T H E McGRAW-HILL 36-Hour Course PROJECT MANAGEMENT SECOND EDITION Other books in The McGraw-Hill 36-Hour Course series: The McGraw-Hill 36-Hour Course: Accounting The McGraw-Hill 36-Hour Course: Business Writing and Communication, 2E The McGraw-Hill 36-Hour Course: Finance for Nonfinancial Managers The McGraw-Hill 36-Hour Course: Operations Management The McGraw-Hill 36-Hour Course: Organizational Development The McGraw-Hill 36-Hour Course: Product Development The McGraw-Hill 36-Hour Course: Project Management, 2E The McGraw-Hill 36-Hour Course: Real Estate Investing, 2E The McGraw-Hill 36-Hour Course: Six Sigma T H E McGRAW-HILL 36-Hour Course PROJECT MANAGEMENT SECOND EDITION Helen S Cooke and Karen Tate New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto To Richard and Andy, the wind beneath our wings Copyright © 2011 by The McGraw-Hill Companies, Inc All rights reserved Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher ISBN: 978-0-07-175042-4 MHID: 0-07-175042-8 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-173827-9, MHID: 0-07-173827-4 All trademarks are trademarks of their respective owners Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark Where such designations appear in this book, they have been printed with initial caps McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs To contact a representative please e-mail us at bulksales@mcgraw-hill.com This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, securities trading, or other professional services If legal advice or other expert assistance is required, the services of a competent professional person should be sought —From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations Trademarks: McGraw-Hill, the McGraw-Hill Publishing logo, 36-Hour Course, and related trade dress are trademarks or registered trademarks of The McGraw-Hill Companies and/or its affi liates in the United States and other countries and may not be used without written permission All other trademarks are the property of their respective owners The McGraw-Hill Companies is not associated with any product or vendor mentioned in this book TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc (“McGrawHill”) and its licensors reserve all rights in and to the work Use of this work is subject to these terms Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGrawHill’s prior consent You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited Your right to use the work may be terminated if you fail to comply with these terms THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE McGraw-Hill and its licensors not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom McGraw-Hill has no responsibility for the content of any information accessed through the work Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise CONTENTS Chapter Project Management Overview and Goals What Is Project Management? Why Make a Distinction Between Projects and Operations? 12 The Relationship of Project Management to Implementing Desired Change 17 The Value-Added Proposition: Declaring and Revalidating Project Value 26 Benefits of Adopting Project Management Approaches 28 Summary 29 Review Questions 30 Chapter Project Management Concepts 33 Overview and Goals 33 What Is a Project? 33 Natural Phases of Projects 42 Contrasting Project Life Cycle and Product Life Cycle 46 Types of Projects 57 How Project Management Is Applied in Different Settings 59 Summary 63 Review Questions 64 Chapter The Project Management Leader 67 Overview and Goals 67 The Project Leader’s Integrated Skill Set 68 Essential Characteristics of the Project Management Leader 70 v vi Contents Knowledge, Skills, and Abilities of the Project Manager Other Leadership Roles on Large Projects 88 Summary 91 Review Questions 92 Chapter The Process of Managing Projects Overview and Goals 95 The Basics 96 How Projects Get Started 102 The Project’s Life Cycle: Project Phases 107 Summary 110 Review Questions 111 80 95 Chapter Planning Concepts Overview and Goals 113 Project Planning 113 Detailed Planning 122 Plan Approval 130 Summary 131 Review Questions 132 113 Chapter High-Level Planning Overview and Goals 133 It Is All About Planning 134 High-Level Planning 134 Scope and Objectives Planning 144 Documenting the Plan 152 Completing Initial High-Level Documentation 157 Review of the Overall Plan Before Detailed Plan Development 158 Summary 160 Review Questions 161 133 Chapter Detailed Planning for Execution Overview and Goals 163 Creating a Work Plan for Execution 164 The Go/No-Go Decision 170 Implementation Detail for Start-Up 173 Planning for Team Management 180 Communications Plan 183 Planning for Stakeholder Management 184 Quality Plan 186 Summary 187 Review Questions 188 163 Contents vii Chapter Building and Developing a Team Overview and Goals 189 Creating an Environment for Success 190 The Importance of Communication on Projects 191 Team Development 191 Human Resources Management 192 Creating Teams of Similar and Dissimilar People 193 Creating a Project Management Culture 195 Team Building 201 Establishing Project Management Culture on Virtual Projects 202 Managing Team Resources 205 Summary 207 Review Questions 208 189 Chapter Facilitating Project Execution and Closeout Overview and Goals 211 Creating a Success Environment with Processes 212 Communications 213 Managing Quality 217 Managing Cost 218 Managing Time 220 Managing Risk 221 Policy and Standards 224 Project Integration Management 225 All Projects Have a Beginning and an End 226 Turnover of Responsibility for Deliverables 227 Lessons Learned and Process Improvements 229 Summary 230 Review Questions 231 211 Chapter 10 The Context for Project Management 233 Overview and Goals 233 Quality Assumptions 234 The Project Culture: Continuous Learning and Improvement 238 Project Decisions as an Element of Quality 239 The Wright