Project Management Basics Part 1- What is a Project?

History of Projects

History has shown us that projects have been with us for centuries. Examples of famous projects include:

• The Pyramids
• The Olympic Games
• The Great Wall of China
• Panama Canal
• The landing on Mars
• Covid-19 vaccine
• Many Commercial Software applications

Of course, this is just the tip of the iceberg when considering projects through history.

The outcomes from these projects happened because leaders and managers put in place a range of principles, processes, tools and techniques to their work.

It is these skills and applied knowledge that now makes up the different methodologies available to us. Starting from the 1980s a project management movement began which collated all the applied learning that had developed over time and a range of methodologies and frameworks were developed.

The most famous methodologies or frameworks include:

• Project Management Book of Knowledge
• Prince 2
• Agile
• ISO 21500

It is the skill of the project manager to be able to identify the most effective framework or methodology to use on their project taking into account the type of project and the built-up learning already within the organisation.

Defining What a Project Is

A project is a unique set of interrelated activities carried out individually or collaboratively in order to create a product or service within a specific time frame and is aligned with a specific set of outcomes.

Similarly the Project Management Body of Knowledge defines a project as “a temporary endeavor undertaken to create a unique project service or result”.

The key points to take away from the definitions are:

• Temporary – projects usually have a finish date, and this is also one of the constraints in a project
• Unique – projects may be similar but they are always unique. For example two houses may be in the process of being built next door to each other. The houses are identical in the materials they are using. However one of the houses may have an issue with the underground cables or may be built by different teams. There will be some differences.

The skill of the project practitioner is to bring in processes so that similar projects can be delivered in a such a way as to improve its chances of success.

Operations vs Projects

An organisation will usually comprise of two significant components when looking to achieve their organisational objectives. These objectives may include a certain level of ROI for shareholders or for a not for profit may be providing a certain level of service for the community.

Firstly there is the operational component which is the business as usual process of the organisation. This is the rinse and repeat of a business view of the organisation. The learning is organic, and it is a gentle process of improvement.

Then there are projects. They are disruptive in nature and bring new ideas and new people to the organisation. With new stakeholders in particular, different viewpoints and incentives are in place which may bring with it some level of conflict.

The differences between projects and operations are summarised below. It should be emphasised that projects bring with them disruption to the organisation’s environment, and this can challenge the conflict resolution skills of the project manager.

Also it should be noted that there will be repetitive aspects to project deliverables and activities. This repetition will not change the fundamental characteristic of the project work.

Projects can vary in size and nature. For example they may:

• include staff from different areas of the business
• involve changes to systems, policies and/or procedures
• may have budgets from small to large amounts
• will involve new people working together from within the organisation and also externally
• range in length of time from hours to many years

Outputs vs Outcomes

When thinking about projects it is important to differentiate between outputs and outcomes.

The project manager may only be concerned about an output. For example they are charged with the task of delivering a project by a certain date. Once this is completed they are onto the next project to be delivered.

Senior management may be concerned about the outcomes. Or what are the wider benefits of the project. For example, a project may be the delivery of a medical centre in a small town. The outcome will be the improved health benefits for that local community. The skill of senior management will be aligning project outcomes with the strategic objectives of the organisation.

Relationship between Project, Program and Portfolio Management

As we have already discussed projects are an important part of the organisation as they provide outputs and outcomes that are aligned with strategic objectives.

There are three different scenarios whereby projects can be managed within an organisation.

1. A single project that has its own charter and project practitioners in place. A single project may be smaller in nature but still with the normal constraints. The project deliverable will satisfy the organisation’s objectives.
2. It may be necessary to engage several projects in order to achieve organisational goals. This group of projects is known as a program and is a set of related projects managed in a coordinated manner in order to achieve the outcomes required. Programs should not be confused with megaprojects which by definition are projects that have costs in excess of $1 Billion and timelines that may go for years.
3. Portfolio management is where an organisation manages multiple programs and projects at any given time. A portfolio may be defined as projects, programs, subsidiary portfolios and programs that are managed in order to achieve the strategic objectives of the organisation. There will be different life cycles, objectives and focus between portfolio, program and project management. However, resources and stakeholders will most likely be similar which can possibly cause conflict. The skill of the portfolio manager comes to the fore as they need to coordinate the portfolio, programs and projects in order to achieve a workable balance within the organisation.

Projects have been with us for generations and this will continue to be the case. The future however will have the advantage of built up learning from various methodologies. By applying tested frameworks the chances of project success will be significantly increased.