Fund Raising Project Selection

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C H A P T E R C H A P T E R O N EO N E

Modern Modern Project Project ManagementManagement

PProjectroject netnetworksworks

ManagingManaging riskrisk 77

MonitoringMonitoring progrprogressess

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TTeamseams 1111

OutsourcingOutsourcing 1212

LeadershipLeadership 1010

StrategyStrategy 22

IntroductionIntroduction 11

OrgOrganizationanization 33

ScheduleSchedule resourresources ces & & costscosts

Inte rna

tion al

Inte rna

tion al

pro ject

s pro

ject s

1515

1818

OverOvers ightsight

Agile Agile PMPM

CarCareer eer pathspaths

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1616 PProjectroject closureclosure

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EstimatEstimatee 55

ReducingReducing durationduration

DefineDefine projectproject

Modern Modern Project Project ManagementManagement What What Is Is a a Project?Project?

Current Current Drivers Drivers of of Project Project ManagementManagement

Project Project GovernanceGovernance

Project Project Management Management TToday—A oday—A Socio-TSocio-Technical echnical ApproachApproach

SummarySummary

TText ext OverviewOverview

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All All ofof mankind’s mankind’s grgreatest eatest accomplishments—from accomplishments—from building building the the grgreat eat ppyryra-a- mids mids to to discodiscovering vering a a curcure e for for polio polio to to putting putting a a man man on on the the moon—begmoon—beganan as as a a prproject.oject.

This This is is a a good good time time to to be be reading reading a a book book aabout bout project project manamanagement. gement. BusinessBusiness leaders leaders and and experts experts hahave ve prproclaimed oclaimed thathat t project project manamanagement gement is is critical critical to to sus-sus- tainatainable ble economic economic grgroowth. wth. New New jobs jobs and and competitive competitive adadvantavantage ge are are achievachieved ed byby constant constant innoinnovavation, tion, developing developing nenew w products products and and servicesservices, , and and imprimproving oving bothboth prproductivity oductivity and and quality quality ofof wor work. k. This This is is the the world world ofof pr project oject management. management. PrProj-oj- ect ect management management prprovides ovides people people with with a a popowerful werful set set ofof tools tools that that imprimprovoves es theirtheir aability bility to to plan, plan, implement, implement, and and manage manage actiactivities vities to to accomplish accomplish specific specific organiza-organiza- tional tional objectivobjectiveses. . But But prproject oject management management is is more more than than just just a a set set ofof tools; tools; it it is is aa results-oriented results-oriented manamanagement gement style style that that places places a a prpremium emium on on building building collacollabora-bora- tivtive e relationships relationships among among a a didiverse verse cast cast ofof characters characters. . Exciting Exciting opportunities opportunities aawaitwait people people skilled skilled in in prproject oject management.management.

The The prproject oject apprapproach oach has has long long been been the the style style ofof doing doing bbusiness usiness in in the the construc-construc- tion tion industryindustry, , UU.S.S. . Department Department ofof Defense Defense contractscontracts, , and and HollywHollywood ood as as well well asas big big consulting consulting firmsfirms. . Now Now prproject oject management management has has spread spread to to all all aavenvenues ues ofof w work.ork. TTodayoday, , project project teams teams carry carry out out eeverything verything frfrom om port port expansions expansions to to hospital hospital re-re- structuring structuring to to upgrading upgrading infinformation ormation systemssystems. . They They are are creacreating ting next next generageneration,tion, fuel fuel efefficient ficient vehiclesvehicles, , devdeveloping eloping sustainasustainable ble sources sources ofof energy energy, , and and exploring exploring thethe farthest farthest reaches reaches ofof outer outer spacespace. . The The impact impact ofof project project manamanagement gement is is most most prpro-o- ffound ound in in the the electrelectronics onics industryindustry, , wherwhere e the the new new ffolk olk herheroes oes are are yyoung oung profession-profession- als als whose whose HerHerculean culean effefforts orts lead lead to to the the constant constant flow flow ofof new new hardhardware ware andand softwarsoftware e productsproducts..

PrProject oject management management is is not not limited limited to to the the priprivavate te sectorsector. . Project Project manamanagement gement isis also also a a vehicle vehicle ffor or doing doing good good deeds deeds and and solving solving social social probproblemslems. . EndeaEndeavors vors suchsuch as as prproviding oviding emeremergency gency aid aid to to areas areas hit hit by by nanatural tural disastersdisasters, , devising devising a a strastrategy tegy forfor reducing reducing crime crime and and drug drug aabuse buse within within a a citycity, , or or ororganizing ganizing a a community community efeffortfort toto renorenovavate te a a public public plaplaygryground ound would would and and do do benefit benefit frfrom om the the applicaapplication tion ofof modern modern prproject oject management management skills skills and and techniquestechniques..

PerhaPerhaps ps the the best best indicator indicator ofof demand demand ffor or project project manamanagement gement can can be be seenseen in in the the rarapid pid expansion expansion ofof the the PrProject oject Management Management Institute Institute (PMI), (PMI), a a prprofes-ofes- sional sional ororganization ganization ffor or project project manamanagersgers. . PMI PMI membership membership has has grogrownwn frfrom om 93,000 93,000 in in 2002 2002 to to more more than than 434,000 434,000 currentlcurrentlyy. . See See the the PMI PMI SnapshotSnapshot frfrom om PracticePractice, , ffor or infinforormation mation rregarding egarding prprofessional ofessional certification certification in in prprojectoject management.management.

It’It’s s nearlnearly y impossible impossible to to pick pick up up a a newspanewspaper per or or business business periodical periodical and and notnot find find something something aabout bout prprojectsojects. . This This is is no no surprise! surprise! ApprApproximaoximately tely $2.5 $2.5 trilliontrillion (a(about bout 25 25 percent percent ofof the the UU.S.S. . grgross oss national national prproduct) oduct) are are spent spent on on prprojects ojects eacheach year year in in the the United United StaStates tes alonealone.. Other Other countries countries are are incrincreasingly easingly spending spending more more onon prprojectsojects. . Millions Millions ofof people people araround ound the the world world consider consider prproject oject management management thethe major major task task in in their their prprofession.ofession.

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4 4 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

Most Most ofof the the people people who who exexcel cel aat t managing managing prprojects ojects never never hahave ve the the title title ofof proj- proj- ect ect managermanager. . They They include include accountantsaccountants, , lalawyerswyers, , administraadministratorstors, , scientistsscientists, , con-con- tractorstractors, , public public health health ofofficialsficials, , teachersteachers, , and and community community adadvocavocates tes whose whose successsuccess depends depends upon upon being being aable ble to to lead lead and and manamanage ge project project wwork. ork. FFor or somesome, , the the veryvery nanature ture ofof their their wwork ork is is prproject oject drivdriven. en. Projects Projects mamay y be be cases cases for for lalawyerswyers, , audits audits fforor accountantsaccountants, , events events ffor or artistsartists, , and and renorenovavations tions for for contrcontractorsactors. . FFor or othersothers, , proj-proj- ects ects mamay y be be a a small, small, but but critical critical part part ofof their their wwork. ork. FFor or exampleexample, , a a high high schoolschool teacher teacher who who teaches teaches ffour our classes classes a a daday y is is responsible responsible ffor or coaching coaching a a group group ofof stu- stu- dents dents to to compete compete in in a a nanational tional debadebate te competition. competition. A A store store manager manager wwho ho ovoverseesersees daily daily operoperations ations is is charcharged ged with with developing developing an an emploemployee yee retention retention prprogram. ogram. AA sales sales account account exexecutive ecutive is is givgiven en the the additional additional assignment assignment ofof team team lead lead to to launchlaunch daily daily deals deals into into a a nenew w citycity. . A A public public health health ofofficial ficial who who manages manages a a clinic clinic is is alsoalso responsibresponsible le for for ororganizing ganizing a a Homeless Homeless YYouth outh Connect Connect evevent. ent. FFor or these these and and othersothers,, prproject oject management management is is not not a a titletitle, , but but a a critical critical job job requirrequirement. ement. It It is is hard hard to to thinkthink ofof a a profession profession or or a a carcareer eer path path thathat t would would not not benefit benefit frfrom om being being good good at at manamanag-g- ing ing prprojectsojects..

Not Not only only is is prproject oject management management critical critical to to most most careerscareers, , the the skill skill set set is is transfer-transfer- aable ble acracross oss most most businesses businesses and and prprofessionsofessions. . At At its its corecore, , prproject oject management management fun-fun- damentals damentals are are uniuniversal. versal. The The same same prproject oject management management methodolomethodology gy that that is is usedused to to devdevelop elop a a new new prproduct oduct can can be be adapted adapted to to creacreate te new new servicesservices, , organize organize eveventsents,, refurbish refurbish aaging ging operaoperationstions, , and and so so forth. forth. In In a a wworld orld wherwhere e it it is is estimated estimated thathat t eacheach person person is is liklikely ely to to experience experience tthrhree ee to to ffour our career career changeschanges, , managing managing prprojects ojects is is aa talent talent wworthorthy y ofof dev development.elopment.

The The Project Project Management Management Institute Institute (PMI) (PMI) waswas founded founded in in 1969 1969 as as an an international international society society forfor project project managers. managers. TToday oday PMI PMI has has membersmembers from from more more than than 180 180 countries countries and and more more thanthan

424,600 424,600 members. members. PMI PMI professionals professionals come come from from virtually virtually everyevery major major industryindustry, , including including aerospace, aerospace, automotive, automotive, businessbusiness management, management, construction, construction, engineering, engineering, financial financial services,services, information information technologytechnology, , pharmaceuticals, pharmaceuticals, health health care, care, andand telecommunications.telecommunications.

PMI PMI provides provides certification certification as as a a Project Project Management Management Pro-Pro- fessional fessional (PMP)(PMP)—someone —someone who who has has documented documented sufficientsufficient project project experience, experience, agreed agreed to to follow follow the the PMI PMI code code of of profes-profes- sional sional conduct, conduct, and and demonstrated demonstrated mastery mastery of of the the field field of of proj-proj- ect ect management management by by passing passing a a comprehensive comprehensive examination.examination. The The number number of of people people earning earning PMP PMP status status has has grown grown dramat-dramat- ically ically in in recent recent years. years. In In 1996 1996 there there were were fewer fewer than than 3,000 3,000 cercer-- tified tified project project management management professionals. professionals. By By June June of of 20132013 there there were were more more than than 537,400 537,400 Prof essional Prof essional credentialcredential holders.holders.

S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E The The Project Project Management Management Institute*Institute*

Just Just as as the the CPCPA A exam exam is is a a standard standard f or f or accountants,accountants, passing passing the the PMP PMP exam exam may may become become the the standard standard for for projectproject managers. managers. Some Some companies companies are are requiring requiring that that all all their their proj-proj- ect ect managers managers be be PMP PMP certified. certified. MoreoverMoreover, , many many job job post-post- ings ings are are restricted restricted to to PMPs. PMPs. Job Job seekers, seekers, in in general, general, areare f inding f inding that that being being PMP PMP certif ied certif ied is is an an advantage advantage in in thethe marketplace.marketplace.

