THE COMPLETE PROCESS

WHAT IS PROJECT MANAGEMENT?...............................................2

TRADITIONAL PM FOR SEQUENTIAL PROJECTS.............................7
PROJECTS................................................................................35
STAKEHOLDER MANAGEMENT...................................................48
PROCESS MODELS....................................................................57
WORKFLOWS AND COLLABORATION MODELS............................74
AD-HOC...................................................................................79
TRENDS...................................................................................80
SCRUM....................................................................................88
AGILE......................................................................................97
VIRTUAL TEAMS..................................................................... 106
SYPNOSIS..............................................................................118
 WHAT IS PROJECT MANAGEMENT?

Definition: Project management is the combination of improvisation (from the project's

unique demands) and orderliness (from management techniques). It involves structured
solutions for complex tasks within time and resource constraints, as shown in the center of
the diagram.
Project: Described as a unique process with a complex structure, predetermined goals,
defined end dates, and limited resources.
- Requires improvisation and inspiration as challenges arise that cannot be planned
for.
Management: Focuses on planning, coordination, controlling, and monitoring the
project's execution, ensuring orderly progress.

Dimensions of Project management approaches

 Philosophy/culture (based on world view, human view)
 Management/Leadership style (Role, tasks and skills of the project manager)
 Position of the project in the organizational structure: how much possibilities the P.M.
has?
 Process (Models)*: Roles, methods, responsibilities and tasks, generated outputs (e.g.
partial products, work results).
 Mindset (of each individual, soft skills, attitude and methodological competencies)
 People & Teams
 Role of the Customer (Customer Involvement)
 Technology tools as enablers and connectors

Project management involves transitioning from simply managing resources or tasks to

actively leading teams through increasingly complex and demanding situations.
Initially, a manager may just "juggle" simple tasks, but as the project progresses, the
complexities increase, requiring more skillful leadership.

Traditional Project Management Tasks According to DIN (German Institute for

Standardization)
The tasks of a project manager or project lead depend on the organization's perspective of
leadership and its understanding of people and the world. A task-oriented definition of
project management includes activities aimed at achieving deadline, cost, and result goals.
Key Tasks:
1. Project Organization/Preparation (includes management and staffing):
 Example: In the early stages of a construction project, the project manager
organizes teams, assigns roles, and ensures the project is adequately staffed with
the right experts, such as engineers and site managers.
2. Project Planning:
Example: Planning involves setting a timeline for different phases of a software
development project, identifying milestones, and setting realistic deadlines for
completion.
3. Project Monitoring/Controlling:
Example: In a marketing campaign, this involves tracking performance metrics
such as lead generation and ensuring the project stays within budget.
4. Quality Management:
Example: For a manufacturing project, ensuring that the final product meets
quality standards by implementing regular inspections and testing.
5. Risk Management:
Example: In IT projects, risk management includes identifying potential risks such as
data breaches or software malfunctions and implementing mitigation strategies.
Requirements Levels in Traditional Project Management: Magic Triangle Requirements
Levels in Traditional Project Management: Magic Triangle


Elements:
Project management is about balancing these three factors. For example, if you need to
shorten the project time (Time), you may need to increase the budget (Cost) or reduce the
scope or quality (Result).
From Management to Leadership
 Key Differences:
1. Management Focus:
  Tasks: Focuses on specific tasks and execution.
 Steering/direction: Ensures processes are followed.
 Goals: Focuses on setting and achieving goals.
 Doing things right: Ensures adherence to established procedures.
 Productivity, Processes, Instructions: Prioritizes efficiency and clear
instructions.
 Example: A project manager may be focused on ensuring that a
software development project meets deadlines and that the team
follows prescribed processes without deviation.
2. Leadership Focus:
 People: Leadership emphasizes the importance of people over
processes.
 Enthusiasm: Inspires team members and creates an energetic
atmosphere.
 Visions: Leadership involves creating and communicating a long-term
vision.
 Doing the right things: Rather than just following processes,
leadership involves making ethical and strategic decisions.
 Direction, Principles, Communication: Leaders guide teams with
principles and maintain open communication.
 Example: A project leader in an innovation team may focus on
motivating and inspiring creativity, encouraging team members to
share ideas and take ownership of their work.
Leadership → An Extended Model of the Magic Triangle
The idea is to balance these requirements with effective communication and stakeholder
management to ensure project success.
 Key Elements of the Triangle:
o Result/Project Scope (Top of the Triangle): This refers to the quality,
properties, and functionalities of the project deliverables. It focuses on
delivering the agreed-upon outcomes with the right level of quality.
o Time (Bottom Left Corner): The project schedule, which includes timelines,
deadlines, milestones, and resource planning.
o Costs (Bottom Right Corner): The financial budget and resources required for
the project, including expenditures and resource use.
 Stakeholder Satisfaction:
 o Customer Satisfaction (Left Side): Meeting the expectations and needs of the
end-user or client.
o Team Satisfaction (Right Side): Ensuring that the project team is motivated
and content, which can lead to higher productivity and better results.
o Satisfaction of Other Stakeholders (Bottom): Recognizing the interests of
various stakeholders beyond just customers and the internal team, such as
regulatory bodies, suppliers, or community groups.

Differences in Human View, Leadership, and Way of Working (Douglas Mc Gregor)

Theory X (Bottom Section):

Human View: Assumes that people are lazy and require motivation through external
incentives (e.g., rewards or penalties).
Leadership Style: Emphasizes rank, authority, and command/control, with managers
directing and controlling employees.
 Way of Working: Employees are seen as resources, subordinates, and expected to put
in just the minimum effort.

Theory Y (Top Section):

Human View: Views people as self-motivated, seeking to contribute to something
bigger than themselves.
Leadership Style: Encourages serving leadership, fostering meaning and potential
development for employees.
Way of Working: Focuses on self-management, with employees encouraged to
surpass their limitations.
 TRADITIONAL PM FOR SEQUENTIAL PROJECTS

Traditional planning
Project management ensures that projects are structured, calculable, schedulable, controllable
and reproducible

3 principles
- Clear structure of the project of the project into project phases that is understandable
and /or accessible to all participants
- Work is done from the rough to the detailed (general to the specific)
- Project controlling involves active, targeted, integrative and transparent problem
solving and/or interventions
Project planning Involves systematically determining activities, paths and resources to
achieve project goals

- Think through activities before starting

- Define paths form start to finish with mental anticipation of challenges
Mapping the process of launching a marketing campaign from ideation to execution
Traditional project planning

- Idea and goals= clear vision at kick-off meeting

Conducting stakeholder meeting to define deliverables for a product launch

- Requirements collection= collaboration with stakeholders to gather needs

Conducting surveys to understand customer expectations for a new feature

- Work breakdown structure= hierarchical division of the project into smaller sub-tasks
( Work Packages)
Splitting tasks of website development into designing, coding and testing phases

- Work Sequence Plan= organising tasks into logical order with dependencies
Completing wireframe design before starting front-end development

- Schedule Plan= defines exact dates and milestones

Setting weekly goals for the content writing team in a publishing project

- Resource Plan= ensures allocation of human and material resources

Assigning two designer and one developer to create a prototype

- Cost Plan= estimating budget requirements

Allocating a $10 000 budget for marketing
Project start and kick-off planning à
The formal beginning of a project is marked by a clear commissioning and team alignment
Project types
- Large projects= management sets steering committees and decide on curse of project,
then select a project manager, and project order signed and filled
- Other projects= EM determines project manager, together they determine project
organisation and select team members
Development of goals: Clear, measurable, and structured goals guide successful project
outcomes
- must be defined in writing
- must be measurable or verifiable (SMART)
Increase website traffic by 20% within three months by implementing SEO strategies
- should be described in a positive and well-formed way
- include at least the aspects result, cost and time (from the magic triangle)
- should definitely consider the satisfaction of the stakeholders
- are determined before the "actual project start".
Result goals Achieving a 95% customer satisfaction rate

Procedural goals ( emphasise execution) Completing the prototype phase in four weeks

Time goals= end of project and certain interim deadlines

Cost goals= Focused on economic considerations

Project order: Synonymous with ‘project agreement’, ‘project charter’, ‘project contract’ is
a foundational internal document

- List goals, constraints, and assumptions but excludes the complete project plan
- Finalised before the project begins and signed by participants.
In a software development project, a project order might include the target
functionality of an app, budget constraints, and assumptions about user testing
timelines.

Kick-off meeting: Symbolises the official project start and aligns the team / A meeting to
align all team members, stakeholders and introduce initial plans

- Participants= core team and selected committee members

- Activities= outlining milestones, project scope, and budget framework
- Duration= ranges from 2hours to 2 days
A construction project kick-off might outline the timeline for foundation work
and name key team leaders

Components
- Project introduction by the manager or sponsor
- Motivation for participants
- Task allocation and document distribution
- Communication rules and reporting frameworks
- Development of initial plans, such as the Work Breakdown Structure (WBS)
In an IT infrastructure project, the WBS might define hardware setup tasks
per team member

Objectives
- Classify the project and its subproject
 - Clarify milestones and organisational structures
- explain project documentation and workflows
- address communication plans
For a marketing campaign, objectives may include breaking down work packages like
content creation, scheduling, and ad placement

Detailed requirements after winning the pitch

Requirements are agreed upon between the client and contractor during the planning phase,
based on the briefing or pitch
Steps in requirement management
Identify stakeholders: Visionaries, decision-makers, administrators, and users of the future
solution
In a web application project, stakeholders include IT managers (decision-makers),
content creators (users) and project sponsors

Compile requirements
- Divide stakeholders into groups (e.g IT, editorial, marketing) and conduct interviews
- Use workshops for smaller projects
In a CMS implementation, the contractor interviews IT experts for technical specs and
marketing teams for design input
Structure and analyse requirements
- Sort, priorities and analyse requirements for contradiction and connections
- Separate into functional (e.g website login) and non-functional (e.g page load speed)
categories
An e-commerce project requires functionality for only payments (functional) and fas
loading website (non-functional)
Validate requirements Iterate requirements with stakeholders until they are mutually clear
A logistics project might require feedback from transportation managers and end-
users (delivery drivers)
Approval of requirements Prepare a formal document listing all requirements, ensuring
stakeholder agreement
A software development project finalises its requirements document with features and
deadlines approved by all stakeholders
Project process planning à
Define project phases and milestones. (Pay attention to vacation times and public holidays!)
Plan
- Services
- Quality
- Time
- Costs, to be achieved at end of milestones
-
Ideal project lifecycle

- Kick-off meeting= marks the start of the project sets the foundation for project
execution and goals
In a software development project, the kick-off meeting is held with all stakeholders
to agree on the project scope, budget, and timeline

- Kick-out meeting= symbolises the conclusion of the project

 - Milestones= a verifiable result (deliverable) associated with a delivery data. Marks the
completion of a phase
Completion of the prototype phase in a product development project could be a
milestone where the prototype is presented to the client for approval

- Quality gates= serve to validate both the project management process and the project
deliverables-‘Stage Gate Principle’
During a pharmaceutical project, quality gates might involve regulatory reviews
before moving to the next clinical trial phase

Milestone Planning
Milestones
- serve as key points in the project with variable interim results
- Mark the completion of phases or subprojects
- Indicate the accomplishment of significant project steps
Key milestones
- After completing a subproject Completion of site excavation
- After completing a project phase Completion of structural framework
- After finishing a critical subtask Obtaining local government safety approval before
moving to interior design
- For obtaining important approvals or meeting client deadlines
Milestones as decision points ( illustrated as diamonds)
Provide opportunities to decide whether to:
- Continue the project as planned
- Modify the planning
- Repeat parts of the project
- Cancel the project entirely
Critical milestones are also referred to as ‘reviews’ involving sessions to validate the progress
against planned objectives
In an IT infrastructure project= a review session is conducted after server setup phase to
ensure performance and security benchmarks are met. Based on this, the decision to move to
the application deployment is made

Project documents à
Project documentation includes all relevant documents related to the project
Static: Fixed once created (e.g reports, logs, contract documents, basic plans) A
finalised project contract document
 Dynamic: Continuously updated (e.g plans, change lists, list of open points) A
dynamic project schedule updated weekly

- Order and content= what needs to be done

- Organisational= who is responsible for tasks
- Planning= when and how things are executed
- Controlling and reporting= where the project stands
- Closing= how the project ends
Minimum documents required
- Project Order= Appoints the project manager and sets conditions
- Project Manual= Contains organisational specifications- Compilation of information,
standards, and agreements specific to the project
 Created by the PM at the start
 Includes stakeholders’ analysis, guidelines, and communication plans
 updates regularly, not static
- Project Plan= Includes WBS, cost plan,
- and resource allocation
- Project status reports= periodic updates for optimisation
- Project closing report= formal release of the project and its findings

Project plan à
Formally approved document that outlines how the project will be managed, monitored, and
controlled - either a summary or a detailed document

It may be synonymous with the schedule plan

 Key point: Various parts of the project plan are not summarised in a single document
for practical reasons

Critical aspects: All parts of the plan affect one another, if one changes the others must
be checked for potential impacts

If a different tool is used, risks, budgets and work packages should be reassessed
Adjustment of the budget affects other packages

Work Breakdown Structure (WBS) à

Complete hierarchical representation= WBS is a detailed breakdown of all project elements
into smaller work packages- it defines deliverables to meet project goals

100% Ruleà Comprehensive coverage: everything in the project must be in the WBS and
viceversa

Hierarchical structure
- top= overall project A construction project = build a house
- middle= subproject (phases/deliverables) Subproject= basement, ground floor, roof
- bottom= work packages work packages= digging foundation, pouring concrete

Forms of WBS:
- Object-oriented= based on physical components House --> basement, roof
- function-oriented= based on activities Masonry, carpentry
- phase-oriented= chronological Planning, execution
- Mixed= combining forms
Approaches:
- Top-down= break into smaller tasks for new projects
- Bottom-up= build from existing framework
- Customisation= ensure balance and proper integration
Tips for WBS Creation=
- Collaboration= include team inputs
- Limitations= address scope clearly
- responsibility= assign tasks to individuals
- Metaplan wall= visual overview

Work Package (WP)

- The smallest unit in the work breakdown structure (WBS)
- A self-contained tasks within a project that can be accomplished by a specified time
with a defined result and effort
Characteristics
 - Clear separation of tasks-no overlap
- Independent completion by an organisational unit or individual
- one person responsible per work package
- includes a duration, required resources, and incurs costs
- work packages are dependent on each other
WP1: foundation construction (clear timeline, single contractor responsible)
WP2: wall assembly (dependent on WP1 Completion)
Key details
- Represents smallest subtasks in a project that can no longer be subdivided
- Described and recorded via forms or project management (PM) software
- Assigned to responsible individuals for further refinement
- Forms the basis for planning, estimation, and monitoring progress
Level of detail – where to stop?
Key guidelines
- Divide main activities into smaller sub-activities until the desired detail level
is reached
- Avoid over-detailing to maintain manageable planning
Size recommendation
- Max 10% of project timeline
- Max of 20 working days per package
- Use the 80-hour rule: no less than 80 hours per package
First design phase: 80 hours
Testing phase: 20 working days

Work Sequence Plan à

A visual representation of the project process highlighting logical dependencies

Bar Chart/ Gantt Chart

- Displays activities/events in a time sequence as horizontal bars
 - Useful for process sequence visualisation along a timeline

Network chart
- Logically structures relationships among subtasks, activities, sequence dependencies
and decisions
- Displays logical relationships instead of merely temporal arrangements

Key questions
- What work steps must follow sequentially?
- What steps can/cannot run in parallel?
- How to structure activities for optimal efficiency?
- What is the optimal order of operations?

FS
- Shell construction must be completed before the roof can be built
- Software must be tested before it can be used

SS
- Construction begins as soon as materials are delivered
- Testing can start as soon as coming begins

FF
- The heating system can only be operational when the electrical system is completed
- Documentation can be completed only after the product has been tested

SF
 - A personal power supply is activated only after the external power supply is set up
- An old pant is decommissions only when the new replacement plant is operational

Cost estimation à
Focuses on determining the required time for each work package

Key question: ‘What is the estimated time required for each work package?’

