Project Management: From Startup to Success

MANAGEMENT

JAN

TERJE KARLSEN PROJECT From Startup to Success

PROJECT MANAGEMENT

Jan Terje Karlsen

PROJECT MANAGEMENT

From Startup to Success

Scandinavian University Press

© H. Aschehoug & Co. (W. Nygaard) AS by Scandinavian University Press 2023

ISBN 978-82-15-06393-5

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise, without the prior permission of Universitetsforlaget. Enquiries should be sent to the Rights Department, Universitetsforlaget, Oslo, at the address below.

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Preface

Writing a textbook on project management is not an easy task. It requires a clear goal, limited resources, a defined end date, and interdisciplinary work. As you hold this book in your hand, you are looking at the tangible result of a project that aimed to meet the need for basic knowledge in project management among students and practitioners.

This book has its roots in my more than 20 years of experience teaching project management at BI Norwegian Business School. The primary purpose of this textbook is to provide students with a comprehensive insight into the subject of project management. With a strong emphasis on a pedagogical approach, I have striven to present complex subjects in a clear and instructive way, using real-life and constructed examples.

Publishing a book requires a supportive framework. I am grateful to Universitetsforlaget and Erik Juel for their unwavering support and guidance throughout the writing process. I would also like to extend my gratitude to my family for their constant support and patience.

I hope that this textbook will serve as an invaluable resource to those seeking to learn the fundamental principles of project management. I believe that by mastering these principles, you will be well-equipped to tackle any project that comes your way.

Oslo, July 2023

Jan Terje Karlsen

Introduction

Writing a comprehensive and reader-friendly textbook on project management for students is no easy feat. As the sole author of such a book, I am proud to have taken on this challenge with the motivation of providing a clear understanding of project management and its importance in today’s organizations. My book is designed to offer students an introduction to the field that is both accessible and thorough.

In today’s rapidly changing world, projects have become an essential part of every organization’s activities. Effective project management can make a significant difference to an organization’s success by increasing efficiency, reducing costs, and improving overall performance. As a result, project management has become a critical skill for managers in all industries.

The book is structured into four parts, covering the most important aspects of project management. Part One (Chapters 1–3) focuses on project start-up and definition. Part Two (Chapters 4–8) covers project leadership, management, and processes. Part Three (Chapters 9–13) is aimed at project techniques and methods, and finally, Part Four (Chapter 14) focuses on project closure, success assessment, and benefits realization. Each part of the book is meant to provide comprehensive insights into the work of the whole project.

This book is primarily intended for students studying project management, but it could also be useful for anyone involved in project management. I believe project managers will find this book as an invaluable reference and guide for project implementation, while it will also help other managers to understand the role and importance of the project for realizing the company’s strategy.

For pedagogical purposes, I’ve included an illustration at the beginning of each chapter that reminds the reader of its place within the book’s structure. This helps readers to understand the overarching framework of the text and to follow a clear path through its contents. In addition, each chapter provides an overview of the content at the beginning and a summary of key takeaways at the end. Throughout the book, I have emphasized the pedagogical approach by presenting complex concepts in a clear and instructive way, using both real and constructed examples to illustrate practical applications of project management tools and techniques. I have also developed exercises for each chapter, including simple questions and comprehensive case studies that can be useful for exam

preparation or for handling daily challenges in project work. You find these exercises at www.universitetsforlaget.no/pm.

I hope this book will serve as an invaluable resource for anyone seeking to learn the fundamentals of project management and its importance in modern organizations. By mastering the principles and techniques presented in this book, readers can become more effective project managers and make a significant difference to their organization’s success.

The book consists of the following chapters and content:

Chapter 1: This chapter introduces project management, covering the concept of a project and its life cycle. We examine the critical control variables, including cost, time, quality, and scope. The chapter also explores popular project types and roles, pre-study and pre-project content, and different project models, including the Waterfall and Scrum models.