PMI PMI added added a a certif ication certif ication as as a a Certified Certified Associate Associate inin Project Project Management Management (CAPM)(CAPM). . CAPM CAPM is is designed designed for for projectproject team team members members and and entry-level entry-level project project managers, managers, as as well well asas qualified qualified undergraduate undergraduate and and graduate graduate students students who who want want aa credential credential to to recognize recognize their their mastery mastery of of the the project project manage-manage- ment ment body body of of knowledge. knowledge. CAPM CAPM does does not not require require the the exten-exten- sive sive project project management management experience experience associated associated with with thethe PMPPMP. . For For more more details details on on PMP PMP and and CAPM, CAPM, “Google” “Google” PMI PMI toto f ind f ind the the current current WWeb eb site site f or f or the the Project Project ManagementManagement Institute.Institute.

**PMI PMI TToday, oday, June June 2013, 2013, p. p. 44

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Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 55

S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E A A Dozen Dozen Examples Examples of of Projects Projects GivenGiven to to Recent Recent College College GraduatesGraduates

The The significance significance ofof pr project oject management management can can also also be be seen seen in in the the classrclassroom.oom. TTwenty wenty years years aago go major major universities universities ofoffered fered one one or or twtwo o classes classes in in project project manamanage-ge- ment, ment, primarily primarily ffor or engineersengineers. . TTodaodayy, , most most univuniversities ersities offer offer mmultiple ultiple sections sections ofof prproject oject management management classesclasses, , with with the the core core grgroup oup ofof engineers engineers being being supplementedsupplemented by by bbusiness usiness students students majoring majoring in in markmarketing, eting, management management infinforormation mation systemssystems

1.1. Business Business information: information: Join Join a a project project teamteam charged charged with with installing installing new new data data securitysecurity system.system.

2. 2. Physical Physical education: education: Design Design and and de de velopvelop a a new new fitness fitness program program for for senior senior citizens citizens that that com-com- bines bines principles principles of of yoga yoga and and aerobics.aerobics.

3. 3. Marketing: Marketing: Execute Execute a a sales sales program program for for new new home home airair purifierpurifier..

4. 4. Industrial Industrial engineering: engineering: Manage Manage a a team team to to create create aa value value chain chain report report for for every every aspect aspect of of key key productproduct from from design design to to customer customer deliverydelivery..

5. 5. Chemistry: Chemistry: Develop Develop a a quality quality control control program program for for orga-orga- nization’nization’s s drug drug production production facilities.facilities.

6. 6. ManagementManagement : : Implement Implement a a new new store store layout layout design.design.

7. 7. Pre-med Pre-med neurology neurology student: student: Join Join project project team team linkinglinking mind mind mapping mapping to to an an imbedded imbedded prosthetic prosthetic that that willwill

allow allow blind blind people people to to function function near near normally.normally. 8. 8. Sports Sports communication: communication: Join Join Olympic Olympic project project team team thatthat

will will promote promote women’women’s s sport sport products products for for the the 2016 2016 GamesGames in in Reo Reo de de Janeiro, Janeiro, Brazil.Brazil.

9. 9. Systems Systems engineer: engineer: Become Become a a project project team team member member ofof a a project project to to develop develop data data mining mining of of medical medical paperspapers and and studies studies related related to to drug drug efficacyefficacy..

10. 10. Accounting: Accounting: Work Work on on an an audit audit of of a a major major client.client. 11. 11. Public Public health: health: Research Research and and design design a a medical medical mari-mari-

juana juana educational educational program.program. 12. 12. English: English: Create Create a a web-based web-based user user manual manual for for newnew

electronics electronics product.product.

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6 6 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

The The Project Project ManaManagement gement Institute Institute prprovides ovides the the ffollowing ollowing definition definition ofof a a prproject:oject:

A A prprojectoject is is a a temporary temporary endeaendeavor vor undertakundertaken en to to create create a a unique unique prproduct, oduct, service, service, or or rresult.esult.

LikLike e most most organizaorganizational tional efeffort, fort, the the major major goal goal ofof a a prproject oject is is to to satisfy satisfy a a customer’customer’ss need. need. BeyBeyond ond this this fundamental fundamental similaritysimilarity, , the the characteristics characteristics ofof a a prproject oject helphelp

(MIS), (MIS), and and financefinance, , as as well well as as students students frfrom om other other disciplines disciplines such such as as oceanooceanographgraphyy,, health health sciencessciences, , computer computer sciencessciences, , and and liberal liberal artsarts. . These These students students are are finding finding thathatt their their exposurexposure e to to project project manamanagement gement is is prproviding oviding them them with with distinct distinct adadvantavantagesges when when it it comes comes time time to to look look ffor or jobsjobs. . More More and and more more emploemployers yers are are looking looking fforor graduagraduates tes with with project project manamanagement gement skillsskills. . See See the the nearby nearby SnaSnapshot pshot from from PrPracticeactice ffor or examples examples ofof projects projects gigiven ven to to recent recent college college graduagraduatestes. . The The logical logical startingstarting point point ffor or developing developing these these skills skills is is understanding understanding the the uniqueness uniqueness ofof a a prproject oject andand ofof project project manamanagersgers..

What What Is Is a a Project?Project? WWhat hat do do the the ffollowing ollowing headlines headlines hahave ve in in common?common?

Millions Millions wawatch tch Olympic Olympic Opening Opening CeremonCeremonyy Citywide Citywide WiFi WiFi system system set set to to go go liliveve Hospitals Hospitals respond respond to to nenew w Health Health Care Care RReformseforms Apple’Apple’s s new new iPhone iPhone hits hits the the markmarketet City City receireceives ves stimulus stimulus funds funds to to eexpand xpand light light rail rail systemsystem

All All ofof these these events events reprrepresent esent projectsprojects..

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Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 77

difdifferentiaferentiate te it it from from other other endeaendeavors vors ofof the the ororganization. ganization. The The major major characteristicscharacteristics ofof a a project project arare e as as follofollows:ws:

1. 1. An An estaestablished blished objectiveobjective.. 2. 2. A A defined defined life life span span with with a a beginning beginning and and an an end.end. 3. 3. UsuallyUsually, , the the ininvolvvolvement ement ofof sev several eral departments departments and and professionalsprofessionals.. 4. 4. TTypicallyypically, , doing doing something something thathat t has has never never been been done done befbeforeore.. 5. 5. Specific Specific timetime, , cost, cost, and and perfperforormance mance requirementsrequirements..

First, First, projects projects hahave ve a a defdefined ined objectiobjective—whether ve—whether it it is is constructing constructing aa 12-storyapartment 12-storyapartment complex complex bby y JJananuary uary 1 1 or or releasing releasing version version 2.0 2.0 ofof a a specificspecific softwarsoftware e package package as as quicklquickly y as as possiblepossible. . This This singular singular purpose purpose is is often often lackinglacking in in daily daily ororganizational ganizational life life in in wwhich hich worworkers kers perfperfororm m repetitivrepetitive e operationsoperations eachdaeachdayy..

Second, Second, because because there there is is a a specified specified objectiobjectiveve, , prprojects ojects hahave ve a a defined defined endpoint,endpoint, which which is is contrcontrary ary to to the the ongoing ongoing duties duties and and responsibilities responsibilities ofof traditional traditional jobsjobs. . InIn manmany y casescases, , individuals individuals momove ve frfrom om one one prproject oject to to the the next next as as opposed opposed to to stastayingying in in one one jobjob. . After After helping helping to to install install a a security security system, system, an an IT IT engineer engineer may may bebe

assigned assigned to to develop develop a a dadatatabase base ffor or a a differdifferent ent client.client. Third, Third, unlikunlike e much much ororganizational ganizational wwork ork that that is is segmented segmented accoraccording ding to to func-func-

tional tional specialtyspecialty, , prprojects ojects typically typically requirrequire e the the combined combined effefforts orts ofof a a variety variety ofof spe- spe- cialistscialists. . Instead Instead ofof w working orking in in separaseparate te ofoffices fices under under separate separate manamanagersgers, , prprojectoject participantsparticipants, , whether whether they they be be engineersengineers, , financial financial analystsanalysts, , markmarketing eting profession-profession- alsals, , or or quality quality control control specialistsspecialists, , wwork ork closely closely totogether gether under under the the guidance guidance ofof a a prproject oject manager manager to to complete complete a a prproject.oject.

The The ffourth ourth characteristic characteristic ofof a a prproject oject is is that that it it is is nonrnonroutine outine and and has has somesome u u nique nique elementselements. . This This is is not not an an either/or either/or issue issue but but a a mamatter tter ofof degree degree. . ObviouslyObviously,, accomplishing accomplishing something something thathat t has has never never been been done done befbeforeore, , such such as as building building aa electric electric automobile automobile or or landing landing twtwo o mechanical mechanical rorovers vers on on MarsMars, , requirrequireses

solving solving prepreviously viously unsolvunsolved ed probproblems lems and and breakthrbreakthrough ough technologytechnology. . On On thethe other other hand, hand, eveven en basic basic construction construction projects projects thathat t ininvolvvolve e estaestablished blished sets sets ofof rroutines outines and and procedurprocedures es require require some some degrdegree ee ofof customization customization thathat t makesmakes them them uniqueunique..

FinallFinallyy, , specific specific timetime, , cost, cost, and and perfperforormance mance requirements requirements bind bind prprojectsojects. . Proj-Proj- ects ects are are eevaluavaluated ted according according to to accomplishment, accomplishment, cost, cost, and and time time spent. spent. These These tripletriple constraints constraints impose impose a a higher higher degree degree ofof accounta accountability bility than than yyou ou typically typically find find inin most most jobsjobs. . These These three three also also highlight highlight one one ofof the the primary primary functions functions ofof pr project oject man-man- agement, agement, wwhich hich is is balancing balancing the the trade-oftrade-offs fs between between timetime, , cost, cost, and and performanceperformance while while ultimaultimately tely ssaatisfying tisfying the the customercustomer..

What What a a PrProject oject Is Is NotNot PrProjects ojects should should not not be be confused confused with with everyeverydaday y worwork. k. AA prproject oject is is not not routineroutine, , repetitive repetitive wwork! ork! Ordinary Ordinary daildaily y worwork k typically typically requirrequires es do-do- ing ing the the same same or or similar similar wwork ork oover ver and and ooverver, , while while a a prproject oject is is done done only only once; once; aa new new prproduct oduct or or service service exists exists when when the the prproject oject is is completed. completed. Examine Examine the the list list inin TTabable le 1.1 1.1 that that comparcompares es routineroutine, , repetitirepetitive ve wwork ork and and prprojectsojects. . RRecognizing ecognizing thethe difdifference ference is is important important because because too too often often resources resources can can be be used used up up on on daildaily y oper-oper- aations tions which which mamay y not not contribute contribute to to longer longer rrange ange organizaorganization tion strastrategies tegies thatthat

require require innoinnovavative tive new new prproductsoducts..

ProProgrgram am versus versus PrProjectoject In In practice practice the the terms terms project project and and prprogram ogram cause cause confu-confu- sion. sion. They They are are often often used used synonsynonymouslyymously. . AA progrprogramam is is a a group group ofof r related elated projectsprojects

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8 8 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

designed designed to to accomplish accomplish a a common common ggoal oal oover ver an an extended extended period period ofof time time.. Each Each prprojectoject within within a a prprogram ogram has has a a prproject oject managermanager. . The The major major difdifferences ferences lie lie in in scale scale andand time time span.span.

