1
Financial and Project Management
Inhoud
Part 1: Introduction.....................................................................................................................2
Lecture 1.................................................................................................................................2
Part 2: Project Management........................................................................................................7
Lecture 1 PM...........................................................................................................................7
Lecture 2 PM.........................................................................................................................11
Lecture 3 PM.........................................................................................................................15
Lecture 5 PM.........................................................................................................................24
Lecture 6 PM.........................................................................................................................26
Lecture 7 PM.........................................................................................................................31
Lecture 8 PM.........................................................................................................................33
Lecture 9 PM.........................................................................................................................42
Lecture 10 PM.......................................................................................................................48
Guest Lecture 1 PM..............................................................................................................52
Guest Lecture 2 PM..............................................................................................................53
Part 3: Financial Management..................................................................................................54
Lecture 1 FM.........................................................................................................................54
Lecture 2 FM.........................................................................................................................59
Lecture 3 FM.........................................................................................................................65
Lecture 4 FM.........................................................................................................................70
Lecture 5 FM.........................................................................................................................73
, 2
Part 1: Introduction
Lecture 1
Examples of projects: construction projects, shipbuilding, movie production, Olympic games,
Amsterdam Dance event, Manhattan project, task force in organizational change, HR plan,
innovation projects, development projects, environmental projects, community projects.
Intuitive approach:
Think-Pair-Share:
o What is a project? A group comes together for some time to complete a task,
with a contained budget.
o What is/are difference(s) between a project and an organization? An
organization is timeless (it does not have the intention to end), it has goals
o What is project management?
Project: an organizational form; distinctions among organizational forms reflect social
processes and boundary creation. An organizational form is an entity comprising multiple
people and resources with a particular purpose/goal/aim. In any organizational form, mainly
two aspects of work exist: ongoing operations and projects.
Projects: unique, temporary endeavours with a specific beginning and end (thus they are time-
bound).
Operations: constitute an organization’s ongoing, repetitive activities, such as accounting or
production.
Permanent (operations) versus temporary (project)
Routine (operations) versus unique (project)
Operations examples:
Taking class notes
Daily entering sales receipts into the accounting ledger
Practicing scales on the piano
Manufacturing Apple iPods
Projects examples:
Writing term paper
Setting up a sales kiosk for a professional accounting meeting.
Writing a new piano piece.
Designing an iPod that is 2x4 inches and can carry 10,000 songs.
Project Management: the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals.
Primary challenge: to achieve all the project goals and objectives while honouring the
preconceived constraints. The primary constraints are scope, time, quality and budget
(+ stakeholder satisfaction).
Temporary system: a collaborative endeavour that is carefully planned to achieve a particular
aim. The system is constituted by teams (people/organizations) within or across organizations
to accomplish particular tasks under time constraints.
, 3
Temporary: pre-defined end point in time; once completed.
Intra-organizational: project & project-based organizations
Inter-organizational: IO temporary organizations
Types of Temporary System:
Ad hoc (spontaneous) Temporary system
Profession-based Temporary system
Hastily formed (inter)organizational Temporary system
Structurally prepared Temporary system
Project-based Organization (PBO): an independent organizational form (an organization) in
which the project (and not a functional department) is the primary organizational unit for
economic or societal activities (e.g., production, innovation, change, and competition). They
can be found in private manufacturing enterprises, public and private organizations.
PBO versus other organizational structures:
F = Functions, P = Projects
A) Pure functional form
B) Functionally-oriented matrix, with weak project coordination.
C) Balanced matrix, with stronger project management authority.
D) Project matrix, where project managers are of equal status to functional managers.
, 4
E) Project-led organisation, where the needs of projects outweigh the functional influence
on decision-making and representation to senior management, but some coordination
across project lines occurs.
F) Pure project-based organization, no formal functional coordination across project
lines; the entire organization is dedicated to one or more CoPS projects and business
processes are coordinated within the projects.
Typical characteristics of PBOs:
Appropriate for complex, non-routine tasks
Competences and capabilities build from project to project
Help to adapt to uncertain, risky, and changing environments
Populated by integrators (commercial and technical) and brokers (to external clients)
Project managers have high status and control over functions, personnel, and
resources.
PBO is flexible and reconfigurable (cf. large hierarchies)
Often close user-producer interaction
Advantages of PBO:
Well-suited for innovation and learning, coping with emerging properties and
demands from clients
Flexibility is high and response time to changing circumstances is relatively low
High employee loyalty to project goals due to short lines with project manager.
Disadvantages of PBO:
Ill-suited for coordination of resources and capabilities across projects, routine
production activities, achieving economies of scale.
Organizational learning often suffers (you move from one project to another, little
time to learn)
Danger of resource duplication across multiple projects
Due to across project mobility, careers and development of employees might suffer.
A project: a planned temporary endeavour undertaken to create a unique product or service or
another complete and definite outcome (deliverable) within a limited time scale and budget. It
can be intra- (in) or inter- (between) organizational.
