About the authors Sean Kelly is a serving British Army officer with wide experience in both the public and private sectors His previous employers include Deutsch Bank, OCL and Hoechst He was awarded the MBE in 2002 for his role in the worldwide operations that followed 9/11 He is currently commanding a British Army Regiment and working with a number of leading training providers across Great Britain Now the perfect companion for anyone sitting the PMI’s PMBOK exams If you could deliver your projects on time, within budget, and in line with the customer’s expectations, would you? Of course you would This book shows you how to master the techniques of effective project management so that your projects deliver what you want, every time The book is ideal for project managers to use as a ready reference and problem solver while engaged in managing projects And this new edition now follows the world’s most popular and most reliable methodology for project management from the Project Management Institute (PMI), and so it is an ideal companion for anyone preparing for the Institute’s exams, both PMP and CAPM THE DEFINITIVE Sebastian Nokes is a practicing project and programme manager who also advises corporations, government bodies and professional service firms on project and programme management, decision making and information management He has led major projects in the investment banking, nuclear and high technology sectors Sebastian has previously worked for IBM and Credit Suisse First Boston and is currently a partner at Aldersgate Partners LLP, a management consulting firm Can you manage without this tried and tested guide? The Definitive Guide to Project Management shows you, step by step, how to deliver your projects in the right way at the right time, from scoping the project through to risk management, quality control and prioritisation As well as outlining all the processes and techniques you will need to become a successful project manager, it can help you gain that extra edge by showing you how to manage one of the most important components of any project, the people, and how to navigate the politics that often surround important projects Since business operates in the real world, which is unpredictable, it also shows you how to spot potential problems and how to cope with any difficulties that crop up GUIDE TO PROJECT MANAGEMENT THE FAST TRACK TO GETTING THE This is an extremely practical book and you can put its advice into practice immediately Inside you will find key questions, templates and action checklists to help you at each stage of your well-executed project This best-selling book provides a unique single reference source for project managers and anyone else who needs to know about project management It provides top tips and easy-to-apply guidance in all key aspects of project management With The Definitive Guide to Project Management, you can deliver results on time, every time JOB DONE ON TIME AND ON BUDGET SEBASTIAN NOKES AND SEAN KELLY MANAGEMENT The only way to get new things done, to innovate and reap the benefits of innovation, is through project management The heart of project management is doing different things at the right times so that the end result is what is wanted This means knowing what is required, what inputs you need to get there, what processes must be performed, and in what order To cover all this ground and to help you learn in the most effective and logical way, The Definitive Guide to Project Management is structured around the nine key knowledge areas of project management as followed in the Project Management Institute’s Project Management Body of Knowledge (PMBOK) certificate: • Project Integration Management • Project Scope Management • Project Time Management • Project Cost Management • Project Quality Management • Project Human Resource Management • Project Communication Management • Project Risk Management • Project Procurement Management NOW FULLY COMPLIANT WITH THE PMI’S PMBOK EXAMS Visit our website at Whatever your project involves, if you deliver it on time and on budget, you’ll get noticed 2ND EDITION www.pearson-books.com Visit our website at www.pearson-books.com DESIGNED BY An imprint of Pearson Education TheDefinitiveGuideToProjectManag1 r&d&c 2ND EDITION 5/3/07 15:46:13 DGPM_A01.QXD 11/3/07 11:09 AM Page i the definitive guide to project management DGPM_A01.QXD 11/3/07 11:09 AM Page ii In an increasingly competitive world, we believe it’s quality of thinking that gives you the edge – an idea that opens new doors, a technique that solves a problem, or an insight that simply makes sense of it all The more you know, the smarter and faster you can go That’s why we work with the best minds in business and finance to bring cutting-edge thinking and best learning practice to a global market Under a range of leading imprints, including Financial Times Prentice Hall, we create world-class print publications and electronic products bringing our readers knowledge, skills and understanding, which can be applied whether studying or at work To find out more about Pearson Education publications, or tell us about the books you’d like to find, you can visit us at www.pearsoned.co.uk DGPM_A01.QXD 11/3/07 11:09 AM Page iii the definitive guide to project management the fast track to getting the job done on time and on budget Second Edition SEBASTIAN NOKES AND SEAN KELLY DGPM_A01.QXD 11/3/07 11:09 AM Page iv PEARSON EDUCATION LIMITED Edinburgh Gate Harlow CM20 2JE United Kingdom Tel: +44(0)1279 623623 Fax: +44(0)1279 431059 Website: www.pearsoned.co.uk First published 2003 Second edition published in Great Britain 2007 © Aldersgate Partners LLP 2003 © Casnus Limited 2007 ISBN: 978 273 71097 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Nokes, Sebastian The definitive guide to project management : the fast track to getting the job done on time and on budget / Sebastian Nokes and Sean Kelly 2nd ed p cm Includes bibliographical references and index ISBN 978-0-273-71097-4 Project management Handbooks, manuals, etc I Kelly, Sean, 1960-II Title HD69.P75N65 2007 658.4’04 dc22 2006053299 All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers 10 11 10 09 08 07 Typeset by 30 Printed and bound in Great Britain by Ashford Colour Press, Hampshire The Publishers’ policy is to use paper manufactured from sustainable forests The authors may be contacted at Sebastian@Nokes.net DGPM_A01.QXD 11/3/07 11:09 AM Page v about the authors Sebastian Nokes and Sean Kelly have worked together on a number of strategic projects and programmes SEBASTIAN NOKES Sebastian Nokes is a practicing project and programme manager who also advises corporations, government bodies and professional service firms on project and programme management, decision making and information management He has led major projects in the investment banking, nuclear and high technology sectors He is currently a partner at Aldersgate Partners LLP, a management consulting firm, and previously worked for IBM