ProProgram gram management management is is the the prprocess ocess ofof a a grgroup oup ofof ongoing, ongoing, inter-inter-managingmanaging dependent, dependent, relarelated ted prprojectsojects in in a a coordinated coordinated wwaay y to to achieve achieve strastrategic tegic objectivesobjectives.. FFor or exampleexample, , a a pharpharmaceutical maceutical organizaorganization tion could could hahave ve a a prprogrogram am for for curingcuring

cancercancer. . The The cancer cancer prprogram ogram includes includes and and coordinacoordinates tes cancer cancer projects projects thathattallall contincontinue ue ovover er an an extended extended time time horizon horizon (Gra(Grayy, , 2011). 2011). CoordinaCoordinating ting all all cancercancer prprojects ojects under under the the ovoversight ersight ofof a a cancer cancer team team prprovides ovides benefits benefits not not aavailavailable ble frfromom managing managing them them indiindividuallyvidually. . This This cancer cancer team team also also ooversees versees the the selection selection andand prioritizing prioritizing ofof cancer cancer prprojects ojects that that arare e included included in in their their special special “Cancer”“Cancer” portfolioportfolio.. Although Although each each prproject oject retains retains its its oown wn goals goals and and scopescope, , the the project project manamanager ger andand team team are are also also motimotivavated ted by by the the higher higher prprogram ogram goal. goal. PrProgram ogram goals goals are are closelcloselyy relarelated ted to to brbroad oad strategic strategic ororganizaganization tion goalsgoals..

The The ProProject ject Life Life CycleCycle Another Another waway y ofof illustra illustrating ting the the unique unique naturnature e ofof pr project oject worwork k is is in in terterms ms ofof the the prproject oject life life cycycle.cle. Some Some project project manamanagers gers find find it it useful useful to to use use the the project project life life cycyclecle as as the the cornerstone cornerstone ffor or managing managing prprojectsojects. . The The life life cycle cycle recorecognizes gnizes that that prprojectsojects hahave ve a a limited limited life life span span and and that that therthere e are are predictapredictable ble changes changes in in levlevel el ofof ef effort fort andand ffocus ocus oover ver the the life life ofof the the prproject. oject. There There are are a a nnumber umber ofof dif different ferent life-cycle life-cycle modelsmodels in in prproject oject management management literaliteratureture. . ManMany y are are unique unique to to a a specific specific industry industry or or typetype ofof project. project. FFor or exampleexample, , a a new new softwarsoftware e development development prproject oject may may consist consist ofof fiv fivee phases: phases: definition, definition, design, design, codecode, , integration/test, integration/test, and and maintenancemaintenance. . A A generic generic cyclecycle is is depicted depicted in in Figure Figure 1.1.1.1.

The The project project life life cycycle cle typically typically passes passes sequentiallsequentially y through through ffour our stages: stages: defining,defining, planning, planning, exexecuting, ecuting, and and delivering. delivering. The The starting starting point point begins begins the the moment moment thethe prproject oject is is given given the the go-ahead. go-ahead. PrProject oject effeffort ort starts starts slowlslowlyy, , builds builds to to a a peak, peak, andand then then declines declines to to delivdelivery ery ofof the the prproject oject to to the the customercustomer..

1. 1. Defining Defining stage:stage: Specifications Specifications ofof the the prproject oject are are defined; defined; prproject oject objectives objectives areare estaestablished; blished; teams teams are are fforormed; med; major major responsibilities responsibilities are are assigned.assigned.

2. 2. Planning Planning stage:stage: The The level level ofof ef effort fort incrincreaseseases, , and and plans plans are are devdeveloped eloped toto determine determine whawhat t the the prproject oject will will entail, entail, when when it it will will be be scheduled, scheduled, whom whom itit will will benefit, benefit, whawhat t quality quality level level should should be be maintained, maintained, and and wwhat hat the the bbudgetudget will will bebe..

TTABLE ABLE 1.11.1 Comparison Comparison ofof RRoutine outine WWork ork withwith PrProjectsojects

Routine, Routine, Repetitive Repetitive Work Work ProjectsProjects

TTaking aking class class notes notes Writing Writing a a term term paperpaper Daily Daily entering entering sales sales receipts receipts into into the the Setting Setting up up a a sales sales kiosk kiosk for for a a professionalprofessional accounting accounting ledger ledger accounting accounting meetingmeeting Responding Responding to to a a supply-chain supply-chain request request Developing Developing a a supply-chain supply-chain information information systemsystem Practicing Practicing scales scales on on the the piano piano Writing Writing a a new new piano piano piecepiece Routine Routine manufacture manufacture of of an an Apple Apple iPod iPod Designing Designing an an iPod iPod that that is is approximatelyapproximately

nches, nches, interfaces interfaces with with PC, PC, andand stores stores 10,000 10,000 songssongs

Attaching Attaching tags tags on on a a manufactured manufactured product product Wire-tag Wire-tag projects projects for for GE GE and and WWal-Martal-Mart

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Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 99

3. 3. ExExecuting ecuting stage:stage: A A major major portion portion ofof the the prproject oject worwork k takes takes place—bothplace—both phphysical ysical and and mental. mental. The The phphysical ysical prproduct oduct is is produced produced (a (a bridgebridge, , a a report, report, aa softwarsoftware e proprogram). gram). TimeTime, , cost, cost, and and specification specification measures measures arare e used used fforor

contrcontrol. ol. Is Is the the project project on on scheduleschedule, , on on budget, budget, and and meeting meeting specificaspecifications?tions? WWhat hat arare e the the forforecasts ecasts ofof each each ofof these these measures? measures? WWhat hat rerevisions/changesvisions/changes are are necessary?necessary?

4. 4. Closing Closing stage:stage: Closing Closing includes includes three three activities: activities: delivdelivering ering the the project project prproductoduct to to the the customercustomer, , redeploredeploying ying project project rresourcesesources, , and and post-prpost-project oject reviewreview..

DeliDelivery very ofof the the prproject oject might might include include customer customer training training and and transferringtransferring documentsdocuments. . RRedeployment edeployment usuallusually y ininvolvvolves es releasing releasing prproject oject equipment/equipment/ mamaterials terials to to other other projects projects and and finding finding nenew w assignments assignments ffor or team team membersmembers.. PPost-prost-project oject reviereviews ws include include not not only only assessing assessing perfperforormance mance but but alsoalso capturingcapturing lessons lessons learned.learned.

In In practicepractice, , the the prproject oject life life cycle cycle is is used used by by some some prproject oject grgroups oups to to depict depict thethe timing timing ofof major major tasks tasks ovover er the the life life ofof the the prproject. oject. FFor or exampleexample, , the the design design teamteam might might plan plan a a major major commitment commitment ofof resources resources in in the the defining defining stastagege, , while while thethe quality quality team team wwould ould expect expect their their major major efeffort fort to to incrincrease ease in in the the latter latter stastages ges ofof the the prproject oject life life cyclecycle. . Because Because most most organizaorganizations tions hahave ve a a portfportfolio olio ofof pr projectsojects going going on on concurrentlconcurrentlyy, , each each at at a a difdifferent ferent stastage ge ofof each each prproject’oject’s s life life cyclecycle, , care-care- ful ful planning planning and and management management aat t the the organizaorganization tion and and project project lelevels vels areare imperaimperativetive..

The The Project Project ManagerManager At At first first glance glance prproject oject managers managers perfperfororm m the the same same functions functions as as other other managersmanagers.. ThaThat t isis, , they they plan, plan, scheduleschedule, , motivamotivatete, , and and control. control. HoHoweweverver, , whawhat t makmakes es themthem

FIGURE FIGURE 1.11.1 PrProject oject Life Life CycleCycle

L e

v L

e v e

l e

l o

f o

f e

ff e

ff o

r o

rtt

11.. Goals Goals

2.2. Specifications Specifications

3. 3. TTasksasks

4.4. Responsibilities Responsibilities

11.. Schedules Schedules

2.2. Budgets Budgets

3.3. Resour Resourcesces

4.4. Risks Risks

5.5. Sta Staffingffing

11.. Status Status reportsreports

2.2. Changes Changes

3.3. Quality Quality

4.4. For Forecastsecasts

11.. Train Train customercustomer

2. 2. TTransfer ransfer documentsdocuments

3.3. Release Release rresourcesesources

4.4. Evaluation Evaluation

5.5. Lessons Lessons learnedlearned

DefinDefininging

DefiningDefining

StartStart TimeTime EndEnd

PlanningPlanning

ExecutingExecuting

ClosingClosing

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10 10 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

unique unique is is thathat t they they manage manage temporarytemporary, , nonrepetitinonrepetitive ve activitiesactivities, , to to complete complete a a fixedfixed life life prproject. oject. Unlike Unlike functional functional manamanagersgers, , who who taktake e ovover er existing existing operaoperationstions, , prprojectoject managers managers crcreate eate a a prproject oject team team and and organizaorganization tion wherwhere e none none existed existed befbeforeore. . TheyThey must must decide decide wwhahat t and and how how things things should should be be done done instead instead ofof simply simply manamanaging ging setset prprocessesocesses. . They They must must meet meet the the challenges challenges ofof each each phase phase ofof the the prproject oject life life cyclecycle,, and and eveven en ovoversee ersee the the dissolution dissolution ofof their their operaoperation tion when when the the prproject oject isis completed.completed.

Project Project manamanagers gers must must wwork ork with with a a divdiverse erse troupe troupe ofof characters characters to to completecomplete prprojectsojects. . They They are are typically typically the the dirdirect ect link link to to the the customer customer and and must must manamanagege the the tension tension between between customer customer eexpectations xpectations and and wwhat hat is is feasibfeasible le and and reasonareasonableble..

PrProject oject managers managers prproovide vide direction, direction, coordinacoordination, tion, and and integraintegration tion to to the the proj-proj- ect ect team, team, which which is is often often made made up up ofof part-time part-time participants participants loloyal yal to to their their func-func- tional tional departmentsdepartments. . They They often often must must wwork ork with with a a cadre cadre ofof outsiders—vendors outsiders—vendors,, supplierssuppliers, , subcontractors—who subcontractors—who do do not not necessarilnecessarily y share share their their prprojectoject allegienceallegience..

PrProject oject managers managers are are ultimaultimately tely rresponsible esponsible ffor or perfperforormance mance (frequently (frequently withwith too too little little authority). authority). They They must must ensurensure e that that aapprppropriate opriate trade-oftrade-offs fs are are mademade

between between the the timetime, , cost, cost, and and perfperforormance mance requirements requirements ofof the the prproject. oject. At At the the samesame timetime, , unlike unlike their their functional functional counterpartscounterparts, , prproject oject managers managers generallgenerally y possess possess onlyonly rudimentary rudimentary technical technical knoknowledge wledge to to make make such such decisionsdecisions. . Instead, Instead, they they must must or-or- chestrachestrate te the the completion completion ofof the the prproject oject by by inducing inducing the the right right peoplepeople, , at at the the rightright timetime, , to to address address the the right right issues issues and and makmake e the the right right decisionsdecisions..