Factors affecting cost estimation

- Indirect: requirements (what should be done?)
- Direct: solution (how should it be done?)
- Staff: skill, knowledge, and availability
- framwork conditions: tools and corporate culture
- availability: public holidays, hours, etc
focus: Cost estimation is based on work packages (direct) and requirements (indirect)

Accuracy depends on size

- large packages= underestimation
- small packages= overestimation
Approach
- Begin with a rough project estimate
- Develop a baseline using bottom-up work package aggregation
- Constantly update the estimate for budget alignment

tips
- Focus on cost not price
- Avoid guessing
- use prior experience
- consider constraints (Iceberg factor)
- keep estimates updated
Procedure
- Multi-stage estimates with increasing accuracy
- Continuous refinement as project details emerge
Typical estimation models:
Expert estimation
- Conducted by recognised specialists who rely on their experience
- Conducted in estimation sessions
Procedure:
- Selection of Experts: Identify domain experts relevant to the project.
- Information Distribution: Provide detailed context or constraints.
- Preliminary Estimates: Individual assessments are gathered.
 - Joint Consultation: Discuss deviations, focusing on premises and assumptions.
- Final Determination: Reach a shared agreement on the estimation
Applied to areas like building construction costs or IT system developments where
domain experts have direct involvement
Analogy method
- Estimates are adopted from already completed projects with similarities
- Requires collecting project data for comparison
If a past website project cost $10 000 and the current project is similar in scope, it can
provide a baseline
Key figures methods
- Uses measurable data from similar projects
- tools= web-based calculators can automate this
Calculating software costs using a metric like 2€ per line of code or hours per program
Algorithmic methods à Mathematical models are used to estimate
Three-point estimate or PERT estimate=
- Optimistic (O)= shortest time for successful completion, assuming everything goes
exceptionally well
- Pessimistic (P)= longest possible time, assuming significant challenges
- Most likely (M)= the time required under normal circumstances

Expected duration (E)

Advantages
- Provides interpreted estimates instead of single-point values
- Documents uncertainty, helping the project manager anticipate deviations
- Risks can be deduced from the estimates
- Improves the efficiency of cost and time buffers over time
Algorithmic methods à Mathematical models are used to estimate
Brainstorming  Collaborative group discussion to refine and cross-check estimations

Steps in bottom-up estimation

- meeting= create the structure collaboratively in team
- refine= the individual points using a ‘4-eye principle’ with a peer
- transfer= the project manager compiles the results into the project structure
Characteristics
- In some cases, estimates are based on the assumption go the project manager (top-
down)
- In contract, bottom-up estimation evaluates individual tasks by respective participants
(team) or experts
- this approach results in a baseline estimate for the project
Methods: Derived forms of top-down methods (analog, algorithmic, multiplier methods, or
PERT) can also be applied for estimation
Used when estimating novel or highly creative tasks like marketing campaigns or software
prototypes
Typical mistakes
- Optimism: Overestimating the ease or speed of completing tasks, leading to
unrealistic timelines and budgets
- Not scheduling time for errors and corrections: Failing to account for the inevitable
mistakes or issues that arise during the project, which can lead to delays and costs
- Ignoring risks: Overlooking potential risks or challenges that could disrupt the project
or increase costs
- Calculating overtime: Incorrectly assuming that overtime will be consistently
productive, which may lead to inflated cost expectations or burnout among team
members
- Forgetting the buffer: Neglecting to include a contingency buffer for unexpected
expenses or delays, which can lead to tight constraints and reduced flexibility
Schedule plan  Everything comes together (phase and milestones + work packages +
dependencies + duration)
Schedule planning
- Organizes tasks in chronological order to determine start and end times for work
packages.
- Basis for dependencies and sequencing activities.
Key features
- Represented visually using bars (length indicates task duration).
- Dependencies are shown with arrows.
- Commonly used tools: Gantt Charts or bar chart plans.
- A rough schedule, or baseline plan, is created at the start and updated
throughout.
Helpful method- Forward reverse calculation
- Plan from the start (forward pass): Identify earliest start and finish times.
- Reverse from the finish date (reverse pass): Ensure prior activities align with
deadlines.
- Iterative process to identify the critical path

Critical path (Marked in red)

- Sequence of activities where the buffer is minimal (often zero).
- Changes in duration directly affect the project’s overall timeline.
Key features
- Critical activities must be closely monitored.
- Multiple critical paths may exist.
- Critical paths are dynamic and can change as the project progresses.
Detail level of schedule  It should not resemble a to-do list but provide sufficient detail for
project management

Guidelines
- Focus on 2-3 weeks of work per iteration
- Limit to 80 activities per schedule
- Accomodate the needs of different team members with varying levels of
details
Considerations Team members require schedules suited to their specific roles and tasks

Schedule for executive management

- Minimal details
- Focused on providing a high-level overview of multiple projects
- designed for strategic decision-making
- offer a snapshot of the project alignments with the organisational objectives

Schedule for client

Schedule for PM
- Comprehensive overview of single project
- Approx 80 tasks in total
- includes critical paths and dependencies
- helps project manager monitor overall status and identify critical milestones
- focus= entire lifecycle from start to finish

Schedule for team

- Focused on short-term concrete tasks
- Personalised for individual team members
- serves as a to-do list or checklist for completing specific deliverables
- parts of the project assigned to specific individuals or teams
Resource planning à
Focuses on determining and allocating resources (human and material) needed for project
activities and work packages, ensuring predetermined objectives and constraints

Goal Efficient deployment of resources aligned with tasks and schedules

Work sequence integration

- Resource planning its iterative and cyclic, integrating with the schedule and work
sequence plan
- Begins with a rough plan refined over time
Types of resource planning
- Human Resources= assigning team members and external personnel as required
- Material Resources: Allocating equipment, tools, and infrastructure (e.g., software,
rooms)
Key goals
- Maximize alignment between planned and actual deployment.
- Ensure all assigned tasks are clear to each resource.
Key considerations
Team composition
- Balance expertise, soft skills, and availability.
- Teams should consist of experienced and diverse members
(introverted/extroverted, performance/human-oriented).

Tools for efficiency

- Software solutions can assign attributes to resources for better alignment.
- Profiles of requirements and performance aid in resource-task matching.
Key questions
- How many staff members are required for each work package?
- When and for how long are specific skills or personnel needed?
- What material resources are essential?
- What are the capacity limitations for available resources?
- What is the timeline for resource availability?
tools- TPM manager
- An example tool for resource planning in matrix organizations.
- Displays workload plans.
- Facilitates comparisons of resource availability between team leaders and project
managers.
- Enables quick resource allocation adjustments

Resource management
- Managed across strategic, tactical, and operational levels.
- Coordination by Project Management Office (PMO) in large organizations.
- Balances resource needs across multiple projects.
 Resource Management Complete team planning

Interplay of all roles and tools involved

Cost and financial planning à

- Cost plan will reflect the cost-effectiveness of the entire project planning with the aim to
ensure transparency of the project costs

- Cost plan represents cost behaviour pattern during the project

- Representation of the foreseeable costs incurred for the project, which may include cost
behaviours pattern
Cost types
- Individual costs, which are directly attributable to the project
- Overhead costs, which are not directly attributable and are determined by surcharges
- One-off project costs
- ongoing project costs

Calculating different cost types

Resource costs
- Labour costs:
 project staff= day work in all work packages x daily rates
 externals= daily fee (e.g expert) + agency surcharge x daily rates

- management (PM. Head of the specialist departments, EM, team assistants):

PM should account for about 12%- 20%all labour costs

Project material costs

- Travel
- Facilities (computers, servers, networks, test equipment
- licenses (pictures, fonts, software)
- costs for external companies (if not labour costs but flat rate)
- Material (copies, couriers

Calculating different cost types

Cost planning

Helpful questions
- Which costs are incurred when?
- What is the total cost of the work packages for each phase?
- Are the cost shares of the individual disciplines in a sensible relationship?
- What material costs are incurred and must be further allocated? (e.g. image
rights, license costs, business expenses, etc.)
- How high are the HR costs? Or the costs for external service providers?
- How are funds released? (time, prerequisites)?
-
Possible difficulties in drawing up the cost plan
- Fixed and overhead costs are sometimes difficult to allocate to time activities
- Some companies prohibit publicising the cost rates of internal or external
employees= the cost plan only has limited significance

Financial planning and project controlling

- Carried out by connecting the cost plan to schedule, based on the deadlines you can
determine what costs are incurred and when
- Control the budgeting and financial resource planning of the project
- controlling = measure + control

Project controlling
- Result, effort and time parameters are controlled in the Status Indicator Report
- Following values and be controlled= costs, deadlines, capacities, scope,
quality, risks, changes, errors, degree of completion, payments
 Procedure
Status info is collected on:
- work costs= working hours directly entered by the employees (e.g SAP) are
converted to costs at different hours/daily rates
- project-relevant costs (travel, image rights)
- degree of completion
- on-schedule delivery

Then monitored in simple target-actual or planned-actual comparisons

Forecast= trend analyses are carried out in some places

For stakeholders, such as EM or client, status reports are prepared at pre-agreed

intervals
Basic terms
- Planned values= originally planned values for the project, created (and valid)
at the start of the project

- Actual values= values actually reached at a specific time (typically at

milestones or reporting times)

- Target values= adjusted planned values at specific time

Typical mistakes in project controlling

- Taking into account only the project plan instead of the project progress
- Metrics are not provided on time
- Too large a time interval between measuring and controlling
- the wrong metrics are used
- the granularity of metrics is wrongly selected
- project controlling is reduces to pure cost controlling
- metrics derived from Human Resources require particularly sensitive consideration, as
they are not, in general public
- failing to comply with the obligation to meet deadlines: no countermeasures are taken if
the deadlines are exceeded

Project closing à
A project is usually completed when the project goal is reached which is then followed by:

- the transfer of the result/product to the customer

- the kick-out meeting (for the project team)
- the project closing report (for management)
- the dissolution of the project team and the project committees

In the case of cancellation due to non-achievement of the targets, a ‘post-mortem analysis’

should be carried out in order to analyse the causes of the failure
Lessons learned  At the end of the project, the acquired knowledge and the gained
experience should be secured for further projects
Kick-out meeting Meeting should be attended by the entire project (core) team and ideally a
representative of the steering committee

Minimum procedure
- Thanking all those involved
- In a final presentation, the original goals are compared with the goals achieved
- The start of securing experience
- Formal release of the project manager and the project team, dissolution of the
project

Project closing report

- Summary, closing presentation of tasks and result achieved, of time, expense and
human resource costs, and, where applicable of indications for possible follow up
projects
- Generally, only a few pages long

Potential structure
1. Project order/project goal.
2. Planning documents before project release.
3. Actual documents at the end of the project.
4. Final analysis (Comparison of original targets and those updated during the
project with the results achieved at the end of the project) with regard to a)
deadlines, expenses, costs, and b) content target achievement.
5. A thank you message to all those involved for their cooperation
6. Contact person for further support of the project.

Acceptance report/log
- During project but latest at the end of project, individual results or services completed
can or must be formally accepted by the client
- involves contractual agreements and payments
- acceptance report should include the following elements:
- the description of the deliverable to be accepted
- any defects and reservation identified during the acceptance
- signatures of the contractor and the project manager

Price and/or contract models

objective= meets demands of various stakeholders (Client (CLT) and contractor (CTR))

Factors considered:
- Security needs price, planning and deadlines
- Project type: new development, adaptation, or further development
- competitive situation of CTR
- mutual trust between CLT and CTR
- process type: traditional or agile
A software development project for a new client may use a detailed cost and timeline
framework (traditional) or iterative updates (agile)
Fixed price model Parties agree on a binding total price for all requirements

Advantages
- Budget security for CLT
- Potential high profits for CTR if efficient

Disadvantages
- Requires fully specified requirements upfront
- High uncertainty unless prior analysis is conducted

A mobile app development project where the CLT knows their exact requirements might use
a fixed price model

Time and material model  Price is based on time and material used

Advantages
- Flexibility for CLT to adjust requirements
- CTR always gets paid for work done

Disadvantages
- Total cost may be unpredictable for CLT
- CTR may face interruptions or downsizing risks

A consulting project where the scope is uncertain and changes frequently may use this model

T&M upper limit  Hybrid of T&M and fixed price with a maximum price cap

Advantages
- Budget security for CLT
- Flexibility to modify requirements

Disadvantages=
- High economic risks for CTR
- Limited motivation for CTR to ensure top quality

A website redesign where the CLT wants flexibility but a clear upper budget limit

Multilevel fixed price  Fixed price segmented into phases /milestones

Advantages
- Step-by-step budget control
- CTR can propose for each phase

Disadvantages
- High competitive pressure for CTR
- Increased procurement costs for CLT

A multi-phase ERP implementation with fixed deliverables for each stage

Requirement Unit Price  Fixed price per requirement unit

Advantages
 - Absolute budget security for stable requirements
- CTR can optimise profits by meeting requirements efficiently

Disadvantages
- Needs detailed calculation and agreement upfront

A marketing campaign project charging per deliverable, like banner ads or videos

Criticism of traditional models

Fixed price issues

- Limited scope flexibility, costly changes
- Poor transparency and communication during projects

T&M issues
- No performance-based incentives
- High project control burden on CLT

Proposed agile fixed price model

Concept
- Combines fixed price framework with agile flexibility (e.g scrum)
- Introduces cooperative principles for adaptive require and shared risks

Advantages
- Balances budget security with requirements flexibility

An agile software development project with a fixed cost cap and iterative updates

Quadrants

Quadrant I  Fixed price, fixed scope

Machinery built to a standard plan

Quadrant II  Fixed price, Variable scope

Software development with fixed budget constraints but adjustable
deliverables during the project Lifecyle

Quadrant III  Variable price, variable scope

Temporary consulting work or projects where scope and price evolve
dynamically
Quadrant IV  Variable price, fixed scope
Prototyping a machine where the scope is fixed but techniques are
undetermined
Agile Fixed price (AFP) model

Core features
- Flexible definition of requirements, no need for complete specification upfront
- A contractual framework balances defined costs with flexibility for evolving
project scopes

Responds to two uncertainties

- What the client needs may not be fully known at the start
- Not all initially desired features may be required by the end of the project

Process for agile fixed price

Steps include

- Contract definition (vision, epics, user stories)

- Breakdown into detailed user stories (e.g. defining minimum viable functionality)
- Collaborative workshops for scope estimation and risk sharing
- Risk share agreement, exit points and checkpoints
- Establishing governance for cost and scope management
- Motivational or bonus systems for meeting/exceeding benchmarks

Key process steps (practical implementation)

- Define the contract= establish product vision, topics, and epics from user perspective
and develop a legal and commercial framework
Define the key outcomes expected in an agile project for software development

- Detail epics to user stories= breakdown of requirements into user stories with varying
complexities
Describe a feature in a single paragraph without detailing all requirements

- Joint workshops and efforts estimation= conduct workshops to estimate scope

complexity and business value, use reference user stories for analogy estimation
Estimate costs for a website redesign based on prior similar project
 - Fix risk sharing and exit points= define risk-sharing mechanism and check points for
collaboration
Allocate 30% cost responsibility to both client and supplier for delays

- Scope and expense management= create processes for governance and decision-making
A bi-weekly review meeting for adjusting project requirements

- Motivational and bonus models= develop incentive systems for project success
Offer a performance-based bonus for completing an app development ahead of schedule

Key terms

Indicative fixed-price range

- A provision estimate before full contract biding
Agreeing on a 10K or 15K range for initial MVP delivery

Risk share
- Define cost-sharing percentages in case of overruns
20% customer liabitliy for scope changes

Checkpoint phase
- Period for testing cooperation before full implementation
Completing the prototype phase before finalising the full project

Exit points
- Predefined times to terminate the project if necessary
End project after sprint 2 if ROI projections are not met

Advantage for AFP

Customer CLT
- Absolute budget security
- Flexibility in requirements (e.ge swapping less important features for crucial
ones)

Replace unused cloud storage with added security features

Supplier CTR
- Total revenue security
- Chance for higher profit through efficiency

Completing tasks faster by automating workflows

Disadvantage for AFP

- Requirements changes need mutual agreement
- Complexity in estimating changes to requirements

Additional analysis is needed to calculate the cost of replacing feature A with Feature B

Conclusion
Bridging traditional and agile models  Combines fixed-cost security with the flexibility of
agile

Real-world implication  Stabilises budget and timeline while adapting scope based on
changing needs
 PROJECTS

Definition: Described as a unique process with a complex structure, predetermined goals,

defined timeframe (Define start, defined intermediate results defined end), and limited
resources (financial, human, other)

Size:
- Minimum: Processing requires more than 2 working days.
- Maximum: no limits
Not Projects: Permanent tasks (not temporary, not unique): Standardized processes, non-
definable tasks
Line organization is suitable for standard tasks with standard processes and Project
organization is suitable for mastering unique, complex, and risky special tasks.

Project lifecycle
Stages or phases a project passes through from its initiation to its closure. It provides a
structured framework for managing and executing projects. Historically, in traditional project
management, the project life cycle consists of distinct, sequential phases that ensure a logical
flow of activities and processes.
Key Phases of a Traditional Project Life Cycle:
1. Initiation:
- This is the starting point of the project. The project’s objectives, scope, and feasibility
(viabilidad) are determined.
- Key activities include project charter development, stakeholder identification, and
high-level planning.
Example: A company decides to develop a new product, defining the initial goals and
identifying potential stakeholders.
2. Planning:
- Detailed planning occurs to establish the roadmap for achieving the project objectives.
- Key activities include defining the project scope, setting up a work breakdown
structure (WBS), creating schedules, budgeting, resource allocation, risk
management, and communication plans.
Example: A software development team creates a detailed project plan, identifying specific
deliverables, timelines, and resource needs for building the product.
3. Execution:
- The project plan is put into action, and the actual work is carried out.
 - Key activities include managing the team, implementing the project plan, allocating
resources, and communicating with stakeholders.
Example: Developers begin coding the software, while testers prepare for quality assurance.
4. Monitoring and Controlling:
- This phase runs parallel to the execution phase and involves tracking progress to
ensure the project stays on schedule, within scope, and under budget.
- Key activities include performance measurement, risk management, scope changes,
and ensuring quality.
Example: The project manager monitors the development progress and makes adjustments to
the timeline or resources as needed based on feedback.
5. Closure:
- This is the final phase where the project is formally completed and handed over.
- Key activities include final deliverables, project documentation, post-project review,
releasing resources, and closing contracts.
Example: The finished software is delivered to the client, project documentation is archived,
and the project team disbands.

