Project Management E-Book

Harald Meier

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2023

Seitenzahl: 224

Beschreibung

Companies are increasingly developing into dynamic and project-oriented organizations. Globalization, innovations and organizational dynamics require more and more projects, and thus a more project-oriented corporate organization and management. As a rule, managers as well as employees already work parallel to their line function in projects or completely from project to project. At the same time, cross-company and especially international value chains lead to the cooperation of cross-departamental and intercultural teams. For this, the specialists and executives need above all knowledge and experience in Project Management and the corresponding concepts as well as in the special form of cooperation, team development and communication. Because the most problems in Project Management are not caused by project goals and methods, but by the many different problem-solving behavior and attitudes, e.g. between engineers and business people, different departments or the different country cultures. The international IT project specialist Tom DeMarco puts it in a nutshell (in Peopleware - Productive Projects and Teams: The major problems of our work are not so much technological as socio-logical in nature. In terms of content here, in contrast to traditional professional textbooks, not only the technologies are priority, but also the social and intercultural aspects of project work. The book is aimed equally at students of all disciplines with a focus on managerial and project-related work as well as practitioners and entrepreneurs in all private business sectors as well as in NGOs, public projects or PPPs as public-private partnership.

Leseprobe

Edition Management Essentials

Vol. 1 Business Management (2021)

Vol. 2 HR Management and Leadership (2021)

Vol. 3 Intercultural Management (2021)

Vol. 4 Project Management (2023)

Vol. 5 Social Business (in prep.)

Vol. 6 Intercultural Management (in prep.)

Preface

Companies are increasingly developing into dynamic and often project-oriented organizations. Globalization, innovations and organizational dynamics require more and more projects, and thus a more project-oriented corporate organization and management. As a rule, managers as well as employees already work parallel to their line function in projects or completely from project to project.

At the same time, the cross-company and especially international value chains lead to the cooperation of cross-departmental and intercultural teams. For this, the specialists and executives need above all knowledge and experience in project management and the corresponding concepts as well as in the special form of cooperation, team development and communication. Because the most problems in project management are not caused by project goals and methods, but by the many different problem-solving behavior and attitudes, e.g. between engineers and business people, different departments or the different country cultures. The international IT project specialist Tom DeMarco puts it in a nutshell (in Peopleware – Productive Projects and Teams: The major problems of our work are not so much technological as socio-logical in nature. In terms of content here, in contrast to traditional professional textbooks, not only the technologies are priority, but also the social and intercultural aspects of project work.

The book is aimed equally at students of all disciplines with a focus on managerial and project-related work as well as practitioners and entrepreneurs in all private business sectors as well as in NGOs, public projects or public-private partnerships (PPP).

Bonn, September 2023

The more planned people act, the more effectively coincidence hits them.