Chapter 2: This chapter covers project initiation and selection, starting with the sources of new projects and aligning them with the organization’s strategy. We discuss project proposals, ranking, and analysis, including the use of the UN sustainable development goals. Developing a business case and a benefits realization plan is also addressed.

Chapter 3: This chapter details with defining the project, starting with clarifying and defining project needs. We discuss technical, functional, and non-functional requirements, user stories, and the use of prototypes and pilots. Developing a Work Breakdown Structure (WBS) and a project mandate is explained. The chapter also delves into prioritizing project goals, such as cost, time, and quality.

Chapter 4: This chapter deals with project leadership and management, with a focus on the project manager. We discuss the situational leadership model. The selection of a project manager, their responsibilities, and effective characteristics are covered, along with common pitfalls and sources of power. We also examine critical success factors, conflict management, and approaches for resolving conflicts.

Chapter 5: This chapter covers organizing the project, including different organizational structures and team composition. We discuss team building, effectiveness, and common pitfalls, along with stakeholder roles such as the project owner and steering committee. The chapter also examines the use of the responsibility matrix for effective task assignments.

Chapter 6: This chapter considers purchases and contracts in project management. We discuss contract strategy, pre-qualification, and the contracting process. Contract structures such as Design and Build, Design, Bid, and Build, and Private-Public Partnership are explained. The use of incentives, target price contracts, and compensation terms are also discussed, along with contract terms and content. The chapter also covers contract follow-up and change orders.

Chapter 7: This chapter covers the daily facets of project work, including planning and organizing project meetings, managing workloads, and effective communication strategies. We discuss the role of a project management office and Agile project management, specifically the Scrum method, MoSCoW prioritization tool, and Burndown chart.

Chapter 8: This chapter encompasses stakeholders and the project environment. We review important stakeholders, environmental factors, and relationship types. The chapter also examines a stakeholder management method and building trust with stakeholders through reliable behavior, good communication, and commitment.

Chapter 9: This chapter covers project planning tools and techniques, including activity planning, CPM and PERT, Gantt charts, and Kanban. We explain the purpose and benefits of project planning and provide an in-depth understanding of the planning process, key milestones, and milestone plans. Additionally, we cover reducing project time through “crashing”.

Chapter 10: This chapter examines project cost estimation and budgeting, including resource and cost estimation, different estimation techniques, cost types, and using a Cost Breakdown Structure (CBS). We also discuss risk reserves, such as contingency and management reserves, to manage risks and prevent cost overruns.

Chapter 11: This chapter covers resource constraint planning and optimization techniques, including increasing labor resources through hiring, cross-training, and outsourcing. We examine different types of constraints and their potential consequences. The chapter also discusses resource smoothing and leveling to optimize resource allocation.

Chapter 12: This chapter focuses on project monitoring and control. It explains the project management loop and the importance of control mechanisms. The chapter also discusses information access, deviation analysis, and correction ac-

tions. Moreover, it examines control variables, including cost, time, and quality, and explains how to use the earned value technique for measuring project performance.

Chapter 13: This chapter covers project risk management, starting with explaining key concepts such as risk and uncertainty, types of risks, and how risk develops over time. It discusses the importance of risk management, the roles involved, and effective communication. Additionally, the chapter explores a risk maturity model and a method for identifying, analyzing, and handling risks.

Chapter 14: This chapter looks at project completion, success criteria, and benefits realization. It begins by discussing the reasons for project termination and explores the challenges during project closure. Next, it examines how to measure project success, benefits realization, and the critical factors for successful benefits realization.

Leadership and processes

CHAPTER 1

What is a project?

CHAPTER 2

Project initiation and selection

CHAPTER 3

Defining the project Methods and techniques

CHAPTER 4

Project leadership and the project manager

CHAPTER 5

Project organization

CHAPTER 6

Contract management

CHAPTER 7

Daily project work

CHAPTER 8

The project’s stakeholders and environment

CHAPTER 9

Project planning

CHAPTER 10

Cost estimation and budgeting

CHAPTER 11

Resource constraints planning

CHAPTER 12

Monitoring and controlling

CHAPTER 13

Risk management

CHAPTER 14

Project closure and benefits realization

What is a project?