and Credit Suisse First Boston He was educated at Eton College and London University (Birkbeck, SOAS, Imperial and LBS) and has served as an officer in the 2nd Goorkha Rifles and the Royal Air Force Sebastian has written or edited a number of books and articles on project management and other business topics He lives in London and works in the UK, Europe and Asia/Pacific His current interests include how to change the mindset and culture of management teams to enhance project performance, and how to structure major strategic projects in large organizations His current research work focuses on valuing projects and securitization SEAN KELLY Sean Kelly is a serving British Army officer with wide experience in both the public and private sectors He was educated in the UK and Australia and his past employers include Deutsch Bank, OCL and Hoechst His current areas of interest are the practical implications of implementing a complex information strategy and risk transfer in public–private partnerships He has worked as a Project Manager in the US, Europe, Africa and the Far East His qualifications include MA, MBA and PMP As the first officer sent to the UK Ministry of Agriculture, Food and Fisheries during the Foot and Mouth crisis of 2001, he was responsible for project managing how and where the military could assist This led to the deployment of thousands of servicemen He was awarded the MBE in 2002 for his role in the worldwide operations that followed 9/11 He is currently commanding a British Army Regiment and working with a number of leading training providers across Great Britain v DGPM_A01.QXD 11/3/07 11:09 AM Page vi acknowledgements The authors gratefully acknowledge all those whose advice, examples or other assistance have contributed to this book We most especially thank the clients of Aldersgate Partners LLP and we recognize the trust that they place in us, and we also thank all of those who have attended our training courses, either public or in-house corporate courses While cautioning that all faults and other deficiencies in the book are solely the responsibility of the authors – and one hardly appreciates how important that statement is until one has tried to write a book – we would like to thank also our colleagues at Aldersgate, all of whom have contributed, in various ways, to the book, and to our friends at Pearson Education in the UK, USA and elsewhere, Digby Law in Sydney and TypingNZ in New Zealand Thanks to: Professor Chris Higson, Peter Robin, Guy Treweek, Dr Diana Burton, Dr Stephen Coulson, Andrew Howard, Steve Bullen, David Tulloch, and Debra Palmer; Richard Stagg, Steve Temblett, Laura Blake, Liz Gooster and Lesley Pummell; and Stephen Digby in Australia and Kim Megson in New Zealand We thank and acknowledge the assistance given by the Project Management Institute, both to us in preparing this book and more widely, and we thank Douglas Murray, Leslie Higham, Diana Humphrey and the team at the PMI Figures and text in this book that are acknowledged as being from the PMBOK Guide are from A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Third Edition, Project Management Institute, Inc., 2004 Copyright and all rights reserved Material from this publication has been reproduced with the permission of PMI Our particular thanks go to Tony Gamby, JP Rangaswami, Cedric Burton, Mike Stone, Jeremy Havard, the Revd Gordon Taylor, Aziz Muzakhanov, Louis PlowdenWardlaw, Julian Fidler, Peter Burditt, Paul Najsarek, Mark Kerr, Paul Leighton, David Maitland, Dillon Dhanecha, Mike Baker, Kennedy Frazer, Tegwen Wallace, Graham Mackintosh, Nick McLeod-Clark, Dave Hastings, Dave Best, Steve Holland, Mark Dutton, Nicola Smith, Mike Molinaro, Emma Ross, Jonathan Webb, Gareth Moss, Adrian Cory, Frances Kinsella and Andrew Ward We also thank Andrew Munro, Patrick Smith, Alan Greenwood, Dominic Allen, Jennifer Johnson, Mark Goodman, Graeme Graas, Aaron Dover, Ian Major, David Kriel and Philip Stromeyer, Jesus Rodriguez, and Heidi Peel A number of individual and organizations have helped in various ways with the production of the book Humphrey and Bella Nokes provided extensive use of their houses in Switzerland, Andrew and Vicky de Pree of theirs in New Zealand, Dave and Vee Burton of their houses also in New Zealand, and Chris Booton and Gina of theirs in Melbourne – all of which were delightful and productive places in which to get thinking and writing done in a way that is simply not possible in the office in London Vaughan Smith and the Frontline Club in London, the Cornell Club and its staff in New York, the Wellington Club and its staff in Wellington have all helped in bringing this book into being Tina Arthur is invaluable in logistic support and much wise advice has come from Rachel Sheard vi DGPM_A01.QXD 11/3/07 11:09 AM Page vii contents About the authors v Acknowledgements vi Preface to the Second Edition xiii List of figures xiv An introductory case study xvii Introduction Aims of this chapter What’s new about the new edition? What project managers really want? Emerging standards for project management Project management is founded on common sense How readers can use this book What kinds of project is this book aimed at? Project management’s nine knowledge areas Projects as a distinct class of activity Managing projects 15 The project management lifecycle 16 Summary 17 Notes 18 Project organization, people and management 19 Aims of this chapter 20 Structure of this chapter 20 First thoughts 20 Main kinds of organization and consequences for project management 22 Project management system 27 Project organization and project roles 29 Managing the project team 39 Project lifecycle 49 Summary 60 Further reading 60 Notes 61 vii DGPM_A01.QXD 11/3/07 11:09 AM Page viii Contents Project management processes 63 Aims of this chapter 64 Process groups – rationale and general principles 64 The initiating process group 70 The planning process group 74 The executing process group 77 The monitoring and controlling process group 79 The closing process group 81 Summary 83 Notes 84 Project integration management 85 Aims of this chapter 86 What is project integration management? 86 The role of integration in project management 87 A first look at project integration management 88 Processes and process groups of integration management 91 Develop project charter 94 Develop preliminary project scope statement 103 Develop project management plan 104 Project initiation 115 Direct and manage project execution 119 Other project integration management tools and techniques 122 Summary 139 Further reading 140 Notes 141 Project scope management 143 Aims of this chapter 144 What is project scope management? 144 Principles of project scope management 145 Scope planning 147 Scope definition 148 Create work breakdown structure 149 Scope verification 151 Scope creep 152 Scope control 154 viii DGPM_A01.QXD 11/3/07 11:09 AM Page ix Contents Scope management process in action 155 Summary 156 Project time management 159 Aims of this chapter 160 What is time management? 