Table of Contents
Cover
Title page
Copyright page
Preface
WHO THIS BOOK IS FOR
THIS BOOK’S APPROACH TO PROJECT MANAGEMENT
CHANGES IN THIS FOURTH EDITION
PROJECT MANAGEMENT AS A DISCIPLINE
About the Authors
1 Projects, Project Management, and Program Management
PROJECTS ARE A TYPE OF WORK
PROJECTS DISTINGUISHED FROM TASKS AND FROM PROCESSES
PROGRAMS ARE COLLECTIONS OF PROJECTS
PROJECT MANAGEMENT MATURITY
INTEGRATED PROJECT MANAGEMENT
THE PROJECT MANAGEMENT “HAT” IS DIFFERENT FROM THE TECHNICAL OR PRODUCT MANAGEMENT “HAT”
EFFECTIVE PROJECT MANAGERS MANAGE EXPECTATIONS OF STAKEHOLDERS
A ROADMAP OF FIVE IMPORTANT PROGRAM MANAGEMENT FUNCTIONS
HIGHLIGHTS
Part 1: Defining the Goals of a Project
2 Linking the Project to the Product
STRATEGIC ALIGNMENT OF PROJECTS
THE PROJECT LIFE CYCLE AND THE PRODUCT LIFE CYCLE
PROJECT COMPLETION INCLUDES DELIVERING A RESULT THAT MEETS THE REQUIREMENTS
THE DELIVERING ORGANIZATION AND THE CONSUMING ORGANIZATION
ALL PROJECTS INVOLVE AGREEMENTS
GOOD BOUNDARIES
TAKING ACTION
HIGHLIGHTS
3 Balancing Competing Demands with the Triple Constraint
MANY WAYS TO MEASURE PROJECT PERFORMANCE
THE TRIPLE CONSTRAINT
A MODEL TO HELP EVALUATE COMPETING DEMANDS
ADJUSTING THE BASELINE FOR RISK
HOW THE TRIPLE CONSTRAINT HELPS TO EXPLAIN THREE COMMON TRADEOFFS
THE TRIPLE CONSTRAINT DURING CONTROL
OTHER EXAMPLES OF BALANCING COMPETING DEMANDS: FINANCIAL MANAGEMENT
PROJECT MANAGEMENT AS A DECISION-MAKING PROCESS
HIGHLIGHTS
4 Contracts, Negotiations, and Proposals
CONTRACTS
NEGOTIATING THE CONTRACT
PROPOSALS: A SPECIAL KIND OF PROJECT
THE PROPOSAL PROCESS
TYPICAL PROBLEMS
INTERNATIONAL PROJECTS
HIGHLIGHTS
Part 2: Planning a Project
5 Planning the Project
INTEGRATED PROJECT PLANNING
USING COMPUTER SOFTWARE DURING PROJECT PLANNING
“THE PLAN”
APPLYING PROJECT PLANS DURING EXECUTION
PROJECT PLANNING IS AN INVESTMENT, NOT AN EXPENSE
HIGHLIGHTS
6 The Work Breakdown Structure
THE WORK BREAKDOWN STRUCTURE
THE WORK PACKAGE AND THE WBS DICTIONARY
TOP-DOWN PLANNING APPROACH FOR DEVELOPING THE WBS
ORGANIZING THE WBS FOR COMPLETENESS AND CONTROL
BOTTOM-UP PLANNING APPROACH FOR DEVELOPING THE WBS
VALIDATING THE WORK SCOPE
WORK SCOPE IS FUNDAMENTAL TO PROJECT INTEGRATION
HIGHLIGHTS
7 Scheduling
OVERVIEW OF SCHEDULING FORMATS
BAR CHARTS
MILESTONES
NETWORK DIAGRAMS
THE NETWORK LOGIC DIAGRAM
WHY USE A NETWORK DIAGRAM?