This chapter provides an introduction to the field of project management. It begins by examining the concept of a project and its characteristics. It covers the project’s life cycle and the different phases within it, the project management loop, as well as critical control variables such as cost, time, quality, and scope. Next, we explore the reasons behind the popularity of project work, various project types, and different project roles. After that, the chapter discusses the content of a pre-study and a pre-project. Lastly, different project models are addressed with a focus on the Waterfall and the Scrum models.

1.1 Project characteristics

Projects come in varying sizes and complexities. The term “project” is used to describe tasks ranging from organizing the Olympic Games to writing a textbook like this one. Despite the differences in complexity, size, and resource use between these two projects, they share some common characteristics. These tasks possess a set of properties or conditions that collectively define them as projects. The characteristics have been defined in numerous ways in project literature, depending on the emphasis (Field and Keller 1998; PMI 2017). In this book, we focus on the following characteristics of a project:

• A clear goal

• Unique

• Temporary

• Specific cost, time, and quality requirements

• Teamwork

• Create changes

A clear goal: The project should establish a well-defined objective that clearly outlines the desired outcomes and deliverables. The goal must be formulated with precision to enable subsequent verification of its achievement. For instance,

a concrete example of a clear goal could be to organize a music festival comprising eight concerts scheduled to take place on June 10th and 11th, 2024.

Unique: A project involves doing something that has not been done before, although some parts of it may be similar to previously performed work. For instance, constructing the opera house in Oslo was a unique project. While another opera house may be built elsewhere, it will still be a distinct project because of differences in location, organizations, workers, and other factors. The uniqueness of a project is evident in various aspects, such as its organizational structure, the nature of the project task, the project personnel’s knowledge and experience, its length and financial arrangement, and its stakeholders, which differ from project to project.

However, the uniqueness of a project assignment can also create significant uncertainty. This uncertainty arises because individuals in the project face new situations that differ from their previous experience. For example, new technology may require handling tasks differently than before, or working with new and unknown actors in the environment can create uncertainty. Additionally, standardized routines, procedures, and solutions may not work as expected, adding to the uncertainty. The management and organization may also need to be tailored to handle project tasks, which may require managing some parts of the project as an innovation or in response to unusual events. Projects, therefore, require a more active and situation-specific form of management compared to traditional, routine management tasks.

Temporary: All projects should have a clearly defined lifespan and be considered as temporary. It is crucial to establish a clear start and end date, and when the project objective is achieved, the work is completed, and the result is delivered to the customer, the project is finished. In some cases, it is especially important to adhere to the defined end date, such as when organizing the FIFA World Cup in Mexico, the USA, and Canada in 2026, where all stadiums and other infrastructure must be completed before the matches begin.

The temporary nature of a project implies fulfilling two criteria: firstly, planning the project for completion at a specific time, and secondly, ensuring that it ends as planned. This reasoning is essential for both individuals in the project and stakeholders to work on the basis that the project will end as expected.

Specific cost, time, and quality requirements: Each project has a budget, schedule, and quality requirements that should be followed. For the client of the project, controlling the use of resources, i.e., the budget, is crucial. Even though the project is essential and has a high priority, wasting resources is not desirable.

Sometimes the budget is fixed, while other times it is increased due to changes or additions required in the project.

Cost, time, and quality are crucial control variables discussed in sections 1.3 and 12.5. If there is a change in one of these factors, such as an increase in quality, it may affect cost and time. One of the primary functions of project management is to balance the trade-off between cost, time, and quality while executing the project.

