The term project is derived from the Latin word projects, which means "advancing". The formal definition of a project is a unique and time-limited endeavor. Unique means that the result of a project is a new product or service, and limited in time means there are a predetermined beginning and an end. This definition, as well as the overall science of project management, is being developed by various organizations around the world, but the oldest and most famous is the Project Management Institute, based in the United States and having affiliates worldwide. In 1965, the International Project Management Association was formed in Europe.
Main characteristics
The project is an endeavor that requires a new type of organization of existing human, material and financial resources to achieve predefined and unique tasks within a limited budget and deadline. The main characteristics of any project can be deduced from this definition:
- Uniqueness - It is expressed in the uniqueness of the tasks, which in turn are the result of the nature of the goals pursued, namely the creation of a new and unique product or service (within the organization concerned);
- Requires reorganization and restructuring of existing organizational resources (human, material and financial);
- It exists on a tight budget;
- It exists in a fixed time range (transience) - Each project is characterized by a beginning and an end, and in this sense, it is a temporary endeavor. The time span of projects can vary from several months to years depending on its specifics;
- Subordinate to the goals set by the business - Most often the projects serve short to medium-term business goals. In the case of long-term goals, they are usually decomposed into several medium to short-term goals;
- Exists in dynamic conditions - The result of existing constraints (in time/budget) and the dynamics inherent in the business environment and business goals;
- Uncertainty - All of these characteristics define insecurity as an inherent feature of any project;
- It is a tool for organizational change.
Related concepts
Often, the activities in an organization are divided into business operations and projects. Typically, business operation is the result of the successful implementation of a particular project and represents repetitive (cyclical) business activities. In this sense, the operation can be seen as the opposite of the project. An example of an operation is the mass production of a particular coffee machine model. An example of a project is the design and development of a new coffee machine model.
The project program is a set of interrelated (dependent) projects, subordinated to a common goal (usually long-term). This concept should not be confused with the project portfolio of an organization, which is a plurality of projects that it works on (usually in parallel) and which can pursue different goals.
Project management is the overall activity of defining, planning and executing a project in order for it to be successful for its participants. The success of a project is not straightforward (it depends somewhat on the participants' point of view) and may be related to the achievement of the goals and constraints set in advance, customer satisfaction, experience and knowledge (so-called organizational learning), etc. Many techniques, tools, methods, methodologies, standards, and knowledge are associated with project management that give systematicity and effectiveness to the process of their implementation.
Dissemination of projects
In the US, projects are the standard way of doing things. They are also widespread in the EU, with all EC funding programs operating on a project basis. This is mainly due to the fact that when properly managed, they are extremely transparent and anyone interested in the project is aware of its development.
Projects are mandatory in some industries in Bulgaria because of the uniqueness of each endeavor in them:
Construction - In construction, a project is called the process of completing an object and the documentation on which it is carried out. This documentation is made by design engineers - position code 2149 - 6035 of the "National Classification of Professions and Posts in the Republic of Bulgaria";
Information and communication technologies - Often in this sector-specific project management methodologies are used, such as flexible methodologies such as Scrum;
Marketing and Advertising;
Research activity;
Investment
Project dimensions
Each project is characterized by three basic parameters, which are often referred to as a triangle (the so-called project triangle). By their nature, these parameters represent limitations that the implementation of the project must take into account (which is why they are often referred to as project constraints):
Time - Describes the time span of the project, indicating its start and end;
Cost (Budget) - Describes the resources that will be engaged and invested in the project (expressed in money);
Scope - Describes the product or service that will be created through the project.
Some authors add to the basic parameters another, fourth parameter - the quality in which they put the need to meet the needs and expectations of the client. Other authors believe that quality is the result of successful management and proper balancing of the other parameters and therefore do not consider it as a standalone parameter.
