Project Management

1. Project Management • Introduction • Course aim • Business organization development • The “Project”: definition and characteristics • Project Management • Conditions to manage a good project

2. Project Management Course purpose • What is a project? • What happen in a organization doing projects? • What is the difference between project and process? • How do projects work? • What happen inside projects? • What roles we need to make a project? • What factors influences the project success? • What instruments and techniques we have to manage a project? • How can we do an economic project control system? Clip Apollo13 101 - Projects

3. Project Management Course topics • Organization structure & culture • Projects, culture and Project Management • Conditions to have a good project • Project anatomy (lifecycle, plan, responsability mx…) • Planning tools • Economic/financial planning • Plan controlling • Soft tools • Experiences

4. Project Management Publications & Material • Material to download from: www.ggherardi.altervista.org • Reference: • Archibald "Project Management" • Baglieri, Biffi et Altri: “Organizzare e gestire progetti”; ETAS • Other books: see the site

5. Project Management How the course runs • The teacher will explain some basics in the classroom • Divided in some groups, students will solve a history case • Groups will show results of their jobs in the classroom • The teacher will evaluate (attendance is due) • Final exam will be written: a brief case and a brief question to answer • For who didn’t the group-work, final exam will be a written test with close/open questions and a case study to solve

6. Project Management • Introduction • Course aim • Business organization development • The “Project”: definition and characteristics • Project Management • Conditions to manage a good project

7. Business organization development • We can read the history of business organization like a path started in the middle of the 19° century • The problem to solve was (and is): how to divide the job, how to comunicate targets, how to coordinate (manage) people and how to control to achieve the targets in the most efficiency way • The first theory of business organization appears at beginning of 1900 and was very similar to a military organization… • From then, every theory and approach tried to solve the basic problem, some by put attention to the task/hierarchy, some to the people….

8. Business organization development • The Rational Model (1900-1930): to achieve the business goals in a efficient way, a clear role, processes and functions definition is needed. The organization must be a perfect watch: “Beaurocracy is the highest effective aspect of the organization”. The man is like a gear. (F. Taylor, M. Weber)

9. Business organization development • The Social Model (1930): is a reaction against the rational model, due to the social instability in the ’30’s. If we put attention to the person, the effectineness and efficiency of the organization will improve. People means needs, needs satisfacted means motivation. (E. Mayo, A. Maslow, F. Hertzberg); Autorealizzazione Autostima Proprietà Sicurezza Fisiologiche

10. Business organization development • The Structural Model (1950-1960): after the WWII a new attention to the mechanicist and structural aspects of the organization took place. The paradigm was: Ambient  strategy  structur. • Decrease the attention toward individuals motivation and needs. • Organizational Structures were classified in: organic (good for fast development sectors) and mechanicistic (low speed development sectors). In this vision the Matrix Structure was born as a best answer for projects needs. (A. Chandler, P. Lawrence e J. Lorsch)

11. Business organization development • The Cultural Model (1959-1980): it represents a new focus toward the social needs: human resources needs to find in the organization a common values system; the strengh point of the company is the capability to improve and renew itself. If a, organization has a share culture, it doesn’t need a complex and formal structure. Here we see the end of the idea that the structure is rigid and “Forever”. In this view the management is responsible to develop values and a good enviroment  we can call it “a learning organization”. (C. Barnard, P. Selznick, R.Watermann, J. March, K. Wieck)

12. Business organization development Recent theories: • Communication e languages (1980): the communication is on the basis of any social system. For each situation exists an appropriate way to communicate; communication is content and relationship. The communication is effective/efficient is acheve the organizational targets (Luhman, Watzlawick) • Empowerment (1980): it is a complete approach with a focun on the man. In this theory, everyone manage himself with full autonomy and can be interactive with everyone in the structure. The leader controls, convinces, helps, but overall allow people growth, like a coach. In this way there is a full us of the human potential. (Piccardo).

13. Business organization development EMPOWERMENT . 1990 COMMUNICATION & LANGUAGES 1980 CULTURAL MODEL 1970 1960 STRUCTURAL MODEL 1950 1940 SOCIAL MODEL 1930 RATIONAL MODEL 1900 Analitic/rational approach Social approach

14. Business organization development • The first form of business organization is FUNCTIONAL • This structure is characterized by: • Technical specialization, • Vertical dimension, • Hierarchic coordination system. • This kinds of organization are very frequent and are more effective in a stable enviroments/markets, with mass produztion, low innovation and low competition (!!!Taylor).