Brothers’ Project to Create Controlled Flight 241 Project Managers Do Not Always Get High Visibility 246 Staying Aligned with the External Environment 247 Summary 247 Review Questions 248 viii Contents Chapter 11 Controlling Project Work Overview and Goals 251 Project Control and the Triple Constraint 253 Earned Value as a Means of Control 264 Project Management Tools 267 Leveraging Technology 268 Summary 270 Review Questions 271 251 Chapter 12 Organizational Project Management Maturity Overview and Goals 273 Management Structure and Culture 275 Improving the Project Environment 280 Definition of Organizational Project Management Maturity 280 How Process Improvement Applies to Project Management 284 A Project’s Business and Work Context 289 Leveraging the Organization’s Resources 293 Determining the Organization’s Project Management Maturity 295 Technology to Enhance Organizational Project Management Maturity 301 The Project Management Office or Program Management Office (PMO) 306 Standard Processes to Improve Project Management 313 Standard Metrics 313 Conclusion 315 Key Concepts to Remember 321 Advancing Both the Project and the Profession 323 Review Questions 324 273 Appendix A: Process Model 327 Appendix B: Templates 335 Appendix C: Organizational Assessment 357 Appendix D: Case Study 363 Appendix E: Deliverables’ Life Cycle 369 Notes 373 Index 383 Instructions for Accessing Online Final Exam and Chapter Quiz Answers 390 C H A P T E R PROJECT MANAGEMENT OVERVIEW AND GOALS This chapter provides a general overview of the broad field of project management and its role in the work world It describes how an age-old process became formalized in the late twentieth century, shows how professional project management evolved to where it is today, and distinguishes thousands of people in the occupation of project management from the new project management professional It explains why organizations undertake projects, clarifies terms, and provides examples of different types of projects Its goal is to distinguish project management from other functions WHAT IS PROJECT MANAGEMENT? Many sectors of the economy are identifying project management as a new key business process As project management gains recognition as a distinct way of managing change, differences exist in how it is applied and understood across industries, corporations, governments, and academia The term project management is used freely throughout profit-oriented companies, not-for-profit organizations, and government agencies, but people not always mean the same thing by it Some organizations use the term project management to describe the task of managing work Others use it to define the field of work focused on the delivery of project results Still others mean the profession of project management, encompassing not only 378 Notes The PMBOK Guide, 4th edition 3.7.1 lists “Close Project or Phase” as “the process of finalizing all activities across all of the management Process Groups to formally complete the project or phase.” Inputs are the project management plan, accepted deliverables, and organizational process assets The process outputs are a final product, service, or result transition and organizational process assets updates This is a process point for Project Integration Management, a key knowledge area of the PMBOK Guide Helen Cooke, “Financial Aspects of Project Launch: Clarifying Project Value,” PM World Today, December 2009 See PM Forum Viewpoint Articles, pmforum.com/viewpoints/index.htm Author Helen Cooke worked on a project that kept its records in a storage trunk in the basement of a military arsenal The team had complete access, and the system worked well These phases may be managed within a single project rather than in a program, as cited in the PMBOK Guide, 4th edition, Chapter Upon exit of a design phase (of a product or service or result), which requires customer acceptance of the design document, the design document provides the product description for the PMBOK Guide’s Planning and Executing Process Groups in one or more subsequent phases In multiphase projects, processes are repeated within each phase until the criteria for phase completion have been satisfied (41) Project management processes ensure the effective flow of the project throughout its existence Product-oriented processes specify and create the project’s product Product-oriented processes are typically defined by the project life cycle and vary by application area (37) A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th ed., Newtown Square, PA: PMI, 2008, Chapter 8, p 189 CHAPTER Leadership is a whole-brain activity, according to Dr Katherine Benziger, author of Thriving in Mind: The Art and Science of Using Your Whole Brain, Carbondale, IL: KBA LLC Publishing, 2003, pp 118–120 She says, “What is distinctive about leadership is that because of the range of tasks a leader needs to be able to themselves, as well as the range and variety of people with whom the leader must be able to connect and build trust, more than most jobs it requires someone who has developed all four modes.” She continues: “There are very few people who have actually developed their natural lead, i.e., their preference and both its auxiliaries even those who have developed their natural lead and its auxiliaries are weak in understanding the needs and challenges presented by their weaknesses Thus, if the job of leadership is truly whole-brained, then the best solution is to use a team to fill that job.” Ned Herrmann, Applied Creative Thinking Charlotte, NC: Herrmann International, 1986 Daniel Goleman, Emotional Intelligence New York: Bantam Books, 1997, p 34 Ibid., p 43 Beryl Markham, West with the Night New York: North Point Press, 1983, pp 285–86 Notes 10 11 379 Consensus does not necessarily mean agreement; it means that those who may not agree nevertheless can “go