Friedrich Dürrenmatt (1921-1981), well-known contemporary Swiss writer

Contents

Preface

Figures

Abbreviations

1. Corporate Management and Project Management

1.1 Dynamics in Corporate Management

1.1.1 Principles and Process in Corporate Management

1.1.2 Business Environment Scenario

1.2 Innovation Management

1.2.1 Types of Innovation and Barriers

1.2.2 Innovation Theory and Business Development

1.3 Project Management

1.3.1 Development of Project Management

1.3.2 Benefits and Challenges in Project Management

1.3.3 Small and large, NGO and Public, Intercultural and Multi-project Management

1.3.4 Project Manager and Management Development

2. Business Organization and Project Management

2.1 Changes in Organizations

2.1.1 Organizational Theory

2.1.2 From Line- to Project Organization

2.2 Project Organization and Corporate Policy

2.2.1 Forms of Project Organization

2.2.2 Functions in Projects

2.2.3 Corporate Policy and Project Management

2.3 Future in Project Management

2.3.1 Best Practise in Project Management

2.3.2 Agile Project Management

2.3.3 Project Management 4.0

3. Project Management Techniques

3.1 Project Negotiation and Contract

3.2 Project Stakeholder Analysis

3.3 Project Planning and Controlling

3.4 Project Planning Techniques

3.4.1 Project Structure and Capacity Planning

3.4.2 Reporting and KPIs

3.4.3 Project Management Software

4. Project Leadership and Cooperation

4.1 Leadership Instruments and Managerial Style

4.2 Teamwork and Team Development

4.2.1 Teamwork and Project Team

4.2.2 Group Dynamics and Team Development

4.3 Problem Solving Techniques

4.3.1 Perceiving, Thinking and Learning

4.3.2 Creativity in Strategic Planning

4.4 Ethics in Project Management

5. Intercultural Project Management

5.1 Intercultural Management

5.1.1 International Management Strategies

5.1.2 Cross-cultural Studies

5.1.3 Cultural Differences in Problem Solving

5.2 International Projects

5.2.1 International Project Organization

5.2.2 International Project Negotiations and Risks

5.3 Intercultural Project Management

5.3.1 Specifics of Project Management and Communication

5.3.2 Intercultural Leadership and Team Development

5.4 International Project Manager Training and Development

Bibliography

Index

Author profiles

Figures

Fig. 1.1: Global Trade Flows

Fig. 1.2: Types of Innovation

Fig. 1.3: Corporate Development Model

Fig. 1.4: Project Management

Fig. 1.5: Bar Chart

Fig. 1.6: Project Triangle

Fig. 1.7: Management by Projects

Fig. 1.8: Private- vs. Public Project Management

Fig. 1.9: Multi-project Management

Fig. 1.10: Global Software Development Project

Fig. 1.11: Project Career Model

Fig. 2.1: On the way to Line Organization

Fig. 2.2: Change in Corporate Organization

Fig. 2.3: Line Organization

Fig. 2.4: Matrix Organization

Fig. 2.5: Pure Project Organization

Fig. 2.6: Staff-line Project Organization

Fig. 2.7: Matrix Project Organization

Fig. 2.8: Competencies in Project Management

Fig. 2.9: Advantages and problems in Project Organization

Fig. 2.10: Corporate Policy and Organizational Structures

Fig. 2.11: Magic Triangle in Agile Project Management

Fig. 2.12: Development in Project Management

Fig. 2.13: Change to Process-oriented Project Management

Fig. 3.1: Stakeholder Analysis in a Project

Fig. 3.2: Stakeholder Norm Strategies

Fig. 3.3: Project Work Plan

Fig. 3.4: Project Work Breakdown Structure

Fig. 3.5: Process-oriented Project Structure

Fig. 3.6: From Project Breakdown to Network Diagram

Fig. 3.7: CPM Network Diagram

Fig. 3.8: Workload-histogram and -Balance

Fig. 3.9: Target-Actual Comparism

Fig. 3.10: Project Management Software Integration

Fig. 4.1: Leadership Corridor

Fig. 4.2: Project Team size

Fig. 4.3: Team Development Process

Fig. 4.4: Team Development Phases

Fig. 4.5: Learning Success Diagram

Fig. 4.6: Biorhythm Performance Efficiency

Fig. 4.7: Brainstorming Process

Fig. 4.8: GAP Analysis

Fig. 4.9: Benefit Analysis

Fig. 5.1: The Culture Onion

Fig. 5.2: High-context – Low-context Communication

Fig. 5.3: Cultural tendencies in Countries

Fig. 5.4: Cultural Map – WVS study 6

Fig. 5.5: International Project Structures

Fig. 5.6: Risk Analysis

Fig. 5.7: Communication variety in Problem-solving

Fig. 5.8: Dynamics in Expert- and Soft skills

Fig. 5.9: Cultural Adjustment Process

Abbreviations

AI

Artificial intelligence

BC

before Christ

cent.

Century

chap.

Chapter

CI

Corporate identity

CPM

Critical path method

CSR

Corporate social responsibility

DIN

Deutsche Industrienorm

(German Institute for Standardisation)

Ed.

Edition

Eds.