In traditional project management, the project life cycle follows a linear, sequential
approach, often represented by the Waterfall model. This means that each phase must be
completed before the next one begins. It is a structured approach that works well for projects
with well-defined requirements, minimal changes, and clear deliverables (e.g., construction,
manufacturing).
The Waterfall model was one of the most widely used frameworks for managing projects
historically, and the phases of the project life cycle correspond to its stages, emphasizing
documentation, linear progression, and meticulous planning before execution.
In modern contexts, more adaptive methodologies like Agile introduce flexible project life
cycles, especially in dynamic environments like software development, where phases might
overlap or be repeated (iterative).

Types of projects
Construction and plant construction projects (traditional p.m.) àoften termed
investment projects, are characterized by their large scale, complexity, and substantial
investment requirements. These projects can range from constructing infrastructure like
bridges and buildings to complex plant construction projects, such as oil refineries or power
plants. They are distinct due to several key features and implications:
Distinct Features:
1. Large-Scale Projects
 2. High Investment Costs
3. High Complexity
4. Many Parties Involved
Implications for Project Management:
1. Detailed Planning in Advance: Due to the scale and complexity, construction and
plant projects require meticulous and detailed planning before execution. This
minimizes disruptions and cost overruns during construction.
2. Sequential Phase Classification: These projects typically follow a sequential,
phase-based approach, often represented by the Waterfall model, where one phase
must be completed before the next can start.
3. Minimizing Goal Changes and Adjustments: The aim is to ensure that changes to
the project scope, design, or goals are minimized after construction starts, as
adjustments could lead to significant cost overruns and schedule delays.
4. Strong Risk Management: Due to the high investment and the many parties
involved, comprehensive risk management is critical. This includes identifying
potential risks early on, such as budget overruns, construction delays, or
environmental issues, and implementing mitigation strategies.
5. Standardized Procedures (HOAI, SIA): Many large-scale construction and plant
projects are governed by standardized procedures and regulations, such as:
 HOAI (Germany): The "Honorarordnung für Architekten und
Ingenieure" is a fee structure guideline that regulates payments to
architects and engineers based on the project scope and complexity.
 SIA (Switzerland): The "Schweizerischer Ingenieur- und
Architektenverein" sets out guidelines for construction projects,
including contracts, project phases, and quality standards.
These standards ensure that projects follow best practices and legal requirements.
The Burj Khalifa (Dubai):
Features: The world’s tallest building, involving an enormous amount of planning, high
costs, and collaboration among international contractors, architects, and engineers.
Implications: The entire project followed a highly structured, sequential approach to
ensure that each phase was completed before the next began, while risk management
covered structural, safety, and budgetary concerns.

Software/Web Projects (modern-agile p.m.)  projects related to software development,

such as creating new applications, upgrading existing software, customizing off-the-shelf
software, and launching or relaunching websites. These types of projects fall under the
discipline of Software Engineering and have unique characteristics due to the immateriality
of software and its complexity. Below is an explanation of their distinct features and the
implications for managing these projects, with examples to illustrate key points.
Distinct Features of Software/Web Projects:
1. Product Invisibility (Software Immateriality): Software is invisible beyond the
user interface. Users can interact with the interface, but the complex functionality
that powers the software—such as databases, algorithms, or servers—is hidden. This
makes it hard for users to visualize what’s happening in the background.
Example: In a content management system (CMS) like WordPress, users only see the
interface where they can create and manage content. However, the complex
functionalities, such as data storage, user authentication, and content rendering, run
invisibly in the background.
2. Deep Integration into Various Domains: Software deeply affects human,
operational, economic, and technical processes. To develop useful software,
engineers need a deep understanding of the field it is meant to serve. Whether it's
business management software, healthcare applications, or e-commerce platforms, the
success of the software hinges on understanding the user's specific needs.
Example: Developing a hospital management system requires not just programming
expertise, but also a deep understanding of how hospitals operate—patient records,
billing, appointment scheduling, and privacy regulations must be integrated into the
system’s design.
3. Dynamic and Complex Behavior: Software shows highly dynamic behavior,
meaning its features and functionalities can change based on user inputs, interactions,
or updates. This behavior makes software inherently complex, as it needs to adapt to a
variety of scenarios.
Example: A flight booking website dynamically updates available seats, prices, and
flight statuses based on real-time data, creating a complex web of interactions between
users and backend services (e.g., airline databases and payment gateways).
4. Unclear Customer Requirements: Customers often have difficulty defining their
requirements at the start of the project, given the immaterial nature of software and
its complexity. They may know what they want from a user perspective (e.g., "I want
an easy-to-use website"), but cannot define the technical requirements or anticipate all
the software's necessary features.
Example: A company wanting a custom e-commerce platform may not fully understand
the need for features like inventory management, customer tracking, or security
measures at the start. These needs only become clear as the project progresses.
5. End-Result Validation Challenges: Customers can typically only verify the final
software product at the end of the project. While they can interact with prototypes
or beta versions, it's often hard for them to assess the overall system’s functionality
and quality until everything is integrated.
Example: A client commissioning a custom CRM (Customer Relationship Management)
system may not fully understand how the system will work until the final product is
delivered, at which point it might be too late to make major adjustments.

Implications for Project Management:

1. Traditional Software Engineering Methods Often Fail:Traditional project
management methodologies, such as Waterfall, rely on long phases of detailed
planning followed by execution. These methods often produce unsatisfactory results
in software projects because customer requirements tend to evolve as the project
progresses.
Example: In a Waterfall approach, a website design project might spend months on
planning and design, only for the client to realize during testing that the features they
requested do not meet their needs, resulting in major delays and cost overruns.
2. Agile Methodologies Offer a Better Approach: Given the uncertainty in defining
requirements and the complexity of software, agile methodologies are often more
successful in delivering better results. Agile focuses on iterative development, regular
feedback, and flexibility, allowing changes to be made continuously throughout the
project.
Example: In Agile software development for an online banking platform, developers
work in short "sprints" (usually 2-4 weeks), delivering functional pieces of the software
incrementally. This allows the client to give feedback and adjust requirements as they
see the product evolve, ensuring the end product better meets their needs.
3. Iterative Development and Continuous Feedback: Agile allows for frequent
iterations, where developers build small, functional parts of the software, and clients
can test and provide feedback early and often. This prevents the risk of delivering a
final product that does not meet customer expectations.
Example: When building a mobile application for food delivery, the development team
can first create a basic app with user login and restaurant listings. The client can then
test it and provide feedback, after which new features such as order tracking and
payment gateways can be added in future sprints.
4. Emphasizing Prototyping and User Testing: Due to the challenges of understanding
software complexity and customer requirements, prototyping and user testing
become critical. Creating early prototypes gives customers a tangible product to
interact with and understand how the software will work.
Example: When redesigning a company’s internal communication platform, a prototype
is developed first with basic chat and file-sharing functions. This allows users to test the
system and provide feedback, leading to improvements before the full implementation
of additional features like video conferencing or document collaboration.
5. Risk Management and Flexibility: In software projects, the dynamic nature of
software development demands strong risk management and flexibility. Agile
 methodologies help mitigate the risks of scope changes or missed requirements by
keeping the project adaptable to changes.
Example: If a software project for a logistics company faces new regulations or
unexpected technical challenges (e.g., data privacy concerns), an agile approach can
pivot quickly, adjusting priorities without causing major delays or disruptions.

Examples of Software/Web Projects:

E-commerce Platform Development (Custom Development):
Features: A company wants to develop a custom online store. The project involves
backend systems for inventory management, payment gateways, and shipping, all
hidden behind a user-friendly interface.
Implications: The company starts with a vague idea of what the website should look
like, but as development proceeds in Agile sprints, they adjust their requirements
based on the functionality they see, such as adding more payment methods or
customized product recommendations.
Website Relaunch:
Features: A large corporate website is being relaunched to improve user experience
and modernize the design. This involves updating the content management system
(CMS), improving site speed, and redesigning the user interface.
Implications: At the start, the client may only know that they want a "modern"
design. Agile methodologies allow developers to launch early versions of the site for
testing, with adjustments made based on client feedback.
ERP (Enterprise Resource Planning) System Customization:
Features: A company implements a standard ERP system (e.g., SAP) but needs
extensive customization to meet specific business processes, such as custom
reporting, integration with legacy systems, and unique workflows.
Implications: Agile methods allow the software development team to introduce new
features incrementally, receiving feedback from the end users (employees) at each
step to ensure the ERP system fits the company’s needs perfectly.
In summary, software and web projects are complex due to the immateriality of software,
evolving customer requirements, and deep integration into various domains. Traditional
methods often fall short, while agile methodologies offer a more flexible and iterative
approach, improving the chances of delivering a product that meets the customer's needs.
Prototyping, continuous feedback, and strong risk management are essential in ensuring
project success.

Research and Development (R&D) Projects (modern-iterative p.m.) à R&D projects

focus on creating new products, developing new processes, or generating new knowledge and
insights. These projects can involve anything from scientific exploration to technological
innovation. Below is an explanation of their distinct features, typical project management
approaches, and implications for handling such projects, with examples to illustrate each
point.
Distinct Features of R&D Projects:
1. Basic Research with Uncertain Outcomes: Basic research is often exploratory,
seeking to push the boundaries of knowledge without a guaranteed outcome. This
type of research can lead to breakthroughs, but it carries high risk because the results
are not always predictable.
Example: Researchers studying quantum computing may not know when or how their
discoveries will lead to practical applications. They are exploring theoretical concepts
that could eventually revolutionize computing, but with uncertain timelines.
2. Applied Research: Collaboration Between Research and Development: Applied
research, by contrast, is more focused on practical goals and typically follows the
completion of basic research. It often involves collaboration between research and
development teams to translate findings into new products or processes.
Example: A pharmaceutical company conducting applied research on a promising
compound found during basic research. The goal is to develop it into a viable drug. The
research team studies the compound's properties, while the development team works on
clinical trials and regulatory approval processes.
3. Ongoing Exploration and Discovery: R&D projects involve continuous learning and
discovery, which means the project scope and goals may evolve as new knowledge is
gained. These projects often follow a "learning by doing" approach, where findings in
one stage inform the direction of subsequent stages.
Example: In the automotive industry, research into electric vehicle (EV) batteries
involves constant discovery. Initially, researchers may aim to improve battery capacity,
but along the way, they might discover new materials or processes that change the
project’s focus.

Implications for Managing R&D Projects:

1. Inspiring Vision is Important: Since the path to success in R&D is often unclear,
having a strong, inspiring vision is crucial to motivate teams and guide decision-
making. This vision provides direction, even when the exact outcome or solution is
not yet known.
Example: Tesla’s vision of accelerating the world's transition to sustainable energy
serves as the driving force behind its R&D projects, whether it's developing better EVs,
battery technology, or solar panels. This vision keeps the team focused on long-term
goals despite the inherent uncertainty in each project.
2. Rough Initial Schedule: R&D projects typically start with a rough schedule rather
than a detailed timeline. The exploratory nature of these projects means that progress
 may be unpredictable. Flexibility is necessary to accommodate unexpected
discoveries or changes in direction.
Example: In the biotech industry, a company working on a gene-editing technology like
CRISPR may initially outline broad phases (e.g., discovery, proof of concept, clinical
trials), but the exact timing of each phase will depend on research findings.
3. Goal Flexibility: Flexible goals are necessary in R&D projects because the ultimate
outcomes may shift as new information is discovered. At the start, the project may
only have a loosely defined goal, which will become more refined as the project
advances.
Example: A tech company like Google working on AI research may begin with the goal
of creating a more efficient algorithm. However, as they experiment, they may discover
new uses for the AI, such as its application in healthcare or self-driving cars, causing the
project’s goal to evolve.
4. Iterative Approach: R&D projects often use an iterative approach, where the
project progresses through cycles of experimentation, learning, and adjustment.
Instead of planning the entire project upfront, teams move through phases that allow
for frequent reevaluation and adjustment.
Example: A company developing a new type of biodegradable packaging material might
iterate by experimenting with different plant-based materials, testing each version for
strength, durability, and environmental impact. As they learn from each iteration, they
refine the product design and manufacturing process.
5. Stage-Gate Process: R&D projects frequently use a Stage-Gate process to manage
uncertainty and control risk. This approach divides the project into stages, with
decision gates between them. At each gate, the project is evaluated to decide whether
to proceed, make changes, or stop entirely. This helps ensure that only viable projects
continue.
Example: In the aerospace industry, a company developing a new jet engine might pass
through multiple gates: initial research, prototyping, testing, and final design. After
each stage, the project is reviewed. If the prototype fails critical tests, the project might
be paused or even stopped to prevent further investment in a nonviable solution.

Examples of R&D Projects:

Pharmaceutical Drug Discovery:
Features: A pharmaceutical company is researching a new treatment for a rare
disease. The research begins with basic lab studies to understand the disease’s
underlying mechanisms, followed by applied research to identify potential compounds
for treatment.
Implications: The project requires significant flexibility in goals and schedules
because the discovery of effective treatments is uncertain. It also involves multiple
iterations of testing, clinical trials, and regulatory review before a final product can be
 brought to market. The Stage-Gate process is used to evaluate the project’s progress
at key points, ensuring resources are allocated effectively.
Electric Vehicle (EV) Battery Development:
Features: An automotive company is working on developing longer-lasting, more
efficient EV batteries. The research team is experimenting with new materials and
designs to increase battery life and reduce charging times.
Implications: The project requires goal flexibility as discoveries about the limitations
of certain materials or designs may lead the team to change the focus of their research.
The iterative nature of R&D means that the company will build and test multiple
prototypes, gathering data at each stage to refine the product.
Artificial Intelligence (AI) and Machine Learning:
Features: A tech company is researching new algorithms for machine learning (ML)
to improve voice recognition in smart devices. The goal is to create algorithms that
can learn and adapt more quickly to new accents and languages.
Implications: The project will follow an iterative approach, where new versions of
the algorithm are developed and tested regularly. Feedback loops from each iteration
inform the next phase, helping the team refine their models. The project will also use
a Stage-Gate process, where management evaluates progress at each key stage to
decide whether to proceed, pivot, or stop.
Renewable Energy Research (Solar Panels):
Features: A company specializing in renewable energy is conducting R&D on new
solar panel technologies that increase efficiency and lower production costs. The
project involves researching new materials and developing advanced manufacturing
techniques.
Implications: The project begins with a rough schedule since the timeline for
discovering breakthrough materials is uncertain. The team works in iterative cycles,
testing different materials and production methods to find the most efficient and cost-
effective solution. If early-stage results are promising, the project passes through a
gate to proceed to large-scale testing and production.
Key Differences Between R&D and Software Projects Regarding
Process Models
Projects in the Organizational Structure

1)Line Organization: A traditional hierarchical structure, where each department functions

independently, and projects are managed within the departments. Example: A marketing
department working on a branding campaign independently from other departments.
2)Staff Organization: A structure where project managers act as advisors and do not have
direct control over team members, who report to their functional managers. Example: A
human resources team organizing a company-wide event, but all team members still report to
their original departments.
3)Matrix Organization: Combines elements of both functional and project-based structures.
Employees report to both a project manager and a functional manager. Example: An IT
project where developers report to both the project manager overseeing the specific project
and the head of the IT department.
4)Pure Project Organization: A structure where project teams are fully dedicated to a
project, and the project manager has full authority over the project and team members.
Example: A construction company managing a building project, where the entire team works
solely on the project until completion.
5)Network Organization: A loosely coupled, decentralized structure where multiple
independent entities work together, often seen in collaborative networks or partnerships.
Example: A global design firm collaborating with local contractors and suppliers for an
international architecture project.

Ideal situation for contractor: Phases

Ideal workflow for a contractor in the early stages of a project, broken into three phases:
Initiation Phase, Definition Phase, and Planning Phase. Each phase represents critical
steps a contractor must take to secure and prepare for a project, ensuring alignment with
client needs and expectations.
1.Initiation Phase This is the preliminary stage where the contractor prepares internally
before approaching the client.

Key Activities:

1. Deliver Internal Pitch + Briefing:

- The team brainstorms and develops a solution idea internally.

- A structured briefing is prepared to align internal stakeholders on the project’s
scope and vision.

2. Form Acquisition Team:

- A team is assembled to handle the project acquisition, including key members

with expertise in relevant areas (e.g., sales, technical leads).

3. Develop Solution Idea:

- The contractor drafts a high-level concept or solution based on client needs or

expected project outcomes.

4. Planning (Rough):

- Initial planning is conducted to outline timelines, resources, and feasibility.

This serves as the foundation for the next phase.

Example: For a contractor bidding on a mobile app project, the team might:

 Brainstorm features like user authentication, dashboards, and payment integration.