WWhile hile project project manamanagement gement is is not not ffor or the the timid, timid, worworking king on on projects projects can can be be anan extrextremely emely rerewarding warding eexperiencexperience. . Life Life on on prprojects ojects isis rarely rarely boring; boring; each each daday y is is dif-dif- ferent ferent frfrom om the the last. last. Since Since most most prprojects ojects are are directed directed aat t solving solving some some tangibletangible prproblem oblem or or pursuing pursuing some some useful useful opportunityopportunity, , prproject oject managers managers find find their their wworkork personally personally meaningful meaningful and and sasatisfying. tisfying. They They enjoy enjoy the the act act ofof crea creating ting somethingsomething new new and and innoinnovavativetive. . PrProject oject managers managers and and team team members members can can feel feel immense immense pridepride in in their their accomplishment, accomplishment, whether whether it it is is a a nenew w bridgebridge, , a a new new prproduct, oduct, or or neededneeded serviceservice. . Project Project manamanagers gers are are often often stars stars in in their their ororganization ganization and and wwellell compensacompensated.ted.

Good Good project project manamanagers gers are are alwalwaays ys in in demand. demand. Every Every industry industry is is looking looking fforor efeffective fective people people wwho ho can can get get the the right right things things done done on on timetime. . ClearlyClearly, , project project man-man- agement agement is is a a challenging challenging and and eexciting xciting prprofession. ofession. This This text text is is intended intended to to prproovidevide the the necessary necessary knoknowledgewledge, , perspectiveperspective, , and and tools tools to to enaenable ble students students to to accept accept thethe challengechallenge..

Being Being Part Part of of a a Project Project TTeameam Most Most people’people’s s first first exposure exposure to to prproject oject management management occurs occurs wwhile hile wworking orking as as partpart ofof a a team team assigned assigned to to complete complete a a specific specific project. project. Sometimes Sometimes this this wwork ork is is full-timefull-time,, but but in in most most casescases, , people people work work part-time part-time on on one one or or mormore e prprojectsojects. . They They must must learnlearn hohow w to to juggle juggle their their day-to-daday-to-day y commitments commitments with with additional additional prproject oject responsibili-responsibili- tiesties. . They They mamay y join join a a team team with with a a long long history history ofof w working orking togethertogether, , in in which which casecase rroles oles and and nornorms ms are are firmly firmly estaestablished. blished. AlternatiAlternativelyvely, , their their team team mamay y consist consist ofof strangers strangers frfrom om differdifferent ent departments departments and and organizaorganizationstions. . As As such, such, they they endure endure thethe grgrowing owing pains pains ofof a a grgroup oup evolving evolving into into a a team. team. They They need need to to be be a a positipositive ve fforce orce inin helping helping the the team team coalesce coalesce into into an an efeffective fective prproject oject team.team.

Not Not only only arare e there there people people issuesissues, , but but prproject oject members members are are also also expected expected to to useuse prproject oject management management tools tools and and conceptsconcepts. . They They develop develop or or are are gigiven ven a a prproject oject chartercharter

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Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1111

or or scope scope stastatement tement that that defines defines the the objectiobjectives ves and and parameters parameters ofof the the project.project. They They wwork ork with with others others to to creacreate te a a prproject oject schedule schedule and and budget budget thathat t will will guide guide project project eexe-xe- cution. cution. They They need need to to understand understand prproject oject priorities priorities so so they they can can make make independentindependent decisionsdecisions. . They They must must knoknow w how how to to monitor monitor and and rreport eport project project prprogressogress. . AlthoughAlthough much much ofof this this book book is is written written frfrom om the the perspective perspective ofof a a prproject oject managermanager, , the the toolstools,, conceptsconcepts, , and and methods methods are are critical critical to to everyeveryone one worworking king on on a a project. project. PrProject oject mem-mem- bers bers need need to to knoknow w how how to to aavoid void the the dangers dangers ofof scope scope creepcreep, , manage manage the the criticalcritical papath, th, engage engage in in timeltimely y risk risk management, management, negotianegotiatete, , and and utilizutilize e virtual virtual tools tools toto communicacommunicatete..

Current Current Drivers Drivers of of Project Project ManagementManagement PrProject oject management management is is no no longer longer a a special-need special-need manamanagement. gement. It It is is rapidlrapidly y becom-becom- ing ing a a standard standard wwaay y ofof doing doing businessbusiness. . See See Snapshot Snapshot frfrom om Practice: Practice: PrProject oject Man-Man- agement agement in in Action: Action: 2013. 2013. An An incrincreasing easing percentage percentage ofof the the typical typical firm’firm’s s effeffort ort isis being being devdevoted oted to to prprojectsojects. . The The future future prpromises omises an an increase increase in in the the importance importance andand the the rrole ole ofof pr projects ojects in in contributing contributing to to the the strastrategic tegic direction direction ofof organiza organizationstions. . Sev-Sev- eral eral reasons reasons wwhhy y this this is is the the case case are are briefly briefly discussed discussed belobeloww..

Compression Compression ofof the the Product Product Life Life CyCyclecle One One ofof the the most most significant significant driving driving fforces orces behind behind the the demand demand ffor or prproject oject manage-manage- ment ment is is the the shortening shortening ofof the the product product life life cycyclecle. . FFor or exampleexample, , todatoday y in in high-techhigh-tech

industries industries the the product product life life cycycle cle is is aaveraveraging ging 6 6 months months to to 3 3 yearsyears. . Only Only 30 30 yearsyears agoago, , life life cycles cycles ofof 10 10 to to 15 15 years years were were not not uncommon. uncommon. Time Time to to marmarketket f for or newnew prproducts oducts with with short short life life cycles cycles has has become become increasinglincreasingly y important. important. A A common common rulerule ofof thumb thumb in in the the world world ofof high-tech high-tech prproduct oduct development development is is thathat t a a six-month six-month prproj-oj- ect ect deladelay y can can result result in in a a 33 33 percent percent loss loss in in prproduct oduct revenrevenue ue shareshare. . Speed, Speed, therefthereforeore,, becomes becomes a a competitivcompetitive e advantaadvantage; ge; more more and and mormore e organizaorganizations tions are are relrelying ying onon crcross-functional oss-functional project project teams teams to to get get nenew w products products and and services services to to the the marmarket ket asas quickly quickly as as possibpossiblele..

KnowledgKnowledge e ExplosionExplosion The The grgrowth owth in in nenew w knowledge knowledge has has increased increased the the complecomplexity xity ofof pr projects ojects becausebecause prprojects ojects encompass encompass the the latest latest adadvancesvances. . FFor or exampleexample, , building building a a rroad oad 30 30 years years agoago waswas a a somesomewhawhat t simple simple prprocessocess. . TTodaodayy, , each each area area has has increased increased in in complecomplexityxity, , in-in- cluding cluding mamaterialsterials, , specificationsspecifications, , codescodes, , aestheticsaesthetics, , equipment, equipment, and and required required spe-spe- cialistscialists. . SimilarlySimilarly, , in in todatoday’y’s s digital, digital, electronic electronic aage ge it it is is becoming becoming hard hard to to find find aa new new prproduct oduct that that does does not not contain contain aat t least least one one microchipmicrochip. . PrProduct oduct complexity complexity hashas increased increased the the need need to to integraintegrate te diverdivergent gent technologiestechnologies. . Project Project manamanagement gement hashas emeremerged ged as as an an important important discipline discipline for for achieachieving ving this this task.task.

TTriple riple Bottom Bottom Line Line (planet, (planet, people, people, prprofit)ofit) The The threathreat t ofof global global wwararming ming has has brought brought sustainasustainable ble bbusiness usiness practices practices to to thethe fforefrorefront. ont. Businesses Businesses can can no no longer longer simply simply ffocus ocus on on maximizing maximizing profit profit to to thethe detriment detriment ofof the the envirenvironment onment and and societysociety. . EfEfforts forts to to rreduce educe carbon carbon imprint imprint andand utilize utilize renewrenewaable ble resources resources arare e realized realized through through efeffective fective prproject oject management.management. The The impact impact ofof this this movmovement ement towtowards ards sustainasustainability bility can can be be seen seen in in changes changes inin

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12 12 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

the the objectivobjectives es and and techniques techniques used used to to complete complete projectsprojects. . See See Snapshot Snapshot frfromom Practice: Practice: Dell Dell ChildrenChildren’’s s Becomes Becomes WWorld’orld’s s First First “Green”“Green” Hospital. Hospital.

CorporCorporate ate DownsizingDownsizing The The last last decade decade has has seen seen a a dramadramatic tic restructuring restructuring ofof organiza organizational tional lifelife. . DoDownsizwnsiz-- ing ing (or (or rightsizing rightsizing ifif you you arare e still still employemployed) ed) and and sticking sticking to to core core competenciescompetencies

Businesses Businesses thrive thrive and and survive survive basedbased on on their their ability ability to to managemanage projects projects that that produce produce products products and and services services that that meet meet marketmarket needs. needs. Below Below is is a a small small sample sample of of projects projects that that are are importantimportant to to their their company’company’s s future.future.

ORGANIZAORGANIZATION: TION: PROCTER PROCTER AND AND GAMBLEGAMBLE Project: Project: Global Global Ordering, Ordering, Shipping, Shipping, and and Billing Billing ProjectProject The The project project goal goal is is to to improve improve customer customer service, service, processes,processes, and and organization organization structure. structure. The The global global team team relied relied on on virtualvirtual communication, communication, while while closely closely managing managing risk risk and and milestonemilestone dates. dates. The The new new system system is is designed designed to to allow allow P&G P&G to to makemake

real-time real-time decdecisions, isions, enabling enabling the the company company to to collect collect andand respond respond to to consumer/retailer consumer/retailer feedback feedback to to create create more more comcom-- pelling pelling promotions promotions to to increase increase sales. sales. The The system system shouldshould also also improve improve efficiencies efficiencies in in supply supply chains chains byby, , for for example, example, identifyidentify-- ing ing the the best best warehouses warehouses to to ship ship products products to.to.

——PMI PMI TToday,oday, 2012 2012 PMI PMI Project Project of of the the YYear ear Finalists, Finalists, DecemberDecember 2012, 2012, p. p. 77

S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E Project Project Management Management in in Action: Action: 20132013

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Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1313

ORGANIZAORGANIZATION: TION: CHINA CHINA SUNERGY SUNERGY CO., CO., LLTDTD Project: Project: Sanliurfa Sanliurfa Solar Solar Park, Park, TTurkeyurkey The The Chinese Chinese companycompany, , Sunergy, Sunergy, has has entered entered into into a a jointjoint agreement agreement with with Seul Seul EnergyEnergy, , a a leading leading solar solar developerdeveloper, , to to de-de- velop velop a a 500kw 500kw solar solar park park in in Sanliurfa, Sanliurfa, TTurkey. urkey. The The plants plants willwill incorporate incorporate state state of of the the art art technology technology and and new new types types of of solarsolar cells. cells. The The project project is is the the beginning beginning of of an an ambitious ambitious programprogram designed designed to to meet meet the the expected expected growth growth in in demand demand for for energyenergy in in Central Central Asia.Asia.

