Arab Open University

Faculty of Computer Studies

Prepared by: Nabil Rahal.

[email protected]

Change, Strategy and Projects at Work

Chapter 3: Implementing change through
project working
Introduction

In this chapter we show how to use project
working tools and techniques to implement change
in the workplace in a systematic and effective way.
Introduction

Some examples of projects:

Split the atom

Tunnel under the English Channel

Introduce Windows 7

Plan next Olympic games
Introduction

One of the key features of modern business is the
nature of the opportunities and threats posed by
external events. Companies:

Face international competition;

Must modify and introduce products constantly;

Respond to customers as fast as possible;

Maintain competitive cost and operating levels.
Introduction

Effective project managers are indispensable
commodity for successful organizations. Project
management is employed in such diverse
industries as:

Construction;

Heavy manufacturing;

Insurance and health care;

Finance;

Public utilities;

Software and hardware development.
What is a Project?

We must recognize at the outset that projects are
distinct from other organizational processes.

As a rule, a process:

Refers to ongoing day to day activities in an
organization;

Use existing systems, properties, and
capabilities in a continuous, fairly repetitive
manner.
 What is a Project?
Process vs. Project Work
Process Project
• Ongoing, day-to-day activities to 
Take place outside the normal,
produce goods and services process-oriented world
• Use existing systems, properties, 
Unique and separate from routine,
and capabilities process-driven work
• Typically repetitive 
Continually evolving
• Several objectives 
One objective
• People are homogeneous 
More heterogeneous
• Performance, cost & time known 
Performance, cost & time less certain
• Systems in place to integrate efforts

Systems must be created to integrate
efforts

Project definition: A project is a temporary endeavor undertaken

to create a unique product or service.
PMBoK
 What is a Project?

A project is defined in this book as follows:

A project is a temporary endeavor involving a

connected sequence of activities and a range
of resources, which is designed to achieve a
specific outcome, which operates within time,
cost and quality constraints and which is often
used to introduce change.(Lake 1997).
What is a Project?
Project Definitions Summarized
A project can be considered any series of activities and
tasks that have:

Specific objectives to be completed within certain
specifications,

Defined start and end dates,

Funding limits,

Human and nonhuman resources, and

Multifunctional focus.
What is a Project?

Projects are the way that strategic objectives are
achieved.

They can cover many different types of activities
such as:

Investigate a specific problem,

Research a new product or service,

Implement the findings of an earlier project
What is a Project?
Projects can be:

Carried out entirely in-house by an organization’s
own staff,

Make use of external consultants,

Involve several organizations working together in a
consortium,

Or a mix of the above.
 What is a Project?
Projects’ durations and budgets can vary enormously. For
example:

A project to re-equip a single office may take a couple of
weeks and have a budget around £1000.

A project to host the Olympic Games may cost many
billions of pounds and take several years.

Hosting the Olympics provides significant opportunities
for change for the host nation through a cascade of
projects needed to support the event itself, but with longer
lasting implications for the host nation.

For example, upgrading the transport infrastructure of the
region in which the games will be held or changing public
What is a Project?
Project’s assessments and evaluation:

All projects may be evaluated against the three
generic criteria of time, cost and quality;

All projects will follow similar life cycle;

There will be differences in the way that projects are
organized and implemented dependent upon the
context in which a project is carried out.
Project Management Challenges

While project management is being embraced by
so many organizations, successful project
management is so difficult.

Many companies encounter deep-rooted resistance
to the kinds of changes needed to accommodate a
“project philosophy”.

Like any other valuable activity, project management
requires preparation, knowledge, training, and
commitment to basic principles.
 Why are Projects Important?
The reasons why project management can be crucial in
helping an organization achieve its strategic goals:
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
4. Emergence of global markets
5. Economic period marked by low inflation
 The project life cycle
The stages of a project’s life cycle are indicated in Figure 3.1 below.
 The project life cycle
o
A Project life cycle refers to the stages in a project’s
development. Life cycles:
1. Are important because they demonstrate the logic that
governs a project;
2. Help us decide, for example, when we should devote
resources to the project;
3. Help us develop our plans for carrying out the project;
4. Help us evaluate the project’s progress.
 The project life cycles
Man Hours

Initiation & Planning & Execution & Closure &

definition organization implementation evaluation

Project Life Cycle Stages

 The project life cycles
• Initiation & definition - the development of the initial
goal and technical specifications. The scope of the work
is determined, necessary resources (people, money,
physical plant) identified, and important organizational
contributors or stakeholders signed on.
• Planning & organization – all detailed specifications,
schedules, schematics, and plans are developed. Work
packages are broken down, individual assignments made
and the process for completion clearly defined.
 The project life cycles
• Execution & implementation – the actual “work” of the
project is performed, the system developed, or the
product created and fabricated. The bulk of the project
team labor is performed. Project cost ramp up rapidly
during this stage as shown in the figure.
• Closure & evaluation – project is transferred to the
customer, resources reassigned, project is formally
closed out.
Project life cycle summary
Project Life Cycles and Their Effects
• As we can see, five components of a project may
change over the course of its life cycle:
1. Client interest: The level of enthusiasm or concern by
the project’s intended customer. Clients can be either
internal or external to the organization.
2. Project stake: The amount of corporate investment in
the project.
3. Resources: The commitment of financial, human, and
technical resources over the life of the project.
4. Creativity: The degree of innovation required by the
project.
5. Uncertainty: The degree of risk associated with the
project. Riskiness reflects the number of unknowns,
including technical challenges. It is highest at the
beginning.
Project initiation and definition

Project initiation and definition is critical as many
projects fail because they are not properly thought
through from the start.