Teamwork: In general, project work requires interdisciplinary efforts, involving people with diverse skills, knowledge, experience, and administrative affiliations. Many projects also require consultants and specialists from independent organizations to bring new knowledge and methods into the project. For instance, when implementing a new financial management system in a company, it is natural for specialists from various departments, such as IT, finance, personnel, purchasing, and sales, to participate in the project. Additionally, consultants from the supplier will also be involved in the project.

Creates change: Projects inevitably cause changes because the outcome is always new and different. Whether it’s a new building, an IT system, a ship, or an organizational change, a project will bring about changes. Andersen et al. (2022) use the acronym PSO (P = Persons, S = Systems, and O = Organization) to describe these changes. Projects cause changes and development in people, systems, and organizations.

When an organization introduces a new IT system, a common mistake is to focus too much on the technical work—the S. The S represents tangible elements such as a new building, a new product, or a new organizational system. However, for the new IT system project to be successfully implemented and achieve the expected benefits, we also need to focus on the P and the O. We need to develop the People (employees) with new skills, offer training and support, motivate and change their attitudes. Additionally, we need to develop the Organization, by making it ready to implement the new IT system. This requires developing a new organizational structure, such as a reorganization and rationalization, and new working procedures, processes, and routines that support the changes required in the organization.

Case: Valle Culture Festival

In recent years, organizing festivals has become a popular way for villages and cities to increase cultural interest, put themselves on the map, and attract more tourists. Valle, located in Setesdal, is no exception. The community has a strong cultural tradition, including fiddling, harmonica, dance, folk cos-

tumes, singing, local food, crafts, and more. Therefore, several individuals in Valle have come together to discuss starting their own cultural festival.

The organizers envision a two-day event to be held in August 2024, with both indoor and outdoor events and concerts. They have already spoken with the municipal management and the head of the culture department, both of whom have expressed interest in the festival. The municipality has even agreed to be the client for the festival as a test pilot and has allocated NOK 500,000 to the event, but the organizers are aware that they will need additional funding, such as from sponsors.

Is this a project?

Using the project work method to execute the cultural festival would be a sensible approach. This can be justified by the fact that:

• There is a concrete goal – to arrange a cultural festival over two days.

• There are limited resources, both in terms of finances and personnel.

• It is temporary, with a defined start and end.

• It is unique, with the aim of giving the festival a distinctive character that sets it apart from other festivals. Subsequent cultural festivals will also be different.

• It requires teamwork from people with various backgrounds and skills, such as marketing, project management, music, food, and more.

• It will create changes such as increased cultural interest. Valle will gain more visibility and recognition as a cultural destination which will create a change in the perception of the place among tourists and visitors. The festival will create a change in the local economy be generating revenue for local businesses and creating job opportunities. The festival will bring together different members of the community, including performers, organizers, sponsors, and volunteers, which will create a change in the social dynamics and community engagement.

Since all of these criteria are met for the cultural festival, it is correct to classify it as a project.

1.2 Project life cycle and phases

The project life cycle is one of the primary factors that distinguishes project work from other routine tasks. It is crucial to define and decide on the end date of the project since the project is temporary. The number of phases that a pro-

ject is divided into depends on the project type and varies from organization to organization. Sometimes, two phases, such as a concept development phase and an implementation phase, may suffice, while in other situations, a more detailed division may be necessary. One way to achieve this is by dividing the phases into smaller steps.

In this book, we have chosen to present the project with four partially overlapping phases, as shown in Figure 1.1. The phases consist of a start-up phase, a planning phase, an execution phase, and a closing phase. The figure depicts the usage of resources during the project life cycle.

As shown in Figure 1.1, the resource usage is lowest in the start-up phase, with more resources used in the planning phase. The resource peak is reached during the execution phase, while the resource usage decreases again in the closing phase (Larson and Gray 2021). The figure also lists the areas that should be in focus during the different phases. In the start-up phase, the focus is on preparing and clarifying the project’s goals, requirements, tasks, and responsibilities. In the planning phase, the focus is on preparing plans and budgets, staffing and distributing resources for work tasks, managing uncertainty, and selecting suppliers. During the execution phase, with results being produced, the focus shifts to status reports, change management, work quality, and forecasting whether the budget and time frame hold. In the closing phase, the focus is on documentation, customer training, downsizing, resource release, evaluation, and transferring knowledge from the experiences gained.

