Scrum master certification

Stakeholder handling The four rooms of change Change climate

Intressenthantering

Map stakeholders

Change project

Maturity analysis Strategic governance

Optimizing portfolio

Mind maps Project boards

ISO 21 500 ISO 21 505 PMBOK Guide (PMI) ICB (IPMA)

Stakeholders

Phasing out of suppliers

Scope

Deliveries Hand-over Maintenance Administration

Result follow-up

Organization and resources

New project group Reference group

Analyse the collaboration Phase out the group Kick-out

Mentorship

The competence of the organization

Different types of project management offices Establishing a project management office

Time

Planning implementation

Follow-up on time

Success factors Think Drop

Internal governance

Portfolio follow-up Selection and prioritization

Planning tools Portfolio reporting

Cost

Lifecycle budget

Financial follow-up Actual cost

Economic governance Balanced scorecards

Value maximization

Estimation tools

Evaluating the chance of success Situational analysis - DICE

Riskhantering

Risk exposure

Risk status

Project complexity

Safeguard the result

Scorecards for the project Benchmarking OPM3, P3M3, SPI

Quality governance

Joint methodology

Requirements and certification processes PMI, IPMA, Scrum

Resource management handling

Implementing portfolio and project support

Implementing project model Implementing project tools

SPI analysis

Positional maps PULSEmeetings meetings PULS Status meetings Roadmap

Project portals Document templates Checklists Cloud services

Impact measurement

Impact realization

Uncertainties Quality

Assessing the result Test specification

Procurement Communication

Quality audit Close the project Exit criteria

Evaluate the impact goal Reference measurement

Terminating contracts Implementation plan Implementation plan Final report report Administrationplan plan Maintenance

Final report Protocol for project closure

Communicating theimpact impact Communicating the Following up up the theBusiness businessCase case

Communication plan Open Space A3

Professional and responsible behaviour Behaviour competence Career ladder for project managers Method competence

När mer material finnsis available When more material på bokens webbplats on the book’s website, används denna symbol. this symbol is used. När mer information finnsis When more information i övningsboken används available in the workbook, denna symbol. this symbol is used.

Process model (continued)

6. Project operations

5. Closure and impact realization

Coordination

Chapter 14 Implementation and hand-over

Chapter 15 Closure and lessons lessonslearned learning

Chapter 16 Benefits realization

Chapter17 Change management

Chapter 18 Organizational projectmaturity maturity Organisational project

Chapter 19 Portfolio management and PMO

Chapter 20 Project models Models and toolsand tools

Chapter 21 Standards and certifications

The result Implementation Hand-over

The closure phase Evaluating the project

Impact realization

Knowledge management The learning organization Kotter’s eight steps

Enterprise Project Management The project ability of the organization Project operation

Project, programme and portfolio, Portfolio handling Project management office

Project models Development models Project tools

International standards Certification of project managers Scrum master certification

Stakeholder handling The four rooms of change Change climate

Intressenthantering

Map stakeholders

Change project

Maturity analysis Strategic governance

Optimizing portfolio

Mind maps Project boards

ISO 21 500 ISO 21 505 PMBOK Guide (PMI) ICB (IPMA)

Stakeholders

Phasing out of suppliers

Scope

Deliveries Hand-over Maintenance Administration

Result follow-up

Organization and resources

New project group Reference group

Analyse the collaboration Phase out the group Kick-out

Mentorship

The competence of the organization

Different types of project management offices Establishing a project management office

Time

Planning implementation

Follow-up on time

Success factors Think Drop

Internal governance

Portfolio follow-up Selection and prioritization

Planning tools Portfolio reporting

Cost

Lifecycle budget

Financial follow-up Actual cost

Economic governance Balanced scorecards

Value maximization

Estimation tools

Evaluating the chance of success Situational analysis - DICE

Riskhantering

Risk exposure

Risk status

Project complexity

Safeguard the result

Scorecards for the project Benchmarking OPM3, P3M3, SPI

Quality governance

Joint methodology

Requirements and certification processes PMI, IPMA, Scrum

Resource management handling

Implementing portfolio and project support

Implementing project model Implementing project tools

SPI analysis

Positional maps PULSEmeetings meetings PULS Status meetings Roadmap

Project portals Document templates Checklists Cloud services

Impact measurement

Impact realization

Uncertainties Quality

Assessing the result Test specification

Procurement Communication

Quality audit Close the project Exit criteria

Evaluate the impact goal Reference measurement

Terminating contracts Implementation plan Implementation plan Final report report Administrationplan plan Maintenance