There is a relationship between the different parameters of the project - any change in any of them causes a change in at least one of the other parameters. For this reason, it is good practice to define two of the parameters in accordance with the requirements and wishes of the client, while the third (balancing) parameter is determined and controlled by the organization implementing the project. Another good practice is to determine (identify) the leading parameter of the project - the one to which the client is most sensitive. It predetermines the specifics of project management and implementation and is well-identified as early as possible. Also, the lead parameter often defines the project goals and expected results, which is why the concepts of goal/result/parameter (limiter) are often blurred;
Project lifecycle
Due to their uniqueness and diversity, projects are very difficult to formalize. However, it can be said that each project fits into one standard life cycle with the following phases:
- Initiation - At this initial stage, some key activities are undertaken related to defining the specifics and features of the project: defining its scope (in the form of business requirements and expectations for the product/service created), identifying participants and defining their roles/responsibilities, environmental analysis (external/internal), analysis of required financial resources and budgeting, risk analysis, etc. The main objective is that the project framework is well defined and accepted by all stakeholders. The end result is the formal launch of the project;
- Planning - At this stage, the issues raised in the process of project initialization and timing are analyzed in detail. Includes: a detailed analysis of the scope of the project and its breakdown into a number of specific tasks (the implementation of which will guarantee the functional and non-functional requirements), grouping these tasks, linking them to specific intermediate results and control points, each task is evaluated against the necessary for the implementation of their resources and determine its timeframes and the human / material resources involved. The main objective at this stage is to allocate resources and time, ensuring the effective implementation and control of the project in accordance with the interests of all stakeholders. The end result is a project plan that provides the necessary basis for project implementation and control. A number of techniques and tools are used in the project planning process to support the achievement of its objectives;
- Implementation - At this stage, the technically specific product or service is implemented, following the plans set out in the previous stage;
- Controlling - At this stage, which often overlaps with the implementation of the project, it is monitored for its adherence to the set goals and plans and corrective actions are taken if necessary;
- Closure - At this stage, the final product or service is ready, checked to see if it meets the customer's needs and expectations, and is then put into service. The project team is disbanded, after which the project is analyzed for the needs of organizational learning. The project is formally closed.
Stakeholders
For each project to be successful, it is crucial to analyze its stakeholders, their roles and responsibilities. Reference: Program stakeholders management. Stakeholders in a project can be conditionally divided into:
End users
- End users - Includes users who will actually use the product or service;
- Project Owner - Includes the customer of the product or service;
- Project Contractor - Includes the contractor for the product or service. Depending on the commitment to the project and the interests pursued, a distinction is made here:: senior management, which is not closely related to the implementation of the project but pursues certain business goals (strategic, tactical and purely operational) through it; and a project team that manages and implements the project. The project team must balance the goals of all other participants, plan and implement the project successfully. It usually involves a project manager and a team of specialists (usually the organization itself, but may also have external specialists), but it depends a lot on the organizational structure chosen (functional, purely project organization, weak/balanced/strong matrix, etc.). ;
Other interested parties
Other interested parties - Includes all other persons who are in one way or another related or interested in the project (creditors, investors, etc.);
Most commonly, the stakeholder analysis considers and defines the following roles:
Project manager
A project manager is a person who has the authority and responsibility for a project. The project manager's job is to coordinate, assist and inform project stakeholders;
Project sponsor
A project sponsor or sponsor of a project is a person with greater authority than anyone directly involved in the project, which motivates the project to be realized. The project sponsor is the one who intervenes when, for example, the organization's top management refuses to assist the project manager; Reference: Project manager vs Program manager vs Project sponsor
More Project stakeholders
- Customers and users;
- Main project team;
- Additional Personnel - Whether reassigned by another entity, subcontracted or otherwise provided;
- Trade unions or industry organizations;
- Suppliers and creditors - in cases of lease-purchase they overflow;
- External actors - public, environmental organizations, other organizations with interests in the field;
- State and municipal administration - in American theory, this stakeholder has only recently emerged. This is mainly due to the fact that the US is a major driver in the global economy and business is now facing bureaucracy in the rest of the world. In Europe, due to cultural characteristics, regulations and legislation play a much more crucial role.