160 Time management in projects 160 Trading time 161 Project time management process group 162 Activity definition 163 Activity sequencing 166 Activity resource estimating 169 Activity duration estimating 171 Schedule development 173 Schedule control 177 Meetings and time management 179 Summary 181 Cost management 183 Aims of this chapter 184 Costs matter 184 Key concepts 185 The importance of costs and financial knowledge 185 Scope and cost 186 Five rules of thumb for estimating costs 187 A specialist task 188 Cost management process groups 188 Cost estimating 189 Cost budgeting 195 Cost control 196 Summary 198 Further reading 198 Notes 199 Quality management 201 Aims of this chapter 202 An introduction to the concept of quality 202 ix DGPM_Z03.QXD 27/2/07 14:14 Page 340 Appendix C task you find that most of the project plans are neither consistent nor up-todate Which of the following statements is true? (a) Historical information is of no use to the company, as technology and methods change so rapidly (b) The project plan is secondary because it is only the results that matter (c) The project plan is the result of the initiation phase and once agreed will not change (d) Poor planning is one of the major reasons for cost and time overruns 24 Creating contingency reserves in money and time is an example of … (a) Risk response planning (b) Risk identification (c) Risk management planning (d) Risk monitoring and control 25 Project costs are under budget when (a) CPI < (b) CPI > (c) CPI < (d) SPI = Answers a a 11 c 16 b 21 c d c 12 c 17 c 22 c c d 13 d 18 a 23 d a b 14 a 19 a 24 a d 10 a 15 b 20 d 25 b Key Idea Revision tips Set aside dedicated time slots in your diary to revise Create a revision timetable Start revising with the areas you least understand 340 DGPM_Z04.QXD 27/2/07 14:14 Page 341 Afterword ten top tips for managing projects hese are our top ten tips for being a successful project manager They assume you actually have the skills necessary for project management In other words, these tips are not a substitute for reading and understanding this book and making the effort to apply its lessons in real life They are tips to help you apply them in real life We don’t claim them to be unique to us or that they would be everyone’s choices They’re just things we’ve picked up, borrowed from others, and sometimes learned the hard way over a combined 50 years of managing projects If you already these things, great T Know your people Projects are done by teams Even the simplest of individual projects will require assistance from someone else The project manager has to lead his team, and to this well he must know them Leadership is much more than following the latest fad You have to know your team and make the effort to continue to so How often have we all felt better about ourselves when our boss commented on our non-work activities or asked after our families and actually knew something about them? Team-building activities are always worthwhile, provided they are well organized You don’t personally have to organize a survival week in the Amazonian jungle Professionally run centres know how to generate camaraderie in teams and can put together activities appropriate to your team and needs You can learn a great deal about your team from such events, but just taking your team for a coffee or to the pub can be of enormous benefit, as will actually taking the time to talk to them and remembering some of what they say If you’re managing a project so big that knowing everyone is impractical, ensure they all know you and that your junior managers know their people Tip: Get to know your team Time and money spent developing your relationship with each of them will pay dividends in the long run Cultural and ethical realism Ethics are a vital part of the project manager’s toolset but sometimes ethics assume a nationalistic view of life What seems ethically correct in a broadly Christian, comfortable, Western society with well-developed welfare systems bears little resemblance to acceptable business practice in other parts of the world It is arrogant to assume one practice is better than another Each has developed to reflect local conditions and a view of what is acceptable in the face of wider 341 DGPM_Z04.QXD 27/2/07 14:14 Page 342 Afterword socio-economic circumstances The good project manager has to be realistic when it comes to cultural norms A North American view of ‘expediting payments’ will not help move along a project in West Africa Equally, if your culture won’t deal with women as equal business partners, don’t arrive in New York and expect to carry on in the same way This is an area that has the potential to be enormously disruptive It might be more comfortable to avoid writing or thinking about it, but that would be to duck a critical issue in many projects Culture and the resulting ethical norms tend to be more deep-seated than even legal or regulatory constraints Realism in this context is not about asserting your personal view on your whole team or trumpeting every last person’s right to freedom and individual consideration Such approaches are risky and possibly illegal Cultural realism is about understanding the cultural and ethical realities in which you have to work and steering a path that maintains an acceptable working environment for all stakeholders You can’t please all of the people, all of the time Tip: Be realistic with cultural and ethical norms Don’t assume your custom is appropriate in a different culture Know the business The great push in project management is for project managers to be so skilled and professional that they can take on any project and by following the correct techniques and procedures see it through to a successful conclusion If life were simple and we could trust everyone to their job and specifications be set correctly and remain unchanged, this would be a possibility But life just isn’t like that If you’re going to get a good grip on a project you have to understand the business We don’t mean understanding the user requirement document; that’s relatively easy We mean understanding the business so you know the overall impact of your project decisions on business activities This presents something of a problem A home-grown expert in the business is unlikely to be an experienced project manager, whilst an expert project manager is unlikely to be experienced in a particular business area Some large organizations, of course, can afford to develop individuals specifically to fill these roles, but most can’t There is a pragmatic solution First, if your company decides you can head up a project despite having had little project management experience, don’t feel inadequate because you’re new to this role Work hard on your skills but don’t forget the benefits your experience brings to the project On the other hand, the experienced project manager knows that although he can talk Net Present Value and Critical Path Analysis