Editors

e.g.

exempli gratia

, for example

etc.

et cetera

EU

European Union

EUR

Euro

Fig.

Figure

GMT

Greenwich Mean Time

GPM

Gesellschaft für Projektmanagement

HR

Human Resources

ibid.

(Latin) ibidem

(ebenda)

ICT

Information & Communication Technology

i.e.

id est,

that is

incl.

including, inclusive

IPMA

International Project Management Association

IT

Information Technology

KPI

Key Performance Indicator

MPM

Multi-project Management

Mr / Ms

Mister / Misses

NGO

Non-governmental organization

OECD

Organization for economic co-operation and development

PERT

Program evaluation review technique

PM

Project management (as function, organization)

PMI

Project management institute

PPP

Public Private Partnership

QM

Quality management

R&D

Research & Development

seqq.

(

Latin:

sequentia),

the following page (German: f.)

SME

Smal and medium enterprise

sqq.

(

Latin:

sequentia),

the following pages (German: ff.)

STEM

Science, Technology, Engineering and Mathematics

TQM

Total Quality Management

UK

United Kingdom

UN

United Nations

US

United States (of America)

USD

US Dollar

vs.

versus

WTO

World Trade Organization

1. Corporate Management and Project Management

Co-author Frank C. Maikranz

1.1 Dynamics in Corporate Management

1.1.1 Principles and Process in Corporate Management

Management as corporate governance is the decision-making and design of corporate structures and systems for the successful implementation of the corporate policy goals. On the one hand, management incl. the institution of executives (from the board of directors to team and project manager) and their functional-operative activities e.g. decision making, controlling, taking responsibility, and motivating their employees.

Corporate Policy

Corporate policy is the deliberate design of corporate goals and adaptation to internal and external influences such as general conditions. It therefore incl. comprehensive long-term target planning and the way in which relevant influences are reacted to. Corporate policy is thus a target-determining dimension upstream of corporate planning, which is then divided into sub-plans, e.g. functionally in departments (R&D, production, sales planning) or overarching project goals and then e.g. in operationally in a project-specific manner.

Corporate policy is subject to diverse and dynamically changing influences. These result e.g., from the activity or culture of the company and the company’s development (history, location, communication culture, innovative ability, employee qualification ...) as well as the company environment such as markets (raw materials, capital, labor market), systems (legal and tax system) and social trends (technology development, ethical values or demographics, …, see chap. 1.1.2).

ExampleRelevant development (Fresenius SE)1

Environmental development

The healthcare sector continues to be one of the world's most important economic sectors.

Above-average growth in the healthcare sector over the past few years.

Significant growth drivers, especially in emerging markets.

Extensive stability of the framework conditions relevant to the group's operating business.

Steady increase in health care costs in OECD countries.

Increasing cost and quality awareness in the healthcare sector.

Corporate development

Diversification into four divisions.

Geographical distribution of the subsidiaries over 80 countries.

Main sales markets: North America (46 %), Europe (38 %).

Leading market positions in product groups of the company.

Concentration on selected areas of healthcare, especially the treatment of seriously and chronically ill people.

Geographical expansion of the business.

Selective execution of small and medium-sized acquisitions.

Improving the security, user-friendliness and adaptability of the products and systems.

Implementation of measures to increase profitability (e.g. increasing the efficiency of the production facilities).

Dimensions of Corporate Policy

For a long time, corporate management concentrated primarily on the optimal combination of production factors for maximizing profits and/or minimizing costs. In the meantime, the question of the diverse interests of the various stakeholders, incl. social relevance and sustainability, is becoming increasingly important:

The traditional

Shareholder-value

oriented company policy puts and places the interests of the equity providers (owners, partners, shareholders) in the foreground (e.g. short-term profit maximization and skimming off, increase in company value). The investments are strategically aimed at securing the continued existence and survival of the company in order to maintain, exploit and expand the company's existing potential for success.

The policy is favored in traditional relatively stable markets and environments, manageable success factors and a strong power of the equity investors in a company. Accordingly, it is referred to as a conservative, stability-oriented company policy.

