NotesforProjectManagement

Topic 4

Project Integration
& Stakeholder Management
ResourcePerson
Dr.SyedAmirIqbal.
VisitingFacultyIoBM.

PM Knowledge Areas
TheKnowledgeAreasare:
1. ProjectIntegrationManagement,
2. ProjectScopeManagement,
3. ProjectTimeManagement,
4. ProjectQualityManagement,
5. ProjectHumanResourceManagement,
6. ProjectCommunicationsManagement,
7. ProjectRiskManagement,
8. ProjectProcurementManagementand
9. Project
10. StakeholderManagement.

Dr.SyedAmirIqbal. 1
NotesforProjectManagement

Project Integration Management

Itincludestheprocessesandactivitiestoidentify,
define,combine,unify,andcoordinatethevarious
processesandprojectmanagementactivitieswithin
theProjectManagementProcessGroups.PMI

Itincludescharacteristicsofunification,consolidation,
communication,andintegrativeofPMprocesses.

Project Integration Management

Itisnecessaryinsituationswhereindividualprocessesinteract.
Forexample,acostestimateneededforacontingencyplan
involvesintegratingtheprocessesintheProjectCost,Time,and
RiskManagementKnowledgeAreas.
Process Group
Monitoring &
Initiating Planning Executing Closing
Controlling
Integration
Scope Scope
Time Time
Cost Cost
Quality
Humar Resource
Communication
Risk Risk
Procurement
Stakeholder

Dr.SyedAmirIqbal. 2
NotesforProjectManagement

Integration of Knowledge Areas & Processes Groups

Monitoring&
ControllingProcesses
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Process
Knowledge Area
Initiating Planning Executing Monitoring & Contol Closing

Develop Develop Project Direct and Monitor and Control Close

Project Project Management Manage Project Project Work Project
Integration Charter Plan Execution Perform Integrated
Management Change Control

Project Charter

Dr.SyedAmirIqbal. 3
NotesforProjectManagement

Project Charter
Theprocessofdevelopingadocumentthatformally
authorizestheexistenceofaprojectandprovidesthe
projectmanagerwiththeauthoritytoapply
organizationalresourcestoprojectactivities.PMI
Establishespartnershipbetweentheperformingand
requestingorganizations.(agreement)
Itcanbealsoaninternalagreementswithinan
organizationtoassureproperdeliveryunderthe
contract.

Benefit of Project Charter

Authorizestheexistence/establishmentoftheproject,
Providetheauthoritytoprojectmanagertospendmoneyand
commitcorporateresourcestotheproject.
Providetheobjective,highlevelrequirementsandsuccess
criteriaoftheproject.
Identifiestheconstraintsandhighlevelrisksfortheproject.
Includestheassumptionsabouttheproject
Aprojectcharterisnotconsideredtobeacontract,becausethere
isnoconsiderationormoneypromisedorexchangedinits
creation.

Dr.SyedAmirIqbal. 4
NotesforProjectManagement

Project Charter

Tools &
Inputs Outputs
Techniques
1. Project statement of 1. Expert judgment 1. Project charter
work
2. Business case
3. Contract
4. Enterprise environmental
factors
5. Organizational process
assets

Project Charter: Sponsor Inputs

1. Projectstatementofwork(SOW):Descriptionof
products,services,orresultstobedeliveredbyaproject.
Partofbiddocument
Characteristicsoftheproduct,service,orresults
2. BusinessCase:Descriptionwhetherornottheproject
isworththerequiredinvestment.
Thebusinessneedandthecostbenefitanalysis
justifyandestablishboundariesfortheproject.
Analysisisusuallycompletedbyabusinessanalyst
usingvariousstakeholderinputs.

Dr.SyedAmirIqbal. 5
NotesforProjectManagement

Project Charter: Sponsor Inputs

3. Agreement: Contracts,MOUs,servicelevelagreements
(SLA),letterofagreements,lettersofintent,verbal
agreements,email,orotherwrittenagreements.
Typicallyforexternalcustomer
4. EnterpriseEnvironmentalFactors:thatcaninfluence
theProjectCharterprocess,itinclude:
Governmentalstandards,industrystandards,orregulations
Organizationalcultureandstructure,
Marketplaceconditions.

Project Charter: Organization Inputs

5. OrganizationalProcessAssets:thatcaninfluencethe
DevelopProjectCharterprocessinclude:
Organizationalstandardprocesses,policies,andprocess
definitions,

Templates,

Historicalinformationandlessonslearnedknowledgebase

Dr.SyedAmirIqbal. 6
NotesforProjectManagement

Project Charter: Tools & Techniques

1.ExpertJudgment:Toassesstheinputsusedtodevelopthe
projectcharter.
Expertise:Agrouporindividualwithspecialized
knowledgeortrainingandisavailablefrommanysources.
Otherunitswithintheorganizationorindustry,
Consultantsorprofessional/technicalassociations,
Stakeholders,includingcustomersorsponsors,
Subjectmatterexperts(SME),and
Projectmanagementoffice(PMO).
2.FacilitationTechniques: Brainstorming,conflict
resolution,problemsolving,andmeetingmanagement.