with the best of them, if he doesn’t understand what is important to users he could still preside over a failure even though he might meet his specification If you know the business you might well run a good project; equally if you’ve run projects before you might well come to a business and run a good project If you can both, though, your chances of succeeding increase enormously 342 DGPM_Z04.QXD 27/2/07 14:14 Page 343 Afterword Tip: If you come to a business to run a project, spend some time learning how it works before you embark on changing anything It might seem like wasting time but you will reap the benefits later Keep everyone happy, or at least content To be a good leader, for that’s what a project manager is, it is not necessary to be popular It’s nice if you are, but it’s not necessary ‘Better the devil you know’ is an excellent maxim It is far more important that your team and stakeholders know where you stand on any particular issue, even if they don’t like it, than it is for you to sway in your opinions just to be popular So, setting aside your own feelings, what about everyone else’s? People are all different Even if you work in an organization with a strong corporate culture, a large industrial company, an investment bank, the army or a major consultancy, for example, you will still find many different types of individual The trick with running your team is to keep them all happy It may in fact be an unachievable goal, but you must still strive to accomplish it Remember, despite what your resource allocation software says, people cannot all be treated the same Look after the little things It’s amazing how often discontent can spread through a team over the smallest of issues Fixing a water machine might be a low priority for your building’s corporate services department, but if your team all start walking to the next department for a drink you lose their productivity for that time and, more worrying, they begin to form opinions about your view of their worth We can all remember taking a very serious view of what others considered to be a minor issue Even if you can’t get the water machine fixed, make a public enough fuss so that your team know you care It’s the caring that matters to them more than your failure to achieve the impossible Tip: Strive to keep your team content even if you become unpopular in the process Communicate in the most appropriate manner Management by walking around is a good thing, and much human communication is non-verbal We don’t need expensive courses to teach us this, it’s a matter of common experience E-mail may well have been one of the greatest management tools ever invented for virtual teams in diverse locations, but it’s also one of the worst for the way in which it interrupts normal human interactions If, with a little effort, you can communicate face to face, so Time spent talking directly to people when things are going well will pay dividends when they are not Talking, however, isn’t always the best way to get your message across Newsletters, team notices, minutes of meetings, written briefs and reports all have their place An experienced project manager has used them all and knows what works best in different situations and, more importantly, what doesn’t Sacking a team 343 DGPM_Z04.QXD 27/2/07 14:14 Page 344 Afterword member by SMS text message will not build trust between you and the rest of your team Communication is the project manager’s most important skill The key to good communication is consideration of the needs of the recipient The CEO is always short of time and is likely to be well educated A brief to the CEO can use a wide variety of language for maximum impact in a concise manner Conversely, consider swearing The use of coarse language is often said to be a sign of a poor vocabulary However, there is little point using your masters’ level vocabulary if your audience’s normal conversational style is to have an expletive for every third word Know your audience and adapt your style for them This does not mean swearing every third word if they do, but it does mean simplifying your language and using examples to illustrate your message that will be familiar to them Tip: Think through how you communicate with every last member of your team and all the stakeholders connected with your project Be realistic: don’t take the easy option Understand the recipient’s ability to receive your message Get a grip on the politics early Internal organizational politics is the bane of a project manager’s life The politics of an organization can prevent a project ever getting going, or worse, can ensure it fails The last thing you need as a project manager is to discover that your entire project is really just part of an ongoing battle between two business units with hidden agendas If you’re a project manager within a large organization you should have a reasonable understanding of its politics, but beware a whole new world unfolding before your eyes when you get promoted into the role And don’t say or think ‘I don’t politics’; that’s about as realistic as saying ‘I don’t breathing’ Besides, it’s not necessarily a question of whether you politics, it can be a matter of whether politics is done to you If you’re an employee who sometimes manages projects you should similarly have an understanding of the workings of your company The worst situation for this is, of course, being a newly employed or contract project manager Experience helps a great deal, but you still have to gain it The best advice we ever received on this was to not trust anyone initially and to try to understand the benefits and costs to the decider of each decision taken with regard to your project This might seem underhand, but if you just sail blindly on and find you are a pawn in someone else’s game, your team and your CV won’t thank you Don’t appear overtly wary or disbelieving (this will not help you succeed either) but, until you are sure of your ground, don’t rush into agreeing or disagreeing with anything without taking time to consider your decision Sadly, taking too long with your considerations will result in your being labelled indecisive – but then no one said project management was easy Tip: Until you understand the politics of an organization for which you are managing a project, don’t rush into major decisions based on the advice of individuals or single business units 344 DGPM_Z04.QXD 27/2/07 14:14 Page 345 Afterword Consider the unexpected and allow for it No one has a crystal ball but we can all think up worst-case scenarios A good project manager will think these through You can’t ask for a budget to cover all eventualities, but you can have some idea of how you will react if catastrophe strikes Risk analysis is an excellent tool, but don’t just disregard the low-probability risks How concerned you should be depends, of course, on the criticality of your project Clearly the development of a pan-European air traffic control system needs a backup plan that facilitates