along with” the group or “live with” the result Bruce W Tuckman and Mary Ann Jensen, Stages of Group Development NJ: chimaeraconsulting.com/tuckman.htm, 1977 Values in Cross-Cultural Contexts, International Project Management Association, Helsinki, Finland, June 2009 As organizations emerged from one of the most challenging economic environments in decades, automation was one of the healthy sectors for profitability and growth “Radical shifts take hold in manufacturing,” Marketplace Section, Wall Street Journal, Vol CCLV, No 46, February 3, 2010 “Digital Nation,” Frontline, Public Broadcasting System, February 2, 2010 Ibid CHAPTER The public understanding of the role of the project management professional is evolving The PMBOK Guide, 3rd edition, 2004, in Figure 4-1, p 79 “Project Integration Management Overview,” shows the inputs and outputs to processes citing the use of methodologies, information systems, and expert judgment that the project manager and key team members use to create the key project management deliverables that result from initiating the project and planning it: the project charter, scope statement, and project management plan Figure 4-1 also shows high-level processes the project manager and team use to direct and manage project execution, monitor and control project work, perform change control, and close the project Figure 4-2 of the 3rd edition sequences these processes with reference to preparing other elements of the plan besides the schedule, and linking with certain organizational procedures such as contract and administrative closure or contract documentation procedures at closeout (Figure 4-2, Project Integration Management Processes Flow Diagram) By 2008, these integration processes are flagged as being the result of expert judgment rather than the result of methodologies and information systems as in 2004 By 2008, information systems are applied only in 4-3 “Direct and Manage Project Execution.” Investigations into causes of the BP oil spill, with work subcontracted to Transocean Ltd., the rig’s owner, focus on “whether better coordination between the two companies might have prevented the disaster” in the Gulf of Mexico in April 2010 “Rig’s Final Hours Probed,” Wall Street Journal, Vol CCLVI, No 15, July 19, 2010 PMBOK Guide, 2004, 2008 Points for integration are at key transition points in the “Project Management Process Model,” Appendix A, presented by Helen S Cooke, “Project RePlanning: Points in a Process Model,” PMI 1997 Seminar/Symposium, Chicago, Advanced Track, 1997 Large and complex projects including many government projects put significant attention to development of not only requirements but also specifications for the end product during project initiation that must be met for product acceptance by the customer Project Integration Management was added as a ninth Knowledge Area in Chapter of the 1996 PMBOK Guide 380 Notes Science: “Behavioral Economics,” Jerry Adler Newsweek, Vol CXLIV, No 1, July 5, 2004 See A Guide to the Project Management Body of Knowledge (PMBOK Guide) Newtown Square, PA: PMI, 2000, Section 1.2.3, p CHAPTER 10 10 11 12 13 Mihaly Csikszentmihalyi, Beyond Boredom and Anxiety San Francisco: JosseyBass, 1975 Project Manager, Chunnel Project, England PM Network, PMI, 1992 Reprinted from David A Garvin and Michael A Roberto, “What You Don’t Know About Making Decisions,” Harvard Business Review, No 108–110, reprint R0108G, Sept 2001: Copyright © 2001 by Harvard Business School Publishing Corporation; all rights reserved Ibid Museum of Science and Industry Exhibit, Chicago, December 2003 Amelia Earhart would later be the first person to fly a helicopter across the United States Douglas Gatenbein, “Celebrating Flight,” National Parks, July–August 2003, p 35 Ibid., p 33 Neil Armstrong, citing Tom Crouch in “Bishop’s Boys” at the Air and Space Museum’s Countdown to Kitty Hawk: Celebrating a Century of Powered Flight and Half Century of EAA (Experimental Aircraft Association), a video produced by the EAA Aviation Center, P.O Box 3065, Oshkosh, WI Ibid Orville Wright, “How We Made the First Flight,” Flying, December 1913, and The Aero Club of American Bulletin, 1913 Entire account was reprinted in 2003 (the 100th anniversary of controlled flight) on the Federal Aviation Administration (FAA) Aviation Education website, faa.gov/education/wright/wright.htm Douglas Gatenbein, “Celebrating Flight,” National Parks, July–August 2003, p 32 Orville Wright, “How We Made the First Flight,” Flying, December 1913, and The Aero Club of American Bulletin, 1913 Website referenced in note 10 Douglas Gatenbein, “Celebrating Flight,” National Parks, July–August 2003, p 35 CHAPTER 11 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Newtown Square, PA: PMI, 2000, p 36 Albert Einstein quoted in TrueVue public relations campaign poster, 2004 PMBOK Guide 2008, section 3.6.4 PMBOK Guide 2008, section 3.6.5 Frank King, project manager of the Calgary Olympics event, in a keynote address to the PMI Seminar/Symposium, Calgary AB, Canada, 1990 PMBOK Guide 2008, section 3.6.6 Notes 10 11 12 381 Helen Cooke, “Project Replanning: Points in a Process Model,” PMI Seminar/ Symposium, Chicago, IL, 1997 PMBOK Guide 2008, section 3.6.7 Discussions by author Cooke with a program manager at Nokia in Finland, November 2008 Author Helen Cooke’s experience at McDonald’s corporate headquarters in Illinois Combining Earned Value Management and Risk Management: A Practical Synergy David Hillson Presentation, PMI Global Congress, Advanced Track PMP Anaheim, CA, October 25, 2004 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Newtown Square, PA: PMI, 2008, p 368 As detailed in item 6, preventive actions were added to the earned value section in the 2000 edition of the PMBOK Guide CHAPTER 12 Author Karen Tate provides examples of project-specific management tools in her