Besides being initiated as a result of an organization’s
strategic program of change, a project may be initiated
for a number of other reasons; for example:

A request from a potential customer to provide a new
service or product

A customer complaint about poor delivery times

An internal proposal for a new product or service, or for
changes to an existing process

An agreed view that there must be a better way of
doing something.
Project initiation and definition
• Large capital projects are often preceded by an
extensive feasibility or scoping study.
• A key outcome from the initiation and definition
phase will be a Terms of Reference (ToR)
document or project brief.
Project initiation and definition

One of the purposes of the ToR is to define the scope
of the work and the range of activities to be carried
out.

The ToR will specify at least the following:
o
the project sponsor
o
the project customer
o
the objectives, scope and budget for the project
o
the kind of deliverables expected from it
o
the different phases of the project and any milestones
or key points that the project is looking to achieve.
Project initiation and definition
It is important to note that during the stage that
follow project planning and organization further
information may be added to the ToR, but any
subsequent changes need to be accepted and
agreed by all stakeholders.
Project planning and organization


Careful planning is crucial

It must take into account the views and
requirements of all the project stakeholders

The focus is on the clarification of all project
details so that a formal project plan can be
prepared.
Project planning and organization
Project planning and organization addresses the following:
1. What tasks and activities will be carried out to meet the
project objectives and how will they be grouped
together?
2. Who will be responsible for carrying them out?
3. What resources will be required?
4. In what order will activities be performed, and to what
timetable?
5. What are the potential risks involved in carrying out the
various project activities and how can they best be
managed?
Project planning and organization

It is important to note that as the project proceeds,
changes may be needed so that new opportunities
can be exploited. In this case, changes must be
agreed by all stakeholders as well as any
implications for the project’s ToR.
Project Implementation
• This is the stage where all the carefully laid out
plans are put into effect to create the project
reality.
• Since projects are novel and unique, some
elements of risk exist
• Appropriate risk analysis in the planning stage
must be carried out to reduce the effect of
problems arising.
• By this stage, the assembled project team should
implement the project activities and find solutions
to problems as they come up.
Monitoring the review
• Careful monitoring is required if the project is to
achieve its objectives against time and budget.
• Progress must be continuously checked against
the key dates and milestones that have been
identified in the project plan.
• The plan is reviewed on a regular basis to deal
with any potential and actual problems.
• Changes may be required to the plan as a result
of these reviews.
Project closure and evaluation
• The end of the project is reached when all the
project deliverables are formally signed off and
the team is disbanded.

• At this point the project is evaluated in terms of:

 The experiences gained,

 The lessons learned,
 The successes and failures along the way,
 The overall outcome of the project and its likely
future impact.
Project closure and evaluation
Lessons learned from a project can:

 add to an organization’s corporate learning,

 be a valuable resource for future project work.
 Determinants of Project Success
• Any definition of project success must take into
consideration the elements that define the very
nature of a project:
1. Time: The project should come in on or before its
established schedule. This is the first project
constraint.
2. Budget: Projects must meet budgeted allowances in
order to use resources as efficiently as possible. This
is the second constraint.
3. Performance: This is a “quality” check to determine if
the finished product operates according to
specifications and the client’s expectations. This is the
third constraint.
4. Client acceptance: We must ask whether the
completed project is acceptable to the customer for
whom it was intended. This is the fourth constraint.
Quadruple Constraint of Project Success
Four Dimensions of Project Success
• An additional approach to project assessment is whether the
delivered product can generate future opportunities, be it
commercial or technical, for the organization. Four relevant
dimensions of success are proposed:
1. Project efficiency: Meeting budget and schedule expectations.
2. Impact on customer: Meeting technical specifications, addressing
customer needs, and creating a project that satisfies the client’s
needs.
3. Business success: Determining if the project achieved significant
commercial success..
4. Preparing of the future: Determining whether the project opened
new markets or new product lines or helped to develop new
technology.
The Project Manager Responsibilities
1. Selecting a team
2. Developing project objectives and a plan for
execution
3. Performing risk management activities
4. Cost estimating and budgeting
5. Scheduling
6. Managing resources
Overview of the Project Management
Institute’s PMBoK Knowledge Areas
(Provided as a reference only)