15. Business organization development • But, when markets become complex, companies feels that is very hard to achieve their targets. They discover that structure is a problem because rust is not in the functions, but BETWEEN functions!! • In this way the focus must be on the processes (because is the process that allow to achieve the target!). Organization by processes is born! • Focus on the activities chain that create the value. Market pay only for value. So the idea is to break the inter-fiunctional walls: • The responsability moved towards operative people • Less hierarchy, • Process owner concept, • Trasversal communications welcomed!

16. Business organization development • The first structures that approached processes are the so-called Modified Functional Organizations, i.e. functional structures that build a trasversal roles “weak” (like Product Manager) who, outside the normal hierarchy procedures, are responsible of a process (like product innovation, market roll-out, make-to-order production…). • In those organizations we see a increase of relationship complexity because the PM has not hierarchic power on the line resources he needs.

17. Business organization development • When: • non recoursive processes • results are strictly connected with time and resources available  then: normal organization became unstable • A project oriented structure is needed, and: • job is organized in temporary teams • heterogeneous skills • Target is focus – time and resources • The project organization structure was born after the WWII experience. During WWII industry was mobilized to supply in a very short time a huge inventory of material (History case: Liberty Ship, B24 flying fortress). The concept develops in the 50’s with the space race.

18. Business organization development MATRIX ORGANIZATION Specialistic dimension Target focus dimension INTEGRAL PROJECT ORGANIZATION Prj 1 Prj 1 Prj 1 Prj 1

19. Business organization development • In the project organization structure each project has a own organization that is under its control. • The project Leader has a complete control over all the aspects of the project. • For some projects, the project organization has the complete control over the project

20. Business organization development Integral Project Organization • Strength point • The Project Leader is the only boss of the project • Non-effective projects may be discovered easily and erased • Strong information channel • Resources share doesn’t exist • Everyone feels loyalty toward the project • The internal customer is felt • Each changement in the external enviroment (like the market ) is easily felt • The top management has more time for strategic decisions • Weak point • Very expensive organization in case of multi project enviroment • Trend to maintain resounces busy in the project even non necessary • Technology is not a priority, so is not easy to maintain high level on it • Is veri difficult to share information between projects! • No-continuity in the people career

21. Business organization development • The project organization was born in “make-to-order” companies, where the product is unique and strictly connected with targets of time and cost; • In those kind of companies a standard production didn’t exist; product is often unique and requests a complex series of actions by several resources; • A tipical kind of those companies are the ship-makers companies (manal makers), aerospace, big infrastructural constructors…. • In those companies a rigid and stable funcional structure is non a good way to success… Otherwise they were a good enviroment for the development of project management.

22. Business organization development • Every organization has its own targets to achieve and this is the reason why they mobilize resources. • But every kind of company makes experience of the difficulty to coordinate and control resources in order to their effectiveness to achieve results on time, respecting the budget and the quality. • So every kind of company is able to adopt a project management culture and tools by “make-to-order” companies experience. • …With fantastic results, especially for those that are tired and need renovation.

23. Business organization development • The Project Management is a management system target-oriented, that force people to: • set targets, • make plans to achieve targets, • control activities, • be flexible, sistematic, rational • compare results and targets. • The Project Management needs management capability to organiza technical contribute, but also communication skills, leadership, delegate skills and group coaching. This is veri enthusiastic because force people to became actors of their own activities.

24. Business organization development “It is not my problem…” “It is not my duty…” “It should be asked by my boss…” Are expressions from a organizations where an excessive job fragmentation in hierarchic teams (specialized by technology) maks the effort non effective (each function, each departmente seems to maximize its own target…tha easily is not the company target!!!). Processes are slow…like a rust in the gear.

25. Business organization development • By adopting Project Management culture, the organization became smooth, because different skills can cooperate easily together to the goal… • …this approach is somulti-skill and this hepls to discover new path, new way in a creative way  innovation is more easy… • …improvemente is more easy… • …so is a good way to adopt for eavery innovation process in every kind of organization.

26. Business organization development • Who understands and adopts a Project Management culture can: • Obtain a new and strong motivation in his people to achieve complex targets; • The capability to anticipate the drifts and adopt asap the correct actions • A strenght stimolus to continuos learning and innovation • A new freedom from hierarchy, so is more easy activate personnel energy oriented to efficiency, effectiveness and team work