immediate recovery following the complete destruction of its primary site Similarly, in these days of widespread terrorism, the project manager for a new stock exchange computer system can probably get a budget for several real-time, geographically disparate, reserve locations Compared to these, a project to develop a new type of toothpaste may appear less critical, but if the future of the company and the livelihoods of its 6,000 employees depend on it, and the development laboratory is flooded, your thoughts on how to keep the project running become critical to a lot of people And if the world suddenly needs new anti-terrorist toothpaste, it may become very critical indeed Criticality is a very subjective science when mortgage repayments are concerned Tip: Don’t worry about low-probability risks but still have a few thoughts on how you will react if they become reality Unlikely events are only unlikely; they are not impossible Don’t sugar the pill Tell it as it is Making a report of problems poses interesting psychological questions, especially for the person making the report Most of us are uncomfortable raising an issue as being beyond our abilities or authority to resolve And unlike good red wine, bad news does not improve with age It gets worse If your project begins to experience problems make sure you report the difficulties in an accurate manner Senior managers and executives not like surprises First, report your problems when they are still just deviations from expected performance, but never just present the problem Always know why it arose and have solutions even if they are going to be unpalatable Next, beware cognitive dissonance on the part of your boss Cognitive dissonance is when the mind cannot accept what the senses are telling it You might tell him that it’s not going to work, but if he believes deeply that it will, he may well just ignore your warnings Ensure you document your concerns During the Second World War the infamous British airborne operation at Arnhem went ahead despite information being available to the planners that two SS Panzer divisions were resting in the area They ignored this because it didn’t fit the plans in which they had invested thousands of man-hours – with disastrous results Finally, beware your team not telling you what’s going on Ensure you develop a project culture where you don’t get surprised either 345 DGPM_Z04.QXD 27/2/07 14:14 Page 346 Afterword Tip: No one likes bad news When it arrives, as it most certainly will, make sure you and your team deal with it as quickly and pragmatically as possible and document what you Consider the practical implications of high-level decisions How often have you sat there trying to implement a procedure invented by someone else who clearly had no idea of how you actually worked when they designed it? A key element of project management is meeting the specification as efficiently as possible As we design increasingly complex systems, however, it is all too easy to generalize about user needs even if only to simplify the specification documentation This is all very well at the high level but doesn’t help the poor individual in an unusual but still important situation I’ve just moved into a house with a name and a number Most companies have software that recognizes one or the other when provided with the postcode, and the postman will deliver with either Unfortunately, my bank’s address software provides the name but their account database expects a number! Meeting the specification as provided is good project management according to the letter of the law Raising change proposals that better meet real-world user requirements as your experience on a project grows, however, will mark you out as an individual who adds value Don’t ever find yourself saying ‘I don’t care whether it works or not – it meets the spec exactly’ You might be right but your future employment prospects will diminish Tip: As your knowledge of a project develops, think through what you’re doing from an end user’s perspective 10 Be the good guy Honesty, sincerity and trust Most people don’t like to work with or for someone they consider dishonest or just don’t trust Don’t be that person When you say or something, be sincere If you act without sincerity or in a dishonest or untrustworthy manner, you have no right to expect any of your team or your project’s stakeholders to act differently I make no philosophical or ethical point here; it just seems to me that you can’t run your project (or indeed your life) if all those with whom you interact feel free to be dishonest with you because you’ve set them that example I can’t guarantee that your colleagues and stakeholders will all be honest as a result but at least you’ll be heading in the right direction Tip: Treat others as you’d like to be treated yourself 346 DGPM_Z05.QXD 27/2/07 14:14 Page 347 Index Note: figures and tables are indicated by italic page numbers; case studies and definition/example/key idea boxes by emboldened numbers; and notes by suffix ‘n’ account analysis methods of cost estimation 192, 194 acquisition(s) case study 12 project team 240 activity 122 activity attributes 165, 166, 169, 171, 173 updates 168, 170, 173, 177 activity definition 32–3, 162, 163–4 inputs 163–4 meaning of term 163, 166 outputs 165 tools and techniques for 163–4 activity duration 110, 317–8 and critical chain method 318–21 activity duration estimates 173 activity duration estimating 163, 171–3 inputs 171 meaning of term 171 outputs 173 tools and techniques for 171–2 activity list 165, 166, 169, 171, 174 updates 168 activity merge bias 317–8, 318 activity resource estimating 163, 169–70 inputs 169 outputs 170 tools and techniques for 170–1 activity resource requirements 170, 171, 174 updates 177 activity resourcing, meaning of term 169 activity sequencing 163, 166–8 inputs 166 meaning of term 166 outputs 168 tools and techniques for 166–8 administrative closure 81, 138 alternatives analysis 170 analogous estimating 171, 191, 192 case study 193 PMI definition 172 AOA (activity-on-arrow) diagram 168, 168 AON (activity-on-node) diagram 167, 167 APM (Association for Project Management) methodology 4, 163n2 arrow diagramming method 167 assumptions, documenting and communicating 117, 119 assumptions analysis 279 audit criteria 219 ISO 9000 definition 220 audit evidence, ISO 9000 definition 220 BAA plc, project lifecycle model 52–3 bad news, how to tell/be told 251–2, 345–6 Basecamp (project management information system) 126 baseline 105 PMI definition 105, 185 benchmarking 210, 214 benefits analysis 328 benefits identification 327–8 benefits management 327–9 functions 329 implementation for businesses 329 benefits planning 328 benefits realization 327, 328, 329 benefits transition 328–9 bottom-up estimating 170, 191, 192 boundary of project 56 see also scope brainstorming 278 buffers danger level of usage 324, 325 feed buffers 322–3 monitoring as diagnostic of project status 191, 290, 324–5 project buffers 