Financially Focused Project Management

Chapter 2: Project Management Overview

Introduction

One of the very first projects in history to be documented was Noah's Ark. [1] This project had a very tight schedule with a dramatic incentive to stay on or ahead of schedule. The schedule was fairly simple: The ark had to be built before the flood. The consequences of delivering the project behind schedule include:

  • Noah would lose his job.

  • Every pair of animals intended to sail on the ark would drown.

  • Noah and his family would drown.

  • Mankind would be decimated, and no one would be alive today.

While terms of many contracts in the 21 st century contain significant negative incentives for completing behind schedule and/or over budget, the terms of Noah's contract gave him perhaps the greatest incentive of all time to be on schedule.

[1]Genesis 6, Bible.

The Environment of Project Management

A review of the case studies in the back of this book makes it clear that project management tools and techniques may be applied to a wide range of situations. The environment of project management includes the following:

  • Virtually any business venture (e.g., setting up a lemonade stand or developing a missile defense system)

  • Technological environment

  • Socioeconomic environment

  • Legal environment

  • Business cycle environment

  • Environmental impact of projects

Technological Environment

It is amazing to consider all the technological advancements that have taken place over the last 10 years. The popularity of the Internet has certainly led to remarkable benefits to the project management field. It was reported that the Overland...

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