Project Management: A Core Competency for Managers

Kevin Chui, Vice President

PMI Hong Kong Chapter

P.O. Box 30657, Causeway Bay, Hong Kong

Internet: http;//www.pmi.org.hk E-mail: info@pmi.org.hk

Agenda

1. What is a project and how it differs from operation?2 What is project management and why is it needed?3 Benefits of PM to organizations and individuals4 The science of project management: Overview of PM

process groups & knowledge areas5 The art of managing project: Roles & responsibilities of a

project manager6 Roadmap to improvement - Project management

professional development & certification programs7 Questions & Answers

What is a Project ?

A project isa temporary endeavorundertaken to create

a unique product or service.

These are projects...

• Acquiring a company• Launching Initial public offering• Performing business process review for a business

division• Establishing a new customer service center• Launching a new credit card• Developing a new product• Recruiting 1,000 airline crew members• Building a shopping mall• Developing a new IT software• ...

These are not...

• Managing a shopping mall

• Operating a customer service center

• Maintaining an IT system

• Running a factory

• ...

Operations vs. Projects?

Operations Project

Semi-permanent charter, organization and goals

Original charter, organization and goals

Maintenance of status quo Catalyst for change

Standard product or service Unique product or service

Homogeneous teams Heterogeneous teams

Ongoing Start and end date

Management Buzz

• “Project management is the furnace in which careers are forged.”

Fortune, 3/20/95

• “Project management is evolving from a specialty into the central task of middle management.”

Fortune, 7/10/95

• “Turn everything into a project.”Tom PetersCircle of Innovation, 1997

• “In the new economy, all white-collar work is project work.”Tom PetersFast Company, May 1999

What is Project Management?

Application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

From A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –Third Edition

Why Project Management?

•Disciplined project management provides:

Focal point for effective communications, coordination and controlA plan to assess progressEnhanced productivity

•Project management provides the framework for methods, processes, monitoring and change control.

A Balanced Project

Time Cost

Quality

Scope

Project Management - Accelerating Trends

• Corporate globalization

• Massive mergers and reorganizations

• Flatter organizations

• Drive for faster results

Project Management - Accelerating Trends

• Team environment

• Importance of interpersonal skills

• Multinational projects

• Recognition of cultural differences

• Dependence on technology

Project Failure Statistics

• Roughly 40 percent of all IT projects fail to meet business requirements. (TechRepublic Inc./ Gartner Group)

• 74 percent of all IT projects fail, come in over budget or run past the original deadline... 28 percent of projects fail altogether.Every year, $75 billion is spent on failed IT projects in the U.S.

(The Standish Group, 1998) • In larger companies [where the average cost of a development

project is $2,322,000], only 9 percent of the projects come in on time and on budget. (The Standish Group, June 1999)

• 31.1 percent of projects will be canceled before they ever get completed. (The Standish Group, June 1999)

• The percentage of IT projects that fail to meet objectives hovers near 50 percent. (Gartner Group, December 2000)

Common Pitfalls

• Unclear objectives

• Lack of senior management support

• Lack of effective project integration

• Inadequate funding

• Change in business priorities

• Original assumptions invalid

• Ineffective team

• Lack of effective communication processes

Potential Benefits of PM for the Organization

• Balances competing demand• Increases communication among

participants• Improves monitoring & control• Improves project support and resource

utilization• Increases stakeholders trust,

confidence & satisfaction• Improves performance measurement• Improves project success

Potential Benefits of PM for the Individual

• Gets recognition of PM as a profession

• Provides future source of company leaders

• Creates high visibility of project results

• Enhances professional & personal growth opportunities

• Builds one’s reputation and network

• Develops portable skills and experience

Potential Benefits of PM for SME

• Enhance company image

• Increase client confidence & trust regarding delivery and management capabilities

• Speak common language with corporate customers

• Apply management skills and techniques to improve project and operational efficiency

• Optimize use of company resources

• Fast growing recognition of PMP qualification in China

Industries Deploying Project Management

• Information technology• Telecommunications• Construction & engineering• Healthcare• Financial services• Education and training• Automobile• Space & aircraft• Pharmaceutical• And many more…

Project Management Institute (PMI)