COMPUTER SOFTWARE
HELPFUL HINTS
TYPICAL PROBLEMS
HIGHLIGHTS
8 Time Estimating and Compressing the Schedule
TYPES OF TIME ESTIMATES
EARLIEST AND LATEST START AND FINISH TIMES
TYPICAL PROBLEMS
HIGHLIGHTS
9 Cost Estimating and Budgeting
RESOURCE PLANNING
COST ESTIMATING
PROJECT COST SYSTEM
BUDGETING COST
COMPUTER SOFTWARE
TYPICAL PROBLEMS
HIGHLIGHTS
10 The Impact of Limited Resources
RESOURCES
COMPUTER SOFTWARE
TIME-VERSUS-COST TRADEOFF
TYPICAL PROBLEMS
HIGHLIGHTS
11 Project Risk and Issues Management
TEN STEPS FOR TEAM-BASED RISK MANAGEMENT
BUILDING A CULTURE FOR GOOD DECISION MAKING
HIGHLIGHTS
Part 3: Leading the People Who Work on a Project
12 Organizational Design for Delivering Projects
THREE ORGANIZATIONAL FORMS
OTHER ORGANIZATIONAL FORMS
THE INFORMAL ORGANIZATION
TYPICAL PROBLEMS
HIGHLIGHTS
13 Building the Project Team
CORE TEAM AND EXTENDED TEAM
STAFFING STARTS WITH PROJECT SCOPE
FORMAL PROJECT AUTHORITY
ASSIGNING PERSONNEL TO THE PROJECT
SOURCES OF PERSONNEL
COMPROMISE
CONTROL
TASK ASSIGNMENTS
THE VIRTUAL PROJECT TEAM
TURNING A GROUP INTO A TRUE TEAM
COMPUTER SOFTWARE
TYPICAL PROBLEMS
HIGHLIGHTS
14 Organizing the Support Team
INVOLVEMENT AND COMMITMENT
COORDINATION
INTERACTION WITH SUPPORT GROUPS
SUBCONTRACTORS
TYPICAL PROBLEMS
HIGHLIGHTS
15 The Role of the Project Manager
PROJECT MANAGER COMPETENCIES
PROJECT MANAGEMENT CAREER PATH
WHAT A PROJECT MANAGER DOES
THEORIES OF MOTIVATION AND THEIR IMPLICATIONS
THREE USEFUL TECHNIQUES
TYPICAL PROBLEMS
HIGHLIGHTS
16 Practical Tips for Project Managers
COMMUNICATION
CONFLICT RESOLUTION
EFFICIENT TIME MANAGEMENT
TIPS
TYPICAL PROBLEMS
HIGHLIGHTS
Part 4: Controlling the Project
17 Essentials of Project Control
DEVELOP A BASELINE
DEVELOP A PERFORMANCE MEASUREMENT SYSTEM
MEASURE PERFORMANCE AGAINST BASELINE AND DETERMINE VARIANCES
FORECASTS
CORRECTIVE ACTIONS
MULTIPLE PROJECTS
COMPUTER SOFTWARE
TYPICAL PROBLEMS
HIGHLIGHTS
18 Project Reviews
THE NECESSITY FOR REVIEWS
THE CONDUCT OF REVIEWS
PERIODIC REVIEWS
FOLLOW-UP ACTIONS
TOPICAL REVIEWS
TYPICAL PROBLEMS
HIGHLIGHTS
19 Project Cost Reports
COST MONITORING
COMPUTER COST REPORTS
COST MONITORING PROBLEMS
EARNED-VALUE MANAGEMENT
COMPUTER SOFTWARE
TYPICAL PROBLEMS
HIGHLIGHTS
20 Handling Project Changes
A PROJECT PERFORMANCE TRACK RECORD: GOOD OR BAD?
THE PROCESS OF MANAGING CHANGES
UNMANAGED RISKS AND ISSUES
TYPICAL PROBLEMS
HIGHLIGHTS
21 Solving the Inevitable Problems
THE GENERAL APPROACH
DECISION TREES
MATRIX ARRAY
PROBLEM-SOLVING STYLES
TYPICAL PROBLEMS
HIGHLIGHTS
Part 5: Completing a Project
22 Closing the Contract
WINDING DOWN THE PROJECT
ACCEPTANCE
MANAGING SCOPE CHANGE
DOCUMENTATION
INCREASING THE ODDS OF SUCCESS
TYPICAL PROBLEMS
HIGHLIGHTS
23 Final Wrap-Up
PEOPLE ISSUES
LESSONS LEARNED AND AUDITS
INTELLECTUAL PROPERTY AND OTHER OWNERSHIP RIGHTS
TYPICAL PROBLEMS
HIGHLIGHTS
Part 6: Other Issues in Project Management
24 Small Projects
SIMPLIFIED MANAGEMENT
PROBLEMS
TYPICAL PROBLEMS
HIGHLIGHTS
25 New Product Development Projects
WHY NEW PRODUCT DEVELOPMENT PROJECTS ARE UNIQUE
A GENERAL FRAMEWORK
RESOURCE OVERLOADING
TYPICAL PROBLEMS
HIGHLIGHTS
26 Project Management Software
WHEN AND WHERE TO USE COMPUTER PROJECT MANAGEMENT SOFTWARE
CAUTIONS WITH COMPUTER PROJECT MANAGEMENT SOFTWARE
OTHER SOFTWARE
TYPICAL PROBLEMS
HIGHLIGHTS
27 Where Do You Go from Here?
SUMMARY
CONTINUING PROJECT MANAGEMENT SKILL DEVELOPMENT
THE FUTURE OF PROJECT MANAGEMENT
A FINAL THOUGHT
Appendix 1 Abbreviations Used in Project Management
Appendix 2 Glossary of Project Management Terms
Appendix 3 Examples of Planning Checklists for Project Managers
Index
This book is printed on acid-free paper.