Figure 1.1 Project life cycle (adapted from Larson and Gray 2021).

1.3 The project management loop and control variables

The performance of a project can be viewed from three different levels (Elvenes 1987). Stakeholders and the environment, including the base organization, suppliers, laws, and regulations, set the framework for the project, provide resources, and expect results in return. Within the project itself, we operate with two levels: the execution level and the management level, as illustrated in Figure 1.2. The actual execution or production is carried out by professional workers, such as craftspeople in a house-building project, including concrete workers, masons, carpenters, plumbers, electricians, etc. The tasks will vary depending on the type of project, for example, an IT project or a construction project. Typical tasks in a project can include engineering, design, manufacturing, production, assembly, installation, and testing.

The project management and administration represent the other part of the project work. Typical management tasks include clarification of needs, requirement development, planning, organization and budgeting, contract negotiations and purchasing, uncertainty management, monitoring and controlling, and leadership. These are work tasks that are more independent of the type of project. In larger projects, different people work with management and production, while in smaller projects, this distinction can be almost erased. In such cases, the same people may take care of both management and production tasks.

We can find these three levels in all types of projects, and they interact with each other through complex and dynamic connections.

Figure 1.2

Figure 1.2 Project levels and work.

Figure 1.2 can be further detailed to show the different management functions and how they are connected, as shown in the project management loop in Figure

1.3 (Westhagen et al. 2008). The management functions include:

1. Goal formulation: deciding and describing what the project will result in

2. Planning and organizing: breaking down the goals into work tasks, planning and organizing the execution of the tasks

3. Execution: the actual production of the work tasks in the project

4. Follow-up: registering (measuring) what has happened in the project, comparing against schedules, budgets, and other control variables and assumptions, and implementing corrective actions if necessary

In a project, corrective actions may be necessary to get it back on track towards the goal. These actions can include adjusting the execution of tasks and motivating workers, changing the project’s course through new plans or reorganization, or correcting the goals, for example adding extra funding or time.

In a project, there are several critical control variables that must be managed effectively. These include:

• Quality, features, and performance (quality management)

• Time (progress control)

• Cost (cost management) and resources (resource management)

• Scope of work (change management)

Figure 1.3

Figure 1.3 The project management loop (adapted from Westhagen et al. 2008).

Quality management refers to ensuring that the final product or result meets the required specifications and standards. Progress control involves making sure that partial and final results are delivered on schedule. Resource management entails ensuring that the necessary resources are available when they are needed. Cost management is concerned with managing the financial side of resource inputs and comparing the investment costs against the expected benefits and revenues of the project. Lastly, change management focuses on controlling and monitoring changes in the scope of work.

Figure 1.4 depicts the most central control variables in three different ways. The most commonly used way to illustrate the relationship between cost, time, and quality is alternative A, also known as the iron triangle. Alternative B displays the project triangle, which includes scope in addition to cost, time, and quality. Alternative C, referred to as the project diamond, highlights the interdependence between cost, time, quality, and scope. This is because changes in one of these four control variables often have implications for the others, and there is a tradeoff between them. For instance, an increase in the scope of work usually leads to higher project costs. Similarly, reducing the project duration by increasing staffing or overtime work will also increase costs. If higher quality is desired, additional costs will likely be incurred. Cost reduction can be achieved by reducing the workload or lowering the quality level by choosing standardized and cheaper solutions. It’s worth mentioning that in many organizations and projects, Health, Safety, and Environment (HSE) are also crucial control variables.