 Assemble a team of developers, designers, and sales representatives.
 Create an initial timeline and cost estimate for the app.

2. Definition Phase In this phase, the contractor interacts with the client and refines the
solution.

Key Activities:
 1. Agency Pitch:
- The contractor formally presents their solution to the client, showcasing
capabilities and proposed deliverables.
- This stage is critical for securing the project and building trust with the
client.
2. Prepare Presentation:
- A detailed presentation is prepared, often including mockups, timelines,
budgets, and a value proposition.
3. Estimate, Offer:
- A formal cost estimate and offer are created based on the client’s
requirements and feedback.
4. Refine Solution:
- Based on client feedback during the pitch, the contractor adjusts the
solution, refining the plan for greater alignment.

Example: The contractor pitches the mobile app project to the client, presenting mockups
of the app's design, a proposed timeline of 6 months, and a cost breakdown. After
receiving feedback, they adjust the timeline to prioritize critical features.

3. Planning Phase After securing the project, the contractor transitions into detailed
planning and preparation for execution.

Key Activities:

1. Kick-Off:
- The formal start of the project. The contractor and client align on goals,
deliverables, and timelines.
- The project team is introduced to the client.
2. Requirements Specification:
- Detailed documentation of the project’s requirements is created to
eliminate ambiguities.
- This includes functional and non-functional requirements.
3. Detailed Planning:
- The contractor finalizes schedules, resource allocation, and task
distribution.
- Teams are assigned roles and responsibilities.
4. Estimate, Improve Offer:
- If required, cost estimates are adjusted, and additional services or features
are added.

Example: For the mobile app project:

 The contractor holds a kick-off meeting with the client to align expectations.
 They document detailed requirements, such as specific UI/UX elements and payment
gateway integration.
 The team finalizes a development schedule, dividing the project into sprints.
 STAKEHOLDER MANAGEMENT

Project stakeholders are individuals, groups, or organizations that are either affected by the
project or have an interest or influence in its outcome. They can be internal or external to
the project and may contribute to, support, or even oppose the project goals.

Stakeholder Onion Map

The Stakeholder Onion Map is a visual tool used to categorize and understand project
stakeholders by their relationship to the project. It organizes stakeholders into concentric
layers, representing their level of influence, involvement, or proximity to the project. This
approach helps identify who needs to be involved and how to manage their expectations
effectively.
7. Core Layer: The Project Team
- This group includes individuals who are directly responsible for executing the project.
- They have the highest level of involvement and influence on the project's success.
2. Second Layer: Supporting Teams
- These are internal stakeholders who provide resources or expertise to support the
project.
- Their involvement may be periodic, based on the project's needs.
3. Third Layer: External Stakeholders (Clients and Key Partners)
- These are stakeholders who are directly affected by the project's outcomes but do not
participate in daily operations.
- They have a vested interest in the project's success and provide input or requirements.
4. Fourth Layer: Contextual Stakeholders
- These are indirect stakeholders who may be impacted by the project or have a
regulatory, advisory, or public interest role.
 - They typically require updates but are not actively involved in decision-making or
execution.
Benefits of the Stakeholder Onion Map
1. Clarity: Provides a clear view of who is involved and at what level.
2. Prioritization: Helps prioritize stakeholder management efforts based on their
proximity to the project.
3. Communication: Guides tailored communication strategies for each stakeholder
group.

Stakeholder Management Approach

1. Stakeholder Analysis à Stakeholder analysis involves identifying, analyzing, and

prioritizing stakeholders to understand their role, interest, and influence on the project.
Steps:
1. Identify at an Early Stage: Recognize all individuals, groups, or organizations that
could affect or be affected by the project.
Example: In a software development project, stakeholders might include developers,
end-users, product owners, and third-party API providers.
2. Analyze and Segment Stakeholders: Assess stakeholders based on their needs,
expectations, and roles.
Example: Group stakeholders by their function:
o Internal (developers, designers).
o External (clients, regulatory bodies).
 3. Weight and Prioritize: Use tools like the Power-Interest Matrix to classify
stakeholders:
o High Power, High Interest: Active management (e.g., executive sponsors).
o High Power, Low Interest: Keep satisfied (e.g., regulators).
o Low Power, High Interest: Keep informed (e.g., end-users).
o Low Power, Low Interest: Monitor (e.g., general public).
Example: For a construction project:
o High Power, High Interest: Local government (permits and regulations).
o Low Power, High Interest: Nearby residents concerned about noise.

Tools for stakeholder analysis

Stakeholder Matrix  based on the PMBOK® Guide (Project Management Body of
Knowledge). It is used to manage stakeholders in projects, allowing the project team to
analyze and prioritize their influence, interest, and power. While it is particularly useful for
Data Science projects, it can be applied to any project type.

1)
The process of analyzing stakeholders is broken down into manageable steps. Here's a
simplified guide:
Step A: List All Stakeholders
 Write down all people or groups who are involved in or affected by the project.
 Think broadly: include decision-makers, end-users, sponsors, and anyone who might
influence or be influenced by the project.
Example: For a new software system, stakeholders could include IT staff, company
executives, and end-users.
Step B: Categorize by Attitude/Interest
 Attitude: Determine if the stakeholder is supportive or resistant to the project.
o Positive attitude: They see benefits in the project (score = 4 in Excel).
o Negative attitude: They see the project as a problem (score = 1 in Excel).
Example: A department head excited about automation would have a positive attitude.
Step C: Categorize by Power/Influence
 Evaluate how much control or influence the stakeholder has over the project.
o High power/influence: Can make key decisions or influence others (score = 4).
o Low power/influence: Has little impact on the project (score = 1).
Example: A CEO has high power, while an entry-level employee has low power.
Step D: Assess Influenceability
 Think about how easy or hard it is to influence the stakeholder (1 = difficult, 3 =
easy).
Example: A team manager might be easy to influence with clear communication, while
an external regulator might be harder to sway.
Step E: Place Stakeholders in the Power-Interest Matrix
 Map stakeholders into a matrix based on their power and interest:
o High power, high interest: Manage closely.
o Low power, low interest: Monitor but don’t prioritize.
 This helps visualize who to focus on.
Step F: Identify Personal Interests
 Understand what each stakeholder personally wants from the project.
o What benefits or losses do they foresee?
o Use surveys, interviews, or casual conversations to gather insights.
Example: A manager may want the project to reduce costs, while an employee may hope
it makes their work easier.
Step G: Monitor and Adjust
 Keep an eye on stakeholders over time.
 If their attitude or influence changes, update their position in the matrix.
Example: A skeptical employee may become supportive after seeing early project
success.
Power-Interest Matrix  helps categorize stakeholders based on their power (influence
over the project) and interest (how much they care about the project). This chart visually
groups stakeholders into four categories to prioritize engagement and strategies.

2)
Key Groups in the Matrix
1. Sideliners (Group A):
- Low Power, Low Interest: These stakeholders have little influence on the project and
are not very concerned about it.
- Action: Monitor them occasionally but do not invest significant time in engagement.
Example: General users who might not use the new website directly.
2. Beneficiaries (Group B):
- Low Power, High Interest: These stakeholders care about the project’s outcome but
have limited influence over it.
- Action: Keep them informed and engaged to maintain their support.
Example: Employees using the website to perform basic tasks.
3. Facilitators (Group C):
- High Power, Low Interest: These stakeholders can influence the project but are not
deeply invested in it.
- Action: Keep them satisfied and involve them only when necessary to maintain
support.
Example: IT authorities overseeing compliance but not directly involved in day-to-
day operations.
 4. Key to Business (Group D):
- High Power, High Interest: These stakeholders are critical to the project’s success
and deeply care about its outcomes.
- Action: Engage them closely, involve them in key decisions, and ensure their
expectations are met.
Example: Executive management and project sponsors.

How to Read the Matrix

 Power (Vertical Axis): How much influence stakeholders have on the project.
o Higher values mean more influence.
 Interest (Horizontal Axis): How much stakeholders care about the project.
o Higher values mean more interest.
 Bubble Size: Represents the "influenceability" or overall importance of the
stakeholder in the project.

Example: Website Relaunch

For a website relaunch project:
 Group A (Sideliners): Casual users of the website. Their input is not critical but
should be monitored.
 Group B (Beneficiaries): Employees who will benefit directly from the relaunch but
lack decision-making power.
 Group C (Facilitators): IT staff ensuring technical compliance but not actively
engaged in project details.
 Group D (Key to Business): Executive management or clients funding the project,
who have both high influence and interest.

2.Stakeholder Engagement à Engagement involves actively involving stakeholders in the

project to build trust and address concerns early.
Key Points:
 Integrate Stakeholders Early: Involve stakeholders during the planning phase to
align expectations.
Example: In a marketing campaign, hold workshops with key clients to finalize
campaign goals and messaging.
 Anticipate Conflicts: Address potential resistance or conflicting interests upfront.
 Example: In a renewable energy project, engage local communities early to address
concerns about environmental impact.
 Build Trust Through Communication: Use clear and consistent communication to
foster collaboration.
Example: Provide weekly updates to key stakeholders, including project status and
upcoming tasks.

3.Risk Analysis (Risk Management) à Evaluate risks associated with stakeholders and plan
mitigation strategies.
Steps:
1. Identify Risks: Determine potential issues stakeholders might cause.
Example: In a product launch, a key stakeholder (supplier) might delay delivery of
materials.
2. Analyze Impact and Likelihood: Assess how likely each risk is to occur and its
potential impact.
Use a Risk Matrix to prioritize:
- High Impact, High Probability: Immediate action required.
- Low Impact, Low Probability: Monitor minimally.

-
3. Mitigation Plan: Develop strategies to reduce risk.
Example: For a supplier delay risk, have backup vendors or alternative materials
ready.

4.Measures (Plan) and communication planà

Develop structured plans to manage stakeholder communication and involvement effectively.
Components:
 Define Communication Frequency: Specify how often stakeholders will receive
updates.
Example: Weekly progress emails for internal teams, monthly reports for external
clients.
 Choose Communication Medium: Select appropriate channels based on stakeholder
preferences.
Example: Use in-person meetings for high-power stakeholders (executives) and
emails for lower-priority stakeholders.
 Tailor Messages: Customize communication based on stakeholder roles and interests.
Example: Focus on technical details for developers but provide business-focused
updates to executives.

5.Monitoring and reportingà Track stakeholder engagement and satisfaction throughout the
project.
Steps:
1. Monitor Engagement: Use tools like surveys, feedback sessions, or dashboards to
assess stakeholder involvement.
Example: After a sprint review, collect feedback from the client to ensure alignment
with their expectations.
2. Report Progress: Provide stakeholders with regular updates on project status, risks,
and achievements.
Example: Share a project report with stakeholders, highlighting completed
milestones and addressing any challenges
Key Tools:
1. Power-Interest Matrix: Visual tool for stakeholder prioritization based on power and
interest.
2. Risk Matrix: Evaluates risks by impact and likelihood, helping prioritize mitigation
strategies.
3. Stakeholder Map: A visual representation of stakeholder relationships and priorities.
 PROCESS MODELS

Definition: A process model is a detailed framework that outlines the specific steps and
activities needed to achieve the project's goal. It integrates various methods and elements of
project management into a standardized workflow, organizing them into processes and
phases. By doing so, it provides a clear structure for how a project should ideally be
conducted.
A process model includes precise information on key aspects of a project:
 Activities to be carried out
 Roles, responsibilities, and tasks assigned to team members
 Resources required for each task
 The results produced, such as sub-products or work outcomes
 Relevant standards, policies, methods, and tools that should be used throughout the
project.
This structure ensures a consistent approach, helping the project team handle complex tasks
with proven, well-known methods. As a result, a process model can reduce complexity,
improve transparency, and ensure that project outcomes are reproducible.
Ultimately, the process model serves as an essential organizational tool for the project
manager, enabling them to manage and control the project in a structured, efficient manner.

Flow of Process Model

1. Start with Phase 1 (Initiation):
- Define the problem, objectives, and scope.
- Identify stakeholders and conduct a feasibility study.
2. Move to Phase 2 (Planning):
- Develop detailed plans for resources, scheduling, and risks.
- Finalize the work breakdown structure (WBS).
 3. Execute Phase 3 (Execution):
- Perform the tasks planned, monitor progress, and make adjustments as needed.
- Deliver working increments if using Agile methods.
4. Conclude with Phase 4 (Closure):
- Validate deliverables, obtain stakeholder approval, and close contracts.
- Reflect on lessons learned in a retrospective session.

General or Overarching Process Models and Concrete or Specific Process Models.

General/Overarching Process Models:

1. Sequential: Linear project models where each phase follows the other.
Example: Waterfall model in software development.
Use when requirements are well understood and unlikely to change, such
as in infrastructure projects (e.g., building a bridge) or traditional
manufacturing projects.
2. Iterative: A model where phases are revisited and refined.
Example: Iterative software development, where a product is built in
repeated cycles.
Use in situations where the product evolves over time, such as developing
a complex software system with changing requirements, like a content
management system (CMS).
 3. Experimental: Models focused on innovation and experimentation, often seen in
R&D or new product development.
Ideal for research and development (R&D) projects or when creating
a new product prototype, such as developing a new AI algorithm or drug
discovery.
4. Agile: A flexible and adaptive model that values collaboration, customer feedback,
and continuous improvement.
Example: Scrum in software development.
Best for projects requiring high adaptability, such as software
development with continuous delivery and user feedback, like mobile app
development
5. Hybrid: A combination of different models depending on the project needs.
Example: Combining Agile practices with traditional Waterfall for
certain phases of a project.
Use when combining traditional and adaptive approaches is needed, such
as in large-scale construction projects that require Agile elements for
specific software integrations, like building a smart city with IoT systems.

Concrete/Specific Process Models:

1. V-Modell XT: A German standard for software and system development,
emphasizing verification and validation.
Suitable for projects requiring strict verification and validation, such
as government software systems or aerospace applications where
compliance is critical.
2. Prince2: A structured project management methodology focusing on organization,
control, and risk management.
Best for large projects with a need for clear roles and responsibilities,
such as setting up a nationwide IT infrastructureor managing public
service projects
3. IPMA: International Project Management Association's competency-based
framework for project management.
Use in competency-based project management for complex projects that
involve diverse teams, such as international collaboration in energy sector
projects (e.g., building wind farms).
4. PMBoK: The Project Management Body of Knowledge, a guide that outlines
standards and guidelines for project management.
 Ideal for projects requiring adherence to global standards, such as large-
scale corporate projects or organizing the Olympics.

5. Hermes: A Swiss project management methodology often used for government and
administrative projects.
Best for government or administrative projects with predefined phases,
such as implementing a digital tax filing systemor managing a census
project.

In a software development project, a company may use the Agile model for day-to-day
development (e.g., working in sprints) while utilizing elements of PMBoK to manage
overarching project governance, budgets, and timelines.

Selecting a Process Model

Steps in Selecting a Process Model

1. Environment of the Organization/Company
What it means: Understand the broader external and internal environment in which
the company operates. Consider market dynamics, competition, and technological
trends.
Example:
o A startup in a highly competitive software market may choose an Agile
process model like Scrum to deliver value quickly and adapt to changes.
o A government organization operating under strict regulations might opt for a
more traditional model like Waterfall.
2. Company or Organizational Context
What it means: Assess the internal structure, culture, and processes of the
organization. Does the company have an innovative culture or a rigid hierarchy?
Example:
o A tech company with cross-functional teams and a culture of innovation might
implement Agile frameworks to foster collaboration.
o A manufacturing firm with strict quality control might prefer a linear process
like the V-Model.
3. Situational Conditions and Product Requirements
What it means: Analyze the specific project conditions and requirements, such as
complexity, size, and urgency.
Example:
o A project with uncertain requirements or frequent changes, such as developing
a mobile app, may benefit from an iterative approach like Kanban.
o A project with clear, stable requirements, such as building a bridge, may use a
sequential approach like Waterfall.
4. What is Important for the Customer?
What it means: Identify the customer’s priorities, such as speed, flexibility, or
detailed documentation.
Example:
o A client who values frequent deliveries might prefer an Agile approach.
o A client in the aerospace industry who prioritizes safety and documentation
might require a more rigorous process like the V-Model.

Frameworks and Tools for Selection

Cynefin Framework (Dave Snowden, 2000) helps organizations
understand and respond to different types of problems, systems, or
environments.
Focus: understanding the context of a situation.
Emphasises: contextual decision-making, providing specific
strategies for each domain.
The model categorizes problems and systems into five domains based
on the level of certainty and complexity. Each domain requires a
specific approach to decision-making.
  Simple: Fixed constraints- Use best practices (e.g., Waterfall for repetitive tasks).
 Complicated: Governing constraints- Use expert analysis (e.g., V-Model for detailed
validation).
 Complex: Enabling constraints- Experiment and adapt (e.g., Agile for innovation).
 Chaotic: No effective constraints- Act quickly to stabilize (e.g., Crisis management
frameworks).
 Confused (Apex): Requires sorting and analysis to determine the appropriate
category.
Example:
Developing a custom AI system (complex) might require Agile experimentation.
Producing mass-market consumer goods (simple) might use a traditional production model.

