Important Terms in Project Management

00:04 Right. So we've already covered what a project is, why they executed what a project manager does and the skills they have.

00:12 Plus, a little history lesson just for fun.

00:16 Now it's an appropriate time to go through some terminology.

00:20 Five terms, in fact.

00:23 We have mentioned most of these already, but a little more detail never hurt anyone unless we're talking about tattoos.

00:31 And given that as of next lesson, we're diving straight into the lifecycle of a project, it'd be best to reacquaint ourselves with some of these.

00:42 One term we haven't mentioned yet is the project management office.

00:47 Pmr. This is the name of the department responsible for managing, coordinating and consulting project related work.

00:56 In the PMO, you will find project and program managers, project coordinators, analysts and more, all working to ensure the projects of the organization are properly managed.

01:09 The types of PPMO will vary in size and structure from company to company. Some don't even have a primo.

01:18 It's usually the organizations that are more dynamic and changing, which require a PPMO to govern project work.

01:25 Companies that work predominantly with projects are structured in a way they can easily form teams to execute projects, while industrial companies rarely need to maintain a significant PMO unit.

01:38 For example, consulting companies are organized almost entirely as a PMO. They need to be able to easily form project teams that are working for different clients.

01:49 On the other hand, an industrial company producing steel, for example, will have, well, standardized operations and would not need to maintain a PMO unit.

02:00 The role and importance of a PMO unit can also be diverse.

02:05 A PPO will have a strategic role if they are responsible for project selection and project portfolio management, or it can have a more execution focused role when given the responsibility to lead the project management.

02:19 The role is to assist where the PMO employees help by reporting on Project Progress and keeping the project work within established standards.

02:29 Now these other terms we've mentioned, but to recap and expand.

02:36 Every project has a project team.

02:39 The project team are the experts responsible for the execution of the work. For example, developers on a software project or designated managers coordinators in case of bigger projects.

02:52 For example, construction workers and the responsible supervisor.

02:57 In other words, everyone who is directly working on the project.

03:02 These can be from different departments and can also include external employees or companies and vendors.

03:09 For example, consultants, coaching professionals, hardware and equipment vendors, etc..

03:18 Actually joint teams are created often connecting employees from more than one company.

03:25 This is one way to ensure the project team has broader expertise and the capabilities to deliver a more complex project.

03:35 In an insurance software project, for example, the I.T.

03:38 experts would likely be put in a joint team with some insurance professionals from the client organization to work together and ensure the end result is met, both from I.T.

03:48 and from the insurance perspective.

03:52 Great. Next our project stakeholders.

03:57 All individuals or organizations who participate in a project can influence or are influenced by the project work and results.

04:05 These can be management, customers, competitors, vendors, clients, and in some cases society for things like public infrastructure projects.

04:15 For example, if a new underground line is being constructed next to your apartment, you will be a stakeholder.

04:23 You are influenced by the work, and in case there are big delays, you and your neighbors could attract media attention to the problem.

04:32 In this way, you could also influence the project work.

04:37 It's important to remember that stakeholders could influence the project work, even without being involved in the project itself.

04:45 And yes the project manager and project team are definitely stakeholders to. Program management is the coordinated management of multiple projects which have similarities, similar goal, similar resources, etc..

05:02 By managing them as a program, the organization gains advantages by realizing efficiencies and synergies.

05:10 For example, if your company wants to implement a similar software in European branches and each country needs a separate project, it would be efficient to manage it in a program.

05:22 The project managers can be helping each other.

05:27 And finally, project portfolio management.

05:31 This is the term that refers to the coordinated management of multiple programs and projects. Think of a pharmaceutical company.

05:41 In any minute.

05:42 There are hundreds, if not thousands of separate research projects for new drugs.

05:47 Such corporations need strong portfolio management to follow this huge work and resources.

05:55 Awesome. Thanks for watching so far.

05:58 We are about to get to the really good stuff really soon.

06:02 We'll be discussing the life cycle of a project next.

06:06 See you there.