CHAPTER 1

Initiate Your Project

After studying this chapter, you should be able to accomplish thefollowing:

• give the definition of a project

• differentiate between projects, programs, and portfolios

• differentiate between functional, matrix, and projectizedorganizational structures

• define and explain the importance of project initiation

• state what happens if some of the steps in project initiation areleft out

• list and describe the steps to be taken as a part of projectinitiation

• define stakeholders and list the persons and/or groups—internaland/or external to the organization—that fit that definition

• describe the importance of stakeholders

• explain the importance of properly identifying stakeholders atthe outset of the project

"Next stop, Kings Cross Station." The monotonous sound of theconductor's recorded voice jolts David from his nap with suddenawareness that his stop is next.

David arches backward in his seat, cups his hands behind his neck,and yawns openly. His is young and enthusiastic about moving up inthe organization, but his progress up the corporate ladder appears slowin his estimation.

The company is built on core values and guiding principles. Itpromotes from within and prides itself on embracing diversity andadding value by giving back to the community. That's what attractedDavid to join ten years ago as an assistant manager. But he is still justa manager now, so many years later.

Maybe he should have done a better job at networking, buildingrelationships with the people who are going places and being visible.

"Be a shameless self-promoter," one of the movers and shakerstold David. That's what it takes to move ahead nowadays, especially inan organization where there is reliance on the immediate manager forpromotion endorsement. Clearly David needs a mentor.

The train slows to a jolting stop; the doors open. David hustles outalong with hundreds of morning commuters on the procession to work.As he walks the three last blocks to the office, David anticipates whatlies ahead in the coming weeks in his new role as project manager.It's no promotion, just a lateral move with no change in level or pay, hereminds himself, citing verbatim from the letter received from humanresources. He was seriously considering turning down the offer for thetwelve-month temporary transfer to the project team. Someone elsewould backfill his job. He would sink or swim. Success may mean apromotion. Failure will mean that he's a "floater" moving from one cubicleto the next, with no real desk, just filling in for people on leave.

Why take the plunge into project management?

"What's in it for me?" he asks, canvassing opinions from trustedfriends and colleagues over whether or not he should accept theoffer.

Most of them say, "You'll see another side of the business; you'llgrow, expand, and learn."

All of that sounded good, but the thing that really sealed the dealand convinced him to accept the offer was the notion that the newassignment would, at the very least, temporarily relieve the monotonousroutine of his teensy weensy job, which he'd outgrown years ago. Hewould exceed expectations even in a semicomatose state, the statethat he typically operated in every boring day of his work life. And if justfor the notion that for once he could be alive at work, he was willingto take the chance to move from complement to overrun status on theorganization chart, relegated to floating after the project is over as areward.

Look at the time; pick up the pace; can't let this elevator go. I'llbe late! Elbowing his way into the crowded elevator, he presses thebutton to the twentieth floor, stopping at floors like a game of speedchess where players hit the clock to signal the start and end of a play.Twentieth floor, match over. The game has just begun.

Projects, Programs and Portfolios

Day planner, notebook, and pen in hand, David makes his waytoward the boss's office for a briefing on the project requirements.When he arrives, his boss greets him and explains that the organizationis embarking on several projects to realize strategic objectives in thecoming fiscal year. Some projects reside in portfolios; others areincluded in programs based on their relationship to the organization'sstrategy. The portfolio that the boss manages includes a collectionof projects and programs. Grouped within the portfolio are programscomprised of subprograms, projects, or other work managed in acoordinated fashion to support the portfolio.

At the boss's prompt for questions, David voices his concern: "I'mconcerned about reporting and my level of authority, given that my roleof project manager involves sourcing skills and expertise from personssenior to me. These persons are assigned to different departmentsand projects in business lines where I have no authority. Over thelast ten years of working with the company I know full well that thepower base lies in the hands of the functional department head. Onetoo many times I made the mistake of going directly to an employeein production or marketing without first routing the request throughthe functional department head only to be hauled before my boss oncharges of breach of the chain of command. I was admonished onseveral occasions to know my role or I would soon find myself on theoutside looking in, which may explain why I've only moved up one levelin the organization after ten consecutive years of employment. Butthat's another story."

"Interesting. Your impression is that this organization structureis functional?" The boss is curt. "In reality this organization uses abalanced matrix structure. Balanced matrix structures blend functionaland projectized characteristics."