Final report Protocol for project closure

Communicating theimpact impact Communicating the Following up up the theBusiness businessCase case

Communication plan Open Space A3

Professional and responsible behaviour Behaviour competence Career ladder for project managers Method competence

1 Project Management – a work form A project is a work form with a strong focus on results. All projects are part of a larger context and can be seen as tools for delivering business goals and operational benefits. Project methodology is a set of methods and tools described in a project model with defined project roles and governing documents. Agile methods have gained much from Lean, including a focus on collaboration in self-organized teams, avoiding unnecessary work and visualizing progress with Kanban boards. 1. Governance 2. The project methodology 3. Agile methods

INITIATION

IDEA

PROJECT

PRE-STUDY

PLANNING

Creating the group

BENEFITS REALIZATION

EXECUTION

Managing the team

CLOSURE

Phasing out the team

Chapter 1

Governance Why are projects used so often within all types of operations and why do projects look the way they do? These are two basic questions strongly connected to the need to manage and govern companies and organizations in the most efficient way possible. Before we delve deeper into the field of projects and project management, it is therefore important to start with a short introduction on the purpose of organizing an operation and using governance models.

The purpose of the organization

he purpose of organizing an operation is to achieve increased efficiency. The goal is to optimize the usage of the resources available. Resources are always limited, whatever the size of the organization. Neither the company nor its organisational form have any value on their own – they serve to fulfil the demands of the customers in the most efficient way possible. The organization must constantly be re-evaluated. Employees must never forget why the company exists. An organization where goals are unclear and management is hazy can never be efficient, as these factors will lead to uncertainty that affects the employees’ ability to work efficiently.

IMPACT

INITIATION

IDEA

PROJECT

PRE-STUDY

PLANNING

Creating the group

BENEFITS REALIZATION

EXECUTION

Managing the team

CLOSURE

Phasing out the team

Chapter 1

The purpose of the organization

IMPACT

Project Management – a work form

Chapter 1 Governance

Organizations can be compared to organisms that need a steady supply of energy to survive. It is vital that survival does not become the primary goal for an organization, ahead of the willingness to service customers. The strategies chosen by the management to achieve visions and business goals must be reflected in the structure of the organization. You could liken an organization to a formalized grouping coordinated to achieve common goals.

Chapter 1 Governance

Project Management – a work form

A process is a chain of linked activities, both inside and outside the company, which create added value that the customer is willing to pay for. Each activity in the chain has a supplier and a customer. The purpose of identifying the business’s processes is to eliminate unnecessary work that does not benefit a customer. The organization must be designed based on the needs of the processes.

As a result of the organisational structure, it is possible to allocate tasks, responsibility and authority. The organization is also a tool regulating the relationships between managers and employees. The purpose is to govern and coordinate both internal and external resources toward the selected goals, in the most efficient way. This holds true regardless of whether the organization is a private company, a public authority or an npo, Non-Profit Organization.

Structure, processes and culture Research within Organisational Theory focuses on three main topics: structure, processes and culture. The structure of an organization encompasses visible components such The business model is like a blueprint for a strategy to be impleas functions, positions, hierarchies, titles and ranks, mented through organisational while the processes deal with actions and events. The structures, processes, and systems. culture of an organization relates to values, norms, B U S I N E S S M O D E L G E N E R AT I O N , A L E X A N D ER OS T ER WA L D & Y V E S PI G N EU R language, symbols, leadership and motivation. A business model or organisational model is a theoretical description of how a company or department within a company is supposed to work. It encompasses different aspects, such as a revenue model describing how revenue comes in, a production model describing how goods and services are produced and a delivery model describing how goods or services reach the customer. S O U R C E : W I K I P E D I A , F E B R U A R Y 2 016

The processes constitute the vital functions of the organization, while the structure and culture determine how members of the organization work, collaborate and obstruct one another; how the system is built up or broken down and how decision levels and areas of responsibility are allocated. Modern organisational theory has been increasingly focused on the company’s processes, as they originate in the business concept of the company.