It can be described by four T’s:
1. Time: projects have an ex-ante determined start and end. (e.g., clock-time, time-
marker (deadline), pace, activity level). Different dimensions of time:
o Objective: linear, natural, continuous.
o Subjective: cyclical, socially constructed, local
Financial and Project Management
Inhoud
Part 1: Introduction.....................................................................................................................2
Lecture 1.................................................................................................................................2
Part 2: Project Management........................................................................................................7
Lecture 1 PM...........................................................................................................................7
Lecture 2 PM.........................................................................................................................11
Lecture 3 PM.........................................................................................................................15
Lecture 5 PM.........................................................................................................................24
Lecture 6 PM.........................................................................................................................26
Lecture 7 PM.........................................................................................................................31
Lecture 8 PM.........................................................................................................................33
Lecture 9 PM.........................................................................................................................42
Lecture 10 PM.......................................................................................................................48
Guest Lecture 1 PM..............................................................................................................52
Guest Lecture 2 PM..............................................................................................................53
Part 3: Financial Management..................................................................................................54
Lecture 1 FM.........................................................................................................................54
Lecture 2 FM.........................................................................................................................59
Lecture 3 FM.........................................................................................................................65
Lecture 4 FM.........................................................................................................................70
Lecture 5 FM.........................................................................................................................73
, 2
Part 1: Introduction
Lecture 1
Examples of projects: construction projects, shipbuilding, movie production, Olympic games,
Amsterdam Dance event, Manhattan project, task force in organizational change, HR plan,
innovation projects, development projects, environmental projects, community projects.
Intuitive approach:
Think-Pair-Share:
o What is a project? A group comes together for some time to complete a task,
with a contained budget.
o What is/are difference(s) between a project and an organization? An
organization is timeless (it does not have the intention to end), it has goals
o What is project management?
Project: an organizational form; distinctions among organizational forms reflect social
processes and boundary creation. An organizational form is an entity comprising multiple
people and resources with a particular purpose/goal/aim. In any organizational form, mainly
two aspects of work exist: ongoing operations and projects.
Projects: unique, temporary endeavours with a specific beginning and end (thus they are time-
bound).
Operations: constitute an organization’s ongoing, repetitive activities, such as accounting or
production.
Permanent (operations) versus temporary (project)
Routine (operations) versus unique (project)
Operations examples:
Taking class notes
Daily entering sales receipts into the accounting ledger
Practicing scales on the piano
Manufacturing Apple iPods
Projects examples:
Writing term paper
Setting up a sales kiosk for a professional accounting meeting.
Writing a new piano piece.
Designing an iPod that is 2x4 inches and can carry 10,000 songs.
Project Management: the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals.
Primary challenge: to achieve all the project goals and objectives while honouring the
preconceived constraints. The primary constraints are scope, time, quality and budget
(+ stakeholder satisfaction).
Temporary system: a collaborative endeavour that is carefully planned to achieve a particular
aim. The system is constituted by teams (people/organizations) within or across organizations
to accomplish particular tasks under time constraints.
, 3
Temporary: pre-defined end point in time; once completed.
Intra-organizational: project & project-based organizations
Inter-organizational: IO temporary organizations
Types of Temporary System:
Ad hoc (spontaneous) Temporary system
Profession-based Temporary system
Hastily formed (inter)organizational Temporary system
Structurally prepared Temporary system
Project-based Organization (PBO): an independent organizational form (an organization) in
which the project (and not a functional department) is the primary organizational unit for
economic or societal activities (e.g., production, innovation, change, and competition). They
can be found in private manufacturing enterprises, public and private organizations.
PBO versus other organizational structures:
F = Functions, P = Projects
A) Pure functional form
B) Functionally-oriented matrix, with weak project coordination.
C) Balanced matrix, with stronger project management authority.
D) Project matrix, where project managers are of equal status to functional managers.
, 4
E) Project-led organisation, where the needs of projects outweigh the functional influence
on decision-making and representation to senior management, but some coordination
across project lines occurs.
F) Pure project-based organization, no formal functional coordination across project
lines; the entire organization is dedicated to one or more CoPS projects and business
processes are coordinated within the projects.
Typical characteristics of PBOs:
Appropriate for complex, non-routine tasks
Competences and capabilities build from project to project
Help to adapt to uncertain, risky, and changing environments
Populated by integrators (commercial and technical) and brokers (to external clients)
Project managers have high status and control over functions, personnel, and
resources.
PBO is flexible and reconfigurable (cf. large hierarchies)
Often close user-producer interaction
Advantages of PBO:
Well-suited for innovation and learning, coping with emerging properties and
demands from clients
Flexibility is high and response time to changing circumstances is relatively low
High employee loyalty to project goals due to short lines with project manager.
Disadvantages of PBO:
Ill-suited for coordination of resources and capabilities across projects, routine
production activities, achieving economies of scale.
Organizational learning often suffers (you move from one project to another, little
time to learn)
Danger of resource duplication across multiple projects
Due to across project mobility, careers and development of employees might suffer.
A project: a planned temporary endeavour undertaken to create a unique product or service or
another complete and definite outcome (deliverable) within a limited time scale and budget. It
can be intra- (in) or inter- (between) organizational.
It can be described by four T’s:
1. Time: projects have an ex-ante determined start and end. (e.g., clock-time, time-
marker (deadline), pace, activity level). Different dimensions of time:
o Objective: linear, natural, continuous.
o Subjective: cyclical, socially constructed, local