Original Stacey Matrix (Ralph D Stacey)  Guides decision-making by categorizing

problems based on certainty and agreement.

Focus: focuses on stakeholder agreement and certainty

It helps teams choose appropriate strategies for different situations, from structured
traditional methods to creative brainstorming.

By identifying where a problem lies on the matrix, organizations can manage complexity and
uncertainty effectively.

 Close to agreement and certainty: How well-defined and predictable the problem or
situation is.
Use structured models like Waterfall.
 Far from agreement and certainty: How much consensus exists among stakeholders
about the solution.
Use adaptive models like Scrum.
Example:
Building a house (clear requirements, proven technology): Use Waterfall.
Creating a virtual reality game (uncertain technology, changing requirements): Use Agile.
Example of the Stacey Matrix in Action
Scenario: Developing a Vaccine During a Pandemic
1. Close to Certainty and Agreement:
o Manufacturing and distribution once the vaccine is tested and approved.
 o Approach: Structured and standardized methods (Waterfall).
2. Close to Certainty but Far from Agreement:
o Deciding which populations should be vaccinated first (e.g., healthcare
workers vs. elderly).
o Approach: Political negotiation.
3. Far from Certainty but Close to Agreement:
o Conducting vaccine trials to determine its effectiveness and dosage.
o Approach: Experimental, iterative processes (Agile or Lean).
4. Far from Certainty and Agreement:
o Addressing misinformation and public resistance to vaccination.
o Approach: Brainstorming and dynamic strategies for outreach and education.

Modern Stacey Matrix (Ralph D Stacey) à an adaptation of the original Stacey Matrix. It
visually maps decision-making and
project management methodologies
based on two key dimensions

1. Clarity of Requirements
(Vertical Axis): Ranges from
clear and consistent
requirements to ambiguous or
evolving requirements.
2. Certainty of
Technology/Method/Solution
(Horizontal Axis): Ranges from
predictable and well-understood
solutions to uncertain or
experimental approaches.

It visually maps decision-making and project management methodologies based on two

key dimensions:

Key Zones of the Diagram

Simple Zone (Gray Area):

Characteristics:

- Requirements are clear and consistent.

- Technology and methods are well-understood and predictable.

Methods: Best practices or standard operating procedures.

 Examples:

- Estimating costs for a routine construction project.

- Performing regular maintenance on machinery.

Complicated Zone (Pink Area):

Characteristics:

- Requirements are clear, but the solution requires expert analysis or

structured steps.
- Predictable outcomes are achieved through systematic processes.

Methods: Traditional project management approaches like Waterfall.

Examples:

- Implementing a new IT system in an organization.

- Designing a manufacturing plant using tried-and-tested techniques.

Complex Zone (Blue Area):

Characteristics:

- Requirements are unclear or evolving.

- Solutions emerge through experimentation, iteration, and feedback.

Methods: Agile methodologies like Scrum or Kanban.

Examples:

- Developing a mobile application with changing user needs.

- Creating an e-commerce platform where features are iteratively tested and
improved.

Chaotic Zone (Yellow Area):

Characteristics:

- Requirements and solutions are both unclear, and the situation is highly
unstable.
- Immediate action is needed to stabilize the system before exploring
solutions.

Methods: Exploratory and adaptive approaches like Design Thinking, Lean UX, Lean
Startup, or rapid user research.

Examples:

- Managing a PR crisis or cybersecurity breach.

 - Prototyping a new product in a market that doesn’t yet exist (e.g., virtual
reality headsets in their infancy).

Applications

The Today’s Stacey Landscape Diagram links specific methodologies to the problem’s
complexity and uncertainty, offering clear guidance for different scenarios:

Simple Domain: Clear problems and solutions (Close to Certainty and Agreement).

- Use best practices or straightforward sequential processes.

- Example: Payroll management systems.

Complicated Domain: Expert analysis needed (Close to Certainty but Far from
Agreement).

- Follow structured, expert-driven approaches like Waterfall or PRINCE2

- Example: Installing a city’s traffic signal system.

Complex Domain: Experimentation and feedback required (Far from Certainty but
Close to Agreement).

- Opt for iterative and feedback-driven frameworks like Agile, Kanban, or

Scrum.
- Example: Developing a customer-facing AI chatbot.

Chaotic Domain: Stabilize and act quickly (Far from Certainty and Agreement

- Act first to stabilize the situation, then adaptively iterate solutions.

- Example: Responding to a product recall or emergency response
situations.

Example:
Building a house (clear requirements, proven technology): Use Waterfall.
Creating a virtual reality game (uncertain technology, changing requirements): Use Agile.
Example of the Stacey Matrix in Action
Scenario: Developing a Vaccine During a Pandemic
5. Close to Certainty and Agreement:
o Manufacturing and distribution once the vaccine is tested and approved.
o Approach: Structured and standardized methods (Waterfall).
6. Close to Certainty but Far from Agreement:
 o Deciding which populations should be vaccinated first (e.g., healthcare
workers vs. elderly).
o Approach: Political negotiation.
7. Far from Certainty but Close to Agreement:
o Conducting vaccine trials to determine its effectiveness and dosage.
o Approach: Experimental, iterative processes (Agile or Lean).
8. Far from Certainty and Agreement:
o Addressing misinformation and public resistance to vaccination.
o Approach: Brainstorming and dynamic strategies for outreach and education.

How the Process is Visualized

 The flow begins with broad organizational and environmental considerations.
 It narrows down to specific product and customer needs.
 Decision-making tools like the Cynefin Framework and Stacey Matrix guide the final
choice of process model.

Examples of Final Process Model Choices

1. Scenario: A startup developing a food delivery app.
o Environment: Fast-paced, competitive.
o Context: Small, dynamic team.
o Requirements: Evolving customer needs.
o Customer Focus: Quick MVP delivery.
o Chosen Model: Agile (Scrum or Kanban).
2. Scenario: A pharmaceutical company developing a new drug.
o Environment: Highly regulated, long timelines.
o Context: Large organization, siloed departments.
o Requirements: Rigid and well-documented.
o Customer Focus: Safety and compliance.
o Chosen Model: Waterfall or V-Model.

Process models are suitable depending on the type of the main task
This diagram highlights how process models align with different types of tasks based on the
main focus of the project or activity. The diagram categorizes models into three
overlapping domains, representing their suitability for specific goals:

1. Focus on Design and Usability: What are we making?

2. Focus on Validation and Measurement: Are we making the right thing?
3. Focus on Collaboration and Delivery: How do we make it?

Each domain is associated with specific methodologies and approaches that cater to the task's
primary focus.

Human-Centered Design

Focus: What are we making?

Description: Human-Centered Design methodologies emphasize understanding user

needs, designing usable and desirable solutions, and prioritizing user experience.

Key Models:

- Design Thinking: A creative, iterative approach to problem-solving focused on

empathy and rapid prototyping.
- User Research: Systematically gathering user feedback to understand their
behaviors, motivations, and needs.

Examples:

Designing a new wearable fitness tracker by conducting user interviews to define

desired features.

Creating a mobile banking app with user-friendly navigation through iterative

prototyping and usability testing.
Lean Thinking

Focus: Are we making the right thing?

Description: Lean Thinking involves minimizing waste, building fast prototypes, and
validating ideas quickly through user feedback. It focuses on value creation and learning.

Key Models:

- Lean Management: Optimizing workflows to deliver maximum value with

minimal resources.
- Lean Startup: Building a Minimum Viable Product (MVP), measuring its
performance, and iterating based on customer feedback.
- Lean UX: A user-centric approach combining Lean principles with user
experience design.

Examples:

Developing a new feature for an e-commerce site, releasing a prototype, and

iterating based on user feedback.

Launching an MVP for a food delivery app and testing its core functionality (e.g.,
order placement) with a small audience.

Lean Management in Different Areas:

- Lean Product Development: Focuses on minimizing waste during product

design and testing.
Example: Prototyping with minimal features to validate user needs (Lean Startup
methodology).
- Lean Innovation: Emphasizes rapid experimentation and user feedback.
Example: Conducting A/B testing for a new app feature.
- Lean Administration: Reduces inefficiencies in administrative processes.
Example: Automating repetitive tasks in payroll processing.
 - Lean Maintenance: Streamlines repair and upkeep workflows to minimize
downtime.
Example: Using predictive maintenance to service machines before they break
down.

Agile Project Management (Agile PM)

Focus: How do we make it?

Description: Agile methodologies emphasize collaboration, iterative development, and

adaptability. Teams deliver incremental value while continuously improving their
processes.

Key Models:

- Scrum: Iterative sprints with roles like Scrum Master and Product Owner.
- Kanban: Visualizing work to optimize flow and reduce bottlenecks.
- Extreme Programming (XP): Focused on high-quality code with practices like
pair programming and continuous integration.

Examples:

Managing software development for a healthcare application with frequent

releases and feedback.

Coordinating a cross-functional team to deliver a feature-rich SaaS product

incrementally.

Practical Case Study

Scenario: Launching a Smart Home Device

 Step 1: Define the Focus

o What are we making?
 Use Design Thinking and User Research to understand user needs.
 Conduct surveys and interviews to design a user-friendly interface.
o Are we making the right thing?
 Use Lean Startup principles to build and test prototypes.
 Release an MVP with core features (e.g., voice control) for early
adopters.
o How do we make it?
 Use Scrum to coordinate development, integrating customer feedback
in every sprint.

Intersection of Domains
Human-Centered Design + Lean Thinking (Top Intersection)  Combines user-centered
research with fast, iterative development.

Key Models:

- Lean User Research: Using lightweight user research techniques to validate

assumptions quickly.
- GV Design Sprint: A 5-day process to solve critical business problems through
design, prototyping, and user testing.

Example: Creating an MVP for a fitness app, starting with user research and then validating
it with a small audience.

Lean Thinking + Agile PM (Bottom Intersection)  Focused on iterative development

with continuous feedback loops.

Key Models:

- Dual Track Agile: Balancing discovery and delivery tasks simultaneously to

improve efficiency.
- Scrum + Lean Software Development: Combining Scrum’s structure with
Lean’s focus on waste reduction.

Example: Building an e-commerce platform while conducting ongoing market validation and
user testing.

Human-Centered Design + Agile PM (Right Intersection)  Prioritizing user experience

while iteratively delivering functional software.

Key Models:

- Agile UX: Integrating UX design within Agile workflows.

Example: Continuously improving a mobile app’s user interface during sprint reviews based
on usability testing results.

Core Intersection (All Three Domains) Blends design, validation, and delivery to ensure
both usability and value.

Key Models:

- Lean UX + Agile UX + Dual Track: A hybrid approach to ensure user needs,

validation, and delivery are seamlessly integrated.

Example: Designing, testing, and iteratively building a smart home device that adapts to user
feedback throughout the process.

Key Takeaways
Choose the Model Based on Your Task:

What are we making? Use Human-Centered Design techniques like Design

Thinking.

Are we making the right thing? Use Lean Thinking to validate ideas.

How do we make it? Use Agile PM to deliver incrementally.

Combine Methods as Needed: For complex projects, intersecting domains like Lean
Thinking + Agile PM or Human-Centered Design + Lean Thinking can provide greater
flexibility and efficiency.

Comparison of Models

 Traditional models are best for stable, predictable projects requiring thorough
documentation and quality checks.
 Agile models excel in dynamic environments where frequent feedback and rapid
changes are essential.
 Hybrid models offer a middle ground, combining the strengths of both traditional
and agile approaches.
Heavyweight Models  These models are traditional, sequential process models that
emphasize detailed planning, controlling, monitoring, and documenting at every phase of a
project.
Key Characteristics:
- Extensive guidelines and rigid processes.
- Heavy focus on documentation and approval steps.
- Sequential and fixed workflows (e.g., each phase must be completed before
moving to the next).
Advantages:
 - Clarity in responsibilities and deliverables.
- Suited for projects with well-defined goals and stable requirements.
Challenges:
- Lack of flexibility to adapt to changing requirements.
- Higher bureaucratic overhead can slow down progress.
Example:
 A construction project using the Waterfall method: The process begins with detailed
architectural plans (design phase), then moves to construction (execution phase), and
finally to inspection (closing phase). Changes midway can lead to significant delays
and cost overruns.

- Aerospace and Defense Projects: Developing a new fighter jet or space

exploration vehicle where safety, compliance, and traceability are critical.

- Healthcare Systems: Building a hospital management system that requires

rigorous testing and compliance with regulations like HIPAA.

- Banking Systems: Developing a core banking system where reliability and

precision are paramount, and regulatory adherence is mandatory.

- Nuclear Power Plant Projects: Projects that demand strict adherence to

procedures, safety standards, and regulatory documentation.

Lightweight (Lean) Models  These models prioritize acting individuals and their
interactions over strict processes. Agile frameworks fall under this category.
Key Characteristics:
- Minimal regulation and documentation, focusing instead on results.
- Emphasis on collaboration and adaptability.
- Iterative cycles that deliver value frequently.
Advantages:
- Flexibility to handle dynamic or evolving requirements.
- Encourages innovation and stakeholder involvement.
Challenges:
- Less suited for large-scale projects where detailed documentation is critical.
- Requires a strong team culture and trust among members.
Example:
 A software development project using Scrum: Developers work in short sprints,
delivering functional features like login systems or search tools. Feedback from
stakeholders guides the adjustments in the next sprint, allowing continuous
refinement.

- Startups and MVP Development: Creating a minimum viable product

(MVP) for a new mobile app or web platform, where speed to market and quick
feedback are crucial.
- E-commerce: Rapidly developing a custom e-commerce solution to respond to
shifting market trends or customer demands.
- Creative Design Agencies: Building a digital marketing campaign or website
redesign with evolving client feedback and limited fixed requirements.
- Continuous Improvement Projects: In a manufacturing plant using Lean
principles, optimizing production workflows to reduce waste and increase
efficiency.
 WORKFLOWS AND COLLABORATION MODELS

Sequential Process  Work is divided into distinct phases, and each phase is completed
before the next begins. Tasks are handed off from one group to the next in a step-by-step
manner. Slower and less adaptable, as tasks are passed from one phase to the next with
limited collaboration.
How It Works:
- Consultants/Concept Developers: Start by creating the initial idea or requirements.
- Designers: Take over to create the design based on the concept.
- Developers: Implement the design into a working system.
- Testers: Test the final product for issues or bugs.
Challenges:
- Delays: If one phase takes longer, it slows down the whole project.
- Limited Collaboration: Teams work in isolation, leading to misunderstandings or
misaligned goals.
- Late Problem Identification: Issues are discovered only at the end (e.g., during
testing).
Example:
 A company is building a website:
o The marketing team creates the content requirements.
o The design team creates the website layout.
o The development team codes the website.
o The testing team finds critical bugs at the end, requiring redesign or rework,
which delays the launch.
Overlapping Phases Teams start collaborating earlier in the process, overlapping their
work to improve communication and efficiency. Introduces early collaboration, reducing
delays and improving efficiency.
How It Works:
- While developers begin implementing initial features, designers can continue refining
layouts for upcoming tasks.
- Testers start validating early parts of the product instead of waiting for full
completion.
Benefits:
- Faster Feedback: Issues are identified and addressed earlier.
- Improved Coordination: Teams share progress and insights throughout the process.
- Reduces Time-to-Market: Work progresses in parallel.
Example:
 In a mobile app project:
o The design team creates a basic prototype.
o Developers build the first version while the design team refines the next
screens.
o Testers start verifying completed features, avoiding last-minute surprises.
Agile Approach (Cross-Functional Teams)  A single, cross-functional team collaborates
on all aspects of the project simultaneously. The team includes members with diverse skills
(e.g., designers, developers, testers) who work together to achieve shared goals. ): Fully
integrated teams collaborate throughout, enabling faster problem-solving, innovation, and
shorter time-to-market.
How It Works:
- Team members collaborate closely, solving problems and iterating on solutions in
real-time.
- Everyone shares responsibility for delivering value to the customer, breaking silos.
Benefits:
- Enhanced Communication: Regular interactions foster understanding and alignment.
- Greater Flexibility: The team adapts quickly to changes or new priorities.
- Continuous Delivery: Working increments of the product are delivered frequently.
Example:
 Developing a new e-commerce platform:
o A cross-functional team of designers, developers, and testers collaborates in
sprints to create, test, and refine features like product listings and payment
gateways.
o When feedback arrives, the team adapts and improves functionality without
delays.
Defined Process  A traditional, step-by-step approach where each phase is completed
sequentially, and changes are difficult to incorporate once a phase is finished. Suitable for
stable projects with well-defined requirements but struggles with flexibility and late-stage
changes.
Phases:
1. Requirements Analysis
2. Design
3. Code
4. Integration
5. Testing
6. Deployment
Challenges:
- Lack of flexibility: Changes discovered late (e.g., during testing) require costly
rework.
- Late delivery: Customers receive the product only at the end of the process, leading to
delayed feedback.
Example:
 A team developing an enterprise software solution completes the requirements,
design, and coding phases. During testing, they discover that the product doesn't meet
user needs, requiring them to revisit earlier phases, delaying the launch.
 Empirical Process (Agile Approach)  Work is completed in short, iterative cycles (called
iterations or sprints) where all activities (design, coding, testing, etc.) are integrated within
each cycle.
How It Works:
- Each iteration acts as a mini-project, producing a working product increment.
- Feedback is incorporated at the end of each iteration, allowing the team to adapt to
new conditions or changing requirements.
- Repeated cycles ensure continuous improvement and frequent deliveries.
Example:
 A team developing a mobile app divides the project into multiple 2-week sprints. In
the first sprint, they implement and test the login functionality. Feedback from users is
used in the next sprint to refine the user interface while simultaneously developing
another feature.

