What Is Project Management?

Definition of a Project

A project is a temporary effort to create a unique product, service, or result. It has a definite start and end.

The project manager creates a realistic, time-bound, achievable project management plan that all stakeholders support.

Operational Work

Organizations carry out operational work and project work. Operational work continues on an ongoing basis. Project work has a definite end.

Project Management Process Groups and Knowledge Areas

Project management involves managing people, organizing work into process groups, and applying knowledge from several areas.

Process groups: Initiating, Planning, Executing, Monitoring and Controlling, and Closing. Knowledge areas: integration, scope, time, cost, quality, human resources, communications, risk, procurement, and stakeholder management.

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Programs and Portfolios

What Is a Program?

Managing several related projects independently can be a challenge. A program brings those projects together so the organization can manage them as a group.

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What Is a Portfolio?

A portfolio groups programs and individual projects that are carried out to achieve a specific strategic business goal.

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Project Management Office

The project management office (PMO) is a centralized department with staff who manage and support projects. A PMO can serve as the central authority for project management policies, methods, and templates. It can train staff, help them use project management tools, and provide project managers for different projects. The PMO and the assigned project managers are responsible for the results of those projects.

A PMO can also:

• Manage project needs and dependencies between projects.
• Provide resources and templates.
• Participate in project review meetings.
• Monitor compliance with organizational processes.
• Centralize communication about projects.
• Serve on the change control board.
• Help prioritize projects.

Business Value

Business value is the total value of a business, including both tangible and intangible elements. Tangible examples include monetary assets, fixtures, stockholders, equity, and utility. Intangible examples include goodwill, reputation, brand recognition, public benefit, and trademarks.

Managing ongoing operations effectively helps create value. Both for-profit and nonprofit organizations seek business value from their activities.

Project Objectives and the Charter

The project charter records the project objectives and can explain why the project is needed. Objectives may start at a high level and become more detailed as the project progresses.

A project is considered complete when it meets its objectives. If it fails to meet them, it is terminated. The project manager is responsible for achieving the objectives. Quality, risk, stakeholder, and scope management all affect the outcome. Managing these areas well helps the project meet its objectives.

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Management by Objectives (MBO)

Management by objectives is a philosophy with three steps.

1. Set clear, concise, well-articulated, and realistic objectives.
2. Review progress periodically to see whether the objectives are being met.
3. Take corrective action when performance deviates from the objectives.

Project Constraints

Constraints can involve time, cost, risk, scope, quality, resources, customer satisfaction, and other factors. They help the project team evaluate competing demands. Management sets the priority of each constraint, and a change to one can affect others.

Competing demands lead to changes during a project. Each change request goes through a formal process. The project manager uses integrated change control to evaluate the change and identify how it would affect all project constraints.

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Stakeholders and Stakeholder Management

Stakeholders are individuals, groups, or organizations that a project or its product can affect positively or negatively. They can include project managers, sponsors, team members, the PMO, portfolio managers, program managers, functional managers, and sellers.

A project can fail if stakeholders receive too little information, have too few opportunities to give input, or find that their needs and expectations go unmet. Throughout the project life cycle, the project manager analyzes and manages stakeholders’ needs and levels of influence.