Project Management for Flat Organizations

Cost Effective Steps to Achieving Successful Results

Laura Burford

• Publisher: J. Ross Publishing
• Year: 2012
• Print ISBN: 9781604270846
• eBook ISBN: 9781604277296
• Edition: 1
• Topic: Business
• Subtopic: Project Management
• Index: Business

A flat organization believes the formal processes and controls used by many hierarchical organizations are too involved, require too much overhead cost, and are too complex and/or time consuming. This book is ideal for the project manager, team member, manager, or project sponsor with limited or no formal project management experience working within a flat organization. It offers clear, understandable discussions about project management processes, provides practical ideas and suggestions, answers common questions, and explains ways to address common pitfalls. Project Management for Flat Organizations provides common sense solutions to the unique challenges of organizations with flat hierarchical structures. It explains project management theory and offers simple and cost effective project management processes, tools, and techniques that can be applied immediately. This guide includes instruction and templates required to deliver projects efficiently and successfully with minimal risk and investment. It also enables users to develop a framework specific to the needs of their organization. This is a go-to guide you will want to keep on your desk for easy reference when working on projects.

SECTION 1

SETTING THE STAGE

Projects come in all shapes and sizes, but the fundamental management processes are the same. Projects are defined and planned; executed; managed and controlled; and then closed when completed. A project approach that works in one organization, however, may not be feasible or realistic for another. A large, hierarchical organization that has multiple, complex, large-scale projects tends to also have a formal, complex project management control structure that includes many tools, techniques, and templates. A smaller, flatter organization with modest-sized projects, even if these projects are large for the organization, does not need nor necessarily want the same level of formality and complexity. Frequently a smaller, a flatter organization is unable to bear the large costs of a formal, complex project management effort. Regardless of organization size and structure, to optimize the likelihood of project success, every person working on a project needs to understand management project concepts and terms. Small differences in the definition of a concept or a term can influence how a project team works together and the success of the project. This section covers:

Chapter 1. The Fundamentals: Introduces fundamental project management concepts and terms that every member of a project team should understand

Chapter 2. The Project Process Flow: Describes a project life cycle, the differences between a project management plan and a methodology, and the usage of software tools to manage a project

Chapter 3. The Project Organization: Discusses a team versus a group, the common roles of team members, and different project team structures

CHAPTER 1

THE FUNDAMENTALS

Covered in this chapter:

•Definition of project management

•Linkage, impact, and influence of scope, time, and cost

•Characteristics of projects, programs, and portfolios

•Delineation between projects and operations

Children walk before they run; they learn how to add and subtract before they learn to multiply or divide; and they learn how to throw a ball before they learn how to play baseball. Project management is not any different. It is hard to plan and manage a project to successful completion with no training. Whether new to project management or looking to refresh your skills, the right place to start is at the beginning by mastering fundamental project management concepts and terms.

WHAT IS PROJECT MANAGEMENT?

Project management is an established approach for planning, managing, and controlling resources to achieve a particular goal. Project management focuses on the set of tasks that will create a unique and specific product or service within a specified timeframe. Management assigns the role of project manager to a person with management and leadership skills. The project manager has responsibility for ensuring that the project work is successfully completed on time and within budget.

A BRIEF HISTORY OF PROJECT MANAGEMENT

Project management is not a new discipline; it has been around for millennia. Can you image building the Egyptian pyramids at Giza or the Colosseum in Rome without a plan? How about an English castle or medieval cathedral?

Although project management is not new, the approach to projects has changed over time. The modern era of project management started in the 1950s when businesses and governmental agencies realized the need to strengthen and modify the ad hoc nature of projects. In the 1910s, Gantt charts (a project scheduling technique that highlighted project tasks) as well as other informal tools and techniques were in use, but they did not provide enough control to ensure completion of projects on time and on budget. Make no mistake, although quite common today, Gantt charts were considered revolutionary when introduced.

Two quantitative methods were introduced in the United States in the late 1950s; both methods continue to be used today. E. I. duPont de Nemours and Remington Rand Corporation (now part of Unisys) jointly developed the Critical Path Method or CPM to address plant maintenance projects. CPM focuses on the sequence of the activities (tasks) and determines how long a project takes to complete. During the same period, Booz Allen Hamilton in conjunction with the Lockheed Corporation developed the Program Evaluation and Review Technique or PERT as part of the U.S. Navy’s Polaris missile submarine program. The emphasis of PERT was on major events and the use of probability to determine the estimates as to the length of time required to complete the project phases and tasks. CPM and PERT methods are still used today for planning and managing projects.