handbook written with Paula Martin, The Project Management Memory Jogger, 2nd ed., Salem, NH: GOAL/QPC, 2010 Dr David I Cleland, Ph.D., and Bopaya Bidanda, Ph.D., at the University of Pittsburgh, published an ambitious anthology of viewpoints from leading project management professionals around the globe on the likely state of project management in 2025 They addressed how the discipline will be used to manage the future tactical and strategic changes that will impact products, services, and organizational processes Project Management Circa 2025, Cleland and Bidanda, editors Newtown Square, PA: PMI, 2009 William Ibbs and Justin Reginato, Quantifying the Value of Project Management, doctoral research later published by PMI Newtown Square, PA: PMI, 2002, p 21 James S Pennypacker, ed., What Makes a Good Project Manager Havertown, PA: Center for Business Practices, 2005 A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th edition, Newtown Square, PA: PMI 2008, 1.5, p 14 cites OPM3 for enterprise project management process capabilities, and on page 191 lists OPM3 as a process improvement model along with Malcolm Baldridge and the information systems Capability Maturity Model Integrated (CMMI), categorizing them under the project quality management section as quality improvement initiatives OPM3, initiated in 1996 and launched in 2003, is distinguished from the other initiatives as being a maturity model that addresses project management as distinct from operations, and the organization’s ability to effectively manage all types of projects enterprise wide regardless of the product or service OPM3 Knowledge Foundation Newtown Square, PA: PMI, 2003, p xiii The OPM3 model provides a way for organizations to understand organizational project management and to measure their maturity against a comprehensive and broad-based set of organizational project management best practices and plan for improvement Author Helen Cooke helped PM John Schlichter gain CEO and 382 Notes 10 11 12 13 14 15 16 17 board support for funding OPM3 in 1996 and was project manager for synthesis of the OPM3 model 2000–2001 Ibid., Section 1.3, p Ibid., Section 1.2, p Ibid Ibid., Section 1.3, p Ibid., Section 1.2, p and The Standard for Program Management Newtown Square, PA: PMI, 2006, p Sarbanes-Oxley Act in the United States holds senior officials explicitly accountable for the organization’s resources Companies that leverage their PMO for this effort will have a significant advantage in maintaining accountability for those resources allocated to projects William Ibbs and Justin Reginato, Quantifying the Value of Project Management Newtown Square, PA: PMI, 2002, p 37 The authors caution that not investing in improvements or investing without regard to the contribution of those improvements to the achievement of strategic goals weaken the organization’s ability to deliver results Author Helen Cooke as vice president of the Chicagoland Chapter of PMI, founded the PMI Chicagoland Executive Council as an independent organizational unit associated with the Chapter’s Outreach Program The initial “Executive Forum on the Strategic Value of Project Management” was held at the Chicago Palmer Hilton on April 14, 2005, with PMI CEO Gregory Balestrero as keynote speaker Its goal was to support the PMI global policy to make project management viewed as indispensable to business success at the executive levels of management, to encourage executive interaction, to explore the benefits of enterprise-wide project management at higher levels of the organization, and to provide a forum for exchange at top levels of management The first meeting pooled enterprise examples of the strategic value or project management from corporations, construction, the military, transportation, marketing, consulting, higher education, government, and metropolitan school districts The resulting report was made available to Executive Council participants The focus on the customer is a growing trend Dr John W Danford, in Roots of Freedom, points out that in the mercantile system the interest of the consumer is almost constantly sacrificed to that of the producer, and it seems to consider production, and not consumption, as the ultimate end and object of all industry and commerce (Adam Smith, The Wealth of Nations) John W Danford, Roots of Freedom: A Primer on Modern Liberty Wilmington, DE: ISI Books, 2000, p 141 Helen Cooke, Financial Aspects of Project Launch: Clarifying Project Value, PMFORUM Viewpoints article, pmforum.com/viewpoints/index.htm, December 2009 For more detailed instruction, see Robert W Ferguson, “A Project Risk Metric.” Unpublished paper, Software Engineering Institute, Carnegie Mellon University, Pittsburgh, October 2003 INDEX Academia, projects in, 26, 27, 62, 291 Account manager, 101 Accountability for cost, 218–19 Accountability of project managers, 35–36, 149, 206 Activity duration estimating, 168–69 Activity sequencing, 168 Actual cost (AC), 266, 267 Administrative closure, 229 Advocacy, 240 Analyst/reviewer, 89–90 Announcements, project completion, 228–29 Answer key to review questions, 320 Apollo space program, Approval, plan, 130–31 Audit/control specialist, 90 Auditory learning style, 193, 194 Autonomy reinforcing positive culture through, 199 risk management and, 36 Benefits of systematic management of initiatives, 19–21, 27, 28–29, 138 Budget management, 177 See also Controlling project costs Budgeting, cost, 169–70 Building, projects focused on, 58 Business case development, 118 Business need, 46, 137 Business sector, projects in, 26, 27, 61 Cabanis-Brewin, Jeannette, 80 Capstone project management programs, 312–13 Central knowledge bank, team, 178–79 Change deliberate managing of, 237–38 implementing desired, 17–19 planning for, 179 Charter document defined, 105–6 feasibility study projects and, 106–7, 114 as output for initiation