Lean A focus on streamlining workflows and minimizing waste is central to Lean, the western interpretation of the Japanese miracle. This is often exemplified through the Toyota Production System, which has served as a model and inspiration for many companies and organizations in an endeavour to optimize operations. Lean mainly relates to optimization of workflow efficiency, which requires there to be unallocated capacity in each step of a process to handle the unexpected, unlike a traditional resource allocation, based on each resource being used maximally. In the latter case, queues are often created, causing delays, and in the worst case scenario giving rise to new needs that must in turn be handled through activities that are not value-generating.

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

The ability to eliminate, reduce and handle variations determines how efficient an operation can become. It is easier to achieve high workflow efficiency if you produce similar products and the variation in customer demand is low.

before making decisions and taking action. Within Toyota this is called Genchi Genbutsu which can be translated as ”go and see”. Great weight is attached to executing analyses before making decisions and instituting changes.

Resource efficiency

So-called Just-in-time (jit) production and automation with a human touch, Jidoka, are principles that have governed Toyota’s choice of methods and tools. The well known ”line”, which can be used by anyone to stop production, and Kanban boards, used to visualize workflows, are examples of tools used within the Toyota Production System.

Lag Workflow efficiency

No lag

Low-cost airline Resource efficiency

Efficient islands

The perfect condition

Desert

Efficient ocean

Desirable, but hard to achieve. Requires complete knowledge about the clients and perfect resource flexibility.

Fire brigade

Workflow efficiency The efficiency matrix.

SOURCE: THIS IS LEAN

Lean can be described based on four levels: Values – how the organization should act. Principles – how the organization should think. Methods – what the organization should do. Tools – what the organization should use. Toyota’s values are constant improvement, Kaizen, and respect for people and collaboration. It is important to study and analyse flows

Each organization must start with its overarching business goals and conditions when formulating its values, defining principles, describing methods and selecting tools. Some of the clearest examples of Lean seen in Swedish organizations nowadays are activity-based workplaces, selforganizing work groups and short stand-up meetings at whiteboards. So far, few have taken the step fully and made comprehensive changes to the entire organization. In Sweden, Scania has been a leader in changing their way of working and developing methods to match the spirit of Lean. Other companies that have come a long way in the change process include the telecommunications company Ericsson and the bank seb, which have set the goal of doubling organisational output by being Lean. It is, however, younger companies – like Spotify – that have adopted the Lean philosophy from the very beginning and use an agile work method. Lean is a constant effort to improve, not an end in itself.

Social organisational structures Today’s organisational structures will most likely be succeeded by other alternatives. There are several reasons for this. Firstly, companies are affected by the constant changes in society, such as new technology, new knowledge among employees and altered living conditions. Secondly, we have gained knowledge about organi-

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Resource efficiency

Lag Workflow efficiency

No lag

Low-cost airline Resource efficiency

Efficient islands

The perfect condition

Desert

Efficient ocean

Desirable, but hard to achieve. Requires complete knowledge about the clients and perfect resource flexibility.

Fire brigade

Workflow efficiency The efficiency matrix.

SOURCE: THIS IS LEAN

Project Management – a work form

Chapter 1 Governance

zations and learned more about human behaviours in organizations. Finally, we as employees and citizens nowadays make greater demands of the organizations in which we operate. Development of organisational forms has both historical and cultural dimensions. This means that the conditions valid for a certain organisational form in a certain culture will not necessarily work in a different culture. For instance, our informal Swedish management style does not work in all countries. The Internet and social media create new opportunities. Nowadays, it is possible to be seen and offer what you have to more or less anyone. This affects the relationship with the client. During industrialization and a greater part of ”It is one of the most important tasks of the information society era, the customer was a corporate management to create an efficient organization, through which the anonymous. Through mass marketing, the goals of the operations can be achieved in same message was communicated to everythe best way. This means instating the most one. Nowadays, we as consumers seek out the suitable organisational structure, as well as ensuring that each individual position knowledge we are interested in and can weed within the structure is occupied by a suitable out things that do not interest us. Over 70 person. Creation of the organisational percent of those surveyed state that it is easier structure entails, first and foremost, stating the different work tasks that must be exeto find information online than on the orgacuted in order for the goal of the company’s nization’s own intranet. This is an indication operations to be achieved, as well as allocating these tasks to local units and people.” that organisational development and interTA R R A S S Ä L L F O R S , T H E R O YA L I N S T I T U T E nal communication lag behind spontaneous O F T E C H N O L O G Y, 19 45 development on open networks.