Copyright © 2005 by John Wiley & Sons, Inc. All rights reserved.
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Library of Congress Cataloging-in-Publication Data:
Rosenau, Milton D., 1931–
Successful project management : a step-by-step approach with practical examples / Milton D. Rosenau, Gregory D. Githens.—4th ed.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-471-68032-1 (cloth)
ISBN-10: 0-471-68032-X (cloth)
ISBN-13: 978-1-118-27691-4 (epdf)
ISBN-13: 978-1-118-27690-7 (epub)
ISBN-13: 978-1-118-27696-9 (mobi)
1. Project management. I. Githens, Gregory D. II. Title.
HD69.P75R67 2005
658.4'04—cd22
2005005180
WHO THIS BOOK IS FOR
This book is for anyone interested in a pragmatic approach to managing projects and programs. We have found that the material is valuable as a refresher for the experienced manager and as a primer for the person who wants an introduction. The factors that lead to project success are known and knowable regardless of the industry, the size of the project, or its technology. Good project performance can be ensured with the skillful application of the processes, tools, techniques, and concepts of project management.
A natural and primary audience for this book is the person named as “project manager.” (In some cases, the label may be “project leader,” “project engineer,” or similar variants.) It is common to find individuals who have been trained in a technical skill (e.g., engineering, science, accounting, and programming) thrust into management roles with little training, coaching, or mentoring. We often will address the reader as “you” in recognition of this important audience.
Another important audience is project team members. Over the years, we have seen many situations where the project manager was well trained in the tools and principles of project management but became frustrated when he or she tried to engage the project team to help them apply the tools. Projects are a collaborative activity. This book will help team members understand their roles and responsibilities in supporting the development and execution of project plans.
In recent years, the “process view” of the enterprise has shown the value of improving performance of complex work activities. It is the job of senior management to help create the system that allows for the consistent and systematic development and delivery of projects. We wrote this book so that people with only limited time but with a need for a strategic perspective can identify the success factors for delivering projects. Thus, another important audience for this book is executive sponsors and customers as well as functional managers.
Many organizations now have adopted the concept of a project office. This book will provide important insights to those people who are organizing or operating a project management office.
THIS BOOK’S APPROACH TO PROJECT MANAGEMENT
This book is useful for any type of project, regardless of size, technology, or industry. In addition, we address portfolio management and program management of integrated collections of projects.
We organized this book to provide a simple model of the fundamentals of project management. Our straightforward approach is based on a combined 70 years of experience with new product development for consumer and industrial markets, chemical formulation, engineering, government contracts, research, management consulting, and volunteer organization projects.
This book divides the management of projects into five general managerial functions and emphasizes the importance of integration, as illustrated in Figure P-1.
1.
Defining. Defining the project’s goals.
2.
Planning. Planning how you and your team will satisfy the Triple Constraint (goal) of performance specification, time schedule, and money budget. The plan depends on the mix of human and physical resources to be used.
3.
Leading. Providing managerial guidance to human resources, subordinates, and others (including subcontractors) that will result in their doing effective, timely work.
4.
Controlling. Measuring the project work to find out how progress differs from plan in time to initiate corrective action. This often leads to replanning, which may force a goal (definition) change, with a consequent need to change resources.
5.
Completing. Making sure that the job that is finally done conforms to the current definition of what was to be done, and wrapping up all the loose ends, such as documentation.
Although these are distinct, they are interrelated, as shown by the arrows in Figures P-2, P-3, and P-4.
The first two steps are not necessarily separate and sequential, except when the project initiator issues a firm, complete, and unambiguous statement of the desired project output, in which case the organization that will carry out the project may start to plan how to achieve it. It is more common to start with a proposed work definition, which is then jointly renegotiated after preliminary planning elucidates some consequences of the initially proposed work definition. The definition must be measurable (specific, tangible, and verifiable) and attainable (in the opinion of the people who will do the work) if you want to be successful. Being successful also requires that management agrees that the project is justified and that the resources the project team needs will be available.
Thus, in fact, the resources to be dealt with in the leading phase often must be considered before planning can be finished (Figure P-2). For instance, you might need engineers familiar with carbon fibers if the plan for a materials study project includes the study of that kind of material, whereas you would use a metallurgist if the project were to study only metals.
No project goes in accordance with your plan. What you don’t know when you start is where it will go awry. Consequently, as you will see in later chapters, replanning is almost always required, thus frequently amending the negotiated definition (Figure P-3). Ultimately, the project can be completed when the work that is done satisfies the current requirement (Figure P-4).
