Introduction to Project Management: Definition of Project, Characteristics of Project

What is a Project? What are the characteristics of Project?

According to the Project Management Institute:
 "A project is a temporary endeavor undertaken to create a unique product, service, or result." 

Let's break down this definition into its components to understand further what a project is (and what it is not) and try to understand project characteristics:

⇛ It is a temporary endeavor:- what does that mean? It means that it isn't endless; it has a start date and an end date. Projects do not go on indefinitely. Activities that go on indefinitely are typically known as processes or operations. So how do we understand when a project ends?

The project reaches to end when one or more of the following condition(s) met:

• The project’s objectives have been achieved;
• The objectives will not or cannot be met;
• Funding is exhausted or no longer available for allocation to the project;
• The need for the project no longer exists (e.g., the customer no longer wants the project completed, a change in strategy or priority ends the project, the organizational management provides direction to end the project);
• The human or physical resources are no longer available; or
• The project is terminated for legal cause or convenience.

⇛ It creates a unique product, service, or result:- which we call a deliverable. Unique means that it is unlike any other project. It may be similar to other projects but it is never identical to one. This is what distinguishes a project from a process. A project is unique; a process is repeatable and strives for consistency, standardization, and no deviation from a standard. Deliverable means that it has a tangible or intangible outcome: i.e. a new software product, a new drug, a new building, a merger of two companies, improved customer service, etc. The outcome may be a product, goods, or a service.

Fulfillment of project objectives may produce one or more of the following deliverables:

• A unique product that can be either a component of another item, an enhancement or correction to an item, or a new end item in itself (e.g., the correction of a defect in an end item);
• A unique service or a capability to perform a service (e.g., a business function that supports production or distribution);
• A unique result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society); and
• A unique combination of one or more products, services, or results (e.g., a software application, its associated documentation, and help desk services).

 ⇛ It drive change in the Organization:- From a business perspective, a project is aimed
at moving an organization from one state to another state in order to achieve a specific objective. The term Current State, Future State, and Transition State are used to describe change in organization.  

• Current state: is the state of organization before the project begins.  
• Future state: is the desired or resulted state where the organization will be driven by the project. 
• Transition state: For large projects, if there are milestone deliverables, transition state refer to the state where organization reaches after each milestone is delivered.

⇛ It enables business value creation:- business value is the net quantifiable tangible, intangible, or both benefit to the stakeholders derived from a business endeavor. It is considered the return, in the form of elements such as time, money, goods, or intangibles in return for something exchanged.

Examples of tangible elements:

• Monetary assets,
• Stockholder equity,
• Utility,
• Fixtures,
• Tools, and
• Market share.

Examples of intangible elements:

• Goodwill,
• Brand recognition,
• Public benefit,
• Trademarks,
• Strategic alignment, and
• Reputation.

⇛ It initiated in some context:- projects are created in context of organizational factors by organizational leaders. Four fundamental categories of factors are there, which illustrates the context of initiating a project:

• Meet regulatory, legal, or social requirements;
• Satisfy stakeholder requests or needs;
• Implement or change business or technological strategies; and
• Create, improve, or fix products, processes, or services.

⇛ It has defined objectives:- The goals expected to be achieved. There can be technical goals (develop new technology), legal or political goals (to meet governmental regulations), and/or business goals (beating or eliminating competition). These objectives should be measurable.

⇛ It has scope:- All the work required to deliver the product or result and satisfy the objectives for which a project was undertaken at a level of quality expected by the customer. The scope includes all the deliverables required to meet the project objectives.

⇛ It has cot:- The planned cost of conducting the project; it includes human and physical resources.

⇛ It has Time/Schedule:- The planned time to complete the project, as well as the Milestones along the way. 

EXAMPLES OF PROJECTS:

• Building a house
• Developing a new pharmaceutical compound for market
• Building a mobile application
• Expanding a tour guide service
• Developing a new product
• Merging two organizations
• Improving a business process within an organization
• Improvement of a service (i.e. customer service, Six Sigma initiative)
• Modifying a computer software program used in an organization
• Conducting research to develop a new manufacturing process

EXAMPLES OF PROJECT OUTCOMES:

• Pyramids of Giza,
• Olympic games,
• Great Wall of China,
• Taj Mahal,
• Publication of a children’s book,
• Panama Canal,
• Development of commercial jet airplanes,
  Polio vaccine,
• Human beings landing on the moon,
• Commercial software applications,
• Portable devices to use the global positioning system (GPS), and
• Placement of the International Space Station into Earth’s orbit.

Further reading on PMP:

1. Project Management Life Cycle
2. Project Management Certifications Questions with explanation.
3. Free PMP Certification Questions