Organization and delegation The most common way of depicting a company’s formal organization is as a hierarchy with superior and subordinate units. This is called an organisational chart or organisational plan. The chart shows how the organization is supposed to function, how work tasks, responsibilities and authorities are allocated. With the organisational plan as a starting point, it is easy for employees to see their roles in the organization. It is easy to follow decision paths and see who your superiors and subordinates are. The division of responsibilities is clear and obvious. However, the organisational plan does not depict the informal links

Chapter 1 Governance

Project Management – a work form

between different individuals within different units. This can be a problem nowadays, as work tasks are increasingly executed in cross-functional project groups, with members from different parts of the organization.

The job market is going through a fundamental shift. Yesterday, those in the manufacturing industry were out of a job – today and in the future, professional employees and academics risk becoming superfluous as computers take over.

Traditional decision paths and delegation methods do not work in networks, which make up an increasSOURCE: DAGENS NYHE TER ingly common way of conducting business in a flexible manner. Networks are often loosely connected and largely based on trust and confidence between those involved. Some scientists compare networks to organisms that continually develop to survive and prosper. But networks also need structure and rules; otherwise they disintegrate. Often, they are built around a certain visionary person whose values the members share. Rapid technological development, increasing competition and uncertainty on the global market force companies nowadays to be more flexible and willing to change. The opportunity to establish networks together with partners with supplementary competence or market knowledge is a crucial factor in success. People nowadays also want to influence their own situation and feel involved in their workplace to a greater scope than before. Working in networks can be forced. The structural changes on the job market mean that traditional employment is not a given anymore. More people are self-employed, which gives a certain freedom, but also entails responsibility regarding their own work load.

A project – a temporary organization The project is a suitable work form when there is a need to temporarily coordinate different parts of an organization or link resources from different companies and organizations. In principle, the project manager is allowed to ”short-circuit” the decision paths and responsibilities of the line organization, in order to create an optimal organization. A

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Chapter 1 Governance

Matrix structure

Hierarchical structure

CEO

Section or group level

Market

Production

Sales

Logistics

Product management

Factory 1

Mechanics

Project 2

Factory 2

Electronics

Project 3

Project manager By executing tasks in project form, in cross-functional work groups, you short-circuit the decision paths of the traditional, hierarchical line organization.

CEO

Economy

Department level

Development Project management

Production

Project 1

Project-oriented structure CEO

Functions Market

In many organizations, the line organization has become temporary, while projects are the default, stable work form – the one that most employees have always experienced. This holds true especially when projects are very long, for instance within infrastructural building and exploitation projects.

strong focus can be placed on client benefits through goal governance down to an individual level. The project organization is temporary, as is the managerial mandate of the project manager. When the project is finished, the organization is dissolved. Like most manufacturing companies with their own research and development, the vehicle industry uses projects in creating new car models. Developing a new model programme requires strong focus and firm direction, to keep costs low.

The project versus the line organization The borders between projects and ordinary business are blurred in many organizations. This is mainly because the projects share resources with other operations. Only in companies with a purely projectoriented organization are projects entirely separate from the other operations. In these organizations, projects dispose of resources fulltime during the project period and do not run the risk of having project members with necessary competence being mired in other projects or tasks on the line. There can, however, be competition between different projects.

Project management team Development team

Procurement Launch Research

Examples of organisational schemes showing decision paths and reporting paths in the three organisational structures – hierarchical, matrix and project-oriented.

The hierarchical organization and the project-oriented organization are opposites. In the hierarchical organization, decision and communication paths are arranged in rows, hierarchically from top to bottom. The higher up in the organization, the more power and authority. This is a clear organisational form. The weakness of the hierarchical organization is that the space for the individual is small and hard to adapt to altered external conditions. Meanwhile, the matrix organization has a flexible structure. Employees work vertically in the line, while the operations are conducted crossfunctionally. It is the task of management to put together work groups to solve specific work tasks. The weakness of the organisational form is the dual decision paths, which demand more from managers in regards to formulating goals and prioritizing tasks. Usually, the line organization and projects exist in parallel and the boundary between the different forms of organizations and tasks is diffuse. It is important to understand that investments and assignments serve to support the

Development

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Chapter 1 Governance

Matrix structure

Hierarchical structure

CEO

Section or group level

Market

Production

Sales

Logistics

Product management

Factory 1

Mechanics

Project 2

Factory 2

Electronics

Project 3

Project manager By executing tasks in project form, in cross-functional work groups, you short-circuit the decision paths of the traditional, hierarchical line organization.