phase, 45, 46 planning phase and, 46, 113 project selection decision and, 114, 115 template for, 139, 141 Chicago River, reversal of, 22, 23 Chicagoland Executive Council (PMI Chapter), 291 Closeout phase of project defined, 42–43, 44, 46 description of, 110, 226–27 lessons learned and process improvements, 229–30, 284–89 in project life cycle, 45, 46 as project phase, 97 turnover of responsibility for deliverables, 227–29 Collins, Darrell, 245 Communications device, schedule as, 171, 172 Communications management, project, 129 Communications plan detailed planning for, 183–84 documenting and developing, 154–55 during execution and closeout, 213–16 team building and, 191 Communications specialist/technical writer, 89 Concept development, projects focused on, 57 Concept stage creativity, 72, 73 Conceptual leadership, 77–78 Conflict management/resolution, 82, 83 Consecutive projects, integrating, 53–55 Context for project management acceptance of change, 237–38 continuous learning and improvement, 238–39 decision making, 239–41 overview of, 233–34 quality assumptions, 234–38 383 384 review questions on, 248–50 summary on, 247–48 Wright brothers’ project, 241–46 Continuous improvement, 288, 306, 307 Continuous learning and improvement, 238–39 Contracts and procurement, 219–20 Contracts specialist, 89 Controlling project costs accurate time estimates for, 260 description of, 258–59 detailed schedules and, 259–60 strategies for, 260–64 Controlling project work earned value, 259, 264–67 leveraging technology, 268–70 overview of, 251–53 review questions on, 271–72 summary on, 270–71 tools for, 267–68 triple constraint and, 253–64 Controls, project, 179–80 Cost, project management and reduced, 29 Cost control strategies high-risk projects and, 262–63 overview of, 260–61 quality control, 263–64 replanning the project, 261–62 reserve analysis, 263 Cost engineers, 261 Cost management accountability for, 218–19 contracts and procurement, 219 controlling project costs, 258–64 defined, 128 detailed planning and, 169–70 logistics planning and, 219 reliable cost and schedule estimates, 28, 29, 169 Cost-benefit analysis, 114 Crouch, Tom, 242 Csikszentmihalyi, Mihaly, 235 Culture, organizational project manager’s abilities and, 82–83 project success and, 275–79 Culture, project management continuous learning and improvement, 238–39 emotional intelligence and, 195–97 processes that promote teamwork, 197–98 trust and, 198–201 virtual projects and, 202–5 Customer(s), project, 149, 153, 206 Customer involvement in acceptance criteria, 184–86 De Havilland, Geoffrey, 197 Decision, go/no-go, 45, 116, 170–73 Decision authority, 206 Index Decision-making inquiry for, 239–41 process, 13–14 software to support, 301–2 Definition for project initiation and planning, 44–45, 55 Deliverable defining the, 144–46 description of, 34, 45, 46, 71 turnover of responsibility for deliverables, 227–29 Design, projects focused on, 58 Design of project, 48–49 Detailed planning communications plan, 183–84 description of, 122–30 go/no-go decision and, 170–73 how much detail, 117 implementation detail for start-up, 173–80 overview of, 163–64 quality plan, 186–87 for reporting, 173–76 review questions on, 188 for stakeholder management, 184–86 summary on, 187 for team management, 180–83 triple constraint and, 164, 171 for work breakdown structure, 126–27, 164–67 work plan for execution, 164–70 Diversity of thinking styles, 68–69, 193, 194 Documenting existing processes, 286 Documenting the plan communications plan, 154–55 completing initial high-level documentation, 157–58 estimates, 156–57 for four audiences, 152–53 importance of, 152 responsibility matrix, 154, 158 stakeholder analysis, 153–54 Earned value (EV), 259, 264–67 Egyptian pyramids, 37–38, 39–40 Eiffel Tower, 23 Emotional intelligence, 195–97 Estimates accuracy of, 103, 104 creating more specific, 156–57 initial, 103 project design and, 48–49 reliable cost and schedule estimates, 28, 29, 169, 260 resource estimates in high-level planning, 120 team input and, 166–67 unrealistic, 103, 155 Ethics, professional, 68 See also Integrity of project managers Index Execution and closeout closeout, 226–27 communications during, 213–16 lessons learned and process improvements, 229–30, 284–89 managing cost, 218–20 managing risk, 221–24 managing time, 220–21 overview of, 211–12 policy and standards, 224–225 processes for success, 212–13 project integration management, 225–26 quality plan, 217 review questions on, 231–32 summary on, 230–31 turnover of responsibility for deliverables, 227–29 Execution phase of project, 42, 44, 46, 97, 109–10 Facilitating processes, in execution phase, 189–91 Failed projects, 25–26 Feasibility study, 106–7, 114, 115 Field of work focused on projects, 9–12 Fuller, Buckminster, 58 Functional manager, 149 Galvin, Robert W., 77 Garvin, David, 240 Go/no-go decisions, 45, 116, 170–73 Goal wishing, 57 Goleman, Daniel, 195, 196 Government, projects sponsored by, 26, 27, 61, 291 Great Pyramid at Giza, 37–38, 39–40 A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5, 6, 9, 131, 266, 280, 281, 323 Herodotus, 37 High-level planning See also Planning concepts description of, 117–22, 134–35 documenting the plan, 152–58 gathering information, 136–37 getting people involved in planning, 135 importance of planning, 135–36 interviews to confirm project assumptions, 137–38 issues list, 137–38, 139, 140, 158 overview of, 133–34 project charter template, 139, 141 review before detailed planning, 158–60 review questions on, 161–62 risk plan, 139, 142–44 scope and objectives planning, 144–52 summary on, 160–61 Historic examples of projects failed projects, 25 Panama Canal project, 22, 23, 83, 85–86 385 Pyramid at Giza, 37–38, 39–40 railroad system in United States, 22, 23, 38–39, 40 Wright brothers’ project, 241–46 Human resources management, project, 128 Human resources