Criticism: A traditional one-dimensional view of entrepreneurial objectives within the framework of pure return on equity is increasingly being called into question today: in large companies and large medium-sized companies in Germany, the outside capital component and separate ownership and management dominate anyway. And, there are also normative (e.g. co-determination, CSR, interest groups) and moral requirements (sustainability, business ethics).

In contrast, as a stabilization policy, the

Stakeholder orientation

relies on the (also dynamic) diversity of interests of the different stakeholders (clients, equity capital owners, debt capital providers, employees, management, social environment ...). It tends to aim at sustainable and long-term corporate development in the search for and development of new entrepreneurial potential for success.

Supporting situational factors are e.g. dynamic or complex markets and environments (in terms of demand, values, technology, politics). Accordingly, the approach is also referred to as development-oriented or progressive corporate policy.

Criticism: Just as the value of a company cannot be expressed by key figures, the diverse stakeholder-oriented values are often not quantifiable – even if the values of stakeholder groups change. In small and medium-sized companies, it is often not possible to define a clear, permanently stable goal that is a prerequisite for investments or outside capital.

A relatively new

Sustainability orientation

in corporate policy is described with many terms, e.g. social business, purpose economy, steward ownership. It attempts to combine both approaches by assuming efficient and economical corporate management that incl. profit orientation, but also aims to provide social benefits of equal value.

As part of this social change in values, which is also partly reflected in norms (e.g. in laws such as the EU regulation on CSR), numerous profit-oriented subsidiaries of NGOs have emerged in the recent past, non-profit companies (gGmbH, a German equivalent to a non-profit Ltd.), et vice versa, non-profit oriented subsidiaries of the private sector.

Criticism: Even if it (as a new edition of the social enterprise in the 19th cent.) initially accommodates the change in values, it is a question of social feasibility; a typical example: the profit-making subsidiary GmbH of a non-profit foundation needs profit shares as reserves for future investments The NGO parent company keeps all profits for itself, since, for example, administration is becoming more expensive, donations are declining and ongoing projects have to be financed.

Corporate Policy and Project Management (PM)

For PM, this means that there are constantly new challenges and projects in all corporate policy approaches due to the newer approaches and dynamic environmental conditions. In traditional companies and markets it is the new competitors and technology that require projects, in dynamic markets and many stakeholders it is the constantly changing markets, trends and majority relationships that influence new concepts such as QM, CSR or sustainable products and processes. And sustainability as a general approach leads to corresponding cross-departmental and -corporate projects in all areas and at all levels, incl. alliances with competitors, with external experts and certifiers.

Overall, this can also be seen, e.g. in business administration study programs or in management training, where almost all relevant modules or courses have incl. more and more PM modules and corresponding supporting tools (e.g. start-up and entrepreneurship, design thinking).

1.1.2 Business Environment Scenario

Typical megatrends that are currently being discussed or considered in the context of corporate management are e.g. demographic changes, especially in western industrialized countries, social value changes, technical developments or globalization. In the first step, they usually lead to a cross-departmental project in order to analyze which areas, levels, etc. are affected by a trend and, as a result, often to sub-projects in and between the corresponding areas.

Megatrend effects on Companies

Demography

: declining population numbers due to low birth rates, increasing life expectancy and migration are leading to structural changes in the population of industrialized countries.

Adapt products and services for the elder people and for other cultures, less younger and more 50+ people, more migrants and from families with a migration background for employment ...

Changing Values

: consumer capital accumulation in private households (Single, DINKs, DCC),

2

sustainability (LOHAS, LOVOS),

3

CSR, social security, fun orientation and risk avoidance (generation Y, Z),

4

flexible working and shopping hours, social media ...

More customer-oriented market segmentation, more quality and sustainability in products and production, digitalized markets and delivery services, more women in management, LGBT+5 recognition, work-life balance with flexible working hours and home office ...

Digitization and Technology:

cloud computing, new work systems, 3D printing, virtualization (e-commerce, social media, e-government …), renewable energy, genetic engineering and biotechnology ...

