THE AMA HANDBOOK OF PROJECT MANAGEMENT THIRD EDITION This page intentionally left blank THE AMA HANDBOOK OF PROJECT MANAGEMENT THIRD EDITION Edited By PAUL C DINSMORE, PMP JEANNETTE CABANIS-BREWIN AMACOM American Management Association New York | Atlanta | Brussels | Chicago | Mexico City San Francisco | Shanghai | Tokyo | Toronto | Washington, D.C Bulk discounts available For details visit: www.amacombooks.org/go/specialsales Or contact special sales: Phone: 800-250-5308 Email: specialsls@amanet.org View all the AMACOM titles at: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service If legal advice or other expert assistance is required, the services of a competent professional person should be sought Library of Congress Cataloging-in-Publication Data The AMA handbook of project management / edited by Paul C Dinsmore, Jeannette Cabanis-Brewin — 3rd ed p cm ISBN 978-0-8144-1542-9 Project management Handbooks, manuals, etc I Dinsmore, Paul C II CabanisBrewin, Jeannette III Title: Handbook of project management HD69.P75A46 2010 658.4'04—dc22 2010013521 © 2011 Amacom Books, a division of the American Management Association Trademark information about PMI, the Project Management Institute, Inc., is to be found on Page X This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019 About AMA American Management Association (www.amanet.org) is a world leader in talent development, advancing the skills of individuals to drive business success Our mission is to support the goals of individuals and organizations through a complete range of products and services, including classroom and virtual seminars, webcasts, webinars, podcasts, conferences, corporate and government solutions, business books, and research AMA’s approach to improving performance combines experiential learning— learning through doing—with opportunities for ongoing professional growth at every step of one’s career journey Printing number 10 CONTENTS FOREWORD David I Cleland, PhD, FPMI PREFACE Paul C Dinsmore, PMP, and Jeannette Cabanis-Brewin xi xiii ACKNOWLEDGMENTS xvii ABOUT THE EDITORS xix CHAPTER What Is Project Management? Project Management Concepts and Methodologies FRANCIS M WEBSTER, JR., PHD, AND JOAN KNUTSON SECTION ONE The Project Management Body of Knowledge: Comprehension and Practice 13 INTRODUCTION CHAPTER Bodies of Knowledge and Competency Standards in Project Management 15 ALAN M STRETTON CHAPTER Project Management Process Groups: Project Management Knowledge in Action GEREE STREUN, PMP, CSQE CHAPTER Initiation Strategies for Managing Major Projects 33 PETER W G MORRIS CHAPTER Comprehensive Planning for Complex Projects 47 DAVID L PELLS CHAPTER Controlling Costs and Schedule: Systems That Really Work 63 RALPH D ELLIS, JR CHAPTER 27 Project Management Integration in Practice GEREE STREUN, PMP, CSQE 73 v American Management Association www.amanet.org CHAPTER Project Scope Management in Practice RENEE MEPYANS-ROBINSON CHAPTER Time Management in Practice 87 VALIS HOUSTON, PMP CHAPTER 10 Project Cost Management in Practice PAUL LOMBARD, PMP, CQM 10A 107 Project Quality Management in Practice GEREE STREUN, PMP, CSQE 11A 141 Studies in Project Human Resource Management: Team Building and Interpersonal Skills PAUL C DINSMORE, PMP 12B 173 Studies in Communications Management: Achieving Project Success Through Stakeholder Management JOHN TUMAN, JR., P.ENG CHAPTER 14 163 Project Communications Management in Practice RENEE MEPYANS-ROBINSON 13A 151 Studies in Project Human Resource Management: Leadership HANS J THAMHAIN, PHD, PMP CHAPTER 13 129 Human Resource Management in Practice LEE TOWE, PMP 12A 123 Studies in Project Quality Management: Achieving Business Excellence Using Baldrige, Business Process Management, Process Improvement and Project Management ALAN MENDELSSOHN AND MICHAEL HOWELL, ASQ CHAPTER 12 97 Studies in