Project Life Cycle
Project management aims to deliver work in an efficient, orderly manner, and you would use project management to travel from Point A to Point B as efficiently as possible.
Project Budget - The total financial sum available to pay for a project’s expenses; includes the cost estimates and additional reserves to cover issues.
Project Life Cycles start with a great idea and ends with a successfully delivered project.
Concept or Discovery Phase
Projects are conceived and reviewed during this phase and if approved, move on to the next phase. Financial returns, feasibility, and implementation options are analyzed. This phase filters out the unfeasible projects, and a lot of projects die here. Initiation Phase
Only approved projects reach this phase. Everybody will learn and understand their role during this phase. Project Kickoff officially occurs during this phase. Planning Phase
The team will define all activities needed to be completed. The PM will manage team logistics and ensure the project has adequate resources or procure additional resources. PM will create plans for keeping the project on track and sharing it’s progress. This is done by creating a project work schedule and performance metrics for tracking progress. At the end of the planning phase, the team has everything they need to begin delivering the work. Execution Phase
The team delivers the work during the execution phase, but the work also varies by project. Busiest phase of the project life cycle Along the way, they create supporting materials and coordinate with each other to complete the work. It is the busiest project phase, and everybody has work to do. The PM will also monitor progress and measure performance, enabling you to find and solve problems, maintain records, and create reports. By the end of the execution phase, the team has finished implementing the plan. As a result, the project should meet the goals set in the initiation phase. Closing Phase
When the PM ensures everything that needs to be closed, is closed. Ensures project was thorough, documentation was updated, and an accurate financial summary is created. The PM requests official approval to close the project. The Team also reflects on their work and disbands.
Project Management Skills
The Project Management roles heavily emphasizes planning and organization.
Team members must often find and solve problems before they occur. Team must be willing to follow the plan yet also adapt to change.
Applying Project Management
Good project management helps companies save money and optimize results.
A construction company could not build a library without a PM. People would show up at all hours and in the wrong order. Funding would probably run out long before the building was complete. Project management brings order to the work.
Develop the Business Case
The Business Case aka the Business Justification, summarizes the information about the project and serves as the first project proposal.
The Business Case will be shared with leaders so you can obtain approval to start the project and begin securing funding and resources.
The Business Case should also provide a compelling reason for funding the project.
This presents an objective analysis of the business problem, potential solutions, and overall financial impact. Helps sponsors and stakeholders determine if the project is an overall good investment. Sections of a Business Case
The Business Case should also provide a compelling reason for funding the project. It should be clear, concise, visually appealing, and easy to follow/read.
There is no standard format, so you can select the format and presentation option that makes the most sense for your audience.
The Business Case outlines the reasons a project should be funded, beginning with the high-level executive summary, the business case provides detailed information based on the project’s context. Executive Summary
The Executive Summary is a brief synopsis of the rest of the business case.
Problem Statement
The Problem Statement shares more details about the problem.
It presents a more thorough analysis of the current situation and the business problem, opportunity, or unmet need. Problem Analysis
It provides more context about why the project should be a priority.
It can include historical performance data, an environmental assessment, or other evidence to support the business case. Options
Options describes several approaches to solving the problem; it should contain at least three and no more than five options.
It compares the solutions against each other with pros and cons. Project Definition
The Project Definition includes additional relevant information about the proposed project.
Financial Overview
This covers the relevant economic impacts of the project.
Could include project budget Where the budget will come from What the company has to gain Contains a cost-benefit-analysis or ROI analysis Recommendation
Narrows down the options to the best solution and justifies why this approach is the best business case.
Current State and Future State
The Business Case should include and element of storytelling. The goal is to convince business leaders to allocate resources to the project you’re managing.
It’s important they understand exactly why they should invest the budget in your project instead.
Comparing the Current State (where we are now) and the Future State (where we want to go) is an excellent way to do this.
Current state: describes what is happening now. The business case template describes the current state in the problem statement and analysis sections. Future state: describes what the business will look like after implementing the project. The business case template describes the future state in the recommendation and financial overview sections. An ideal comparison shows a clear comparison between the current and future state of two of the same performance metrics.
For example, if you created a multi-page business case, consider adding a side-by-side summary of the current and future state to highlight the stark differences.
Assessing Financial Impact
Financial benefit is a primary business justification reason for working on a project.
Therefore, when deciding which projects to invest in, the company is more likely to invest in a project with strong financial returns, assuming all else is equal.
ROI (Return on Investment)
ROI compares the financial benefit of the project to the cost and is written as a percentage.
Positive Number (+) represents a profitable project
Negative Number (-) means the project will or has lost money.