—www—www.prnewswire.com/news-releases/china, .prnewswire.com/news-releases/china, accessedaccessed 1/5/131/5/13

ORGANIZAORGANIZATION: TION: THE THE WALWALT T DISNEY DISNEY COMPCOMPANYANY Project: Project: Star Star Wars Wars Episode Episode 77 Disney Disney spent spent over over $4 $4 billion billion to to purchase purchase Lucasfilm, Lucasfilm, which which in-in- cluded cluded exclusive exclusive past past and and future future rights rights to to the the popular popular StarStar WWars ars franchise. franchise. Preproduction Preproduction work work on on the the newest newest Star Star WarsWars feature feature is is scheduled scheduled to to begin begin in in 2013 2013 with with a a projected projected releaserelease date date in in 2015. 2015. The The Star Star WWars ars investment investment is is seen seen by by industry industry ex-ex- perts perts as as an an effort effort by by Disney Disney to to broaden broaden its its pop pop culture culture reachreach and and re-establish re-establish Disney Disney films films in in the the sci-fi/fantasy sci-fi/fantasy genre genre afterafter the the failure failure of of space space epic epic and and ..John John CarterCarter Mars Mars Needs Needs MomsMoms

—— 11/11/12 11/11/12businessweek.com,businessweek.com,

ORGANIZAORGANIZATION: TION: DISH DISH NETWORKNETWORK Project: Project: HopperHopper Dish Dish Network Network made made a a splash splash at at the the 2013 2013 Consumer Consumer ElectronicsElectronics Show Show by by showing showing off off the the latest latest generation generation of of HopperHopper, , a a whole-whole- home home HD HD DVR DVR system. system. Hopper Hopper includes includes commercial commercial skippingskipping technology technology and and the the ability ability to to move move programs programs onto onto iPads iPads andand other other mobile mobile devices. devices. The The announcement announcement cemented cemented Dish’Dish’s s po-po- sition sition as as one one of of the the leaders leaders in in the the “TV “TV Everywhere” Everywhere” movementmovement in in which which favorite favorite shows shows and and movies movies can can be be accessed accessed from from anyany device device at at any any location. location. Dish Dish is is counting counting on on Hopper Hopper and and relatedrelated products products to to compete compete against against DirecDirecTV TV and and deep-pocketeddeep-pocketed cable cable and and telecom telecom providers.providers.

—Ces.cnet.com,—Ces.cnet.com, 1/8/13 1/8/13

ORGANIZAORGANIZATION: TION: BILL BILL & & MELINDA MELINDA GAGATESTES FOUNDAFOUNDATIONTION Project: Project: Drought-TDrought-Tolerant olerant Maize Maize for for AfricaAfrica The The goal goal of of the the project project is is to to help help farmers farmers in in Sub-SaharanSub-Saharan

Af rica Af rica living living in in drought-susceptible drought-susceptible areas areas increase increase theirtheir maize maize (corn) (corn) productivityproductivity. . Getting Getting the the improved improved maize maize varietiesvarieties into into the the hands hands of of African African farmers farmers is is the the product product of of over over twotwo decades decades of of research research and and involves involves a a broad broad coalition coalition ofof

partners, partners, from from governments governments and and NGOs NGOs to to seed seed dealers dealers andand farmers. farmers. More More than than 2 2 million million smallholder smallholder farmers farmers in in AfricaAfrica are are already already realizing realizing the the benefits benefits of of higher higher yields. yields. By By 2016,2016, the the drought-tolerant drought-tolerant maize maize project project is is expected expected to to boostboost maize maize yields yields by by as as much much as as 30%, 30%, benefiting benefiting up up to to 40 40 millionmillion people people in in Africa.Africa.

—— accessed accessed 1/9/131/9/13gatesfoundation.org,gatesfoundation.org,

ORGANIZAORGANIZATION: TION: FIAFIATT, , ITITALALYY Project: Project: 2013 2013 Fiat Fiat 500 500 EVEV Available Available Spring Spring 2013, 2013, the the EV EV is is a a totally totally electric electric version version of of thethe popular popular Fiat Fiat 500 500 line. line. The The EV EV sports sports a a 100-hp 100-hp electric electric motormotor powered powered by by lithium lithium batteries batteries with with 87 87 miles miles of of electric electric range.range. Fiat Fiat needs needs to to prove prove that that it it is is a a forward forward looking looking company company andand provide provide another another reason reason to to buy buy the the 500 500 other other than than styling styling or or thethe sales sales curve curve will will plunge plunge once once the the cuteness cuteness fails. fails. Success Success willwill depend depend upon upon overcoming overcoming customer customer range range anxiety anxiety and and the the riskrisk that that governments governments will will stop stop supporting supporting electric electric vehicles vehicles withwith attractive attractive subsidies.subsidies.

——caranddrivercaranddriver.com,.com, accessed accessed 1/20/131/20/13

ORGANIZAORGANIZATION: TION: SONYSONY, , JAPJAPANAN Project: Project: Sony Sony PlayStation PlayStation 4 4 (PS4)(PS4) It’It’s s been been seven seven years years since since Sony Sony released released the the highly highly success-success- ful ful PlayStation PlayStation 3, 3, and and the the Internet Internet is is buzzing buzzing with with rumors rumors of of aa fourth-generation fourth-generation PlayStation. PlayStation. The The PS4 PS4 reportedly reportedly will will featurefeature a a tablet-style tablet-style controller controller and and state state of of the the art art graphics. graphics. At At stakestake is is Sony’Sony’s s position position in in the the $10 $10 billion-plus billion-plus gaming gaming industry.industry.

—— accessed accessed 1/11/131/11/13sonyps4.com,sonyps4.com,

hahave ve become become necessary necessary ffor or survival survival ffor or manmany y firfirmsms. . Middle Middle management management is is a a mermeree skskeleton eleton ofof the the past. past. In In todatoday’y’s s fflalatter tter and and leaner leaner organizaorganizationstions, , wherwhere e change change is is aa constant, constant, prproject oject management management is is replacing replacing midmiddle dle management management as as a a wway ay ofof ensur- ensur- ing ing thathat t things things get get donedone. . CorporaCorporate te downsizing downsizing has has also also led led to to a a change change in in the the wwayay ororganizations ganizations aapproach pproach prprojectsojects. . Companies Companies outsource outsource significant significant segments segments ofof prproject oject worwork, k, and and project project manamanagers gers hahave ve to to manage manage not not onlonly y their their own own people people bbutut also also their their counterparts counterparts in in difdifferent ferent organizaorganizationstions..

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14 14 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

Increased Increased Customer Customer FFocusocus Increased Increased competition competition has has placed placed a a prpremium emium on on customer customer satisfaction. satisfaction. CustomersCustomers no no longer longer simply simply settle settle ffor or generic generic prproducts oducts and and servicesservices. . They They want want customizedcustomized prproducts oducts and and services services that that cacater ter to to their their specific specific needsneeds. . This This mandate mandate rrequires equires a a muchmuch closer closer wworking orking relarelationship tionship between between the the prproovider vider and and the the receivreceiverer. . Account Account exexecu-ecu- tivtives es and and sales sales representarepresentatives tives arare e assuming assuming more more ofof a a prproject oject manager’manager’s s role role as as theythey wwork ork with with their their ororganization ganization to to sasatisfy tisfy the the unique unique needs needs and and requests requests ofof clients clients..

Increased Increased customer customer aattention ttention has has also also prompted prompted the the dedevelopment velopment ofof custom- custom- ized ized products products and and servicesservices. . FFor or exampleexample, , 15 15 years years ago ago bbuying uying a a set set ofof golf golf clubs clubs was was a a rrelatielatively vely simple simple prprocess: ocess: YYou ou pickpicked ed out out a a set set based based on on price price and and feel.feel. TTodayoday, , there there are are golfgolf clubs clubs ffor or tall tall playplayers ers and and short short playplayersers, , clubs clubs ffor or playplayers ers whowho tend tend to to slice slice the the ball ball and and clubs clubs ffor or those those who who hook hook the the ball, ball, high-tech high-tech clubs clubs withwith the the lalatest test metallurgic metallurgic discodiscovery very guaranteed guaranteed to to adadd d distancedistance, , and and so so forth. forth. PrProjectoject management management is is critical critical both both to to dedevelopment velopment ofof customiz customized ed prproducts oducts and and servicesservices and and to to sustaining sustaining lucralucrative tive rrelationships elationships with with customerscustomers..

Dateline Dateline 1/7/2009, 1/7/2009, Austin Austin TTexas: exas: Dell Dell Children’Children’ss Medical Medical Center Center becomes becomes the the first first hospital hospital inin the the world world to to receive receive platinum platinum LEED LEED (Leader(Leader-- ship ship in in Energy Energy & & Environmental Environmental Design) Design) certi-certi-

fication. fication. Platinum Platinum certification certification is is the the highest highest award award granted granted byby the the U.S. U.S. Green Green Building Building Council.Council.

Dell Dell Children’Children’s s occupies occupies nearly nearly one-half one-half million million square square feetfeet on on 332 2 acres acres that that were were once once part part of of Austin’Austin’s s old old Mueller Mueller Airport.Airport. Its Its environmentally environmentally sensitive sensitive design design not not only only conserves conserves waterwater and and electricityelectricity, , but but positively positively impacts impacts the the hospital’hospital’s s clinical clinical en-en- vironment vironment by by improving improving air air qualityquality, , making making natural natural sunlightsunlight readily readily available, available, and and reducing reducing a a wide wide range range of of pollutants.pollutants.

In In order order to to receive receive LEED LEED certification, certification, buildings buildings are are rated rated in in fivefive key key areas: areas: sustainable sustainable site site development, development, water water savings, savings, energyenergy efficiencyefficiency, , materials materials selection, selection, and and environmental environmental quality. quality. ListedListed below below are are some some of of the the accomplishments accomplishments in in each each LEED LEED category:category:

Sustainable Sustainable SiteSite

• • 47,000 47,000 tons tons of of Mueller Mueller Airport Airport runway runway material material was was reusedreused on on site.site.

• • About About 40 40 percent percent fly fly ash ash instead instead of of Portland Portland cement cement in in con-con- crete crete yields yields a a drop drop in in carbon carbon dioxide dioxide emissions emissions equivalentequivalent to to taking taking 450 450 cars cars off off the the road.road.

• • 925 925 tons tons of of construction construction waste waste was was recycled recycled on on site.site.

WWater ater Efficiency Efficiency and and Water Water ConservationConservation

• • Reclaimed Reclaimed water water is is used used for for irrigation; irrigation; xeriscaped xeriscaped land-land- scaping scaping uses uses native native plants, plants, which which require require less less waterwater..

• • Low-flow Low-flow plumbing plumbing fixtures.fixtures.

S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E Dell Dell Children’Children’s s Becomes Becomes World’World’ss First First “Green” “Green” Hospital*Hospital*

Energy Energy Efficiency Efficiency and and Energy Energy ConservationConservation

• • An An on-site on-site natural natural gas gas turbine turbine supplies supplies all all electricityelectricity,, which which is is 75 75 percent percent more more efficient efficient than than coal-fired coal-fired plants.plants.

• • Converted Converted steam steam energy energy from from a a heating/cooling heating/cooling plant plant sup-sup- plies plies all all chilled chilled water water needs.needs.

Indoor Indoor Environment Environment Quality Quality and and LightingLighting

• • Most Most interior interior spaces spaces are are within within 32 32 feet feet of of a a windowwindow.. • • Motion Motion and and natural natural light light sensors sensors shut shut off off unneeded unneeded lights.lights.