Project Charter: Output

ProjectTitleandDescription
ProjectManagerAssigned
andAuthorityLevel(Authority
toleadtheproject,determine,
manage,andapprovechangesto
budget,schedule,staffing,etc)
BusinessCase(Justification,
purpose,financialorotherbasis) MeasurableProjectObjectives
ResourcesPreassigned(How
manyorwhichresources)
Stakeholders(influenceon
project)
StakeholderRequirementsas
Known(Requirementsrelatedtoboth
projectandproductscope)
ProductDescription/
Deliverables
Assumptions
Constraints(limitationto
deliverable)
(strategicgoals)
ProjectApprovalRequirements
(Whatdesignatessuccess)
HighLevelProjectRisks
(Potentialthreatsandopportunities)
ProjectSponsorAuthorization

Dr.SyedAmirIqbal. 7
NotesforProjectManagement

Project Charter - Example

PMPrep
RitaMulcahy
Page114116

Dr.SyedAmirIqbal. 8
NotesforProjectManagement

Project Selection

Project Selection
ThefollowingaretwocategoriesofprojectselectionmethodsSimplyknow
thatthesetermsrelatetoprojectselection:
1.Benefitmeasurementmethods(comparativeapproach)
Murderboard(apanelofpeoplewhotrytoshootdownanewprojectidea)
Peerreview
Scoringmodels
Economicmodels(describednext)
2.Constrainedoptimizationmethods(mathematicalapproach)
Linearprogramming
Integerprogramming
Dynamicprogramming
Multiobjectiveprogramming

Dr.SyedAmirIqbal. 9
NotesforProjectManagement

Project Selection : Economic Method

Anorganizationwouldlikelyconsidermorethanoneofthese
models(alongwithotherfactors)whenselectingaproject.

PresentValue:Thevaluetodayofcashfutureflow.
FV
PV
1 r
n

Whatisthepresentvalueof$300,000receivedthreeyearsfrom
nowifweexpecttheinterestratetobe10percent?Shouldthe
answerbemoreorlessthan$300,000?
$300,000
PV $225,394
1 0.1
3

Project Selection : Economic Method

NetPresentValue:thepresentvalueofthetotalbenefits
(incomeorrevenue)minusthecostsovermanytimeperiods.
NPV Revenue - cost
Anorganizationhastwoprojectstochoosefrom.ProjectAwilltakethreeyears
tocompleteandhasanNPVof$45,000.ProjectBwilltakesixyearsto
completeandhasanNPVof$85,000.Whichoneisabetterinvestment?

Dr.SyedAmirIqbal. 10
NotesforProjectManagement

Project Selection : Economic Method

InternalRateofReturn:
Anorganizationhastwoprojectsfromwhichtochoose:ProjectAwithanIRR
of21percentorProjectBwithanJRRof15percent.Whichoneisabetter
option?
ProjectA

PaybackPeriod:thelengthoftimeittakesfortheorganization
torecoveritsinvestmentintheprojectbeforeitstarts
accumulatingprofit.
Therearetwoprojectsfromwhichtochoose:ProjectAwitha
paybackperiodofsixmonthsorProjectBwithapaybackperiodof
18months.Whichoneshouldtheorganizationselect?
ProjectA

Project Selection : Economic Method

CostBenefitAnalysis:Thisanalysisresultsinthecalculationof
abenefitcostratio,whichcanbeexpressedasadecimaloraratio.
Whatdoesabenefitcostratioof1.7mean?
A.Thecostsaregreaterthanthebenefits.
B.Revenueis1.7timesthecosts.
C.Profitis1.7timesthecosts.
D.Costsare1.7timestheprofit.

OpportunityCost:opportunitygivenupbyselectingoneproject
overanother
Anorganizationhastwoprojectstochoosefrom.ProjectAhasan
NPVof$45,000.ProjectBhasanNPVof$85,000.Whichoneis
abetterinvestment?Answer:ProjectBwith$40,000op.cost

Dr.SyedAmirIqbal. 11
NotesforProjectManagement

Project Selection : Economic Method

SunkCosts:Sunkcostsareexpendedcosts
Anorganizationhasaprojectwithaninitialbudgetof$1,000,000.
Theprojectishalfcomplete,andithasspent$2,000,000.Shouldthe
organizationconsiderthefactthatitisalready$1,000,000over
budgetwhendeterminingwhethertocontinuewiththeproject?

AnswerNo.Themoneyspentisgone.