Cost Management: Earned Value—An Integrated Project Management Approach LEE R LAMBERT, PMP CHAPTER 11 79 183 Risk Management in Practice DAVID HILLSON, PHD, PMP, FAPM, FIRM vi American Management Association www.amanet.org 193 CHAPTER 15 Project Procurement Management in Practice JUDITH A EDWARDS, PHD, PMP, IEEE, SM 15A 205 Studies in Procurement Management: Managing to Avoid Claims IRVING M FOGEL, P ENG 217 SECTION TWO The Profession of Project Management 225 INTRODUCTION CHAPTER 16 Preparing for the Project Management Professional Certification Exam THEODORE R BOCCUZZI, PMP CHAPTER 17 Competency and Careers in Project Management J KENT CRAWFORD, PMP, AND JEANNETTE CABANIS-BREWIN CHAPTER 18 239 Project Management Ethics: Responsibility, Values, and Ethics in Project Environments THOMAS MENGEL, PHD, PMP CHAPTER 19 227 255 Professionalization of Project Management: What Does It Mean for Practice? JANICE THOMAS, PHD AND BILL ZWERMAN 265 SECTION THREE Organizational Issues in Project Management 279 INTRODUCTION CHAPTER 20 Projects: The Engine of Strategy Execution JAMES S PENNYPACKER AND JEANNETTE CABANIS-BREWIN CHAPTER 21 Project Management: A Strategic Asset? 291 KAM JUGDEV, PHD, PMP CHAPTER 22 281 Enterprise Project Management: Elements and Deployment Issues 303 CHRIS VANDERSLUIS vii American Management Association www.amanet.org CHAPTER 23 Project Portfolio Management: Principles and Best Practices GERALD I KENDALL, PMP CHAPTER 24 Measuring the Value of Project Management: A Measurement System JAMES S PENNYPACKER CHAPTER 25 335 Managing Multiple Projects: Balancing Time, Resources, and Objectives 345 LOWELL DYE, PMP CHAPTER 27 325 A Process of Organizational Change: From Bureaucracy to Project Management Orientation ROBERT J GRAHAM, PHD, PMP CHAPTER 26 313 The Project Office: Rationale and Implementation J KENT CRAWFORD, PMP, AND JEANNETTE CABANIS-BREWIN 355 SECTION FOUR Issues and Ideas in Project Management Practice 369 INTRODUCTION CHAPTER 28 Dealing with Power and Politics in Project Management 371 RANDALL L ENGLUND CHAPTER 29 Multiproject Constraint Management: The “Critical Chain” Approach 385 FRANK PATRICK CHAPTER 30 Communities of Practice and Project Management CONNIE DELISLE, PHD, AND KIM ROWE, P.ENG CHAPTER 31 Six Sigma and Project Management 407 RIP STAUFFER CHAPTER 32 Cultural Challenges in Managing International Projects PAUL C DINSMORE, PMP, AND MANUEL M BENITEZ CODAS CHAPTER 33 395 417 Social Media Tools: An Introduction to Their Role in Project Management 427 ALAN LEVINE viii American Management Association www.amanet.org SECTION FIVE Industry Applications of Project Management Practice 439 INTRODUCTION CHAPTER 34 Building Organizational Project Management Capability: Learning From Engineering and Construction 441 CHRISTOPHER SAUER CHAPTER 35 New Product Development: Issues for Project Management 453 DENNIS M SMITH CHAPTER 36 Why IT Matters: Project Management for Information Technology 463 KAREN R.J WHITE, PMP CHAPTER 37 Applying Project Management Tools and Techniques in the Ecosystem Restoration Industry STAN VERAART, PMP, AND DONALD ROSS CHAPTER 38 475 Rescue Mission: Project Management in the Helping Professions JEANNETTE CABANIS-BREWIN 483 ABOUT THE CONTRIBUTORS 491 INDEX 505 ix American Management Association www.amanet.org ...THE AMA HANDBOOK OF PROJECT MANAGEMENT THIRD EDITION This page intentionally left blank THE AMA HANDBOOK OF PROJECT MANAGEMENT THIRD EDITION Edited By PAUL... One, the issue of professionalism and the development of project management as a profession will be raised Section Two covers the field of project management as a rapidly growing “profession” that... Project Management Institute honored her with a Distinguished Contributions Award xx THE AMA HANDBOOK OF PROJECT MANAGEMENT, THIRD EDITION American Management Association www.amanet.org THE AMA