320 resource buffers 323 business knowledge 342–3 business process re-engineering 55 CADMID cycle 52–3, 54–5 calendars applied in time management 176 see also project calendars; resource calendars CAPM (Certified Associate Project Management) see PMI cause and effect diagram 221, 222, 223 Central Limit Theorem 321 centralized/decentralized contracting 309 change control, relationship to configuration management 136 change control board 124, 125, 127, 135, 156 PMI definition 135 change control systems 124, 125, 127–8, 178 for contracts 306 PMI definition 128 relationship to configuration management system 136 change requests in communications management 259, 261–2, 262 in integration management 120–1, 124, 125 in quality management 218, 220, 221 in scope management 145 in time management 166, 170, 174 checklists quality checklists 210, 216 risk checklists 279 Cisco, acquisition project 12 ‘close project’ process 81, 82, 87, 91, 139 PMI definition 139 closing processes 81-3 administrative closure (process) 81, 138 contract closure (process) 81, 82, 138–9 deliverables/outputs from 64, 82, 82 interconnections with other process groups 17, 65 meaning of term 81 people involved 83 PMI definition 81 project closure (process) 81, 82, 87, 91, 139 reason for importance 83 code of ethics 315–6 code of professional conduct 313, 315 cognitive dissonance 345 co-location of team 240, 241 communication definition 247 347 DGPM_Z05.QXD 27/2/07 14:14 Page 348 Index communication (continued) e-mail and 253–4 emotions in 249 gut feel as aid to 254 importance in project management 246–7 in most appropriate manner 343–4 principles 248–53 audience 248–53, 253 check for misunderstandings 251 knowledge 248–50, 253 listening 252–3, 253 medium for audience 250, 253 plan and rehearse 251, 253 sponsor acceptance 251, 253 taking initiative 251–2, 253 tension in needs 250, 253 test and adjust 251, 253 sources of problems 247, 248 two-way 252–3, 259 communication plan 256, 258, 259 communication requirements analysis 256, 258 communication skills 255, 260 communications management 8, 245–67 processes used 255–66 communications planning 255–9, 255 inputs 256 outputs 256 PMI definition 256 tools and techniques for 256, 257, 258 conference methods of cost estimation 191, 192, 193–4 configuration management 136 relationship to change control 136 configuration management system 124, 125, 134–5 PMI definition 134–5 relationship to change control system 136 conflict management 243 contingency times, aggregating 319–21 contract administration process 296, 298, 304 activities involved 305 PMI definition 304 contract change control system 306 contract closure 82, 138–9, 296, 298 contract planning 296, 298, 301–3 contract statement of work 303 PMI definition 303 contracting, centralized/decentralized 309 contracts cost reimbursable contract 302 fixed price contract 301–2 levels of risk 302 time and materials contract 302–3 types 301–3 control PMI definition 93, 227 statistical concept 226–9 control account 165 PMI definition 165 control charts 227–8 upper and lower limits 228–9 controlling processes see monitoring and controlling processes corrective actions 124, 125, 129–30 PMI definition 130 cost benefit analysis 210, 212 example 213 cost budgeting 195–6 inputs 195 outputs 195, 196 PMI definition 185 tools and techniques for 195 cost control 196–8 inputs 197 outputs 197 phasing in 56–8 PMI definition 185 348 tools and techniques for 197 cost estimating 189–94 account analysis method 192, 194 conference method 191, 192, 193–4 engineering method 191, 192 inputs 190, 191 outputs 190 PMI definition 185 quantitative analysis of cost relationships method 192, 194 rules of thumb for 187–8 as specialist task 188 tools and techniques for 190, 191–4 cost management 8, 183–99 importance in project management 184 key concepts 185 minimum knowledge required 185–6 processes used 188–9, 189–93 cost management plan information in 196 purpose 189 cost performance index 288, 289–90 cost of quality technique 192, 194, 214 cost reimbursable contracts 302 costs rules of thumb for estimating 187–8 and scope 186–7 crashing (schedule compression) 175 PMI definition 175 crisis management causes 261 risk management preferable to 271 critical chain method 4, 18n5, 176, 191, 317–26 actions executing 325–6 planning 325 contrasted with critical path method 322 eliminating multitasking 323 feed buffers used 322–3, 325 PMI definition 176 resource buffers used 323, 325 critical path method 174 contrasted with critical chain method 322 PMI definition 175 Crosby approach to quality 202, 204–5 cultural norms, realism about 341–2 customers 30, 38–9 PMI definition 38 databases, cost estimating for 193, 308 decentralized contracting, compared with centralized contracting 309 decision tree method, risk analysis using 284, 285 decomposition 164 deliverable(s) 121, 124, 125 acceptance of 152 contrasted with work product(s) 121 PMI definition 121 Delphi technique 278 Deming approach to quality 202, 204–5 dependency determination 168 diagramming techniques risk identification using 279 time management 167–8, 174–5 dictatorships 45 difficulty of projects 15 direct and manage project execution (process) 87, 91, 119–21 documentation planning assumptions 117, 119 procurement 299–300 project charter/initiation document 70, 71, 72, 94 revised project charter 156 documentation reviews, risk identification using 278 drum resources 124, 125, 128 duration of activities/tasks 110, 317–8 DGPM_Z05.QXD 27/2/07 14:14 Page 349 Index and critical chain method 318–23 estimating 163, 170–3 duration estimating see activity duration estimating earned value 132, 288, 289 earned value analysis 289 earned value technique 124, 125, 132–4 PMI definition 132 terms/abbreviations/formulae used 133 Eisenhower, [General] Dwight 78 electronic signatures (for procurement) 301 e-mail 253–4 engineering methods of cost estimation 191, 192 enterprise environmental factors in communications management 256 in human resource management 236 PMI definition 236 in quality management 210, 211 in risk management 274, 277 in time management 164, 169, 171 ethical norms, realism about 341–2 ethics, codes of 315–6 executing processes 77–9 acquire project team (process) 235, 239–40 deliverables/outputs from 64, 78 develop project team (process) 235, 240–1 direct and manage (process) 87, 91, 119–21 information distribution (process) 255, 259–62 interconnections with other process groups 17, 65 meaning of term 77 people involved 78-9 perform quality assurance (process) 207, 217–20 PMI definition 77 reason for importance 78, 79 request seller responses (process) 298, 301 select sellers (process) 298, 301 expected monetary value analysis 284 expert judgement 164, 165, 170, 171 fast tracking (schedule compression) 175 risk associated 274 feedback techniques, team performance 243 ‘fishbone’ diagram 223 fixed duration activities 110 fixed price contracts 301–2 flowcharts example 225 as quality assurance tools 222 symbols used 224 front-end