Conservation Conservation of of Materials Materials and and ResourcesResources

• • Use Use of of local local and and regional regional materials materials saves saves fuel fuel for for shipping.shipping. • • Special Special paints paints and and flooring flooring emit emit low low levels levels of of volatile volatile oror--

ganic ganic compounds compounds (VOCs).(VOCs).

“Even “Even before before the the first first plans plans were were drawn drawn up, up, we we set set our our sightsight on on creating creating a a world-class world-class children’children’s s hospital, hospital, and and becomingbecoming the the first first LEED LEED Platinum Platinum hospital hospital in in the the world world was was definitely definitely partpart of of that,” that,” said said Robert Robert BonarBonar, , president president and and CEO, CEO, Dell Dell Children’Children’ss Medical Medical Center Center of of Central Central TTexas. exas. “Our “Our motivation motivation to to pursuepursue LEED LEED Platinum Platinum was was not not just just environmental. environmental. Being Being a a ‘green’‘green’ hospital hospital has has profound, profound, memeasurable asurable effect effect on on healing. healing. What’What’ss good good for for the the environment environment and and good good for for our our neighbors neighbors is is alsoalso good good for for our our patients.”patients.”

* * 1-11-2009; 1-11-2009; wwwwww.dellchildrens.net/about_.dellchildrens.net/about_Austin Austin Business Business Journal,Journal, us/news/2009/01/08.us/news/2009/01/08.

Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1515

Small Small Projects Projects RRepresent epresent Big Big PrProblemsoblems The The velocity velocity ofof change change required required to to rremain emain competitive competitive or or simplsimply y keep keep up up hashas creacreated ted an an organizaorganizational tional climaclimate te in in which which hundreds hundreds ofof pr projects ojects are are implementedimplemented concurrentlconcurrentlyy. . This This climate climate has has creacreated ted a a multiprmultiproject oject enenvironment vironment and and a a plethoraplethora ofof new new prproblemsoblems. . Sharing Sharing and and prioritizing prioritizing resources resources acracross oss a a portfportfolio olio ofof

prprojects ojects is is a a major major challenge challenge ffor or senior senior management. management. ManMany y firms firms hahave ve no no ideaidea ofof the the probproblems lems ininvolved volved with with inefinefficient ficient management management ofof small small projectsprojects. . SmallSmall prprojects ojects typically typically carry carry the the same same or or more more risk risk as as do do larlarge ge projectsprojects. . Small Small projectsprojects are are perceivperceived ed as as hahaving ving little little impact impact on on the the bottom bottom line line because because they they do do notnot demand demand large large amounts amounts ofof scarce scarce rresources esources and/or and/or moneymoney. . Because Because so so manmany y smallsmall prprojects ojects are are going going on on concurrentlconcurrently y and and because because the the perception perception ofof the the inefficiencyinefficiency impact impact is is small, small, measuring measuring inefinefficiency ficiency is is usually usually nonexistent. nonexistent. UnfUnfortunatelortunatelyy,, manmany y small small prprojects ojects soon soon add add up up to to large large sums sums ofof money money. . ManMany y customers customers andand millions millions ofof dollars dollars are are lost lost each each year year on on small small prprojects ojects in in product product and and serviceservice ororganizationsganizations. . Small Small projects projects can can rrepresent epresent hidden hidden costs costs not not measured measured in in thethe accounting accounting system.system.

OrOrganizations ganizations with with manmany y small small projects projects going going on on concurrconcurrently ently face face the the mostmost difdifficult ficult project project manamanagement gement prproblemsoblems. . A A key key question question becomes becomes one one ofof ho how w toto creacreate te an an organizaorganizational tional envirenvironment onment that that supports supports mmultiproject ultiproject manamanagement. gement. AA prprocess ocess is is needed needed to to prioritizprioritize e and and devdevelop elop a a portfolio portfolio ofof small small prprojects ojects thatthat

supports supports the the mission mission ofof the the ororganization.ganization. In In summarysummary, , there there are are a a vvariety ariety ofof en envirvironmental onmental forforces ces interacting interacting in in todatoday’y’ss

business business wworld orld that that contribcontribute ute to to the the increased increased demand demand ffor or good good projectproject management management acracross oss all all industries industries and and sectorssectors. . PrProject oject management management aappears ppears toto be be ideally ideally suited suited ffor or a a business business enenvironment vironment rrequiring equiring accountaaccountabilitybility, , flexibilityflexibility,, innoinnovavation, tion, speed, speed, and and contincontinuous uous improimprovement. vement. These These enenvironment vironment and and otherother factors factors hahave ve creacreated ted the the necessity necessity ffor or major major ovoversight ersight ofof all all organizaorganizationtion prprojectsojects..

Project Project GovernanceGovernance Competing Competing in in a a global global markmarket et influenced influenced by by rarapid pid changechange, , innoinnovavation, tion, and and time time toto markmarket et means means ororganizations ganizations manamanage ge more more and and more more prprojectsojects. . Some Some means means fforor coordinacoordinating ting and and managing managing prprojects ojects in in this this changing changing envirenvironment onment is is needed. needed. Cen-Cen- tralizatralization tion ofof pr project oject management management prprocesses ocesses and and practices practices has has been been the the practicalpractical outcomeoutcome. . FFor or exampleexample, , GoogleGoogle, , AppleApple, , General General Electric, Electric, and and SonSony y all all hahave ve ooverver 1,000 1,000 prprojects ojects being being implemented implemented concurrently concurrently eevery very daday y ofof the the year year acracross oss bor-bor- ders ders and and difdiffering fering culturescultures. . Questions: Questions: How How do do these these ororgganizations anizations ooversee versee the the man-man- agagement ement ofof all all these these projects? projects? HoHow w werwere e these these projects projects selected? selected? HoHow w do do they they ensurensuree performance performance measurmeasurement ement and and accountability? accountability? How How can can prproject oject management management contin-contin- ually ually imprimprovove?e? Centralization Centralization entails entails gogovernance vernance ofof all all prproject oject prprocesses ocesses and and prac-prac- tices tices to to imprimprovove e project project manamanagement.gement.

GoGovernance vernance is is designed designed to to imprimprovove e project project manamanagement gement in in the the whole whole ororganiza-ganiza- tion tion oover ver the the long long haul. haul. The The rarationale tionale ffor or integration integration ofof pr project oject management management wwasas to to prprovide ovide senior senior manamanagement gement with:with:

• • An An ooverview verview ofof all all prproject oject management management activities;activities; • • A A big big picture picture ofof how how ororganizaganizational tional resources resources are are being being used;used; • • An An assessment assessment ofof the the risk risk their their portfolio portfolio ofof pr projects ojects represents;represents;

16 16 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

• • A A rrough ough metric metric ffor or measuring measuring the the improimprovement vement ofof mana managing ging projects projects rrelativelativee to to others others in in the the industry;industry;

• • Linkages Linkages ofof senior senior management management with with actual actual prproject oject execution execution manamanagement.gement.

Full Full insight insight ofof all all componentcomponents s ofof the the organizaorganization tion is is crucial crucial ffor or aligning aligning internalinternal business business rresources esources with with the the requirrequirements ements ofof the the changing changing enenvironment. vironment. GoGover-ver- nance nance enaenables bles manamanagement gement to to hahave ve greagreater ter flexibility flexibility and and better better contrcontrol ol ofof all all prproject oject management management activitiesactivities..

OperaOperationallytionally, , whawhat t does does prproject oject management management integraintegration tion mean? mean? It It necessitanecessitatestes combining combining all all ofof the the major major dimensions dimensions ofof pr project oject management management under under one one um-um- brella. brella. Each Each dimension dimension is is connected connected in in one one seamlessseamless, , integraintegrated ted domain. domain. GovGover-er- nance nance means means applapplying ying a a set set ofof kno knowledgewledge, , skillsskills, , toolstools, , and and techniques techniques to to aa collection collection ofof projects projects in in ororder der to to movmove e the the organizaorganization tion towtoward ard its its strastrategic tegic goalsgoals.. This This integraintegrative tive momovement vement represents represents a a major major thrust thrust ofof pr project oject driven driven ororganiza-ganiza- tions tions acracross oss all all industriesindustries. . See See Figure Figure 1.2, 1.2, IntegraIntegrated ted Management Management ofof Projects Projects..

Alignment Alignment of of Projects Projects with with Organizational Organizational StrategyStrategy TTodayoday, , projects projects arare e the the f for or implementing implementing strategystrategy. . YYet et in in some some ororga-ga-modus modus operandioperandi nizanizationstions, , selection selection and and management management ofof projects projects often often fail fail to to support support the the strstrategicategic plan plan ofof the the organizaorganization. tion. Strategic Strategic plans plans arare e written written by by one one grgroup oup ofof mana managersgers, , proj-proj- ects ects selected selected by by another another grgroup, oup, and and prprojects ojects implemented implemented by by anotheranother. . These These indepen-indepen- dent dent decisions decisions by by difdifferent ferent grgroups oups ofof managers managers crcreate eate a a set set ofof conditions conditions leading leading toto conflict, conflict, confusion, confusion, and and frequentlfrequently y an an unsatisfied unsatisfied customercustomer. . Under Under these these conditionsconditions,, resourresources ces ofof the the organizaorganization tion are are wasted wasted in in non-vnon-value-added alue-added activities/practivities/projectsojects..

Since Since prprojects ojects are are the the modus modus operandi, operandi, strastrategic tegic alignment alignment ofof pr projects ojects is is ofof major major importance importance to to conserving conserving and and efeffective fective use use ofof organiza organization tion resourresourcesces. . Selec-Selec- tion tion criteria criteria need need to to ensure ensure each each prproject oject is is prioritized prioritized and and contributes contributes to to strastrategictegic goalsgoals. . AnAnything ything less less is is a a waste waste ofof scarce scarce organizaorganizational tional resources—peopleresources—people, , capital,capital, and and equipment. equipment. Ensuring Ensuring alignment alignment requirrequires es a a selection selection process process thathat t is is systemasystematic,tic, open, open, consistent, consistent, and and balanced. balanced. All All ofof the the projects projects selected selected become become part part ofof a a proj-proj- ect ect portfportfolio olio that that balances balances the the total total risk risk ffor or the the organizaorganization. tion. Management Management ofof the the prproject oject portfportfolio olio ensures ensures that that onlonly y the the most most valuavaluable ble prprojects ojects are are aappropproved ved andand managed managed acracross oss the the entire entire ororganization.ganization.

Organizational Organizational CultCultureure EnEnvironmentvironment

StrategicStrategic AlignmentAlignment

PPorortfoliotfolio ManagementManagement

PProjectroject ManagementManagement

FIGURE FIGURE 1.21.2 IntegratedIntegrated Management Management ofof PrProjectsojects

Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1717

TTechnicalechnical

ScopeScope WBSWBS SchedulesSchedules ResourResource ce allocationallocation Baseline Baseline budgetsbudgets Status Status reportsreports

SocioculturSocioculturalal

LeadershipLeadership PProbroblem lem solvingsolving TTeamworkeamwork NegotiationNegotiation PPoliticsolitics Customer Customer eexpectationsxpectations

FIGURE FIGURE 1.31.3 The The Socio-TSocio-Technicalechnical Dimensions Dimensions ofof the the PrProject oject ManagementManagement PrProcessocess

Project Project Management Management TToday: oday: A A Socio-TSocio-Technical echnical ApproachApproach Senior Senior management management is is often often ininvolvvolved ed in in selecting selecting projects projects bbut ut seldom seldom ininvolvvolved ed inin implementing implementing them. them. Implementing Implementing the the prproject oject is is the the challengechallenge..