New work, global process chains, regular new ICT solutions (purchase, production, marketing/sales, service, HR...), flexible work organization (team-, click work), new work content (less production, more control and advice ) and workplaces (home office, outsourcing and network partners) ...

Globalization:

More free trade, and at the same time short-term protectionism, adaptation to international standards, global value creation in the supply chain, more global markets and competition, permanent migration ...

Culturally adapted products and services, global procurement and sales, intercultural workforce, international accounting standards, investors and capital markets, new market entry barriers, purchasing and pricing policies ...

Climate Change:

natural disasters in a previously safe environment, rising sea levels, temperatures and humidity as well as a changing gulf- and jet stream, continental and cross-continental migration, declining biodiversity, changes in agriculture, tourism, regional and spatial planning ...

Industry changes (e.g. in food sector, logistics, textiles, tourism), migrants as new employees, investments in emission control (carbon footprint) ...

Fundamentalism

and

Crime

: Nationalism (

America First

) and separation politics (

Brexit, Catalan crisis

), religious and political fundamentalism and terrorism (

Islamism

, conspiracy theories like

QAnon, Reichsbürger

), digital white-collar crime and corruption as project risks ...

Safety for foreign and domestic employees with migration background, avoidance of racism in the company, re-evaluation of foreign investments, preventive risk management, compliance rules …

These trends, which are often interdependent, affect the majority of companies in industrialized countries – as well as emerging and developing countries with sometimes different results – regardless of size and industry. In addition, there are emerging trends that have so far only affected a few countries, sectors or companies (e.g. urbanization, individualization, new work cultures, mobility and migration, gender equality). For example, cross-country and cross-continental migration has become a global megatrend that goes beyond demographic aspects.

Fig. 1.1: Global Trade Flows 6

ExampleGlobalisation and Corporate Governance/Management

World Trade and Globalisation

International trade has always existed, e.g. Egypt imported 2,500 years BC blocks of stone and workers (meru) from Central Africa to build the pyramids. First foreign direct investments (FDI) were made as early as the 17th cent. as trading companies (e.g. The British East-India Company).

Today, around 25 countries control 80 % of world trade – the US, China and Germany leading the way – which mainly takes place in the triad: North America, Western Europe, SE-Asia. The Gulf States region has also been increasingly added in recent years (fig. 1.1).

From the mid-1960s onwards, the global economy grew dramatically with the corresponding corporate activities and interdependencies that transcended countries and continents, among other things due to:

Free trade zones (e.g. EU) and alliances (Pacific Alliance),

East-West cooperation through the liberalization in Eastern Europe and opening of the Chinese market,

supra-national economic policy institutions (OECD, WTO),

technical developments (e.g. ICT, Internet, transport logistics),

global value chains and outsourcing.

Challenges for companies

Irrespective of economic, social and political challenges (e.g. switching between free trade and protectionism), it is assumed in economics that – in addition to the trend towards regionalization in small companies (see above footnote LOHAS) – international challenges can be met with company growth. In other words, only the first 5-8 companies in an international industry are really successful internationally in the long term, as well as mediumsized companies as Hidden champions in global market niches. Challenges for corporate development, innovations and projects are e.g.:

Global value chains (e.g. blockade of the Suez Canal by a container ship lying across and weeks of backlog of hundreds of thousands of containers with spare parts, e.g. for the automotive industry).

Companies or products are hardly conceivable today without international activities, components or markets. The large companies in trade, industry or ICT only work with suppliers worldwide who can also deliver internationally.

The chances of the internet for international real-time analysis and communication also face challenges. (e.g. ICT hacking, social media campaigns).

Innovation and thus investment pressure due to more international competition (e.g. through AI and Industry 4.0 to the Smart Factory),

Impact of political and intercultural alliances or conflicts on international markets and value chains.

Intercultural cooperation abroad (e.g. with seconded experts and managers), foreign specialists recruited here, employees with a migration background and the resulting benefits and conflicts (e.g. prejudices, racism).