"Balanced matrix structures, projectized characteristics? Pleaseexplain," David requests, his brow furrowed. "These concepts are stillrather new to me."

"No worries," the boss replies. "A functional organization is probablythe oldest type of organization. Functional organizations are groupedaccording to functions; for example, an organization may have humanresources, purchasing, and accounting departments. The work in thesedepartments is specialized and requires people whose skill sets relateto that function to carry out the work of the department. This type oforganization is set up to be a hierarchy," the boss explains. "Employeesreport to supervisors who report to managers reporting to departmentheads who report to the organization's head. Ultimately, one personat the top is in charge. Are you with me?" the boss inquires withoutpreamble.

"Yes, I'm following you so far."

"Many companies today, including governmental organizations, arestructured in a hierarchical fashion." Reclining misty-eyed in his chair,the boss's eyes transfix on his wall art, appearing to peer into past yearsin organizations similar to that which he describes. "Be aware of thechain of command!" he states with jolting exclamation.

"You mean don't talk to the big boss before talking to your boss whotalks to their boss who talks to the big boss?"

"You got it. Each department or group in a functional organization ismanaged independently, with a limited span of control. Human resourcesdoes not run purchasing or its projects, for example. Human resourcesis concerned with their own functions and projects. If it is necessary forhuman resources to get input from purchasing on a project, the humanresources team follows the chain of command."

To David it appears that the words "follow the chain of command"are uttered with a hint of sternness; it may be his imagination.

"The human resources manager speaks with the purchasingmanager, getting the necessary information to pass on to the projectteam. Projectized organizations are pretty much the reverse of functionalorganizations. The focus of these organizations is the project itself. In aprojectized organization, the loyalty is to the project, not the functionalmanager. In these organizations project managers have ultimate controlover the project, reporting directly to the top boss."

"Are organizational resources dedicated to the project work in theseorganizations?"

"Yes. In a purely projectized organization, functions such as humanresources and purchasing, for example, may report directly to theproject manager. Project managers make decisions that relate to theproject while acquiring and assigning resources, hiring from within oroutside of the organization."

"What about the matrix organization? That is a new term tome—before today I never knew that such an organizational structureexisted."

"Matrix organizations are somewhat of a hybrid. The better aspectsof two organizational structures are combined into one. Employeesin a matrix organization report to one functional manager and atleast one project manager. Functional managers assign employeesto projects and monitor their employees' work on various projects.Project managers, like you, David, execute the project and distributework assignments according to project activities, and both theproject manager and the functional manager share responsibility forcompleting the employee's performance review. In a balanced matrixorganization, the power is balanced between functional managers andproject managers. Each manager is responsible for their aspect of theproject or organization. The employee is assigned to projects basedon the project needs, not because the project manager or functionalmanager used the heavy-handed approach to acquire or retain thebest resources, as the case may be.

"The classification of a balanced matrix is based on the level ofpower and influence between functional and project managers. Inthe balanced matrix the project manager shares the authority andpower to make decisions with the functional manager. This meansthat although your job level is manager and you may be requestinginformation and support from senior managers, you have clout andthey will honor your request, the same as they would if you were theirimmediate boss."

"I get it," David replies, understanding the concepts better after theboss's clarification.

"Apologies for dashing off to another meeting," the boss mumbles.

He is distracted, hurriedly pulling papers together from all anglesof his desk. He refers David to the shared drive where the repositoryof project plans, processes, policies, and procedures specific to theorganization resides. The information in the shared drive is used toperform and govern the project. The boss suggests that David take theremainder of the week to look at completed schedules, lessons learned,historical information, risk data, and earned-value data, not to mentionhuman resources policies such as health and safety, ethics, and projectmanagement. He would also need to review information on projectand product life cycles and quality policies and procedures, includingprocess audits, improvement targets, checklists, and standardizationprocess definitions used in the organization.

"Oh yes," the boss declares. "There's lots to keep you busy until theend of the week. My calendar is usually up-to-date. See when I'm freein the beginning of next week and send me an invite. Sorry to have tocut this meeting short. Welcome aboard; it's great having you." Withthat, the boss is gone.

David realizes that he needs formal project management trainingand a mentor/coach to navigate the balanced matrix organizationstructure that the boss describes. He has never been good at buildingrelationships or networking; he doesn't have the components in hisarsenal to strategically influence key decision makers.