Advantages of the Empirical Process

1. Adaptability: Teams can quickly adjust to new requirements or market demands.
Example: A customer requests an additional feature during development. The team adds it to
the next sprint without disrupting ongoing work.
2. Faster Marketability: Working increments are delivered frequently, allowing
customers to use parts of the product early.
Example: An e-commerce platform launches its core features (product listing and payment
gateway) first while developing advanced features (like recommendations) in later iterations.
3. Risk Minimization: Issues are discovered and addressed earlier in the cycle, reducing
the risk of major failures at the end.
Example: A bug identified during the first sprint is fixed immediately, avoiding large-scale
disruptions later.

Iteration Detail (Mini-Cycles)

Each iteration involves the following stages:
1. Design & Analysis: Identify requirements for the iteration.
2. Implementation & Developer Testing: Build and test the functionality.
3. Evaluation/Prioritization: Assess progress and reprioritize tasks for the next cycle.
4. QA/Acceptance Testing: Verify the increment meets quality standards.
5. Deployment: Deliver the working increment to the customer.
 AD-HOC

Ad hoc is a Latin phrase meaning "made for this moment" or "appropriate to the matter at
hand". In a figurative sense, ad hoc refers to improvised actions and things designed
specifically for a purpose or created spontaneously out of a situation.
Advantages
- Ad hoc practices have the advantage of giving the people involved the freedom to
decide how to tackle a specific problem.
- This helps to minimize administrative costs and provides a lot of freedom.
- Ad hoc practices can therefore be suitable for short projects managed by individuals
and/ or small teams.
Challenges
- poorly coordinated, not repeatable, and not sustainable, and an ad hoc approach
can lead to numerous problems
- They prevent learning: A process is a "mechanism" to improve what you do. It helps
you to measure specific inefficiencies and improve on them the next time around. The
absence of clear processes is likely to prevent learning.
- They slow down information exchanges: Bad processes for storing, retrieving and
sharing documents are likely to waste time as people have to find information, and
this will increase the risk of people using the wrong version.
- Delivery of the "wrong thing": The lack of effective processes for working with
stakeholders increases the risk that teams will deliver something that doesn’t meet the
stakeholders' needs.
- Frustration of stakeholders: A lack of processes to manage the correct expectations
can reduce stakeholder engagement.
- Lack of reproducibility: Developing something further based on previous projects is
difficulty if the relevant artefacts (data, documentation and interim results, etc.) are
missing.
- Poor coordination: Poor processes reduce coordination (defined as managing
dependencies among task activities) and can lead to confusion, inefficiency and
mistakes.
- Scope creep: The scope of the project can spin out of control unless there are
effective processes for determining what is to be included and excluded.
- Limited project supervision and control: Unless management has proper insight
into the project, it is hard to know when things are getting out of control and
intervention is called for.
- Team morale killer: Working in confusing, chaotic environments can cause
frustration and affect team members’ ability to concentrate and stay motivated.
 TRENDS

The two megatrends of Digital Transformation and New Work Transformation are
reshaping industries and organizations across the globe. These trends have emerged in
response to rapid technological advancements, changing customer needs, and the volatility of
the modern world.
Digital Transformation
Definition: Digital transformation refers to the integration of digital technologies into all
areas of a business, fundamentally changing how companies operate and deliver value to
customers. It involves not just adopting new technology, but also transforming organizational
processes, culture, and customer interactions.
Key Characteristics:
 Technological Advances: Emerging technologies such as cloud computing, artificial
intelligence (AI), big data, Internet of Things (IoT), and 5G are driving digital
transformation. These technologies enable organizations to streamline processes,
make data-driven decisions, and improve efficiency.
 Changing Customer Needs: Today’s customers expect seamless, personalized, and
instant service, often through digital channels (e.g., mobile apps, websites, social
media). As a result, companies must rethink their customer engagement strategies to
remain competitive.
 Disruption by New Market Players: Startups and digitally native companies (e.g.,
Uber, Netflix, and Airbnb) have disrupted traditional industries by leveraging
technology to offer better customer experiences, often at a lower cost.

Examples of Digital Transformation:

Retail: Amazon and E-Commerce
Impact: Traditional brick-and-mortar retailers have been profoundly disrupted by the
rise of e-commerce. Amazon’s use of technology—from automated warehouses and
advanced logistics to AI-driven product recommendations—has transformed customer
expectations.
Transformation: Many traditional retailers, like Walmart and Target, have adopted
digital transformation strategies, such as e-commerce platforms, mobile apps, and
curbside pickup services. They are now integrating technologies like AI and big data
to offer personalized experiences and optimize inventory management.
Banking and Finance: Digital Banking
Impact: The rise of fintech companies (e.g., Revolut, Square, Stripe) has
transformed the financial industry. Traditional banks are pressured to innovate,
 adopting digital platforms for mobile banking, digital wallets, and AI-powered
customer service (chatbots).
Transformation: Banks like JP Morgan and HSBC have invested heavily in
digitizing their services to provide online banking, AI-driven credit risk analysis, and
digital lending platforms, while fintech startups continue to disrupt their market.
Healthcare: Telemedicine and AI
Impact: The COVID-19 pandemic accelerated the adoption of telemedicine, allowing
patients to consult with doctors via video calls, reducing the need for in-person visits.
Transformation: Telemedicine platforms like Teladoc and Doctor on Demand
have seen massive growth. AI applications are being used for diagnostics, predicting
patient outcomes, and automating administrative tasks, transforming the way
healthcare is delivered.
Example: Google's DeepMind is using AI to predict patient deterioration,
improving care outcomes and hospital resource management.

Digression: What Makes Digital Transformation Successful?

1. The Role of Leadership: Leadership plays a crucial role in guiding digital transformation.
Companies that succeed often have digital-first leadership, where executives and managers
understand the importance of integrating digital strategies into business processes. Leaders
need to act as change agents to drive innovation and motivate their teams to embrace digital
tools and approaches.
2. Visionary and Adaptable Goals: In digital transformation, goals should not be rigid.
Companies need to have a clear vision, but it should be flexible enough to adapt to the fast-
changing digital landscape. For instance, companies might start with a broad goal like
"improving customer experience through digital tools" but continually refine that based on
market feedback.
3. Employee Engagement: Employee buy-in is critical to successful digital transformation.
A company's workforce must feel empowered to take advantage of new tools and methods,
which is why investing in employee engagement, continuous learning, and upskilling is
essential. Many companies fail in their digital transformation efforts because they neglect the
human side of the transformation.

New Work Transformation

Definition: New Work Transformation refers to the shift in how work is organized, managed,
and performed in response to changing employee expectations, technological advances, and
societal shifts. It involves flexible work arrangements, digital collaboration tools, and a
greater focus on work-life balance.
Key Characteristics:
  Remote and Hybrid Work: The COVID-19 pandemic accelerated the trend of
remote work, and many companies have adopted hybrid models where employees
split their time between working from home and the office.
 Employee Empowerment and Autonomy: Organizations are moving away from
rigid hierarchical structures and adopting more agile, decentralized approaches.
Employees are given more control over their work, which can lead to greater
innovation and satisfaction.
 Workplace Digitalization: The rise of tools like Zoom, Microsoft Teams, Slack, and
project management software such as Asana or Trello has enabled seamless
collaboration across time zones and geographies. This digitalization of the workplace
is a core feature of the New Work Transformation.

Examples of New Work Transformation:

Remote Work and Hybrid Models:
Impact: Companies like Twitter, Salesforce, and Dropbox have embraced permanent
remote work models, allowing employees to work from anywhere in the world. This
has led to a rethinking of the traditional office space, with companies investing in
digital tools and flexible office arrangements.
Transformation: Many firms are redesigning their offices to serve as collaborative
hubs rather than traditional 9-to-5 workspaces. Microsoft and Google are leading
examples of organizations that have adopted hybrid models, providing employees
with the flexibility to work remotely or in the office.
Agile Work and Project Management:
Impact: Agile methodologies, originally developed for software development, have
been adopted across industries to increase flexibility and responsiveness. Companies
use Scrum and Kanban boards for task management, empowering teams to work
autonomously.
Transformation: Firms like Spotify and ING Bank have adopted Agile frameworks
across the entire organization. By breaking down silos and encouraging cross-
functional teams, these companies have become more responsive to changing market
demands and customer needs.
Employee Wellbeing and Work-Life Balance:
Impact: The emphasis on mental health and work-life balance has increased
significantly. Companies like Airbnb and Patagonia offer flexible schedules, mental
health support, and other benefits aimed at improving employee wellbeing.
Transformation: Workplaces are prioritizing wellbeing programs, such as Google’s
wellness initiatives, which include on-site health services, mindfulness programs, and
flexible work hours. This shift reflects the growing importance of creating a
sustainable, healthy work environment.
Co-working Spaces and Gig Economy:
Impact: The rise of freelance and gig work has fueled the demand for flexible
working spaces. Companies like WeWork provide co-working spaces that cater to
freelancers, startups, and remote workers, allowing them to access office facilities
without long-term leases.
Transformation: The gig economy is transforming industries like transportation
(Uber, Lyft), food delivery (DoorDash, Grubhub), and content creation (YouTube,
Upwork), where workers enjoy greater autonomy but also face challenges related to
job security and benefits.

VUCA World and Its Impact on Companies

Definition: The acronym VUCA stands for Volatility, Uncertainty, Complexity, and
Ambiguity. It describes the challenges companies face in today’s fast-changing and
unpredictable world. Traditional strategies and reflexes no longer work in this environment,
requiring companies to adapt swiftly and adopt new approaches.
Characteristics of the VUCA World:
- Volatility: The pace of technological and market changes is increasing, creating
unpredictable fluctuations (e.g., sudden changes in customer demand, technology
disruptions).
- Uncertainty: With rapid change, predicting future trends and outcomes has become
harder. Markets are more competitive and globalized, and new entrants can disrupt
industries without warning.
- Complexity: Companies face intricate challenges that involve many interdependent
factors, such as globalization, regulations, supply chains, and cross-functional
operations.
- Ambiguity: The lack of clear information or precedents makes decision-making
harder, especially when facing new and unfamiliar challenges.
Implications:
In a VUCA world, reflexes from earlier times, such as rigid long-term planning or
hierarchical decision-making, often fail. Companies must develop agility, innovation, and
adaptability to stay competitive.
Example: Tesla operates in a highly volatile market driven by rapid advancements in electric
vehicle technology. Tesla’s ability to rapidly innovate and scale production—despite the
complexities of global supply chains—demonstrates its ability to thrive in a VUCA
environment.
Response to VUCA: Companies are adopting scenario planning, real-time data analysis,
and agile strategies to navigate the unpredictability of the VUCA world. For example, during
the pandemic, companies like Zoom and Peloton quickly scaled up their operations to meet
surging demand, while other industries struggled to adapt.
New work (Frithjof Bergmann, 1980)
As a way to free people from traditional wage labor and offer an alternative to the capitalist
model. Today, New Work Transformation refers to companies shifting from hierarchical
structures to networked collaboration.
Key features include:
1. Virtual Teams: Globally distributed teams collaborate online, like in Microsoft and
Google.
2. Self-organized Teams: Teams work autonomously, as seen in Spotify's "squads."
3. Cross-functional Collaboration: Teams from various departments work together,
typical in agile environments.

Re-inventing organisation (Frederic Laloux's 2014)

Encourage self-management and purpose-driven work. Companies like Buurtzorg and
Zappos have adopted these models, focusing on flexibility and autonomy over rigid
management structures.

Organizational Models According to Laloux

Frederic Laloux, in "Reinventing Organizations" (2014), outlines five stages of organizational
evolution, each represented by a color that reflects distinct leadership styles and internal
structures:
1. Red Organizations (Impulsive)
Traits: Centralized, top-down control based on fear and power; thrives in chaos.
Example: Street gangs, mafia, or early-stage startups in turbulent industries
prioritizing rapid decisions.
2. Amber Organizations (Conformist)
Traits: Stability, strict hierarchy, and rules. Tradition and long-term planning are key;
change is seen as risky.
 Example: Military, government agencies, and religious institutions like the Catholic
Church.
3. Orange Organizations (Achievement)
Traits: Focus on competition, innovation, results, and meritocracy. Success is
measured by performance metrics.
Example: Multinational corporations (e.g., General Electric, Procter & Gamble)
focused on KPIs and market leadership.
4. Green Organizations (Pluralistic)
Traits: Empowerment, shared decision-making, social responsibility, and values-
driven leadership.
Example: Ben & Jerry’s, Patagonia, and Whole Foods prioritize employee well-being,
collaboration, and sustainability.
5. Teal Organizations (Evolutionary)
Traits: Self-management, adaptability, purpose-driven, and decentralized decision-
making. Employees align personal missions with organizational goals.
Example: Buurtzorg (self-managing healthcare teams) and Zappos (holacracy model).
Key Concepts:
1. Self-management: Tasks organized without traditional hierarchies.
2. Wholeness: Encourages employees to bring their full selves to work.
3. Evolutionary Purpose: Goals evolve naturally, co-created by all.
These models highlight the progression from rigid control (Red, Amber) to collaboration and
autonomy (Green, Teal).

Agile Organization According to Kahl & Römer and Denning

An Agile Organization is flexible, customer-focused, and innovative, characterized by small,
cross-functional teams working iteratively to adapt quickly to market changes.
1. Agile Organization (Kahl & Römer)
 Key Traits:
- Flexible: Quickly adapts to change.
- Lean: Eliminates waste for efficiency.
- Innovative: Encourages creativity and experimentation.
- Customer-Oriented: Delivers value to customers.
Example: Spotify uses autonomous "squads" to develop features (e.g., playlists), iterating
based on user feedback.
2. The Law of the Customer (Denning)
Focus: Every decision prioritizes customer value and feedback.
Example: Amazon continually innovates (e.g., 1-click purchasing, fast delivery) to enhance
the customer experience.
3. The Law of the Small Team
Approach: Small, cross-functional teams solve problems iteratively, enabling rapid testing
and adjustment.
Example: Google uses Agile sprints to launch and refine products like Gmail and Google
Maps.
4. The Law of the Network
Structure: Replaces traditional hierarchies with decentralized networks to improve
collaboration and decision-making.
Example: Netflix fosters open communication and empowers employees to innovate without
strict approvals.
Generative AI
- AI, including tools like ChatGPT, is transforming collaboration and execution in
projects
- Predictive analytics enhance planning, risk management and execution

ChatGPT supports Agile coaches and Scrum Masters

Use of gen AI in creating schedules, risk logs (e.g Forbes references)

Advanced project management software

- Real-time access to project data ensures better resource allocation and task tracking
- Tools like Asana, Monday, and Awork offer integrated dashboards

Use of cloud-based tools for task automation and collaboration

Ensuring all team members are up-to-date with status alerts
Data analytics
- Analytics transforms decision-making into data-driven actions
- Data insights provide actionable intelligence for project optimization.

Forecasting risks
Leveraging software for better predictability in projects

Cybersecurity
- Emphasis on protecting data with robust cybersecurity measures
- Continuous training for teams to stay ahead of threats.

Close collaboration with IT teams to maintain project security.

Establishing stakeholder trust through proactive measures

Emotional intelligence and soft skills

- Emotional intelligence becomes as critical as technical skills
- Soft skills teamwork, communication, and active listening are essential

Leaders fostering collaboration through empathy

Addressing team well-being for higher motivation and productivity

Remote and hybrid project management

- Virtual teams and hybrid models are increasingly adopted
- Balancing agile and traditional methods

Asynchronous communication to bridge time zones

Tools land practices for maintaining team cohesion remotely

Well-being and mental health

- Focus on mental health as a mental pillar of successful management
- Encouraging flexible hours and supportive work environments

Policies to ensure a healthy work-life balance

Encouragement of positive workplace cultures

Sustainability in pm
- Eco-friendly and green project practices are prioritised
- Sustainaibility drives decision-making and stakeholder satisfaction

Reducing carbon footprints during execution

Use of sustainability resources aligning with environmental goals
 SCRUM

The Scrum Framework is a lightweight, agile project management framework designed to

help teams deliver value iteratively and incrementally. It provides structure while allowing
flexibility, making it ideal for complex projects where requirements may evolve over time
(e.g., software development, product launches).

Key Components of Scrum Framework

ROLES:
 Product Owner: Represents the customer and ensures the team builds the right
product.
- Manages the Product Backlog (a prioritized list of tasks or features).
- Technical control of the product (what are we going to build)
- Maintains and prioritises the product backlog
- Responsible for the project budget
- serves as the contact person for external stakeholders
- explain requirements to the development team
- measures, plans, and products the project course
- can cancel sprints if necessary
Example:
A Product Owner decides the next feature to prioritize for an app based on user
feedback.
 During a backlog refinement session, the PO prioritises features based on stakeholder
input
Cancels a sprint when the product goal becomes irrelevant due to market changes.