• Established in 1969, headquartered in USA

• World’s leading not-for-profit project management professional association– More than 152,000 members in over 140 countries

and representing different industries (Dec 2004)

– Over 270 chartered and potential chapters

– Over 30 Specific Interest Groups (SIG)

– Two colleges

• PMI Hong Kong Chapter established in 1998

PMI Membership Growth

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 200410,000

30,000

50,000

70,000

90,000

110,000

130,000

150,000

PMI Membership Distribution

Geographic Distribution

USA

Canada

OutsideUSA/Canada

68.67% USA10.67% Canada20.66% Outside USA/Canada

Sampling of Organizations Embracing PMI and PMBOK

•ABB•American Express•AT&T •Blue Cross Blue Shield•The Boeing Co.•Cap Gemini/Ernst & Young•Computer Science Corp.•Deloitte & Touche•EDS•Ericcson•GE•General Motors•Hewlett-Packard Co.•Hitachi•IBM•JP Morgan Chase•KPMG•Lockheed Martin•Lucent Technologies•Microsoft•Motorola

•NCR•NEC•Nokia•Nortel Networks•PricewaterhouseCoopers•Samsung•Shell Services International•Siemens AG•Sprint •TATA Consultancy Services•TELUS•Unisys•US Army/US Air ForceHONG KONG•Airport Authority•CLP•OGCIO•JOS•HIT•Housing Authority

The Science of Project Management

The technical dimension:

“It is the formal, disciplined, pure logic parts of the project management process.”

Project Management Methodology

1984 – PMI Published first Standard

2000 – A Guide to the Project Management Body of Knowledgeor PMBOK® Guide – 2000 Edition released

2004 – PMBOK® Guide Third Edition released

ANSI approved

De Facto Global Standard

Translated versions in many languages including Chinese

PMBOK – 5 Process Groups

PMBOK – 9 Knowledge Areas

Integration

ScopeTime Cost

Quality

PeopleCommunication Risk

Procurement

The Art of Managing Project

The social cultural dimension:

“Creating a temporary social system within an organization,

combining talent of a divergent set of professionals working as a team

to achieve the project objectives.”

Project Manager Roles

• Decision-maker

• Coach

• Communicator

• Encourager

• Power broker

• Disciplinarian

• Manager

• Sales person

• PM expert

• Facilitator

• Behavior model

• Leader

Project Manager Responsibilities

• Project plan implementation

• Achievement of objectives

• Project integration

• Communications

• Stakeholder relations

• Change management system

• Priority establishment and maintenance

PMP Certification Program

• PMP CertificationIntroduced in 1984

• Eligibility Requirements: Demonstrated experience Demonstrated educationAttended PM training courses – 35 contact hoursPass examinationAgree to abide by the Code of Professional Conduct

• Number of PMP: 91,923 (Sep 2004)

PMP Certification - Purpose & Goal

• Development• Maintenance• Evaluation• Promotion• Administration of a rigorous, examination-

based, professional certification credential of the highest caliber

PMP Continuing Certification Requirement Program

• Enhance the ongoing professional development of PMPs• Encourage and recognize individualized learning opportunities• Offer a standardized and objective mechanism for attaining and

recording professional development activities• Sustain the PMP as a global certification credential• Maintain the PMP certification• Attain no less than 60 Professional Development Units (PDUs)

within a three-year cycle• Agree to continue to adhere to PMI’s Project Management

Professional Code of Professional Conduct.

Value of Project Manager Certification

• Access to globally recognized credentials & standards

• Provides professional & personal recognition

• Expedites professional advancement

• Creates job growth & opportunities within an organization

• Increases employees’ value to the organization

• Growing popularity of PMP qualification in China

PM Demand in China

• Immediate need for 600,000 project management practitioners in China according to estimate from the State Economic and Trade Commission (SETC) and the United Nations Industrial Development Organization (UNIDO)

• Memorandum of Understanding between PMI and the State Administration of Foreign Expert Affairs (SAFEA) to work together to introduce PMI standards and certifications into China

• More than 5,000 in the PRC have attained PMP as of Sep 2004

PMP Demand in China

Building professionalism in project management. TM

www.pmi.org.hk