ROI is presented in the following three formulas and all three will generate the same result.
ROI Examples
ROI values
ROI has three main values:
Benefit - is the money generated or explicitly saved due to the project. Often referred to as "financial value" or "revenues," this variable is the money flowing into the company. Cost - represents all the money spent on this project. Usually called "project cost" or "project expense," this variable is the money flowing out of the company. Expenses will include direct and indirect expenses, such as labor, equipment, and . Net Profit - the difference between the benefit and the cost. While it often isn't named in formulas, it is the numerator. ROI represents the profitability of a project as a percentage. However, it is also helpful to understand the actual net profit of a project as well. A Positive ROI doesn’t automatically mean a project will move forward. A Negative ROI doesn’t automatically mean a project will be canceled. Instead the ROI % is merely put into a larger decision. Business Context, regulations, and environmental requirements are among the many other factors that influence project approval.
Financial Risks and Assumptions
Assumptions
Assumptions are statements that must be taken to be true in order to begin project planning.
Ex. You might include an assumption that revenues will grow at 5% per year, which represents the industry average. Stating this within the business case can help others have more confidence in your data. Risks
Risks are any unexpected event that can affect your project.
The effect might be either positive or negative, and the impact might be on any aspect of the project from personnel, processes, technology, and resources. These unexpected events are difficult or impossible to predict. Risk are events you think could happen.
Environmental, Social and Governance (ESG) Factors
Environmental, Social, and Governance (ESG) factors are considered during project planning, execution, and evaluation to ensure that projects align with broader sustainability and ethical goals.
Environmental Factors
Environmental Factors are how an organization impacts the natural world.
Landfill consumption, waste generation and disposal methods, pollution, habitat protection or destruction, and resource consumption are all environmental factors. Social Factors
Social Factors include how the company develops relationships and treats people, including employees, people in the community, and groups impacted by the company’s products and services.
Social considerations include employee wellbeing, volunteering in the community, working conditions, employee pay, and community involvement. Orgs practice social responsibility by participating in salary transparency., offering PTO to volunteer, and creating safe working conditions. Governance Factors
Governance Factors describe how the company operates, including its policies, transparency, and structure.
For example, the board’s diversity, lobbying activities, political donations, and management structure reflect the company’s approach to governance. For example, suppose an organization successfully lobbies for improved corporate tax benefits for recycling. In that case, the company will implement a recycling program.
Corporate Identity
A company’s corporate identity includes its vision, mission statement, values, and brand.
In addition, the company identity may incorporate its position on multiple ESG factors.
The vision, mission, and values are the identity the company shares via published statements that should reflect the company’s spirit. The company has complete control over it’s vision, mission, and values. Your projects should align with the company’s ESG stance and corporate identity and must comply with mandatory regulations. The corporate ESG is visible in its vision, mission, and values
Identify Project Characteristics
Types of Work
Projects are a type of work, and you can classify all company work into two types: operational and project.
Operational Work
Operational Work is routine, predictable, and repetitive. Even if it can have surprises, you generally expect it to happen, and you would be concerned if it didn't.
Ex. Imagine the activities employees complete in a coffee shop. Taking customers' orders, making coffee and other beverages and food, and ordering supplies are operational work. Even though you don't precisely know what customers will order or what drinks you will prepare each day, you generally know what to expect. Project Work
Project Work accomplishes something new. A company will complete many projects, so project work can seem routine.
However, each project is a discrete, standalone event. Every project must meet three criteria: it is unique, has a specific reason or purpose, and is temporary, meaning it must have a start and finish. Unique - Each project aims to complete a brand-new objective. It might be similar to other work, but it will differ in specific requirements, targets, or activities. Reason or Purpose - A project's purpose translates into a specific objective. Start and Finish - Projects have a beginning and an end, whereas operational work often repeats on a regular schedule. Operational work continues to repeat until something forces it to stop, such as the business closing or a process changing. A project begins when the business identifies a need and allocates resources. The project ends when the team meets the objective or the company cancels the project.
Types of Organizational Structures
The organizational structures affects the project management process and the PM role. The organizational structure defines how work moves and how people form into teams in a company.
Three Main Organizational Structure Types
There are three main organizational structure types: functional, projectized, and matrix.
Functional Organization
The Functional Organization divides the organization by areas of expertise or specialization. For example, all human resources personnel report to a Human Resources head, who then reports to the president.
Better for smaller businesses which need to optimize their resources and may not have the ability to hire dedicated PMs or project teams. Employees who lead projects will take on the PM role instead. Functional Managers sometimes act as subject matter experts or may provide services needed for the project. 
Lesson 1: Understanding Project Management Basics