As new tools and techniques emerged, businesses, nonprofits, and governmental agencies started implementing their own project management approaches. Due to the lack of a standard project management approach, however, skill transference and agreement on fundamental project concepts and terms became issues as people moved from one organization to another. As the methods, tools, and techniques matured, a number of different project management approaches took hold. Two current approaches are

•The Project Management Institute’s Project Management Standards promulgated in A Guide to the Project Management Body of Knowledge that is better known as the PMBOK^® Guide

•The U.K. government process-based methodology, PRINCE2 or Projects in Controlled Environments promulgated in Managing Successful Projects with PRINCE2™

Each approach is generic in nature and provides a framework (PMBOK Guide) or a process (PRINCE2) that can be applied to any project regardless of size, industry, or location. The challenge for flat organizations is that these methodologies can be hard to follow and implement: the formal processes and controls are complex, cumbersome, and costly.

THE TRIPLE CONSTRAINTS

There is an old saying, “You can have it quick, cheap, or done right. Pick any two.” Oh, by the way, do not forget we want quality, too. Every project, regardless of size, is impacted and influenced by three constraints that are closely linked: scope, time, and cost. Scope is the work that will or will not be performed to deliver a specific product or service; time is how long the project will take; and cost refers to the expenses for resources such as staff salaries, equipment, materials, vendors, and consultants. Although different methodologies and authors use different constraint labels, the three constraints are known as the triple constraints. The triple constraints also are referred to as the project triangle (Figure 1.1). The three constraints tie directly to delivering a specific product or service within an agreed upon timeframe and budget.

Figure 1.1. The project triangle.

In an ideal world, the scope, time, and cost of a project are agreed upon and do not change as a project progresses—they remain constant over the life of the project. In reality, change occurs in all three constraint dimensions. Because they are interdependent, if any one of the constraints changes, at least one of the other constraints will be impacted. If the work or scope is increased, typically there is an increase in time and costs. If the amount of money available or costs are decreased, typically there is a mandated decrease in the scope or an increase in time. A time constraint change could result in a decrease in scope and, depending on the project, a reduction or increase in overall cost.

The quality of the product or service is an outcome of the interaction among the constraints and is a subjective assessment of how close the product or service meets its requirements. Quality, too, is impacted by changes to any one of the constraints. If the full impact of a constraint change is not considered, then the result is a deliverable, a product or service, which may not meet the original quality requirements. Think about what would happen if, for an event, instead of the 100 invitations being printed, 200 invitations are now required, but there are no additional funds. Instead of color invitations, the invitations must now be printed in black and white or on a lower-quality grade of paper. The result is the original quality of the invitations was sacrificed to accommodate the scope change.

Most of us unconsciously deal with the triple constraints in our daily lives. Consider the real-life project of remodeling a home kitchen. The requirements (or scope) are new cabinets, counter tops, appliances, and floor. The kitchen is to be entirely updated. The targeted completed date (or time) is mid-December so the project will be finished in time for the annual family holiday party. The budget (or cost) is $25,000 for the entire project. Three different vendors provide quotes, but as the quotes are reviewed, it becomes apparent that some hard decisions need to be made:

•Vendor 1’s quote is $25,500, but the job will not be completed in time for the party.

•Vendor 2’s quote is $30,000 and the job will completed in time for the party.

•Vendor 3’s quote is $21,000 and the job will completed in time for the party, but there is a catch. The requirements have been modified to install a lower-grade floor so that the project remains within the requested budget and timeframe.

Vendor 1 could not meet the time constraint; Vendor 2 could not meet the cost constraint; and Vendor 3 could not meet the scope constraint. Which vendor should be hired for the job? Should additional quotes be obtained? Should one of the constraints be changed allowing for more flexibility? Every project runs into similar situations.

At times one or two of the constraints are fixed, even before the project manager starts planning the project. For example, the cost cannot exceed a certain dollar limit. In this situation, the organization’s business leaders and project manager need to work together to develop a solution that benefits the organization, but still results in a successful project. At other times, the project manager is informed during the project’s ex...

Table of contents

• Cover
• Title
• Copyright
• Contents
• List of Illustrations
• Preface
• About the Author
• Web Added Value™
• Introduction
• SECTION 1: SETTING THE STAGE
• SECTION 2: GETTING STARTED
• SECTION 3: BUILDING THE ROADMAP
• SECTION 4: STILL MORE PLANNING
• SECTION 5: TIME TO START EXECUTING
• SECTION 6: MANAGING THE EFFORT
• SECTION 7: MANAGING THE EFFORT
• Conclusion
• Glossary