There There arare e two two dimensions dimensions within within the the actual actual eexecution xecution ofof pr projects ojects (see (see Fig-Fig- ure1.3, ure1.3, The The TTechnical echnical and and Sociocultural Sociocultural Dimensions Dimensions ofof the the Project Project ManaManagementgement PrProcess). ocess). The The first first dimension dimension is is the the technical technical side side ofof the the management management prprocessocess,, which which consists consists ofof the the fforormal, mal, disciplined, disciplined, purelpurely y logical logical parts parts ofof the the processprocess. . ThisThis technical technical dimension dimension includes includes planning, planning, scheduling, scheduling, and and contrcontrolling olling projectsprojects. . ClearClear prproject oject scope scope statements statements arare e written written to to link link the the project project and and customer customer and and to to facil-facil- itaitate te planning planning and and control. control. CrCreation eation ofof the the deliverdeliverabables les and and worwork k breakdobreakdownwn structures structures facilitafacilitates tes planning planning and and monitoring monitoring the the prprogress ogress ofof the the prproject. oject. TheThe wwork ork breakdobreakdown wn structure structure serves serves as as a a dadatabase tabase thathat t links links all all levels levels in in the the ororganiza-ganiza- tion, tion, major major delivdeliveraerablesbles, , and and all all worwork—right k—right down down to to the the tasks tasks in in a a wwork ork packapackagege.. EfEffects fects ofof pr project oject changes changes are are documented documented and and traceatraceableble. . ThusThus, , any any change change in in oneone part part ofof the the project project is is traceatraceable ble to to the the source source bby y the the integraintegrated ted linkages linkages ofof the the sys-sys- tem. tem. This This integraintegrated ted infinforormation mation aapprpproach oach can can proprovide vide all all prproject oject managers managers andand the the customer customer with with decision decision infinforormamation tion apprappropriate opriate to to their their lelevel vel and and needsneeds. . AA successful successful prproject oject manager manager will will be be wwell ell trained trained in in the the technical technical side side ooff managing managing prprojectsojects..

The The second second and and opposing opposing dimension dimension is is the the sociocultural sociocultural side side ofof pr project oject manage-manage- ment. ment. In In contrast contrast to to the the orderorderly ly wworld orld ofof pr project oject planning, planning, this this dimension dimension ininvolvvolveses the the much much messiermessier, , often often contradictory contradictory and and paradoparadoxical xical worworld ld ofof implementation. implementation. ItIt centers centers on on creacreating ting a a temporary temporary social social system system within within a a larlarger ger organizaorganizational tional enenvi-vi- rronment onment that that combines combines the the talents talents ofof a a diverdivergent gent set set ofof pr professionals ofessionals worworking king toto complete complete the the prproject. oject. See See RResearch esearch Highlight: Highlight: WWorks orks WWell ell with with OthersOthers. . PrProjectoject managers managers mmust ust shape shape a a prproject oject culture culture that that stimstimulaulates tes teamworteamwork k and and high high levels levels ofof

1818

PrProject oject management management is is a a critical critical skill skill set set in in todatoday’y’s s worworld. ld. A A project project is is defined defined as as aa nonrnonroutineoutine, , one-time one-time effeffort ort limited limited by by timetime, , resourcesresources, , and and perfperforormance mance specifica-specifica- tions tions designed designed to to meet meet customer customer needsneeds. . One One ofof the the distinguishing distinguishing characteristicscharacteristics ofof project project manamanagement gement is is that that it it has has both both a a beginning beginning and and an an end end and and typicalltypicallyy consists consists ofof four four phases: phases: defining, defining, planning, planning, eexecuting, xecuting, and and closing. closing. EfEffectivefective pr projectoject

SummarySummary

The The phrase phrase “works “works well well with with others” others” has has longlong been been a a staple staple on on grade grade school school report report cards; cards; nownow,, in in the the IT IT world, world, it’it’s s the the No. No. 1 1 criterion criterion for for manage-manage- ment ment candidates. candidates. In In a a nationwide nationwide survey survey con-con- ducted ducted in in 1999, 1999, 27 27 percent percent of of chief chief informationinformation officers officers (CIOs) (CIOs) cited cited strong strong interpersonal interpersonal skills skills asas

the the single single most most important important quality quality for for reaching reaching managementmanagement levels. levels. Advanced Advanced technical technical skills skills came came in in second, second, receivingreceiving 23 23 percent percent of of the the response.response.

The The project project was was sponsored sponsored by by RHI RHI Consulting, Consulting, which which pro-pro- vides vides information information technology technology professionals professionals on on a a project project ba-ba- sis. sis. An An independent independent research research firm firm was was hired hired to to administer administer thethe surveysurvey. . Over Over 1,400 1,400 CIOs CIOs responded responded to to the the questionnaire.questionnaire.

Survey Survey respondents respondents were were also also asked:asked: In In 2005, 2005, how how frequently frequently will will employees employees in in your your IT IT depart-depart-

ment ment work work on on project-based project-based teteams ams with with members members of of otherother departments departments throughout throughout the the company?company?

Their Their responses: responses: VVery ery frequently frequently 57%57% Somewhat Somewhat frequently frequently 26%26% Somewhat Somewhat infrequently infrequently 10%10% VVery ery infrequently infrequently 6%6% Never Never 1%1%

Greg Greg Scileppi, Scileppi, RHI RHI Consulting’Consulting’s s executive executive directordirector, , recom-recom- mends mends that that IT IT professionals professionals develop develop their their interpersonal interpersonal skills.skills. “The “The predominance predominance of of project project teams teams has has created created a a corre-corre- sponding sponding need need for for strong strong communication communication and and team-playerteam-player abilities. abilities. TTechnical echnical staff staff put put these these skills skills to to test test daily daily as as theythey work work with with employees employees at at all all levels levels to to create create and and implement implement ITIT solutions solutions ranging ranging from from simple simple troubleshooting troubleshooting to to corporatecorporate web web initiatives initiatives and and system system wide wide upgrades.”upgrades.”

* * Joanita Joanita M. M. Nellenbach, Nellenbach, “People “People Skills Skills TTop op TTechnical echnical Knowledge, Knowledge, CIOsCIOs Insist,” Insist,” (August (August 1999), 1999), pp. pp. 7–8.7–8.PMNetwork PMNetwork

Research Research Highlight Highlight WWorks orks Well Well with with Others*Others*

personal personal motivmotivation ation as as wwell ell as as a a capacity capacity to to quicklquickly y identify identify and and resolve resolve prproblemsoblems thathat t threathreaten ten project project wwork. ork. Things Things rarrarely ely go go as as planned planned and and prproject oject managers managers mmustust be be aable ble to to steer steer the the prproject oject back back on on track track or or alter alter directions directions wwhen hen necessarynecessary..

The The socio-cultural socio-cultural dimension dimension also also ininvolvvolves es managing managing the the interface interface between between thethe prproject oject and and external external enenvirvironment. onment. Project Project manamanagers gers hahave ve to to assuaassuage ge and and shapeshape expectaexpectations tions ofof customers customers, , sustain sustain the the political political support support ofof top top management, management, ne-ne- gotiagotiate te with with their their functional functional counterpartscounterparts, , monitor monitor subcontractorssubcontractors, , and and so so on.on. Overall, Overall, the the manamanager ger must must bbuild uild a a cooperacooperative tive social social netwnetwork ork among among a a didivergentvergent set set ofof allies allies with with different different standarstandardsds, , commitmentscommitments, , and and perspectivesperspectives..

Some Some suggest suggest that that the the technical technical dimension dimension reprrepresents esents the the “science”“science” of of project project management management wwhile hile the the sociocultural sociocultural dimension dimension reprrepresents esents the the “art”“art” of of mana managingging a a prproject. oject. TTo o be be successful, successful, a a manager manager mmust ust be be a a master master ofof both. both. UnfUnfortunaortunatelytely,, some some prproject oject managers managers become become preoccupied preoccupied with with the the planning planning and and technical technical di-di- mension mension ofof project project manamanagement. gement. Often Often their their first first real real exposurexposure e to to project project man-man- agement agement is is thrthrough ough project project manamanagement gement softwarsoftwaree, , and and they they become become infatuainfatuatedted with with netwnetwork ork chartscharts, , Gantt Gantt diagramsdiagrams, , and and perfperforormance mance variances; variances; they they aattempt ttempt toto manage manage a a prproject oject ffrom rom a a distancedistance. . ConvConverselyersely, , there there arare e other other managers managers who who man-man- age age prprojects ojects by by the the “sea“seat t ofof their their pantspants,,”” rel relying ying heaheavily vily on on team team ddynamics ynamics andand ororganizational ganizational politics politics to to complete complete a a prproject. oject. Good Good prproject oject managers managers balancebalance their their aattention ttention to to both both the the technical technical and and sociocultural sociocultural aspects aspects ofof pr projectoject management.management.

Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1919

This This text text is is written written to to prprovide ovide the the reader reader with with a a comprcomprehensiveehensive, , integraintegrative tive underunder-- standing standing ofof the the project project manamanagement gement processprocess. . The The text text ffocuses ocuses both both on on the the sciencescience ofof project project manamanagement gement and and the the art art ofof managing managing prprojectsojects. . FFollowing ollowing this this intrintroduc-oduc- tory tory chapterchapter, , Chapter Chapter 2 2 ffocuses ocuses on on how how ororganizations ganizations go go aabout bout evevaluating aluating andand selecting selecting prprojectsojects. . Special Special attention attention is is devdevoted oted to to the the importance importance ofof aligning aligning prproj-oj- ect ect selection selection to to the the mission mission and and strastrategy tegy ofof the the firm. firm. The The organizaorganizational tional enenviron-viron- ment ment in in which which prprojects ojects are are implemented implemented is is the the ffocus ocus ofof Cha Chapter pter 3. 3. The The discussiondiscussion ofof matrix matrix manamanagement gement and and other other organizaorganizational tional ffororms ms is is augmented augmented by by a a discus-discus- sion sion ofof the the role role the the culturculture e ofof an an organizaorganization tion plaplays ys in in the the implementation implementation ofof prprojectsojects..

The The next next six six chapters chapters ffocus ocus on on developing developing a a plan plan ffor or the the project; project; after after all, all, prproj-oj- ect ect success success begins begins with with a a good good plan. plan. Chapter Chapter 4 4 deals deals with with defining defining the the scope scope ofof the the prproject oject and and developing developing a a wwork ork breakdobreakdown wn structure structure (WBS). (WBS). The The challenge challenge ofof f for-or- mulamulating ting cost cost and and time time estimates estimates is is the the subject subject ofof Chapter Chapter 5. 5. ChaChapter pter 6 6 focuses focuses onon utilizing utilizing the the infinforormamation tion from from the the WBS WBS to to crcreate eate a a prproject oject plan plan in in the the ffororm m ofof a a timed timed and and sequenced sequenced netwnetwork ork ofof activities activities..