Luckily the company's learning management system includes anonline project management class, and David doesn't waste any time:he enters his employee ID, user name, and password to register forthe class. He sees that assignment to a mentor/coach is required uponregistration, and he signs up for one.

The first lesson is called "Module 1: Project Initiation." At theprompt, David launches the self-study course, downloads the self-studymaterials, and immerses himself in the learning content.

The module defines a project as a temporary endeavor. The endis reached when the project's objectives are achieved or when theproject is terminated because its objectives will not or cannot be met,or when the need for the project no longer exists. The module goes onto explain that projects come about to produce a tangible or intangibleunique product, service, or result.

David's interest is piqued as begins to read about the differencebetween portfolios and programs. The module talks about the samething that he recalls his boss saying about a portfolio as a collectionof projects and programs that are managed as a group. According tothe boss, the project that David will manage is included as a part ofa portfolio. The organization's strategic objective is the link betweenprojects, programs, and portfolios. Projects are prioritized basedon risk, funding, resources, and other considerations that supportachieving the organization's strategic plan.

Reluctantly, David takes a stab at completing the practice activity.He's really not in the mood to read and complete a case scenario; atthe same time, he needs to submit something to his mentor/coach forreview and discussion during the one-on-one session.

Activity #1—Practical Application of Relationship betweenProjects, Programs, and Portfolios

The practical application of determining the relationship betweenprojects, programs, and portfolios is presented in the form of a casescenario.

Instructions

1. Read the case scenario: "Believe You Can: Healthy Solutions."

2. Write down what projects, programs, or portfolios yourecommend based on the information presented.

3. Include the rationale for your decision.

4. Jot down any questions you may have.

5. Discuss your decision with the mentor/coach assigned to yourprogram.

Case Scenario

Believe You Can: Healthy Solutions has been in business for the past fiftyconsecutive years and is a leader in the health and wellness industry.The company operates out of four state-of-the-art production locationswhere it manufactures educational books, magazines, and CDs. Thenewest production facility currently operates at only 50 percent ofproduction capacity. The company also offers classes, workshops, andonline/face-to-face membership support groups facilitated by certifiedcounselors. Believe You Can: Healthy Solutions has a staff of over threehundred permanent employees. Its business model focuses on externalsales, on-site delivery, and a loyalty strategy.

Key Buyers (Who the Company Is Selling Products/Services to)

• book sellers (50 percent of sales), health centers/gyms (25percent of sales), and civic organizations/community groups(25 percent of sales)—percentages obtained from end-of-yearproduct sales in the youth and adult market (male andfemale)

Products and Services (What the Company Is Selling)

• books (50 percent of sales), magazines (30 percent of sales),CDs (3 percent of sales), classes/workshops (5 percent ofsales), membership online support groups (2 percent ofsales), and membership face-to-face support groups (10percent of sales)—percentages obtained from end-of-yeartotal product sales in the youth and adult market (male andfemale)

Key Resources/Activities

• networking/referrals, brand awareness, and expertise

Key Activities

• relationship-focused selling to buyers

• upgrading educational material based on customer and marketresearch feedback

• upgrading marketing and sales strategy

• establishing a loyalty program

• generating referrals

Channels

• direct marketing (external sales strategy)

• awareness through marketing/public relations materials

• on-site delivery and postpurchase customer support

• online delivery options

Current-Year Target

• build market share in niche market, senior citizen (sixty- toeighty-five-year-old male and female)

• build brand recognition as the de-facto leader in designing,developing, and distributing materials that promote healthylifestyles

• realize total gross sales of two million from sales of products insenior citizen niche market by end of current fiscal year

• manage expenses to no more than 6 percent of gross sales

What projects, programs, or portfolios would you recommendbased on the information presented below?

David gives up fifteen minutes into completing the case scenario, opensup a chat, and starts sending and checking e-mails. He smiles as hemessages a buddy from his old department who is jabbing at himfor moving up the corporate ladder. Sadly, he confesses, he may bereturning to the old job sooner than expected. He's not sure that he'sfitting into the new environment. He doesn't feel connected, his bosssent him to review material on the shared drive with no direction, he'strying to teach himself by completing an online module, and he has noidea where to begin, so he is giving up and thinking about heading offfor an early extended lunch. After he hits the send button his cell phonerings. His buddy talks him down off the ledge.