1.4 Why are projects so popular?

We live in a world of projects. Projects have become ubiquitous in today’s society, as they are utilized in both the private and public sectors. Companies imple-

Figure 1.4

Figure 1.4 Project control variables.

ment new products, services, and systems, change organizational structures, and enhance production through projects in a competitive marketplace. In the public sector, new infrastructure such as roads, bridges, and buildings are constructed, strategies for reducing crime are implemented, and actions against hunger and climate change are undertaken for the benefit of society. Projects have become a preferred way of achieving results, and some of the reasons for their popularity include:

• Goal orientation: To be successful, a project must have a specific direction. A clear, precise goal defines what should be achieved and motivates the individuals involved.

• Management of unique assignments: Projects are useful for taking on special and unique tasks that may be difficult to carry out within a line organization’s structure.

• Flexibility: Projects can create a tailored organization for a specific work assignment, which can then be dissolved when the project is completed, creating a flexible organization without the need for constant reorganizations of the line.

• Customer orientation: Some customers require that their assignments be performed as a project, as it provides better management, shorter response times, unique contact points, and stronger customer orientation.

• Task focus: The project focus is on accomplishing tasks, and it is easier to have a holistic approach, unlike in line organizations where functions or disciplines are divided into separate entities.

• Utilization of resources and competence: The project’s interdisciplinarity and ability to cross functional boundaries provide access to the entire organization’s resources and expertise, while the same functional borders in line organizations may seem insurmountable.

• Collaboration opportunities: Projects enable a binding collaboration between independent parties without the need to create a separate and permanent organization.

• Leadership development: Projects create a need for more managers, offering more people the opportunity to try themselves as leaders. It develops leadership types with strong results orientation and uncertainty tolerance.

However, the project work form also has some negative effects, including:

• Studies have shown that working on projects can lead to increased stress, the risk of overload, and burnout for the individual employee (Berg and Karlsen 2013).

• Project work can lead to a harsher workplace climate, especially in matrix situations where employees are pulled in different directions by several managers.

• An artificial divide may arise between those involved in projects and those who are not. The high pace found in many projects today leaves little room for individuals who do not perform fully.

• Projects are often initiated instead of reorganizing the line organization because it is easier, which can lead to an inefficient line organization.

1.5 Types of projects

Projects are widely used across various industries and organizations, and therefore, there are diverse project types that we deal with. Classifying projects is important to identify the issues and difficulties that are unique to each type of project. There are different ways to categorize projects, and one of them is to distinguish between strategic, tactical, and operational projects, as shown in Table 1.1 (Maylor 2010).

Table 1.1. Types of projects

In Chapter 2.1, the distinction between external and internal projects is examined. Another way to categorize projects is to look at the nature of the project task. Based on the character of the work we have identified seven project types (Mikkelsen and Riis 1996):

• Construction and engineering projects

• Innovation and product development projects

• Information systems projects

• Organizational change and development projects

• Planning and investigation projects

• Arrangement and event projects

• Research projects

Construction and engineering projects involve building structures such as buildings, technical facilities, bridges, or roads. While the customer sees these as one-time projects, the suppliers or contractors often treat them as routine work.

However, these projects can be complex as they involve multiple suppliers or contractors, creating problematic interfaces. The high time pressure to complete the project on time can lead to daily penalties for delays. The main stakeholders for these projects include clients, users, affected neighbors, public authorities, and financial institutions. One of the key challenges in many of these projects is achieving good contract processes and collaboration between the customer and supplier.

Innovation and product development projects aim to develop new products such as cars, mobile phones, and food. These projects often have a technical focus and are carried out in a product development department. However, there can be several stakeholders involved, including other internal departments such as sales and marketing, external end-users, and public authorities. The technological development and market conditions require special attention in these projects. Key challenges in many of these types of projects include an unclear goal and trade-offs between design/technical solutions and time pressure/profit.