specialist, 89 Ibbs, William, 27, 75, 280 Improvements, process, 229–30, 284–89 Initiation phase of project, 42, 43, 46, 97, 107–8 Inquiry, 240 Integration management, project defined, 127, 212–13 during execution and closeout, 225–26 Integrity of project managers, 68, 78–80 Interviews to confirm project assumptions, 137–38 IRS tax collection projects, 61 Issues list, 137–38, 139, 140, 158 Key concepts to remember, 321–23 Kinesthetic learning style, 193, 194 Knowledge areas on PMP certification test, 127, 131, 189 See also Facilitating processes Knowledge expert, 89 Knowledge of project managers, 79, 80, 81 Leader, project management See also Project managers characteristics of, 70–80 famous example of, 83–86 integrated skill set of, 68–69 overview of, 67–68 review questions on, 92–93 role of, 87–88 Leadership behaviors, 82 conceptual, 77–78 roles on large projects, 88–90 styles of, 76–77, 86–87 summary on, 91 Leadership requirements by product stage, 71–74 by project phase, 70–71 Left-brained knowledge workers, 79 Lessons learned and process improvements, 229–30, 284–89 Life-cycle phases of a project closeout, 97, 110 defined, 21, 22, 42–46, 97 execution, 97, 109–10 initiation, 97, 107–8 leadership requirements and, 70–71 planning, 97, 108–9 product life-cycle stages versus, 97–98 Life-cycle stages of a product, 71–74, 97 386 Logistics planning 219 Long-term value of project outcomes, 22–24 Machiavelli, Mahan, Captain, 85 Management commitment, confirming, 148–49 Markham, Beryl, 196–97 Maturity models, 304–6 See also Organizational Project Management Maturity Model (OPM3) Maturity of project management organization, 74–75 See also Organizational project management maturity McKinley, President, 85 Meeting procedures, team, 206–7 Melvill, Mike, 244 Methodologies, 288–89 Micromanaging, 199 Microsoft Project (MS Project), 268 Multiple projects, 51–53 Neurolinguistic programming, 75 Not-for-profit organizations, 26, 27, 61–62 Obsolete assumptions, 151 Obsolete perceptions, 151 Operations versus projects, 5, 11–13 OPM3 See Organizational Project Management Maturity Model (OPM3) Organizational alignment, 101–2 Organizational assessment, 320 Organizational culture project manager’s abilities and, 82–83 project success and, 275–79 Organizational project management maturity advancements in, 323–24 conclusions on, 315–20 definition of, 280–84, 318 determining, 295–301 key concepts to remember, 321–23 leadership expectations and, 74–75 leveraging organization’s resources, 293–95 management structure and culture, 275–79 overview of, 273–75 process improvement, 229–30, 284–89 project business and work context, 289–93 project management office (PMO) and, 306–13 review questions on, 324–26 standard for, 297–98 standard metrics for, 313–15 standard processes to improve project management, 313 technology to enhance, 301–6 Organizational Project Management Maturity Model (OPM3) best practices contained in, 285, 304 defined, 278, 304, 318 for improving project environment, 280, 285 Index OPM3 specialists as mentors, 304 for organizational project management maturity, 281, 282, 284, 297–98, 304, 314 Oversight reviews, 305–6 Panama Canal project, 22, 23, 83, 85–86 Pennypacker, James S., 80, 280 Phases of a project See also Execution and closeout closeout, 42–43, 44, 46, 97, 110 defined, 21, 22, 42–46, 97 execution, 97, 109–10 initiation, 42, 43, 45, 46, 97, 107–8 leadership requirements and, 70–71 planning, 42, 43–44, 46, 97, 108–9 product life-cycle stages versus, 97–98 Pink, Daniel H., 79 Planned value (PV), 266, 267 Planning, projects focused on, 57–58 Planning aids templates as, 121, 122, 319–20 types of, 122 Planning concepts See also Detailed planning; High-level planning boundaries of planning phase, 114, 116 charter document, 105–7, 113, 114, 115 detailed planning, 117, 122–30 feasibility study, 106–7, 114, 115 go/no-go decisions, 116, 170–73 high-level planning, 117–22 overview of, 113 plan approval, 130–31 project selection decision process, 115 review questions on, 132 scope statement, 114 summary on, 131 Planning environment, 99–101 Planning metrics, 313 Planning phase of project, 42, 43–44, 46, 97, 108–9 PMBOK Guide, 5, 6, 9, 131, 266, 280, 281, 323 Polaris submarine program, Policies and standards, team, 177–78 Portfolio management, 283 Portfolio manager, 101 Preaward document, 106 Problem-solving cycle and project phases, 21–22 Problem-solving skills of project managers, 83 Process engineer, 89 Process improvement closure and, 229–30 continuous improvement, 288 documenting existing processes, 286 methodologies for, 288–89 project management and, 284–85 standardizing common processes, 286–88 targeted areas for improvement, 285 Process model, 319 Index Process of managing projects basics of, 96–102 how projects get started, 102–7 overview of, 95–96 project phases, 107–10 review questions on, 111–12 summary on, 110–11 Procurement execution phase and, 219 management, 129 planning for, 176–77 Product life-cycle stages defined, 46, 97–98 project life-cycle phases versus, 46, 48–56, 97–98 stage chart, 47 Product scope, 123 Product stage and leadership requirements, 71–74 Profession of project management, 16–17 Program management, 282–83 Program management office (PMO) defined, 306, 307–8, 315 implementing a, 308–9 improving organizational project management maturity, 305, 309–11 selling a PMO to organization, 311–12 Program manager, 101 Progressive elaboration, 226 Project champion, Teddy Roosevelt as, 83–86 Project customer(s), 149, 153, 206 Project design, 48–49 Project engineer, 89 Project execution and closeout closeout, 226–27 communications during, 213–16 lessons learned and process improvements, 229–30 managing cost, 218–20 managing risk, 221–24 managing time, 220–21 overview of, 211–12 policy and standards, 224–225 processes for success, 212–13 project integration management, 225–26 quality plan, 