Project Selection : Economic Method

Dr.SyedAmirIqbal. 12
NotesforProjectManagement

Develop Stakeholder
Register

Dr.SyedAmirIqbal. 13
NotesforProjectManagement

Identify Stakeholder
ProjectStakeholderManagementincludesthe
processesrequiredtoidentifythepeople,groups,or
organizationsthatcouldimpactorbeimpactedby
theproject,toanalyzestakeholderexpectationsand
theirimpactontheproject,andtodevelop
appropriatemanagementstrategiesforeffectively
engagingstakeholdersinprojectdecisionsand
execution.PMI
Stakeholdersatisfactionshouldbemanagedasakeyproject
objective

Identify Stakeholder
Inputs Tools& Outputs
Techniques

1. ProjectCharter
2. ProcurementDocuments 1. Stakeholder
analysis
4. Enterpriseenvironmental Stakeholder
factors 2. ExpertJudgement Register
5. Organizationalprocess
Assets 3. Meetings

Dr.SyedAmirIqbal. 14
NotesforProjectManagement

Identify Stakeholder
Projectstakeholdersareindividuals,groups,ororganizations
whomayaffect,beaffectedby,orperceivethemselvestobe
affectedbyadecision,activity,oroutcomeofaproject.

Theyarecomprisedofpersonsandorganizationssuchas;
customers,
sponsors,
theperformingorganization,and
thepublicwhoareactivelyinvolvedintheproject,or
whoseinterestsmaybepositivelyornegativelyaffectedbythe
executionorcompletionoftheproject.

Identify Stakeholder

Dr.SyedAmirIqbal. 15
NotesforProjectManagement

Stakeholder Analysis
Identification:Identifyallpotentialprojectstakeholders
andrelevantinformation,(roles,departments,interests,
knowledge,expectations,andinfluencelevels.)

Assessment:Analyzethepotentialimpactorsupporteach
stakeholdercouldgenerate,andclassifythemsoastodefine
anapproachstrategy.

Classification:Assesshowkeystakeholdersarelikelyto
reactorrespondinvarioussituations,inordertoplanhowto
influencethemtoenhancetheirsupportandmitigate
potentialnegativeimpacts.

Stakeholders
Stakeholders must be identified and categorized by;
Internal (from project performing organization), or external
(customer, user)
Positive (advisors, consultants), or
negative (lazy supplier, arrogant
neighbor)
Performing (participating) or
advising (experts, consultants)
Primary (high influence and
interest), secondary (high influence
but low interests) or tertiary (low
influence and interest)

Dr.SyedAmirIqbal. 16
NotesforProjectManagement

Stakeholder Register
StakeholderRegister

ProjectName: Whenintheproject?
ProjectManager: PhaseNo.
Duration ofProject:

communicatio
Organization/

Internal/Exter

Requirement
ContactInfo.

contacttype
Department

Comments
Preferred

Influence
Category
Location

Typeof

Interest
Name.

Major
Role
No.

nal
n

4
1

Stakeholder Analysis - Models

Power/interestgrid,groupingthestakeholdersbasedontheirlevel
ofauthority(power)andtheirlevelorconcern(interest);
Power/influencegrid,groupingthestakeholdersbasedontheir
levelofauthority(power)andtheiractiveinvolvement
(influence);
Influence/impactgrid,groupingthestakeholdersbasedontheir
activeinvolvement(influence)intheprojectandtheirabilityto
effectchangestotheprojectsplanningorexecution(impact);and
Saliencemodel,describingclassesofstakeholdersbasedontheir
power(abilitytoimposetheirwill),urgency(needforimmediate
attention),andlegitimacy(theirinvolvementisappropriate).

Dr.SyedAmirIqbal. 17
NotesforProjectManagement

Stakeholder Analysis - Models

Manage
Keep Satisfied
Closely

Monitor Keep Informed

Plan Stakeholder Engagement

Theengagementlevelofthestakeholderscanbeclassifiedasfollows:
Unaware.Unawareofprojectandpotentialimpacts.
Resistant. Awareofprojectresistanttochange.
Neutral.Awareofprojectyetneithersupportivenorresistant.
Supportive.Awareofprojectandsupportivetochange.
Leading. Awareofprojectactivelyengagedinensuringtheproject
isasuccess.

C indicates the current engagement, and D indicates the desired engagement

Dr.SyedAmirIqbal. 18
NotesforProjectManagement

Plan Stakeholder Engagement

Createaformalplancoveringsuchtopicsashowtheteamwillbeinvolvedintheprojectand
whatrolestheywillperformahumanresourcemanagementplan.
Reportedto..
Internal External(Customer)

ProjectManager

ProjectManager
TeamMembers

TeamMembers
Management

Management
ProjectOffice

ProjectOffice
Department

Department
Functional

Functional
Execeutive

Execeutive
Employees

Employees
Managers

Managers
Communication

Members

Members
Division

Division
ResponsibilityMatrix

ProjectManager D W I R R W D D N N N N I
ProjectOffice D D D R R R D D I I N N I
TeamMembers W D W M N N N N R R R N N
DepartmentMembers R I D D W N I I I I I N N
FunctionalEmployees R I D D N N R R R R R N N
DivisionManagers I R R R R I N N N N N I I
ExeceutiveManagement I R R R R R I I R R N I I
D Daily
W Weekly
M Monthly
R Asneeded/required
I Informal
N never

References
PMBOK,5th Edition,PMI.

ProjectManagement:AchievingCompetitiveAdvantage,
JeffreyK.Pinto

PMPProjectManagementProfessionalExamStudyGuide,
5th Edition

Dr.SyedAmirIqbal. 19