Information system projects involve developing new information technology systems such as websites, payment apps, invoice systems, or enterprise resource planning (ERP) systems. These projects have a mix of technical, administrative, and organizational aspects. Key stakeholders for these projects include users, systems specialists such as system architects, programmers, and testers, and management. A significant challenge is involving users early in the process to define needs and requirements. Coordinating and integrating the solution with existing systems is another challenge.

Organizational change and development projects are internal projects that aim to reorganize the company, develop a new market strategy, implement new working procedures, improve the company’s image, or change a production machine. These projects can affect many people and have significant implications for the organization’s continued existence. Management and employees are often the stakeholders affected by these changes, and consultants may be hired to improve the change process. One of the key challenges in these projects is defining the assignment and clarifying the goal to be achieved. There may also be contradictory perceptions of both the problem and the solution. Implementing new solutions in the organization is another challenge, where good communication, motivation, and participation from the affected parties become crucial.

Planning and investigation projects aim to investigate a problem and develop solutions that are documented in a report. Data collection and statistical analysis of the results are often part of the project. Many examples of these projects include

municipality mergers, welfare programs, new pension systems, and local culture development. These projects often involve many conflicting stakeholders as the solutions may involve a power struggle and a political game. One of the key challenges in this type of project is that the task is often vaguely worded at the project’s start.

Arrangement and event projects include sports events, exhibitions, concerts or festivals, film productions, TV programs, and marketing campaigns. These projects are often prestigious and significant for the organization’s development and image. The preparation and planning can be extensive and take a long time, while the event itself is carried out in a short time. The stakeholders in these projects can be many, including the organizer (owner), sponsors, volunteers, and audience. Planning is a key challenge as most events have a set date that cannot be changed. Achieving good coordination and communication between specialists and volunteers is another challenge.

Research projects are based on a problem or hypothesis that is being investigated. The project work involves experiments, data collection, analysis, and tests to develop new knowledge or solutions, such as clarifying cause-effect relationships, mapping important variables, or creating new insights and understanding. An example of a research project is the development of a Covid-19 vaccine. Dominant stakeholders in these projects include the client, other researchers, and those for whom the research results are significant. A key challenge in research projects is ensuring the quality of the work and the results created.

Case: Island Fish

Island Fish, a fish processing company with 100 employees and a turnover of NOK 900 million, is expected to have a profitability of NOK 30 million in 2023. Following its acquisition by a Norwegian business leader with a fishing industry background in spring 2022, the company plans to modernize and significantly increase profitability. To achieve this goal, an improvement and change project has been established, which aims to reduce the number of employees, introduce new efficient work processes, and implement new technology, including the integration of a new production management system and a new ERP system. The project, with a total budget of NOK 270 million, is scheduled to be carried out in 2024. Its expected outcome is a doubling of turnover and a tripling of profits, starting from 2025.

What type of project is this?

The project is considered a strategic one, according to Maylor’s (2010) project classification, as it has significant implications for Island Fish and its

Project management is a widely employed approach in both the public and private sectors. This book offers a comprehensive and easy-to-read introduction to all aspects of project work. It presents the most crucial subjects in a clear and thorough manner, and is enriched with numerous practical examples. Furthermore, key concepts are elucidated through various real-life case studies.

Designed with a well-organized structure for ease of use, Project Management primarily targets students enrolled in Project Management courses. However, it will also serve as a valuable resource for individuals involved in projects or collaborating with project teams. Project personnel can utilize this book as a guide and reference work, whether to acquire knowledge about processes, methods, and techniques for dealing with everyday challenges, or to enhance their understanding of a project’s role and its significance for achieving a company’s strategic goals.

To facilitate learning, the book includes exercises and supplementary materials, which are available from www.universitetsforlaget.no/pm. These resources cater to the needs of both students and lecturers.

Jan Terje Karlsen is a professor at BI Norwegian Business School. He holds a master’s degree in Business and Economics and a doctorate in Project Management (dr.ing.). For many years, he has conducted research and taught the subjects covered in the book. Additionally, he possesses significant practical experience of project work.