217 review questions on, 231–32 summary on, 230–31 turnover of responsibility for deliverables, 227–29 Project integration management defined, 127, 212–13 during execution and closeout, 225–26 Project life cycle defined, 45, 46 diagram, 42–43 product life cycle versus, 46–56 Project management See also Project management concepts; Projects benefits of, 28–29 387 best practices in, 246–47 definitions of, 1–2, desired change and, 17–19 evolution of, 2–3 field of, 9–12 profession of, 16–17 professional, review questions on, 30–32 role of, 8–9, 10 standards, 4–6 summary on, 29–30 Project Management Body of Knowledge, 4, 5, 81 Project management concepts general rules, 34–36 historic projects, 22, 23, 25, 37–40, 83, 85–86, 241–46 key concepts to remember, 321–23 natural phases of projects, 42–46 product life cycle, 46, 47 progress and advances, 40–42 project life-cycle diagram, 42–43 project life cycle versus product life cycle, 46–56 review questions on, 64–65 settings and styles of management, 59–63 standardized project management, 60 summary on, 63–64 triple constraint, 33, 55–56 types of projects, 57–59 underlying assumptions of project management, 36 Project Management Institute (PMI), 4, 5, 8, 13, 79, 81, 278, 280, 281, 282, 284, 304, 323 Project Management Journal, 281 Project management methodology, 54 Project management office (PMO) description of, 295, 307–8, 315 implementing a, 308–9 improving organizational project management maturity with, 286–87, 309–11, 315 oversight reviews and, 305 selling PMO to organization, 311–12 Project management professionals (PMPs), 4, 277, 295 Project management standards, 4–6 Project managers accountability of, 35–36, 149, 206 description of, 6, 14–15, 35 honesty of, 76, 78, 80 integrated skill set of, 68–69 integrity of, 78–80 leadership role of, 90–91 project success and, 74–75, 76 review questions on, 92–93 skills and abilities of, 80–83 support for leadership style of, 76–78 Project phase and leadership requirements, 70–71 Project plan, 49–51 388 Project scope See also Scope and objectives planning controlling, 255–57 defined, 123 description of, 51, 55, 56 planning phase and scope statement, 114, 123 Project selection, 98–99, 115 Project support office (PSO) See also Project management office (PMO) defined, 306–7, 315 selling the PSO to organization, 311–12 Projectized organizations, Projects consecutive, 53–55 defined, 3, historic examples of, 22, 23, 25, 37–40, 83, 85–86, 241–46 multiple, 51–53 natural phases of, 42–46 operations versus, 5, 11–13 types of, 57–59 Public service organizations, 61–62 Purchasing or contracts specialist, 89 Pyramid at Giza, 37–38, 39–40 Quality assumptions, 234–38 Quality control and cost, 263–64 Quality management, project, 128, 217 Quality plan, 186–87, 217 Quantifying the Value of Project Management, 75, 280 Railroad system in United States, 22, 23, 38–39, 40 Reagan, Ronald, 84 Reasons for projects, 138 See also Benefits of systematic management of initiatives Refinements, 12 Reginato, Justin, 27 Replanning, 50 Reporting, planning for, 173–76 Reports during execution phase, 215 Request for Proposal (RFP), 106 Research and development, 11 Reserve analysis, 263 Resources leveraging scarce, 19–20, 29 resource estimates in high-level planning, 120 Responsibility matrix, 154, 158 Retirement of a structure, projects focused on, 58–59 Retiring a product, 73 Review questions on chapters answer key to, 320 context for project management, 248–50 controlling project work, 271–72 detailed planning, 188 execution and closeout, 231–32 high-level planning, 161–62 organizational project management maturity, 324–26 Index planning concepts, 132 process of managing projects, 111–12 project management, 30–32 project management concepts, 64–65 project management leader, 92–93 team development, 208–9 Revisions and enhancements, 11–12 Rewards for team members, 200–201 Risk management, project defined, 129 early risks, 102–5 execution phase and, 221–224 project’s risk profile, 236–37 Risk metrics, 314 Risk plan, developing a, 139, 142–44, 158 Risk transference, 224 Risks associated with a project description of, 36, 55 risk analysis table, 142 Roberto, Michael, 240 Robert’s Rules of Order, 207 Role expectations and skill sets, 14–15 Roles, project confirming, 147–48 leadership roles on large projects, 88–90 typical, 206 Roosevelt, Franklin, 84 Roosevelt, Theodore, 83–86 Rutan, Burt, 244 Sarbanes-Oxley Act, 218 Schedule, project management as communications device, 171, 172 development, 169 distributing, 215–16 project control and, 171, 173, 257–58 time management and, 220–21 Scope and objectives planning clarifying plan through exposure, 151–52 confirming management commitment, 148–49 confirming project roles, 147–48 defining the deliverable, 144–46 filling gaps in project plan, 146–47 identifying team resources, 146 viewpoints for, 149–51 Scope boundary planning, 114, 118 Scope management, project, 127 Scope of project controlling, 255–57 description of, 51, 55, 56 planning phase and scope statement, 114, 123 Scope statement, 114, 123, 158 Selection, project, 98–99, 115 Sensitivity of project managers, 82 Skill base, building a, 20 Snyder, James R., 79 Software, Microsoft Project (MS Project), 268 Software to support management decisions, 301–2 Space Needle in Seattle, 23 Index 389 Specialists in field of project management, 16 Sponsor (project champion), 36, 147, 149, 153, 206 Stakeholder analysis, 153 Stakeholder management, planning for, 184–86 Stakeholder reports, 174–75, 215, 216 Standardizing common processes, 286–88 Status report plan, 174 Stonehenge, 23 Styles of project leadership, 76–77, 86–87 Subcontractor reports, 175 Success, definitions of, 87 Sun Tzu, Support systems, project management, 298–99 Toney, Frank, 75, 76, 78 Training for team members, 182–83 workforce development, 302–4 Trends in project management, 291–92 