Chapter 1-An Introduction To Project, Program, And Portfolio Management
Introduction
Many organizations today have a new or renewed interest in project
management (PM)
o The top skills employers look for in new college graduates are all
related to project management
The ability to work in a team structure
The ability to make decisions and solve problems
The ability to plan, organize, and prioritize work
In 2013, the average salary for someone in project management progression
in U.S. dollars was $108,000 per year in the United States, $134,658 in
Australia, (The highest-paid)
More Motivation To Study PM
Organizations waste $109 million for every for $1 billion spent on projects,
according to PMI’S pulse of the profession report
The U.S. spends $2.3 trillion on projects every year, and the world as a
whole spends nearly $10 trillion on projects of all kinds, or about one fourth
of the U.S. and the world’s gross domestic product
What Went Wrong?
A 1995 standish group study (The CHAOS report) found that only 16.2
percent of information technology (IT) application development projects
were successful in meeting scope, time, and cost goals. Over 31 percent of
the projects were canceled before completion, costing over $81 billion in the
U.S. alone
A PriceWaterhousecoopers study of 200 companies from 30 different
countries found that over half of all projects fail
Advantages Of Using Formal Project Management
Better control of financial, physical, and human resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
, Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale
What Is A Project?
A project is “a temporary endeavor undertaken to create a unique product,
service, or result”*
Operations is work done to sustain the business
Projects end when their objectives have been reached, or the project has
been terminated
Examples Of Projects
A young couple hired a firm to design and build them a new house
A retail store manager works with employees to display a new clothing line
A medical technology firm develops a device that connects to smart phones
A school implements new government standards for tracking student
achievement
A pharmaceutical company launches a new drug
The automobile industry develops standards for electric cars
Video Highlights
The project management institute (PMI) recognizes outstanding performance
in project management by announcing a project of the year award winner.
You can watch videos of the following projects:
o 2014 : AP60 phase 1 project, Jonquiere, Quebec, Canada
o 2013 : Adelaide Desalination project Adelaide, Australia
o 2012 : Umatilla chemical agent disposal facility operations phase,
Hermiston, Oregon, USA
Project Attributes
A project:
o Has a unique purpose
o Is temporary
o Is developed using progressive elaboration or in an iterative fashion
o Requires resources, often from various areas
o Should have a primary customer or sponsor
Introduction
Many organizations today have a new or renewed interest in project
management (PM)
o The top skills employers look for in new college graduates are all
related to project management
The ability to work in a team structure
The ability to make decisions and solve problems
The ability to plan, organize, and prioritize work
In 2013, the average salary for someone in project management progression
in U.S. dollars was $108,000 per year in the United States, $134,658 in
Australia, (The highest-paid)
More Motivation To Study PM
Organizations waste $109 million for every for $1 billion spent on projects,
according to PMI’S pulse of the profession report
The U.S. spends $2.3 trillion on projects every year, and the world as a
whole spends nearly $10 trillion on projects of all kinds, or about one fourth
of the U.S. and the world’s gross domestic product
What Went Wrong?
A 1995 standish group study (The CHAOS report) found that only 16.2
percent of information technology (IT) application development projects
were successful in meeting scope, time, and cost goals. Over 31 percent of
the projects were canceled before completion, costing over $81 billion in the
U.S. alone
A PriceWaterhousecoopers study of 200 companies from 30 different
countries found that over half of all projects fail
Advantages Of Using Formal Project Management
Better control of financial, physical, and human resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
, Higher profit margins
Improved productivity
Better internal coordination
Higher worker morale
What Is A Project?
A project is “a temporary endeavor undertaken to create a unique product,
service, or result”*
Operations is work done to sustain the business
Projects end when their objectives have been reached, or the project has
been terminated
Examples Of Projects
A young couple hired a firm to design and build them a new house
A retail store manager works with employees to display a new clothing line
A medical technology firm develops a device that connects to smart phones
A school implements new government standards for tracking student
achievement
A pharmaceutical company launches a new drug
The automobile industry develops standards for electric cars
Video Highlights
The project management institute (PMI) recognizes outstanding performance
in project management by announcing a project of the year award winner.
You can watch videos of the following projects:
o 2014 : AP60 phase 1 project, Jonquiere, Quebec, Canada
o 2013 : Adelaide Desalination project Adelaide, Australia
o 2012 : Umatilla chemical agent disposal facility operations phase,
Hermiston, Oregon, USA
Project Attributes
A project:
o Has a unique purpose
o Is temporary
o Is developed using progressive elaboration or in an iterative fashion
o Requires resources, often from various areas
o Should have a primary customer or sponsor