Trends and Project Management

For a company, the inclusion of one or more trends leads to strategic decisions for the entire company or selected areas. Accordingly, this usually results in cross-departmental and often cross-company and cross-national projects in the sense of corporate policy (see last section in chap. 1.1.1).

1.2 Innovation Management

1.2.1 Types of Innovation and Barriers

Innovations are entrepreneurial reforms or novelties with economic benefit, differentiated in, e.g.:7

Product innovations

(e.g. new product or a variation, operational services),

Process innovations

(procedures, organization, transport, ICT),

Social innovations

(communication, leadership, cooperation),

Market innovations

(development of procurement/sales markets).

Innovative companies usually create a connection between willingness, ability and process for innovations as a strategic business model (e.g. Apple).

Fig. 1.2: Types of Innovation8

The impact levels in the company relate to the

innovation potential

(products, markets, processes, costs, HR),

resistance and willingness to innovate

(habit, fear of change or risks),

pressure to innovate

(competition, employee fluctuation, trends), as well as the

ability to innovate

(qualifications, motivation, cross-departmental, solution- and future-oriented thinking).

Innovation Problems

The innovative ability of German companies is often criticized. A distinction must be made between finding innovations and applying innovations. Measured e.g. by research results or patents, German companies are still in the top group internationally. But, when it comes to implementation in market-successful products or services, on the other hand, they are well below the average of industrialized countries.

ExampleInnovative Ability (Germany)

Bloomberg Innovation Index sees Germany (as of 2020) as the most innovative country in the world (ahead of Korea, Singapore), mainly due to technological developments.9 But when it comes to implementation in marketable products and services, Germany is below the global average.

Marketability Problems

Internal:

Too long development times and too little process orientation (

time to market

), insufficient knowledge management, widespread department-oriented thinking, resistance to innovation (fears of change and conventional thinking, low R&D budgets).

External:

Overly complex and long-term approval procedures, a

jungle

of regulations (e.g. taxes, patents, standards, safety, environment), lack of transparency with regard to subsidies, still too little risk capital on the capital markets.

1.2.2 Innovation Theory and Business Development

Schumpeter’s theory of innovation10 was developed as an economic approach; it is still a central basis for companies today:

Innovations are a

central corporate task

for temporary, monopolylike competitive advantages until imitators copy them; but then successful companies have already developed something new and marketable.

Newer innovation theories take into account the innovation triggers or see requirements from corporate development, e.g.:

Push-Pull approach

: Markets require innovations

(pull:

customer needs, laws require innovative solutions), or companies trigger innovations, e.g. through R&D (

push:

companies then generate demand).

Life Cycle approach

: Innovation potential changes with company development; initially high (e.g. start-up phase) to build up the market, then decreasing to focus on organizational growth, efficiency, quality, customer loyalty (this is how the product life cycle concept of strategic planning came about, among other things).

Similar to products, companies have typical life cycles: from the pioneer phase (shaped by the founder with a lot of creativity, flexibility and improvisation) to differentiation phases (transition to a business structure with standardized processes, functional specializations and their coordination) to integration phases (creation of social systems, regular training and workshops on corporate development, cooperative management style).

ExampleCorporate Development Model (Greiner Curve)

First in 1972, Larry E. Greiner11 proposed the as later known Greiner Growth Model for the development of business organizations, a model of phases in the business growth, taking into account:

Age and size of the organization, andevolutionary and revolutionary phases.

Fig. 1.3: Corporate Development Model12

The (also known as Greiner’s Curve) explains the corporate's growing phases and crises, which also depend on the growth of the industry sector:

Rapidly growing industry

with shorter development times (steeper curve), in a

slow growing industry

corporate developing intervals are longer (flatter curve).

Levels of Corporate Development

Level 1

: growth through creativity and commitment of the entrepreneur, informal communication, growth creates management problems, organization needs rationalization and line manager.