CEO

Economy

Department level

Development Project management

Production

Project 1

Project-oriented structure CEO

Functions Market

Project management team Development team

Procurement Launch Research

Examples of organisational schemes showing decision paths and reporting paths in the three organisational structures – hierarchical, matrix and project-oriented.

Development

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Chapter 1 Governance

Loyalty to several superiors It is usual to be involved in several projects at once, or to divide one’s time between projects and ordinary work assignments. The employee who has a position on the line, but is also involved in a project, will in practice have two superiors. The line manager sets his/her salary and the project manager manages his/her tasks.

Vision Goal Strategy

Line organization

Management

Project

Line manager

Project manager

The effects of the project affect all levels of the organization, in the same way as everything done on the line. Employee

overall goals and strategies of the operations, regardless of if they are carried out on the line or in projects. Often, the same employees and resources are used. In organizations where the hierarchical decision paths dominate, we can talk about a weak matrix – in the opposite case the matrix is strong. Projects conducted in a weak or strong matrix operate under different conditions. In a weak matrix, a small proportion of employees work in projects. Most have positions on the line, where the majority of the work in the operations is conducted. As a consequence, line managers make most decisions, even those related to projects. The project manager has a low status in this type of organization. In an organisational structure where more people work in projects, the project manager’s ability to make decision relating to his/her project increases. In a strong matrix, line managers only make overall decisions regarding goals, framework and resources. The details are left to the project manager. The majority of the operations are conducted within projects. As a project manager, it is important to recognize and adapt to the organisational structure.

If the prioritization between tasks on the line and within the project is not clear, an employee can find him- or herself in a loyalty conundrum. It is the responsibility of management to ensure that line managers, project managers and those involved in projects know what is most important and thus where to place their focus. Unclear prioritization means that an employee must prioritize and spend time on what is most beneficial for him or her. A successful project result depends on collaboration between the line and the project. Managers create benefits by developing individuals and processes. Project managers create benefits by delivering results and changes. In order to succeed, a project needs the involvement of the line managers, but they seldom want to let go of resources, as this creates more problems than benefits for them in the short term. Few reward systems promote collaboration across organisational boundaries. In far too many organizations, there is a built-in opposition between line managers and project managers. Line managers often see project managers as competitors, while project managers see line managers as obstacles. They do not see the mutual benefits and that they depend on one another in order for the operations to work.

Project Management – a work form

Chapter 1 Governance

Project Management – a work form

Chapter 1 Governance

Vision Goal Strategy

Line organization

Management

Project

Line manager

Project manager

The effects of the project affect all levels of the organization, in the same way as everything done on the line. Employee

Project Management – a work form

The management team can never swear off responsibility for ensuring functional collaboration within an organization.

The vision and overarching business goals of a company or organization govern the work. The overall goals affect both the content of the work and the framework of the organization. The management team governs operations by formulating and devising strategies. This is a given part of all business-related and operational planning.

The insight that projects need reasonable conditions for success has over the past few years reached the highest levels of companies and organizations. It is a natural consequence of more work being carried out in the project form, increasing the need to handle projects and resources in an optimal way for the operations. Understanding project management is no longer important only among engineers and developers, but rather something that is necessary for everyone who works in an organization. Nowadays, every employee is expected to understand what a project is and how to work in a goal-oriented way in a temporary group.

”Sometimes you get the feeling that the managers believe in miracles. Initiating a project without a clear goal and under flawed conditions is like sending your kids shopping without a shopping list or money.”

Strategies reveal the path toward business goals. They are long-term and must therefore be broken down into concrete plans of action that govern the day-to-day work. A plan of action can be described as a process, with certain work stages in a flow. Some processes are permanent and recurring, while others are temporary. The permanent processes constitute routines in the day-to-day work, while the temporary ones are usually projects.