Triple constraint defined, 33, 55–56 detailed planning and, 164, 171 project control and, 253–64 Trust within the team, 198–201 Turnover of responsibility for deliverables, 227–29 Types of projects, 57–59 Taylor, Charles, 243 Team, project, 149, 153 Team building and development communication for, 191 decision authority and, 206 definition of how members work together, 192 different learning styles, 193, 194 diverse thinking styles, 68–69, 193, 194 emotional intelligence for, 195–97 facilitating processes for, 189–91 human resources management, 192 leadership in, 90–91 meeting procedures, 206–7 overview of, 189–90 processes that promote teamwork, 197–98 review questions on, 208–9 rewards for team members, 200–201 summary on, 207 team size, 192 training, 192, 204 trust for, 198–201 for virtual projects, 202–5, 268, 269 work environment for, 180–81, 299–301 work standards for, 201 Team celebration, 229 Team input to the plan, 166–67 Team management, planning for, 180–83 Team reports, 175 Team support, planning for, 177–79 Technical credibility of project managers, 81–82 Technical lead, 88 Technical writer, 89 Technology leveraging, 268–70 organizational project management maturity and, 301–6 Technology specialist, 89 Templates, as planning aids, 121, 122, 319–20 Thinking styles, diversity of, 68–69, 193, 194 Time management, project See also Schedule, project management defined, 127–28 execution phase and, 220–21 Undiscussables, 160 Unexpressed concerns, 152 Value, earned, 259, 264–67 Value metrics, 313–14 Value of project outcomes closeout phase and, 227–28 declaring, 26–28 judging, 26 long-term, 22–24 Virtual projects team building for, 202–5 tips for virtual teams, 268, 269 Visibility into the problem, 19, 20 Visual learning style, 193, 194 Wilson, Woodrow, 84 Wisdom versus knowledge, 79 Work breakdown structure (WBS) description of, 108, 110, 117, 120–21 detailed planning for, 164–67 high-level planning for, 120–21 initial documentation and, 157–58 overall plan and, 126–27 structure of project and, 124 Work environment for team site arrangements, 180–81 supportive, 299–301 Work plan for execution (detailed planning) activity duration estimating, 168–69 activity sequencing, 168 closeout plans, 170 cost budgeting, 169–70 cost estimating, 169 plan and baseline publication, 170 resource planning, 167–68 schedule development, 169 scope and activity definition, 165–67 work breakdown structure and, 164–165, 166 Wright, Orville, 241–46 Wright, Wilbur, 241–46 Wright brothers’ project, 241–46 INSTRUCTIONS FOR ACCESSING ONLINE FINAL EXAM AND CHAPTER QUIZ ANSWERS I f you have completed your study of The McGraw-Hill 36-Hour Course: Project Management, you should be prepared to take the online final examination It is a comprehensive test, consisting of 73 multiplechoice questions You may treat this test as an “open book” exam by consulting this book and any other resources Answers to both the online exam and the chapter-ending quizzes can be found on The McGrawHill 36-Hour Course Information Center landing site for each book (please see the instructions below for accessing the site) Instructions for Accessing Online Final Exam Go to www.36hourbooks.com Once you arrive on the home page, scroll down until you find The McGraw-Hill 36-Hour Course: Project Management and click the 390 Instructions for Accessing Online Final Exam and Chapter Quiz Answers 391 link “Test your skills here.” At this point you will be redirected to The McGraw-Hill 36-Hour Course Information Center landing site for the book Click the “Click Here to Begin” button in the center of the landing site You will be brought to a page containing detailed instructions for taking the final exam and obtaining your Certificate of Achievement Click on “Self-Assessment Quiz” in the left-hand navigation bar to begin the exam Instructions for Accessing Answers to Chapter-Ending Quizzes Follow Steps and above Click “Chapter-Ending Quiz Answers” in the left-hand navigation bar ABOUT THE AUTHORS H elen S Cooke, M.A., PMP, and Fellow of the Project Management Institute, is a 25-year veteran of project management She has managed more than 50 projects and has worked on five continents A keynote speaker at industry events worldwide, she teaches for DePaul University’s Management Development Center in Chicago and leads a consulting practice advancing the project management maturity of organizations Prior to cofounding OPM Mentors, she held management positions with United Airlines, McDonald’s Corporation, AMS, Deloitte, and Northwestern University She headed a PM Center of Excellence and a PMO, and was a mid-level manager in the U.S government Active for 23 years in the Project Management Institute, Helen was elected vice president and served on PMI’s Global Board of Directors for six years She chaired the Council of Chapter Presidents, was an elected officer of the PMI Educational Foundation, a reviewer for the PM Journal, and developer of the PMBOK and OPM3 She is a past president of the Chicagoland Chapter and founded the chapter’s executive council Karen Tate, M.B.A., PMP, is founder and president of The Griffin Tate Group, Inc., a Cincinnati, Ohio–based project management training and consulting firm She has worked with projects and project teams for more than 25 years and now trains and consults with corporate, nonprofit, and government organizations globally, in Asia, Europe, South America, and North America Karen held positions with General Electric, Bechtel Corporation, and Kentucky Fried Chicken Corporation She served six years on the Global Board of Directors of the Project Management Institute, and was designated a Fellow of the Project Management Institute for her sustained service and significant contributions to PMI and the project management community This is PMI’s highest and most prestigious award that is presented to an individual