Success factors
- Enthusiasm for the product
- Understanding of scrum methodology and the role of the PO
- strong decision-making and budgeting skills
- Effective stakeholder management
- clear vision for the product using tools like canvas business model, elevator
pitch, product vision board
Uses an elevator pitch to explain product vision to new stakeholders
Creates a product vision board to align the team on long-term goals.

Ready for the role?

- Do I have the decision-making power for development?
- Do I have the budget to execute the project?
- Do I have management backing for my decisions?
- Do I have sufficient time to fulfil PO responsibilities?
- Can I collaborate with the development team daily?
A PO collaborates daily with the team during a Sprint to ensure alignment on
priorities.
Prepares by building relationships with stakeholders to gain their trust and support.

 Scrum Master:
- Ensures the team follows Scrum principles and removes obstacles.
- Acts as a coach and facilitator for the team.
- Servant leader
- fosters team agility and understanding of scrim
- helps with continuous improvement
- supports the product owner when necessary
- identifies problems and inefficencies, working towards solutions
- ensures the sprint runs smoothly and coordinates with the organisation
Example:
If team members are facing technical blockers, the Scrum Master helps resolve them.
Facilitates retrospectives to help the team identify and act on areas for improvement
Addresses a conflict between team members over tasks prioritisation during a Sprint
  Development Team: A cross-functional group responsible for delivering the product
increment (usable output).

- Team of specialists combining all necessary skills

- Self-organising without a hierarchy
- no strict division of labour
- decided on the speed of development
- makes all the necessary technical decisions (‘how do we build it?’)
- respobible for quality assurance fo deliverables
- ideal size= 3-9 members (small enough for flexibility)
Example:
Developers, testers, and designers collaborate to release a new app feature.
In a Sprint planning meeting the team decides which backlog items to include based
on their capacity and technical expertise
Team members collaborate on testing and development tasks regardless of their
original roles

ARTIFACTS
 Product Backlog: A list of all desired work, prioritized by the Product Owner.
Example: Features like “user login,” “dark mode,” and “push notifications” are listed
here.
 Sprint Backlog: A subset of the Product Backlog that the team plans to complete
during the current sprint.
Example: During a sprint, the team might focus on completing “user login” and “dark
mode.”
 Increment: A working piece of the product delivered at the end of each sprint.
Example: After the sprint, the team delivers a functional login feature.

EVENTS (CEREMONIES)
 Sprint Planning: A meeting at the start of the sprint to decide what the team will
work on.
Example: The team agrees to implement and test the “dark mode” feature in the next
two weeks.
 Daily Scrum (Stand-Up): A 15-minute daily meeting to discuss progress, challenges,
and plans.
Example: A developer might say, “I completed the login screen and will start working
on password recovery today.”
  Sprint Review: Held at the end of the sprint to demonstrate the increment to
stakeholders.
Example: The team showcases the functional “dark mode” feature to the Product
Owner and stakeholders.
 Sprint Retrospective: A meeting to reflect on what went well and what could
improve in the next sprint.
Example: The team decides to improve communication about task dependencies in
future sprints.

SPRINTS: A mini-project with a defined goal completed in less than 4 weeks

- The backbone of Scrum, a Sprint is a fixed time-box (typically 1-4 weeks) during
which the team works on a specific set of tasks.
- At the end of each sprint, the team delivers a usable increment of the product.

Structure

- Starts with planning and ends with review and retrospective

- Produces at least one usable product increment
- Team work only on the current Sprint’s content
- No changes to ongoing Sprint, though cancellation is possible

How Scrum Works in Practice

1. Initiation: The Product Owner creates the Product Backlog with prioritized features.
Example: For an e-commerce website, features like “product search” and “secure
checkout” are listed.
2. Sprint Execution: During Sprint Planning, the team selects the most important tasks
from the Product Backlog and adds them to the Sprint Backlog.
The team collaborates during the Sprint, holding Daily Scrum meetings to stay on
track.
 3. Delivery and Feedback: At the Sprint Review, the team demonstrates the working
increment to stakeholders.
Feedback is used to update the Product Backlog.
4. Continuous Improvement: During the Sprint Retrospective, the team identifies ways
to improve processes and collaboration.

Why Use Scrum?

 Adaptability: Responds well to changing requirements.
 Transparency: Frequent communication ensures everyone is on the same page.
 Customer Satisfaction: Delivers usable products early and often.
 Efficiency: Focuses on high-priority tasks, reducing wasted effort.

Example of Scrum in Action

Project: Building a mobile banking app.
1. The Product Owner prioritizes features: “view balance,” “transfer money,” and “pay
bills.”
2. The team plans to deliver “view balance” in the next 2-week sprint.
3. They collaborate daily to implement and test the feature.
4. At the Sprint Review, they demonstrate the feature to stakeholders, who suggest
minor improvements.
5. In the Retrospective, the team decides to improve how they estimate task completion.

Scrum Values

Scrum master as servant leader

Facilitates the scrum team and organisation without direct authority
Focus= helps the team organise itself rather than directing it

- Support for individuals à guides each team member in underrating and applying
Scrum principles
Helps product owners with product backlog management
- Support for Scrum Team à facilitates collaboration and ensures the team works
effectively
Coaches team members to become self-managing and cross-functional
- Support for the Organisation à drives scrum adoption at the organisational level
Collaborates with managers and leadership to remove systemic barriers

Lateral leadership

- Scrum master has no power to issue directives

- Scrum master has no decision-making authority for others
- Build influence through trust and support
- Prioritises the team’s needs and success over personal authority

Scrum Master helps

Product owner by
- Helps define product goals and manage backlogs
Guides to use SMART criteria for setting the Product Goal
- Encourages empirical product planning
Work with PO to refine backlog items by ensuring user stories have clear acceptance
criteria
- Facilitates stakeholder collaboration
Organises a stakeholder workshop to ensure alignment on the product roadmap

Scrum Team by
- Coaches in self-management and cross-functionality
Encourages the team to own their Sprint commitments rather than external deadlines
- Focuses on delivering high-value increments
Helps the team reduce technical debt by coaching them to prioritise refactoring tasks
during Sprint Planning
- Removes impediments and ensures Scrum events are effective
Time boxes a daily scrum to ensure it remains focused and under 15 min
Organisation by
- Leads training and adoption of Scrum practices
Provides Scrum training for new employees joining a Scrum-adopting organisation
- Advises on implementation strategies
Helps create a roadmap for transitioning a traditional project management structure to
a Scrum-based framework
- Bridges gaps between stakeholders and Scrum Teams

Roles of the Scrum Master

Teacher:
- Provide knowledge or skills such as introducing specific methods or tools (e.g
Kanban boards)
- Create opportunities to learn by organising interactive sessions or practice drills
- Promote learning success by providing feedback and recognising progress
Execution: Design and conduct trainings and workshops for the team and
organisation
Goals:
- Build a common basic understanding of Scrum across individuals, teams, and
the organisation
- Foster team recognition that good collaboration leads to better results and
Scrum adoption
Conduct a workshop to introduce a new team members to Sprint Planning or Retrospective
techniques
Teach stakeholders how to use empirical data from Sprints to make better decisions
Facilitator  Facilitating involves the art of inviting, encouraging and motivating people at
the right moment to engage and contribute
Key responsibilities:
- Accompanying group processes= observe and guide group dynamics during
team discussions
- Acting proactively= address potential issues (e.g missed deadlines or
communication gaps) before they escalate
- Removing impediments= ensure no blockers affect the team’s workflow
- Preparing and improving meetings= ensure Scrum events (like Sprint
Reviews) are productive
- Developing the team= encourage the team to grow in skills and confidence
During a Daily Scrum, identify that team members are struggling with tasks dependencies
and work with them to resolve it
Proactively prepare team agendas to ensure efficient Sprint Planning sessions

Coach  Coaching focuses on developing people and encouraging self-reflection to enable

personal and team growth
Key responsibilities:
- Active listening= hep the team reflect on their actions and outcomes without
giving direct advice
- Supporting personal growth= empower individuals to improve their
contributions and collaboration
- Team/Management Coaching= support both teams and leadership in adopting
and growing within Scrum
During a retrospective, encourage a team member to analyse how their tasks prioritisation
contributed to Sprint delays
Coach a product owner on improving backlog refinement techniques
Mentor  Sharing knowledge and experience directly, often in one-on-one settings, to guide
personal development
Key responsibilities:
- Provide guidance and feedback on real tasks and challenges
- Offerings= act as a sparring partner for discussions, provide collegial
consulting by offering a different perspective, suggest resources or training
for further development
Mentor a junior Scrum Master by observing their facilitation skills and offering feedback
Guide a product owner in stakeholder communication strategies
Mediator  Unresolved conflicts to the surface and facilitates solutions
Key responsibilities:
- Encourage open discussions to share conflict views
 - Establish common perspectives and develop actionable solutions
- Ensure team rules and standard are followed consistently
Resolve a conflict between a developer and QA lead regarding the definition of done by
facilitating a team discussion
Mediate a disagreement between the product owner and scrum team about Sprint priorities

Change Agent à Organisational change by adopting Scrum practices sustainability across

the enterprise
Key responsibilities:
- Create awareness in upper management about their influence on team
productivity
- Escalate systemic impediments to upper management to enable solutions
- Foster participative transformation for sustainable Agile adoption
Help a department restructure to align principles
Work with leadership to change performance metrics from individual KPIs to team-based
outcomes
Consultant à Act as a strategic advisor focusing on organisational development and
processes
Key responsibilities:
- Provide guidance on process improvement and Agile strategy alignment
 - Act as an organisational developer beyond the team level
Advise on scaling Scrum using Nexus or SAFe frameworks for large teams
Recommend tools or practices for tracking dependencies across multiple Scrum Teams

Scrum Master Needs

- Spend 50% of the time learning, reading, and sharing knowledge
- Connect with local and international community for shared growth
- Explore materials such as books, blogs, webinars and workshops
- Theory-practice transfer= apply theoretical knowledge to real-life scrum scenarios
- Networking

Scrum Master vs Agile Coach

Scrum master  Servant leader for a single team

Focus:
- Team-level processes within the Scrum framework
- Supporting Scrum events like retrospectives and daily scrums
A scrum master ensures the team adheres to the Sprint cadence and removes blockers
Works with Scrum frameworks

Agile coach Enterprise level, multiple teams, departments and leadership

Focuses on
- Supporting agile teams and neighbouring departments
- Coaching middle and top management in Agile transformations
An Agile coach helps an organisation transition from traditional project management to Agile
methodologies
Fameworks like SAFe or LeSS

AGILE

The Difference Between Being Agile and Doing Agile

While being agile is about embracing an adaptive mindset, doing agile refers to using
specific agile practices and tools. Successful teams strike a balance between the two.
Agile Project Management

Why agile project management?

- Developments in the environment
- Developments within the projects
- Assumptions proved wrong
Use of iterations
- The ability to respond to change
- The capacity of efficiently adapting
- The ability to innovate

Agile Companies
Organisation as a living organism= 4 key drivers
- Quickly evolving environment= rapid changes among customers, partners,
competitors and collaborators
A company adapts to a competitor launching a new product by quickly pivoting its
strategy
- Constant introduction of disruptive technologies= emerging trends like AI, robotics
and digitalisation
Implementing machine learning to automate customer support
- Accelerating democratisation of information= transparency and multidirectional
communication
Employees use shared dashboards to access real-time project updates
- The new war for talent= acquiring and retaining diverse, knowledge-driven
employees
Offering flexible work policies to attract creative tech talent
Balance of stability and dynamism
Agile companies= combine stability (structured backbone) with dynamism (flexibility to
adapt)
- Stability= slow-evolving elements like governance frameworks
Established Scrum processes for product development

- Dynamism= quick adaption to challenges with agile decision-making

Quickly switching Sprint priorities due to changing customer needs

Trademarks of agile organisations

- Strategy= shared purpose and actionable guidance
A tech company reallocates resources to develop AI-based solutions

- Structure= empowered teams with flat hierarchies

Self-organised teams that decide product roadmaps without manager intervention

- Process= rapid decision-making cycles and continuous learning

 Frequent retrospectives to adapt and improve workflows

- People= passionate, entrepreneurial teams with mobility

Employees rotate roles across departments to gain holistic understanding

- Technology= advanced tech systems enabling faster delivery

Using DevOps tools like Jenkins for seamless CI/CD integration

3 paths to agility

Start= a digital-first startup using Scrum and Kanban from day one

All-in= a retail giant transitioning all teams to agile practices across global offices

Step-wise= a manufacturing firm introduces Agile in R&D before scaling to operations

4 steps to impact
- Ensure top team gets it= leadership alignment
CEOs attending agile workshops

- Be intentional= value-driven goals

Setting specific agile KPIs

- Build connective tissue= foster team interconnectivity

Cross-functional team training

- Maintain high speed= emphasise execution

Adopting Kanban for workflow management

Agile leadership
3 ‘C’ principles of agile leadership
- Communication= focuses on developing, reflecting, and learning to create shared
understanding
 Regular retrospectives to identify communication bottlenecks in projects.

- Commitment= inspires engagement and alignment toward a common goal

Adopting Kanban for workflow management

- Collaboration= empowers teams to achieve goals through innovation and collective

effort
Pair programming sessions that foster collaboration and mutual learning

DE&I (diversity, equity and inclusion) Enhances creativity, decision-making, teamwork

and overall financial growth.

- Diversity= workforce comprises varied demographics, identities, and experiences

- Equity= focuses on fair processes and equal opportunities for everyone
- Inclusion= ensures all employees feel valued and respected
Implementing bias-free hiring practices to ensure diverse candidate pools, enhancing
decision-making by bringing varied perspectives
Benefits  Organisations with high diversity achieve better innovation, decision-making and
employee engagement

Virtual agile teams

Agile over distance
- Challenge= agile development requieres proximity and face-to-face (F2F)
communication, but IT industry trends involver outsourcing and distributed teams
Swiss companies nearshoring software development to reduce costs while
maintaining quality
- Concept= osmotic communication- seamless, spontaneous information exchange.
Distance and barriers disrupt this
In a scrum team, overhearing team discussions enables quicker feedback cycles
Challenges
- Communication= needs to be as effective as co-located teams
Regular video stand-ups to replace physical huddles
- Leadership= managers adapt to distributed team needs
managers using tools like miro align team goals
- interaction= loss of social bonding affects morale
Virtual coffee breaks for informal connections
- Transparency of work= progress harder to track remotely
Using Jira for visible backlog tracking
- Team development= harder to foster a sense of ‘WE’ feeling in remote setups
Organising annual in-person retreats

How to overcome them

Support communication
- Provide hardware (e.g high-res webcams)
- Software tools (e.g slack for asynchronous updates)
- Schedule F2F gatherings
Big Room Planning, a quarterly F2F event to align all teams
Big Room Planning
what= a two-day event every quarter involving 100+ participants
purpose= joint planning of program goals for the next 3 months
Advantages:
 overview= transparency in dependencies
 Speed= fast decisions with feedback loops
 quality= better plans via team collaboration
 team spirit= enhances informal connections
Cross-functional teams planning product roadmaps together
Strengthen leadership
What is agile leadership? It focuses on empowering teams rather than controlling
them- leadership is shared across multiple roles to make decisions faster and close to
thecustomers or the market
Leadership is distributed instead of relying on one person
Scrum Master ensures team agility, while product owner prioritises product backlog
based on customer feedback
Leadership at all levels  Agility requires leaders at every level to act quickly and
enable team success
- executives= define the vision and support agile transformation
CEO promotes a flexible work culture by implementing Agile frameworks like
SAFe
- Agile coaches= guide and support teams without controlling them
An agile coach runs a retrospective meeting to hep the team reflect on
improving collaboration
- employees= self-lead and take responsibility
Developers manage their workload using kanban boards
 Levels of agile leadership  Agile leadership operates at multiple levels to ensure
smooth collaboration and decision-making
- Self-leadership= individuals self-manage their tasks
A team member manages their own tasks using tools like trello
- Team-level leadership= within the team
A scrum master facilitates daily stands-ups to keep the team aligned
- Organisational leadership= across departments
Department heads ensure their teams have the autonomy to innovate
- Strategic leadership= big-picture focus
Top managers adopting SAFe (Scaled agile famework) to align teams
Shared learning Agile thrives on collaborative learning
Retrospectives allow the team to reflect and improve after each sprint

Adapt agile methods

Communication support
- Tools like Zoom, slack, and miro ensure smooth collaboration
- Virtual stand-ups and regular check-ins maintain alignment
- Ocassional in-person meeting like Big room planning boost connection

Adapt agile methods - Modify techniques for virtual setups

- virtual daily scrum: short, focused with webcams on
- virtual retrospectives: use structured feedback methods

Agile in Home Office

Impact of COVID 19
Challenges
- Sudden switch to remote work
- Breakdown of traditional project structures
Key trends
- Agile teams performed better in navigating disruptions
- Digital transformation accelerated by the pandemic
- Agile frameworks like scrum adapted well to the new situation.
Agile advantages Agile approaches excel in crises with high adaptability and transparency
obstacles= social / emotional isolation and technical problems
- Self-organisation and independence
- Flexible planning
- high transparency through tools
- clearly defined roles/responsabilities
- strong task prioritisation practices
- active meeting culture even remotely
- greater openness to agile methods among employees

Agile leadership principles

- Vision and direction  Create a strong vision and set clear boundaries.
- Support and empathy  Encourage leadership at all levels and address fears.
- Continuous improvement  Lead by example and focus on systems improvement.
- Collaboration and trust  promote shared learning, admitting mistakes, and trust-
building.
- Adaptability  adjust strategies to virtual team needs, encouraging flexibility and
innovation.