Internationally, there is a distinction made between Project Management and Project Control, with the latter being related to methodology and planning. Sometimes, a distinction is made between a Project Manager and a Project Leader, with the latter usually having fewer responsibilities, for instance not having any budget-related responsibilities. However, this is the case only in certain fields, not as a standard.

n Fu

The project is a work form suited for many different types of assignments. It is an efficient way of achieving visions and business goals, but projects can also be conducted by individuals to achieve private goals. This book primarily deals with projects conducted by companies and organizations. For this reason, we will start with looking at how projects are connected to the governance and goals of the organization. Projects can be run externally for a client or internally within the own organization, using organisational resources or hired staff. There is no lower or upper limit for the size of a project, neither in regards to the number of people involved, nor in regards to the length of time spent on the project.

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Project Management – a work form

Chapter 1 Governance

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Operations must be organized. It is impractical to have everyone do everything. The strategy to ensure that the overall goals are achieved can be broken down into functional strategies with different focal points.

Market and product – segmenting, positioning and choosing a range.

Organization and localization – how and where should operations be conducted.

Development and production – do it yourself or using external sources.

Recruitment and competence development – ensure that the operations have access to the right competence.

Sales – how can the target group be reached, choice of sales channels.

IT support – build and run within the organization or outsource.

The project is a work method well-suited for realizing the contents of the different functional strategies, irrespective of if these relate to developing products, getting into new markets or changing the processes of the operations.

Project Management – a work form

The management team can never swear off responsibility for ensuring functional collaboration within an organization.

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Project Management – a work form

Chapter 1 Governance

je c t

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Market and product – segmenting, positioning and choosing a range.

Organization and localization – how and where should operations be conducted.

Development and production – do it yourself or using external sources.

Recruitment and competence development – ensure that the operations have access to the right competence.

Sales – how can the target group be reached, choice of sales channels.

IT support – build and run within the organization or outsource.

Project Management – a work form

INITIATION

PROJECT

IDEA

The management team can use projects to execute tasks of a temporary character. The project form makes it possible to gather resources from different parts of the organization and focus them on a specific goal. By initiating, starting and finishing projects, the management team can govern the operations toward business goals or initiate ventures in new directions. It is the responsibility of the management team to ensure that each individual project has realistic conditions for actually being executed. This involves clear goals, visible project owners, access to resources and support from the organization. A project is an organisational form that can, in many ways, be likened to the organization of a company. At the top, you find the owner and the board, with overall responsibility for the operations. Within project methodology, these roles are called project owner and steering committee. Their task is to ensure that the right project is initiated, to review on-going projects and to approve the results. The project manager’s role can be likened to that of a ceo with delegated responsibility to ensure that the set goals are achieved using allocated resources.

BENEFITS REALIZATION

Project Management – a work form

Chapter 1 Governance

PRE-STUDY

Creating the group

PLANNING

EXECUTION

Managing the team

CLOSURE

Phasing out the team

Chapter 2

The project methodology A project is a work form with the goal of delivering a predetermined result at a given time with the help of a temporary organization. The project methodology is a set of methods and tools described in a governance model usually referred to as a project model. The project model encompasses a description of the project processes, roles and governing documents.

The course of a project

project can be described as a process, with a beginning and an end. The more detailed the description of the project process is, the greater the level of governance in the project and, by extension, the greater the demands regarding how the assignment is to be completed. The aim of describing a project as a process is to ensure that governance and management of each project is executed in a manner specified in advance. This creates the conditions for developing common methods and work routines and facilitating communication within projects and with external parties.

Process definition: A process is a sequence of interconnected activities. A process refines a product or service to fulfil a need. A process has at least one supplier of inputs and one customer who is the recipient of output.

IMPACT

Project Management – a work form

INITIATION

PROJECT

IDEA

BENEFITS REALIZATION

Project Management – a work form

Chapter 1 Governance

PRE-STUDY

Creating the group

PLANNING

EXECUTION

Managing the team

CLOSURE

Phasing out the team

Chapter 2

The course of a project

IMPACT

THIRD EDITION

www.sanomautbildning.se/project

ISBN 978-91-523-4114-8

(523-4114-8)

Bo Tonnquist

Bo Tonnquist is a lecturer and consultant with extensive operative experience in project management, organisational development and marketing. He helps companies and organizations develop and

certification and ISO 21500

Bo Tonnquist

ON ITI

Project Management has received an award as ”The best teaching material in business economics at the college level” – confirming the pedagogical disposition and high level of the book.

IPMA/PMI-

IRD TH

Project Management

Supports

A Guide to the Theory and Practice of Project Methodology and Agile Methods