Level 2:

growth through management and line organization (division of labour, formal communication, operational functions, e.g. accounting), central management becomes more difficult, autonomy problems arise, organization needs more delegation responsibilities.

Level 3:

growth through the management-by-delegation and decentralization (e.g. profit centre), control and steering problems arise due decreasing power of management, organization needs more coordination and a sense of identification.

Level 4:

growth through coordination and formalization (e.g. controlling: plans, budgets, reporting) as well as management guidelines and advisory, tendencies towards bureaucracy lead to crises of trust between top and middle management, organization needs a sense of cooperation and team development.

Level 5:

growth through team spirit (creates social control), high

flexibility through PM, conflict management and

teamoriented bonuses, psychological saturation arises, psychological overload through teamwork may arise, organization needs calm and consolidation.

In 1998, Greiner added a 6th phase into this model as alliances with a then following crisis of identity.

There are certain other models with less or more phases, e.g. the 4-Stage Model from Glasl/Lievegood is often used for concept in team-and organizational development or in change management: pioneer-, differentiation-, integration-, and association phase.

Innovation Management

According to Henry Ford,13 there is no permanent profit from inventions, but from improvements. Innovations are not only a central R&D task, but also a fundamental management task to continuously improve the processes etc. in all areas, just as the employees are asked to contribute ideas.

An integrated Idea- and Innovation management incl. e.g.:

Corporate employee suggestion scheme,

use of creativity/problem solving techniques systematically (e.g. idea workshop, crowdsourcing),

QM system with resulting project teams, and

if necessary, a patent system (in particular the STEM sector).

Business development and Innovation management are usually carried out directly in project form or are triggers for subsequent projects. The cross-functional, interdependent character of PM is thus almost implicit.

1.3 Project Management (PM)

1.3.1 Development of Project Management

Projects are time-limited, goal-oriented, innovative and complex work tasks that usually also require the cooperation of different functions and areas in the company.

ExampleNorms for ‘Project‘

In Germany, there is a norm standard for projects (DIN 69901): Projects that are essentially characterized by the uniqueness of the general conditions in their entirety, such as e.g. targeted, temporal, personal, financial or other restrictions, differentiation from other projects, project-specific organization.

The PMI (Project Management Institute, US) defines a project as14 ... temporary endeavor undertaken to create a unique product service or result.

Projects and PM accompany our lives privately and professionally: from writing a thesis during our studies or buying an apartment to project related work, collaboration in the project and PM (e.g. product development, re-organization, merger) up to professional or private participation perception of major projects such as the construction of an airport or an Olympics.

ExampleHistory of Project Management

Projects began (documented) in the 19th cent. when advancing industrialization replaced manual individual production (usually at home) with serial and mass production based on the division of labour. The rapid increase in technological knowledge and technology-supported development and production methods led to more and more specialization of products and work processes.

Today we are dealing with highly complex products and processes in the industrialized countries or work processes carried out by them, from the workplace to departments and cross-country and cross-continental cooperation between specialists. The idea of (in today's sense) modern project work comes from the US armaments industry: In the early 1940s, the development of the atomic bomb was carried out as Manhattan Engineering District Project, later the development of rocket systems (Atlas, Polaris) or space projects of NASA. A highly complex interdependence of science, industry, military and government required a new form of cross-departmental/cross-company work organization.

PM is also often used today as multi-project management (chap. 1.3.3) across companies and sectors, e.g. the Olympic organizers in Barcelona had to coordinate 300 individual projects. Or the ICE high speed train line Cologne-Frankfurt (200 km) was replaced in 5 years by one of limited-term project company founded jointly by several construction groups, which then in turn awarded and controlled sub-projects to regional medium-sized construction companies.

At work and also privately, we do many projects without perceiving them as such – and (mostly) unconsciously use PM methods and instruments, e.g. target and time planning, plan and control finances (e.g. a budget with individual cost items and target or actual comparism), decide according to priorities, check work progress (e.g. appointment calendar) and evaluate.

Fig. 1.4: Project Management

ExampleCorporate Projects at Hewlett Packard (HP)15