Startup team
- Hacker= developer who implements ideas quickly
A developer codes MVP (minimum viable product) for a startup

- Hipster= designer who makes product user-friendly

A designer created a user-friendly interface for a mobile app

- Hustler= business leader who manages relations and strategy

A co-founder negotiates deals with potential investors

12 personalities
Final remarks
Agile companies are stable yet dynamic
Startups are naturally agile, while corporates need frameworks for agility
Agility requires clear vision and values
Diversity, equity and inclusion are critical for modern agile leadership
 VIRTUAL TEAMS

Onsite team
Definition: Association of several people to solve a specific task or achieve a specific goal
Criteria
- At least 2 members
- Members contribute to the achievement of the team goals with their respective skills
and resulting interdependencies.
- Identity that is distinct from the individual identities of the members
- Has developed communication pathways both within the team and to the outside
world.
- Team’s structure is described in terms of tasks and goals Team periodically reviews its
effectiveness.
- Put together at short notice and for a limited period of time due to specific project
task.

Virtual team
Definition: Group of people from one or more organisation with the characteristics of a
typical team
Criteria
- Work across place borders and often time zones
- Are connected mainly by electronic media
- It complicates and simplifies project management at the same time
Types
Satellite  Most team members sit together in one location, while one or two people work
remotely
Software development team based in a headquarter office, with a remote quality
assurance tester working from home
Cluster  Multiple teams sit in two or more locations, with fewer locations than the number
of team members
Multinational marketing team with 3 member in the US office, 4 members in the UK
office and 2 members in the Singapore office
Satellite à

Nebula  Each team member sits in a different location

A global consultancy team where each consultant is based in a different country, e.g
one in ftY, another in Berlin, one in Tokyo and another in Sao Paulo
Advantages
- Flexible integration of experts from different locations is possible
International software development projects using expert coders globally
- Team building is more often based on skills, not on availability
competence over proximity- research collaborations in academia where individuals
work remotely
- High degree of self-organisation in the teams and a high degree of motivation of the
team members
Start-ups with remote contributors using Slack for coordination
- Travel cost saving= reduction of travel costs for team members
Remote job fairs or workshops conducted through zoom
- Optimisation of time resources (reduced travel times - speed in the project can
increase: faster development of products by using different time zones
Global customer service offering 24/7 support
- In distributed organisation, team members are located on site - local acceptance of the
project increases, merging of internationally distributed parts of the organisation is
supported
Multinational corporations running distributed marketing campaigns with local teams

Disadvantages
Spatial and temporal context
- Spatial distance- members perceive their physical environments more strongly than
the virtual team’s shared goal
Challenge= difficult coordination, risk of isolation, and distractions
Remote developers struggling to sync due to varying workspace distractions- different
floors already is virtual team
- Time zones- asynchronous working due to different time zones limits collaborations
Challenge= small synchronous working windows
International finance teams missing overlapping work hours

Cultural challenges
National (country-specific values), organisational (company culture), functional (discipline-
specfic norms)
Challenge= strangers to one another, potential misunderstandings, and conflicts
Misinterpretation of communication styles (e.g formality) in international business

Communication
F2F communication missing= virtual tools lack richness in cures such as gestures and
expressions
Challenge= misunderstanding, reduced communication effectiveness
Email misunderstandings in highly complex discussions
Informal contacts missing- no shared spaces (e.g coffee breaks) to foster relationship

Organisational structure
Often have a virtual PM as technical supervisor but in the line they also have an on-site
disciplinary supervisor
Challenge= risk a team member will ‘be caught between two stools’
Reporting misalignments in international corporate projects

Challenges
- Collaboration, communication, and coordination gaps arise due to spatial, temporal
and cultural distances
- Teams rely heavily on technology, creating a ‘virtual gap’

Solutions
- Awareness of virtual dynamics and deliberate project management to bridge gaps
Virtual teams-building exercises, cross cultural training, and time-zone-friendly meeting
schedules

Team Building
- Initial assembly of employees into a project groups
- Focus on first meetings and initial interactions
New product development team is created, and member are introduced during kick-off
meeting
Team Development
- Building, preserving, and maintaining the team structure
- Role assignment, conflict resolution, performance optimisation
After kick-off the team progresses by defining roles and continues refining their working
methods as project advances

Tuckman’s stages of team development

Orientation stage
Characteristics
- team formation and initial acquaintance
- members familiarise themselves with goals/tasks
- focus= relationship orientation
Leadership Define task/goal and establish a shared team vision
A project team tasked with launching a marketing campaign meets for thee first time to
discuss campaign goals and brainstorm initial ideas
Leadership Strategies
- Define individual responsibilities clearly
In a sales team, assign roles for lead generation, client follow-ups, and closing deal

Conflict stage
Characteristics
- Members confront roles and responsabilities
- Conflicts and resistance emerge
- focus= clarifying interpersonal relationships and informal roles
Leadership Facilitate discussions and mediate conflicts
Disagreements arise within a software development team about whether to prioritise speed or
quality. The team lead moderates a discussion to find a balanced approach
Leadership Strategies
- Address issues constructively
In teams debating whether to extend a project deadline, the leader mediates to reach
consensus
 Dialogue stage
Characteristics
- Establish explicit and implicit rules
- Build consensus and being constructive collaboration
- Focus= achieving initial results through shared values
Leadership Promote group culture and create a collaborative framework
A team working on a corporate presentation agrees on guidelines for communication (e.g
response times and meeting etiquette) and starts producing cohesive work
Leadership Strategies
- Promote open dialogue and sense of unity
A cross-functional team agrees on shared values like transparency and mutual support
to improve collaboration

Performance stage
Characteristics
- Team operates with minimal friction
- Adaptability and effective problem-solving are evident
- Focus= use interpersonal dynamics for performance
Leadership Solve performance issues and ensure deadlines are met
A crisis response teams efficiently executes tasks during a product recall, solving customer
issues while maintaining open communication among members

Dissolution stage
Characteristics
- Project ends, team disbands
- Focus= address concerns about post-project uncertainties
Leadership Celebrates success, conduct retrospectives, and foster long-term relationships
After completing a website redesign, the team celebrates success with a wrap-up meeting
where achievements are highlighted, and lessons are documented for future projects
Leadership Strategies
- Acknowledge contributions to build trust for future collaborations
 A project lead organises a recognition event to thank a logistics team after a
successful product launch

Re-forming Fluid intermediate states (extended model)

Characteristics
- Team transitions into new projects without dissolution
Leadership Apply lessons learned and prepare for new tasks
A team that successfully launches a product is restricted to manage its marketing and
customer feedback in the next phase

Project management for virtual teams

Trust dilemma in virtual teams
- Virtual relationships require a much higher level of trust because they’re fragile
- Teams traditionally build trust through face-to-face (F2F) interactions, which grow
stronger over time as individuals know each other better
Challenges
- Temporary contacts, flexible work, and frequently changing teams result in a
mismatch between traditional trust-building methods and remote work requirements

- Building trust remotely is harder and takes more effort due to the lack of physical
interactions

A software development team working remote across different time zones must rely on digital
communication tools (e.g slack, zoom..) Without regular video check-ins, member may feel
disconnected and hesitant to share concerns

Requirements for PM
Communication and technology competence
- Effective communication skills
- Proficiency with remote tools like teams or Trello
- Ability to sense team needs, event in the absence of in-person interactions

Leadership competence, democratic leadership stlye

- Confidence in team members , avoid micromanaging
- Encourage participatory leadership with employee involvement
- Articulate motivating visions and clear objective
 - Offer constructive feedback remotely

Self- competence
- Be open to cultural diversity
- Resolve conflicts effectively

A project manager leading a marketing campaign with team members from India, Germany,
and Canada uses Asana to define clear responsibilities, assigns tasks equally and hosts regular
virtual brainstorming sessions to involve everyone.

Requirements for project staff

Self- competence
- Communicate openly and resolve conflicts
- Be motivated and culturally open
- Exhibit self-responsibility in their work

Communication and technology competence

- Learn and effectively utilise the required digital technologies

A junior team member learns to navigate Jira for project tracking and proactively asks
questions in team chats when unclear, demonstrating self-responsibility and. openness to
learning

Distance leadership model (Sabine Remdish)

Distance/Trust  Managing physical and perceived distance

- Physical distance= objective, measurable spatial separation
A team distributed across different countries
- Perceived distance= based on status, authority, or rank
A senior executive communicating with interns remotely

Tasks for virtual leaders

- Actively manage and promote trust building
- Organise regular info exchanges and informal interactions
- highlight individual contributions to team success
- Investigate breached of trust and provide constructive feedback
Conducting virtual coffee breaks to promote informal trust-building

Strategies to build trust

- Frequent communication
- Transparency in decisions and processes
- recognising and celebrating individual contributions
- organising opportunities for team interaction
Physical distance= weekly video calls to foster personal connections and reduce feeling of
isolations
Perceived distance= conducting open Q&A sessions where junior team members can directly
ask questions of senior leadership to bridge rank barriers

Team development  Phases of development (Tuckman Model- above)

In virtual teams’ progression is much more difficult due to missing the face-to-face
interaction and a higher time pressure
Kick off-meeting The first personal meeting (in-person or virtual) is essential for team
success
- Establishes a foundation of trust
- Reduces process losses and conflict likelihood
- Improves productivity and saves long-term time and money
A company organises an on-site kick-off event where team members introduce themselves,
share personal stories, and discuss shared goals. Virtual follow-ups keel the momentum
Goals
- Promote positive attitude= build team spirit and alignment
- Define paramenter= clearly outline goals, budget, steps and reporting mechanisims
Important rules
- Establish meeting frequency and structure
- Clarify decision-making processes and member expectations
- Set clear feedback and criticism guidelines
- Define protocols for emails and support systems
- Address confidentiality, success celebrations, and resolving conflitcs
Execution
- Preparation= create clear agendas
- Follow-up = share outcomes and assign actionable steps
Turning We’s into one WE To create a cohesive team:
- Regular F2F meetings
- Clearly articulate individual and collective responsibilities
- Formulate values and rules for the team’s culture
Setting up a shared project tracker, like Trello, to ensure visibility of individual contributions
Conducting bi-weekly feedback sessions to align team efforts and celebrate wins

Communication 

Improving communication quality

- transparency= ensure all project-relevant info is accessible to the team
- Frequency= increase the frequency of communication using suitable tools (teams,
zoom.)
 - tools= Asana (task management), slack (informal communication), trello (visual task
boards)
Building relationships
- Set clear communication rules, often referred to as ‘netiquette’
- Encourage informal interactions to build rapport and reduce feelings of isolation
Hosting virtual coffee chats or setting up dedicated Slack channels for informal conversations
Preventing misunderstandings
- Use simple and precise language, avoid jargon
- Define technical terms at the start of teamwork
- Incorporate visual aids, such as charts or diagrams, in presentations
In an international team, employ translation tools and emojis to reduce ambiguity and
enhance emotional connection

Work routines 
Challenges
- Misunderstandings regarding tasks and decisions are detected later in virtual teams
compared to in-person teams
- Process inefficiencies and bottlenecks are harder to address without transparent
systems
Key leadership tasks
- Clarify goals and responsibilities = Clear delegation of tasks and expectations
Managers use OKRs (objectives and key results) to dine and align goals
- Ensure workflow transparency= Use visualisation tools like kanban boards for tasks
progress
Use Jira to track software development tasks
- Promote self-organisation= Encourage team members to manage their time and
workflow
Flexible work hours based on time zones to enhance productivity
- Results-oriented control= Focus on outcomes, not micromanagement
Set monthly KPIs to measure performance

Qualification and development 

Virtual leaders are responsible for the growth and development of their team members,
ensuring alignment between personal and corporate goals
Key benefits of development
 - Builds trust between employees and leadership
- Minimises the risk of ‘social loafing’ (team members underperforming in group
settings)
Tasks for virtual leaders
- Identify individual strengths, needs, and goals of team members
- Plan targeted development measures
- Provide frequent feedback to address over- or under- challenging situations
Offering online certifications for skill-building or assigning mentors to team members
Feedback culture
- Constructive and consisten feedback strengthens trust - feedback type
(performance/behaviour), frequency and participants (team feedback) should be
defined by project
- Celebrate team successes publicly and discuss failures constructively
Host a quarterly ‘wins and lessons learned’ session to review team performance

Culture 
Importance of culture in Virtual Teams
Intercultural competence= necessary for handling diverse backgrounds
Types of cultures=
- National culture (differences in customs and communication styles)
- Organisational culture= shared company values and behaviours
- Functional culture= team norms and practices specific to roles
Building a unique team culture
- Identify cultural differences and leverage their benefits
- Set foundational team norms from the beginning
- Encourage open discussions about cultural differences
A global team celebrates major holidays from different cultures, fostering inclusivity and
understanding

Focus leadership model (Sabine Remdish)

Supporting the network 
Shift in power dynamics
- Classical hierarchies replaced by network influence
- Employees access knowledge faster through teams and netwokrs
Leader’s role
 - Build resilient relationships= regular team-building exercises for trust across teams
- Adjust connection points= create platforms like Slack channels or shared dashboards
for seamless communication
- Distribute, evaluate, and manage information= use project management tools like
Asana or Trello to monitor tasks and share updates
Key people
- Central figures= ensure information flows effectively within departments
A team lead relying updates from the manager to their team members

- Brokers= bridge gaps between unconnected teams and drive cultural integration
A liaison officer connecting marketing and product teams during a campaign launch
Conveying and leading with vision 
Vison importance
- Employees in flexible workspaces need a clear understanding of their contributions to
the company’s goals
- Loyalty and productivity are maintained through emotional storytelling and clarity of
purpose
Tactics
- Use emotional narratives= share success stories in team meetings
A project manager highlighting how an employee’s feature design saved customers
time, tying it to the company’s mission of efficiency

- Embed company values and goals= incorporate goals into performance reviews
A remote onboarding program that includes a video on the company’s vision for
sustainability and how each team contributes to this goal

Coaching as leadership 
Role of coaching
- Builds trust and promotes self-reflection and growth
- Fosters independence and aligns career growth with organisational goals
Coaching strategies
- Trust and mutual understanding = hold virtual coffee chats to connect on a personal
level
Manager asking an employee about their personal interest to break the ice and build
rapport during a virtual one-on-one session

- Feedback and orientation= conduct regular feedback cycles using 360-degree

feedback tools like CultureAmp
A manager scheduling monthly check-ins to discuss development goals recognising
achievement, and addressing challenges
 SYPNOSIS
As a project manager:

- You have to understand the context of your project

- You have to anticipate the changes of the last years in human view, leadership and the
way of working
- You have to know the wide range of process models with their pros and cons
- You have to understand that without the appropriate mindset of each team member, of
the client, and the executive management with method alone, little can be done
- You have to understand the new approach and its implementation as a change process
- You need to know that an agile project needs and agile corporate culture to be
successful and at the same time it also changes it to that effect
- You need to have an awareness that different process models are suitable for different
project requirements
- And other disciplines such as HCD or Lean

Product-mode

- Strategic agility  Companies with strategic agility, such as Spotify, develop digital
product differently compared to traditional project organisations

- Focus on products  These companies emphasise product thinking rather than

project based development for digital initiatives

- Product definition A product is defined as anything satisfying user needs, with a

lifecycle from development to retirments

- Reason for product thinking  Digital products often require ongoing software
support and maintenance, which contradicts the fixed budget and timeline of
traditional project approaches

- Shift to product based thinking  Companies are moving from project-based to

product-based thinking, handling initiatives with permanent or semi-permanent teams

- Ongoing product development  Teams are organised for continuous development

and support throughout a product’s lifecycle

- Budgeting  May vary annually but are structured to sustain core teams throughout
a products lifecycle

- Benefits  This approach allows rapid refocusing, shorter cycle times, and iterative
validation of product value while maintaining software architecture integrity

- ‘Ideate-build-run’  Long-lived, cross-functional teams are focused on ideation,

building and running products
- Business capability focus  Product-mode teams are results-oriented and focus on
solving business problems or enhancing outcomes, rather than just feature
implementation

- Strategic agility  Such teams are empowered to address business challenges

flexibly and sustainably, aligning with strategic goals

- Product thinking  Authors advocate for product thinking as a critical step for
digital transformation and success in a volatile and competitive environment (VUCA)

- Strategic value  This mindset enhances a company’s ability to innovate and adapt,
ensuring long-term competitiveness and survival