Risks Risks are are a a potential potential threathreat t to to evevery ery project, project, and and ChaChapter pter 7 7 examines examines hohow w orga-orga- nizanizations tions and and managers managers identify identify and and manamanage ge risks risks associated associated with with prproject oject wwork.ork. RResource esource allocaallocation tion is is added added to to the the plan plan in in Chapter Chapter 8 8 with with special special aattentionttention devdevoted oted to to how how rresource esource limitalimitations tions impact impact the the project project scheduleschedule. . AAfter fter a a re-re- source source schedule schedule is is estaestablished, blished, a a prproject oject time-phased time-phased budget budget is is dedeveloped. veloped. FinallyFinally,, Chapter Chapter 9 9 eexamines xamines strastrategies tegies for for rreducing educing (“crashing”) (“crashing”) prproject oject time time either either priorprior to to the the initiainitiation tion ofof the the prproject oject or or in in response response to to prproblems oblems or or new new demands demands placedplaced on on the the prproject.oject.

Chapters Chapters 10 10 thrthrough ough 12 12 ffocus ocus on on project project implementaimplementation tion and and the the socioculturalsociocultural side side ofof project project manamanagement, gement, beginning beginning with with Chapter Chapter 10, 10, wwhich hich focuses focuses on on the the rroleole ofof the the project project manamanager ger as as a a leader leader and and stresses stresses the the importance importance ofof managing managing prproj-oj- ect ect stakstakeholders eholders within within the the organizaorganization. tion. Chapter Chapter 11 11 ffocuses ocuses on on the the core core prprojectoject team; team; it it combines combines the the lalatest test informainformation tion on on team team dynamics dynamics with with leadership leadership skills/skills/ techniques techniques ffor or developing developing a a high-perfhigh-perforormance mance prproject oject team. team. Chapter Chapter 12 12 contincontinuesues the the theme theme ofof managing managing prproject oject stakeholders stakeholders bby y discussing discussing how how to to outsouroutsource ce proj-proj- ect ect wwork ork and and negotianegotiate te with with contractorscontractors, , customerscustomers, , and and supplierssuppliers..

ChaChapter pter 13 13 ffocuses ocuses on on the the kinds kinds ofof inf inforormation mation manamanagers gers use use to to monitor monitor prproj-oj- ect ect prprogressogress, , with with special special attention attention devdevoted oted to to the the kkey ey concept concept ofof earned earned valuevalue.. The The prproject oject life life cycle cycle is is completed completed with with Chapter Chapter 14, 14, wwhich hich cocovers vers closing closing out out aa prproject oject and and the the important important assessment assessment ofof perf perforormance mance and and lessons lessons learned. learned. FFourour “supplemental”“supplemental” chapters chapters are are included included to to augment augment the the prproject oject management management corecore.. ImplementaImplementation tion ofof pr project oject management management in in mmulticultural, ulticultural, international international enenviron-viron- ments ments is is the the subject subject ofof Chapter Chapter 15. 15. Chapter Chapter 16 16 ffocuses ocuses the the need need ffor or organizaorganizationaltional ooversight versight and and hohow w it it impacts impacts the the management management ofof projects projects. . The The emergence emergence ofof agile agile prproject oject management, management, a a more more fleflexible xible team team apprapproach oach to to managing managing complex complex prproj-oj- ects ects wherwhere e requirements requirements cannot cannot be be clearlclearly y defined defined befbefore ore the the prproject oject beginsbegins, , is is thethe subject subject ofof Chapter Chapter 17. 17. FinallyFinally, , Chapter Chapter 18 18 concludes concludes with with cocoveraverage ge ofof career career issuesissues in in the the field field ofof project project manamanagement.gement.

management management begins begins with with selecting selecting and and prioritizing prioritizing prprojects ojects that that support support the the firm’firm’ss mission mission and and strastrategytegy. . Successful Successful implementation implementation rrequires equires both both technical technical and and so-so- cial cial skillsskills. . PrProject oject managers managers hahave ve to to plan plan and and budget budget prprojects ojects as as well well as as orchestraorchestratete the the contributions contributions ofof others others..

TText ext OverviewOverview

20 20 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement

ThrThroughout oughout this this text text yyou ou will will be be exposed exposed to to the the major major aspects aspects ofof the the prprojectoject management management system. system. HoHoweverwever, , a a true true understanding understanding ofof pr project oject managementmanagement comes comes not not frfrom om knowing knowing wwhat hat a a scope scope stastatement tement isis, , or or the the critical critical path, path, or or part-part- nering nering with with contractorscontractors, , but but frfrom om comprehending comprehending hohow w the the differdifferent ent elements elements ofof the the prproject oject management management system system interact interact to to determine determine the the fafate te ofof a a prproject. oject. If, If, bbyy the the end end ofof this this text, text, yyou ou come come to to appreciaappreciate te and and begin begin to to master master both both the the technicaltechnical and and sociocultural sociocultural dimensions dimensions ofof project project manamanagement, gement, yyou ou should should hahave ve a a distinctdistinct competitivcompetitive e advantaadvantage ge oover ver others others aspiring aspiring to to wwork ork in in the the field field ofof project project management.management.

Key Key TTermserms PrProgram, ogram, 77 PrProject, oject, 66 PrProject oject life life cyclecycle, , 88

PrProject oject ManagementManagement PrProfessional ofessional (PMP), (PMP), 44

ReviewReview QuestionsQuestions

1. 1. Define Define a a prproject. oject. WhaWhat t are are fivfive e characteristics characteristics thathat t help help differentiadifferentiate te projectsprojects frfrom om other other functions functions carried carried out out in in the the daily daily operaoperations tions ofof the the ororganization?ganization?

2.2. WhaWhat t are are some some ofof the the key key enenvironmental vironmental fforces orces thathat t hahave ve changed changed the the wawayy prprojects ojects are are manamanaged? ged? WWhat hat has has been been the the efeffect fect ofof these these fforces orces on on the the manamanage-ge- ment ment ofof projects? projects?

3. 3. WhWhy y is is the the implementation implementation ofof projects projects important important to to strstrategic ategic planning planning and and thethe prproject oject manager?manager?

4. 4. The The technical technical and and sociocultural sociocultural dimensions dimensions ofof pr project oject management management arare e twotwo sides sides to to the the same same coin. coin. Explain.Explain.

5. 5. WhaWhat t is is the the impact impact ofof go governance vernance on on manamanaging ging an an individual individual prproject? oject? WhWhy y isis this this apprapproach oach important important in in todatoday’y’s s enenvironment?vironment?

ExercisesExercises 1. 1. RReview eview the the frfront ont page page ofof y your our local local newspanewspaperper, , and and try try to to identify identify all all the the projectsprojects contained contained in in the the articlesarticles. . How How manmany y were were yyou ou aable ble to to find?find?

2. 2. IndividuallIndividually y identify identify whawhat t yyou ou consider consider to to be be the the greagreatest test achievements achievements accom-accom- plished plished by by mankind mankind in in the the last last fifive ve decadesdecades. . Now Now sharshare e yyour our list list with with three three toto fivfive e other other students students in in the the classclass, , and and come come up up with with aan n expanded expanded list. list. RRevieweview these these accomplishments accomplishments in in terms terms ofof the the definition definition ofof a a prproject. oject. WhaWhat t does does youryour rereview view suggest suggest aabout bout the the importance importance ofof pr project oject management?management?

3.3. IndiIndividually vidually identify identify prprojects ojects assigned assigned in in previous previous termsterms. . WWere ere both both socio-socio- cultural cultural and and technical technical elements elements factors factors in in the the success success or or difdifficulties ficulties in in thethe prprojects?ojects?

4. 4. Check Check out out the the Project Project ManaManagement gement Institute’Institute’s s home home page page aat t wwwwww.pmi.or.pmi.orgg..

a. a. RReview eview general general infinforormation mation aabout bout PMI PMI as as well well as as membership membership infinformation.ormation. bb. . See See ifif there there is is a a PMI PMI chachapter pter in in yyour our statestate. . IfIf not, not, wwhere here is is the the closest closest one?one? c. c. Use Use the the search search function function aat t the the PMI PMI home home page page to to find find infinforormamation tion on on ProjectProject

Management Management BodBody y ofof Knowledge Knowledge (PMBOK). (PMBOK). WWhat hat are are the the major major knoknowledgewledge areas areas ofof PMBOK? PMBOK?

d. d. Explore Explore other other links links that that PMI PMI prprovidesovides. . WhaWhat t do do these these links links tell tell yyou ou aaboutbout the the nanature ture and and future future ofof project project manamanagement?gement?

Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 2121

Note:Note: If If you you hahave ve anany y difficulty difficulty accessing accessing anany y ofof the the WWeb eb addraddresses esses listed listed herehere or or elsewelsewhere here in in the the text, text, yyou ou can can find find up-to-date up-to-date addraddresses esses on on the the home home page page ofof DrDr. . Erik Erik Larson, Larson, coauthor coauthor ofof this this text: text: http://businesshttp://business.oregonsta.oregonstatete.edu/faculty-.edu/faculty- and-stafand-staff-bios/erik-larsonf-bios/erik-larson

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BenkBenko, o, CC., ., and and FF. . WW. . McFMcFarlan, arlan, (Boston: (Boston: HBS HBS PressPress, , 2003).2003).Connecting Connecting the the DotsDots

Cohen, Cohen, DD. . JJ., ., and and R. R. JJ. . Graham, Graham, The The Project Project ManagManager’s er’s MBMBAA (San (San FFrancisco:rancisco: JJossey-Bassossey-Bass, , 2001).2001).

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DerbyDerby, , CharlesCharles, , and and Ofer Ofer Zwikael, Zwikael, “The “The Secret Secret ofof (Defining) (Defining) SuccessSuccess,,”” PM PM Net-Net- woworkrk, , VVol. ol. 26, 26, NoNo. . 8, 8, AAugust ugust 2012, 2012, pppp. . 20–22.20–22.

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KKoh, oh, Aileen, Aileen, and and LLynn ynn CraCrawforwford, d, “P“Portfortfolio olio Management: Management: The The AAustralianustralian ExperienceExperience,,”” PrProject oject Management Management JJournal,ournal, V Vol. ol. 43, 43, NoNo. . 6 6 (2012), (2012), pppp. . 33–41.33–41.

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StewStewart, art, TT. . A., A., “The “The CorporaCorporate te JJungle ungle SpaSpawns wns a a New New Species: Species: The The PrProjectoject ManagerManager,,”” FFortuneortune (September (September 1996), 1996), pppp. . 14–15.14–15.

A A Day Day in in the the LifeLife RRachel, achel, the the prproject oject manager manager ofof a a large large infinforormation mation systems systems prproject, oject, arrivarrives es at at herher ofoffice fice early early to to get get caught caught up up with with wwork ork befbefore ore her her co-wco-workorkers ers and and project project team team arriarriveve.. HoHoweverwever, , as as she she enters enters the the ofoffice fice she she meets meets Neil, Neil, one one ofof her her fellow fellow prproject oject managersmanagers,, who who also also wwants ants to to get get an an early early start start on on the the dadayy. . Neil Neil has has just just completed completed a a projectproject ooverseasverseas. . They They spend spend 10 10 minminutes utes socializing socializing and and catching catching up up on on personal personal nenewsws..

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