Nevertheless, the five-step managerial activity process covers each required action and is a useful conceptual sequence in which to consider all project management. Thus, this book is organized according to it.
Each chapter is short and can be absorbed in 1 to 2 hours. The chapter sequence is a good match for the chronological concerns during a typical project. We caution you, however, that there is no single “cookbook” or template to follow. We encourage you to scan the chapter highlights and use the index.
Because projects are complex and strategic, they require an appropriately sophisticated set of managerial tools. A tool icon is inserted at points where we describe what we consider to be a particularly useful tool that you may want to use. Some of these are simple to use, and some will require practice. Perhaps a few will never be right for your management style. Because not all these tools will be useful for you in specific situations that you encounter, you will have to pick and choose which tools to use when.
We tried to use graphics and examples liberally. This book contains several illustrations of computer project management and other software outputs, most from the widely used shrink-wrap project software package Microsoft Project. We are not endorsing this product, nor are we discouraging its use. There are other widely used and effective single user and enterprise computing systems. Our goal is to explain a few of the key useful aspects of this class of software. Employing such software will not make a person a successful project manager, and using it is not the same as being a project manager. Software is a tool to help but not a solution, especially to “people” problems. Nevertheless, you can be a more effective project manager if you employ such software in situations where it will be helpful to you.
CHANGES IN THIS FOURTH EDITION
The first three editions of Successful Project Management proved the value of the book’s approach to helping readers improve project management skills. In the two decades that followed the publication of the book’s first edition, people have increasingly come to regard project management as a “profession” instead of a “job.” A short list of developments in the field of project management would include the process view, virtual teams, new theories and practices of motivation, the quality view, project management offices, and so on. Practitioners have developed and documented a recognized body of knowledge and an ability to certify individuals and to recognize organizational capability (also called maturity) in the process of project management.
Reflecting the explosion of documented project management knowledge and standards, we have made extensive changes to this fourth edition. This edition clarifies some of the previous material, brings it up to date, and eliminates some material made obsolete or irrelevant by the growing sophistication and professionalization of the project management field.
We rewrote a number of chapters to bring these up to date with contemporary concepts, standards, and practices of project management. We have incorporated and reflected the standards that groups such as the Project Management Institute (PMI) have publicized. Throughout this book, we have used standard language, enhanced and corrected the graphics, and recognized the use of enterprise computing, networks, and the World Wide Web.
Readers familiar with the earlier editions of this book will notice that there have been substantial changes to the book. Five of the first six chapters have been rewritten to better describe the role of integration in project planning. Chapter 11 on risk and issues management is also completely rewritten. Moreover, all the remaining chapters have been augmented to reflect contemporary thinking and practices in the project management field.
Greg Githens joins Mickey Rosenau as coauthor for this fourth edition of Successful Project Management. He brings a substantial background as a project management practitioner, consultant, trainer, and professional contributor to the project management field.
PROJECT MANAGEMENT AS A DISCIPLINE
It is an exciting time to be in project management. There has been an explosion of knowledge and tools for the field and increasing recognition of “good” and “bad” practices. Organizations who have embraced it are achieving outstanding results. Yet, successful project management has been and will be based on people. Project management is a discipline, a word that has its semantic roots in the ideas of teaching and learning. As an individual and organizational competency, project management discipline involves leadership from individuals who have the personal backbone to withstand the criticism of undisciplined, impatient people. It requires an organizational commitment to investing sufficient up-front time and to involving other people, recognizing that different points of view result in more creative, optimal outcomes.
Milton D. Rosenau, Jr., CMC, FIMC
Certified Management Consultant
Rosenau Consulting Company
Bellaire (Houston), Texas
mrosenau@houston.rr.com
Gregory D. Githens, PMP, NPDP
Managing Partner
Catalyst Management Consulting, LLC
Findlay, Ohio
GDG@CatalystPM.com
Milton D. (“Mickey”) Rosenau, Jr., CMC, FIMC, heads Rosenau Consulting Company, which he founded in 1978 following a 21-year career with industrial and consumer products companies. He is the author of dozens of publications and nine books, including Successful Project Management (3d edition, Wiley, 1998) and Successful Product Development: Speeding from Opportunity to Profit (Wiley, 1999). He was a past president of the Product Development and Management Association (PDMA) and was editor-in-chief of the PDMA Handbook of New Product Development (Wiley, 1996).
Gregory D. Githens, PMP, NPDP, is managing partner with Catalyst Management Consulting, LLC, a management consulting firm specializing in project management and new product development. His clients have achieved improved time to market, better metrics, better strategic alignment, and improved risk management, among other benefits. Mr. Githens has been a frequent contributor to the profession, including developing professional standards, writing over 30 articles, and public speaking.