Projectsandprojectmanagementoperateinanenvironmentbroaderthanthatoftheprojectitself.Theprojectmanagementteammustunderstandthisbroadercontext—managingtheday-to-dayactivitiesoftheprojectisnecessaryforsuccessbutnotsufficient.Thischapterdescribeskeyaspectsoftheprojectmanagementcontextnotcoveredelsewhereinthisdocument.Thetopicsincludedhereare:2.1ProjectPhasesandtheProjectLifeCycle2.2ProjectStakeholders2.3OrganizationalInfluences2.4KeyGeneralManagementSkills2.5SocioeconomicInfluences2.1PROJECTPHASESANDTHEPROJECTLIFECYCLEBecauseprojectsareuniqueundertakings,theyinvolveadegreeofuncertainty.Orga-nizationsperformingprojectswillusuallydivideeachprojectintoseveralprojectphasestoprovidebettermanagementcontrolandappropriatelinkstotheongoingoperationsoftheperformingorganization.Collectively,theprojectphasesareknownastheprojectlifecycle.2.1.1CharacteristicsofProjectPhasesEachprojectphaseismarkedbycompletionofoneormoredeliverables.Adeliver-ableisatangible,verifiableworkproductsuchasafeasibilitystudy,adetaildesign,oraworkingprototype.Thedeliverables,andhencethephases,arepartofagenerallysequentiallogicdesignedtoensureproperdefinitionoftheproductoftheproject.Theconclusionofaprojectphaseisgenerallymarkedbyareviewofbothkeyde-liverablesandprojectperformanceinorderto(a)determineiftheprojectshouldcontinueintoitsnextphaseand(b)detectandcorrecterrorscosteffectively.Thesephase-endreviewsareoftencalledphaseexits,stagegates,orkillpoints.Eachprojectphasenormallyincludesasetofdefinedworkproductsdesignedtoestablishthedesiredlevelofmanagementcontrol.Themajorityoftheseitemsarerelatedtotheprimaryphasedeliverable,andthephasestypicallytaketheirnamesfromtheseitems:requirements,design,build,text,start-up,turnover,andothersasappropriate.SeveralrepresentativeprojectlifecyclesaredescribedinSection2.1.3.2.1.2CharacteristicsoftheProjectLifeCycleTheprojectlifecycleservestodefinethebeginningandtheendofaproject.Forex-ample,whenanorganizationidentifiesanopportunitythatitwouldliketorespondto,itwilloftenauthorizeafeasibilitystudytodecideifitshouldundertakeaproject.Theprojectlifecycledefinitionwilldeterminewhetherthefeasibilitystudyistreatedasthefirstprojectphaseorasaseparate,stand-aloneproject.THEPROJECTMANAGEMENTCONTEXT2©1996ProjectManagementInstitute,130SouthStateRoad,UpperDarby,PA19082USA112.1ProjectPhasesandtheProjectLifeCycle2.2ProjectStakeholders2.3OrganizationalInfluences2.4KeyGeneralManagementSkills2.5SocioeconomicInfluencesTheprojectlifecycledefinitionwillalsodeterminewhichtransitionalactionsattheendoftheprojectareincludedandwhicharenot.Inthismanner,theprojectlifecycledefinitioncanbeusedtolinktheprojecttotheongoingoperationsoftheperformingorganization.Thephasesequencedefinedbymostprojectlifecyclesgenerallyinvolvessomeformoftechnologytransferorhand-offsuchasrequirementstodesign,construc-tiontooperations,ordesigntomanufacturing.Deliverablesfromtheprecedingphaseareusuallyapprovedbeforeworkstartsonthenextphase.However,asub-sequentphaseissometimesbegunpriortoapprovalofthepreviousphasedeliver-ableswhentherisksinvolvedaredeemedacceptable.Thispracticeofoverlappingphasesisoftencalledfasttracking.Projectlifecyclesgenerallydefine:•Whattechnicalworkshouldbedoneineachphase(e.g.,istheworkofthear-chitectpartofthedefinitionphaseorpartoftheexecutionphase?).•Whoshouldbeinvolvedineachphase(e.g.,concurrentengineeringrequiresthattheimplementorsbeinvolvedwithrequirementsanddesign).Projectlifecycledescriptionsmaybeverygeneralorverydetailed.Highlyde-taileddescriptionsmayhavenumerousforms,charts,andcheckliststoprovidestructureandconsistency.Suchdetailedapproachesareoftencalledprojectman-agementmethodologies.Mostprojectlifecycledescriptionsshareanumberofcommoncharacteristics:•Costandstaffinglevelsarelowatthestart,highertowardstheend,anddroprapidlyastheprojectdrawstoaconclusion.ThispatternisillustratedinFig-ure2–1.•Theprobabilityofsuccessfullycompletingtheprojectislowest,andhenceriskanduncertaintyarehighest,atthestartoftheproject.Theprobabilityofsuc-cessfulcompletiongenerallygetsprogressivelyhigherastheprojectcontinues.•Theabilityofthestakeholderstoinfluencethefinalcharacteristicsofthepro-jectproductandthefinalcostoftheprojectishighestatthestartandgetsprogressivelylowerastheprojectcontinues.Amajorcontributortothisphe-nomenonisthatthecostofchangesanderrorcorrectiongenerallyincreasesastheprojectcontinues.Careshouldbetakentodistinguishtheprojectlifecyclefromtheproductlifecy-cle.Forexample,aprojectundertakentobringanewdesktopcomputertomarketisbutonephaseorstageoftheproductlifecycle.12©1996ProjectManagementInstitute,130SouthStateRoad,UpperDarby,PA19082USAFIGURE2–1AGUIDETOTHEPROJECTMANAGEMENTBODYOFKNOWLEDGETimeInitialPhaseFinishStartIntermediatePhases(oneormore)FinalPhaseCostandStaffingLevelFigure2–1.SampleGenericLifeCycleTHEPROJECTMANAGEMENTCONTEXT2.1.3Althoughmanyprojectlifecycleshavesimilarphasenameswithsimilarworkproductsrequired,fewareidentical.Mosthavefourorfivephases,butsomehavenineormore.Evenwithinasingleapplicationareatherecanbesignificantvariations—oneorganization’ssoftw