loading 57–8 functional organization 23, 25 implications for project management 25 in ‘weak matrix’ form 26 Gantt chart 109–10, 116, 115, 264 dependencies shown on 109, 264 as part of project plan 106 ‘gold plating’, avoidance of 145 Goldratt, Eli 18n5, 317 ‘grandmother test’ (comprehension test) 95 ground rules, in team development 240, 241 growth through projects 9, 10 gut feel, as aid to communication 254 hammock activity, PMI’s use of term 128 hammock tasks 124, 125, 128 high-level decisions, practical implications 346 Hippocratic Oath 312 honesty 346 human resource management 8, 233–41 dynamics in 234 inputs 236, 236 outputs 236, 239 processes used 235–43 tools and techniques for 236, 237, 238–9 human resource planning 235, 236–8 influencers 37 information being communicated 260–1 information distribution process 255, 259–62 inputs 259 outputs 259, 260–2 PMI definition 260 tools and techniques for 259 information gathering in communications management 254 risk identification using 278–9 initiating processes 69–74 deliverables/outputs from 64, 70–1 effects 118 interconnections with other process groups 17, 65 meaning of term 69–70 people involved 73 PMI definition 70, 115 preliminary project scope statement development (process) 70, 71, 72, 87, 91, 103–4 project charter development (process) 71, 72, 73, 87, 91, 94–103 reason for importance 71–3 input(s), PMI definition 122 integrated change control (process) 87, 91, 129 PMI definition 129 integration of external inputs to project 89 of project with organization 89 role in project management 87–91 integration management 7–8, 85–142 meaning of term 86–7 processes used 87, 91–139 direct and manage project execution 87, 91, 119–21 integrated change control 87, 91, 136 monitor and control project work 87, 91, 135–6 preliminary project scope statement development 87, 91, 103–4 project charter development 87, 91, 94-103 project closure 87, 91, 138–9 sequence of processes 92–3 tools and techniques for 124, 125, 126–8, 134–5 intelligent customers 30, 38 interfacing 100 and project charter 100 internal politics, need to understand 344 interviewing, information gathering by 278 Ishikawa approach to quality 202, 204–5 ISO 9000 standards on quality management systems 203, 230 issue log 243, 265 IT procurement 308 example 309 Juran approach to quality 202, 204–5 leadership 341 leads and lags adjustment technique 168, 177 leptokurtosis 226 lessons learned (inputs/outputs) 124, 125, 136–8 categories 138 form/template to capture 137 PMI definition 137 process to ensure information is captured 137–8 lifecycle meaning of term 49 see also project lifecycle(s) listening, barriers to 252 maintenance-oriented working style 44, 45 make-or-buy decisions, example 300 manage people 235 management power, sources 42 matrix based organizational charts 238 matrix organization 23, 25 implications for project management 25 349 DGPM_Z05.QXD 27/2/07 14:14 Page 350 Index mean 226 meetings and time management 179–81 as a project management activity 179–81 compared with e-mail 253 preparation for 179–80 risk monitoring and control 290 Microsoft Project software 106, 124 milestone 55–6, 166 PMI definition 56 milestone list 166 MOD (Ministry of Defence, UK) project management methodology stage gate approach 98 statement of work 101–2 monitor and control project work process 87, 91, 135–6 monitoring and controlling processes 79–81 contract administration (process) 296, 298, 306, 307 cost control (process) 196–8 deliverables/outputs from 64, 80 integrated change control (process) 87, 91, 129 interconnections with other process groups 17, 65 manage project team (process) 235, 242–3 meaning of term 79 monitor and control project work (process) 87, 91, 135–6 people involved 81 perform quality control (process) 207, 220–9 performance reporting (process) 255, 262–5 PMI definition 79 reason for importance 80 risk monitoring and control (process) 272, 287–90 schedule control (process) 163, 177–8 scope control (process) 145, 146, 147, 154 scope verification (process) 145, 146, 147, 151–2 stakeholder management (process) 255, 265–6 Monte Carlo analysis 30 morale 46–7 factors affecting 46, 47 multitasking 324 eliminating 323 Murphy’s Law 271 negotiation, team acquisition 240 network diagrams 167–8 AOA (activity-on-arrow) diagram 168, 168 AON (activity-on-node) diagram 167, 167 critical path method 174 see also PERT charts networking 238–9 PMI definition 238 non-projectized organizations 23–4 examples 24 implications for project management 24–5, 25–7 observation and conversation technique, in team management 242–3 OODA (observe–orient–decide–act) loop 65–7, 235 organizational charts 236, 237, 238, 239 organizational politics, need to understand 344 organizational process assets in communications management 256, 265 in human resource management 236, 239, 242 in quality management 210, 211, 218, 221, 222 in risk management 274, 277, 281, 283 in time management 164, 170, 171, 174 organizational structure meaning of term 21 and project structure 21–2 organizations types 23–4 consequences for project management 24–5, 25–7 examples 24 350 out-of-control projects 226, 228, 229 output(s), PMI definition 122 padding, meaning of term 173 parametric estimating 172, 192, 194 Parkinson’s Law 318, 326n3 Patton, [General] George, on communication 246, 249 people, importance in project management 233–4 people management 233–43 tips for 341–6 see also human resource management performance measurement 178 performance reporting 255, 262–5 inputs 262 key idea 263 outputs 262, 264–5 PMI definition 263 tools and techniques for 262, 263 performing organization 36 PERT, acronym explained 163n5 PERT charts 109, 115, 264 PERT distribution 173 PERT estimating technique 172–3 phasing see project phase(s) plan, activity definition (process) 110–11, 162, 163–6 plan–do–check–act cycle 67, 68 plan purchases and acquisitions (process) 298, 299 plan–then–do principle 63, 65 planned versus actuals report 186 with durations and dates, example 187 example 186 planning benefits 108–9 how to 109–10 planning assumptions, documenting and communicating 117, 119 planning package (for activity decomposition) 164 planning processes 74–7 activity definition (process) 110–11, 162, 163–6 activity duration estimating (process) 163, 171–3 activity resource estimating (process) 163, 169–70 activity sequencing (process) 163, 166–8 communications planning (process) 255–9, 255 complications 74 contracts planning (process) 296, 298, 301–3 cost budgeting (process) 195–6 cost estimating (process) 189–94 deliverables/outputs from 64, 75 human resource planning (process) 235, 236–9 interconnections with other process groups 17, 65 meaning of term 73–5 people involved 77 PMI definition 74 project plan development (process) 87, 91, 104–15 purchases/acquisitions planning (process) 296, 298, 299 qualitative risk analysis (process) 272, 280–2 quality planning (process) 207, 209–16 quantitative risk analysis (process) 272, 282–5 risk identification (process) 272, 277–80 risk management planning (process) 272, 273–7 risk response planning (process) 272, 285–7 schedule development (process) 163, 173–7 scope definition (process) 104, 145, 146, 147, 148–9 scope planning (process) 145, 146, 147–8, 147 work breakdown structure creation (process) 114, 149–52 PMBOK (Project Management Body of Knowledge) 4, 7–8 PMI (Project Management Institute) 331 Body of Knowledge 4, 7–8 CAPM (Certified Associate Project Management) 331, 332 DGPM_Z05.QXD 27/2/07 14:14 Page 351 Index examination structure 334 requirements 332 code of professional conduct 313, 315 credential examinations 313 examples of questions 336–40 preparing for and sitting 335 structure 333–5 credentials offered by 331–2 choice between PMP and CAPM 332–3 PMP (Project Management Professional) 331, 332 credential examination 313, 333–4, 334 requirements 332 and professional responsibility 314–5 PMP (Project Management Professional) see PMI politics, need to understand 344 portfolio of project see programme pre-assignment technique 240 precedence diagramming method 167, 168 preliminary project scope statement 70, 71, 72, 87, 91, 103–4, 146 ‘prepare–plan–do–review’ approach to project management 88 preventive actions 124, 125, 129–30 PMI definition 130 PRINCE2 project management methodology project initiation document (PID) 70, 94, 163n2 project lifecycle model 52–3 process based organizations 23–4 examples 24 implications for project management 24–5, 25–7 process groups closing processes 17, 64–5, 81-3 executing processes 17, 64–5, 77–9 how to use 67–9 initiating processes 17, 64–5, 69–74 monitoring and controlling processes 17, 64–5, 79-81 planning processes 17, 64–5, 73–7 PMI definition 63 and project phases 58–9 processes examples 9, 22 features 10, 22 integration management 87, 91, 123, 125 PMI definition 122 and projects 8–11 scope management 145, 146 see also process groups procurement critical factors 296–7 personal relationships 297 specifications 297 time 296 IT procurement 308, 309 project manager’s role 306–7 procurement agreement/contract, specifications and details in 297, 307 procurement management 8, 293–310 documents required as input 299 meaning of term 294–5 PMI definition 295 processes used 82, 295–6, 298 sequence of processes and activities 297–301, 305, 304 significance in project management 295 procurement staff, project manager’s relationship with 297, 306–7 product analysis 148 product breakdown structure (PBS) 114 product lifecycles, and project lifecycles 58 product scope 146 productivity rate 172 profession compared with other businesses 313 definition 312 professional code of conduct 313, 315 professional responsibility 311–16 business case for 314 meaning of term 312–4 PMI and 314–5 programme board 34, 156 programme management, and project management 13 programme management office 30, 31, 34–5 PMI definition 35 role 35 programmes, and projects 13–14 progress reporting 178 project board see project steering committee project brief see project charter project calendar 176, 177 project charter 64, 70–1, 124, 125 as control-and-approval device 100 development (process) 71, 72, 73, 87, 91, 94–103 examples Tadley revenue project 96–7 Whitby internal project 98–9 features 92, 94, 97–8 information in 70–1, 92 inputs 101 and interfacing 100 PMI definition 94 reason for importance 71, 73 revised 156 template for 95–6 project closure (process) 81, 82, 87, 91, 139 PMI definition 139 project communications management 8, 245–67 see also main entry: communications management project cost management 8, 183–99 see also main entry: cost management project human resource management 8, 233–43 see also main entry: human resource management project initiation 115–19 factors affecting 117 see also initiating processes project initiation document (PID) 70, 71, 72, 94 see also project charter project integration management 7–8, 85–142 meaning of term 86–7 PMI definition 87 processes used 87 see also main entry: integration management project lifecycle(s) 16–17, 49–58 models 51, 54–5 business process re-engineering 55 CADMID cycle 54–5 simple model 49, 50 spiral development 54–5 PMI definition 50 and product lifecycle(s) 58 and project phase(s) 50–1, 55–6 project management common-sense sense approach 5–6 as distinct management skill 15–16 emerging standards for knowledge areas 7–8 communications management 8, 245–67 cost management 8, 183–99 human resource management 8, 233–43 integration management 7–8, 85–142 procurement management 8, 293–310 quality management 8, 201–31 risk management 8, 269–91 scope management 8, 143–57 time management 8, 181–99 meaning of term 5, 16 and programme management 13 standard methodology project management information system (PMIS) 124, 125, 126 PMI definition 126 351 DGPM_Z05.QXD 27/2/07 14:14 Page 352 Index project management methodology 90–1, 107 project management office 30, 31 compared with project office 36 PMI definition 35 role 35 project management processes 17, 58, 63–84 and project lifecycle 58–9 see also process groups project management system 27–9 case study (on ‘how not to it’) 28 PMI definition 29 project manager 30, 32–4 abilities required 33 methodologies used by 33 problems faced in job 3–4 role 32–3 project office, compared with project management office 36 project organization and roles 29–39 project performance appraisals 243 project phase(s) in cost and risk control 56–8 milestones/stage gates 55–6 PMI definition 50 and project lifecycle(s) 50–1, 55 and project process groups 58–9 sequence of work 56–7 project plan 75, 92, 124, 125 consequences of changes 155–6 development of 87, 91, 104–15 Gantt chart as part of 106, 109, 115 as input in quality management 210 as input in time management processes 163, 169, 171, 174 meaning of term 104–6 sections 106 templates 106 updates 177, 178, 210, 218, 221 project planning methodology 107–8 project process groups, PMI definition 63 project procurement management 8, 293–310 PMI definition 295 see also main entry: procurement management project quality management 8, 201–31 see also main entry: quality management project risk management 8, 269–91 PMI definition 270 see also main entry: risk management project schedule network diagrams 174 project scope 146 project scope management 8, 143–57 meaning of term 144–5 PMI definition 144 principles 145–6 processes used 145, 146 sequence of processes and activities 147 see also main entry: scope management project scope statement 92, 146, 147, 149, 163, 166, 171, 174 preliminary 70, 71, 72, 87, 91, 103–4, 146 project selection methods 124, 125, 130–2 project status report 262, 264 example 264 format 264–5 project steering committee 30, 135 project team acquisition (process) 235, 239–40 inputs 239–40, 239 outputs 239, 240 tools and techniques for 239, 240 project team development (process) 235, 240–1 inputs 240 outputs 240, 241 tools and techniques for 240, 241 project team management 39–48, 235, 242–3 control/monitoring/supervision 47–8 gaining and maintaining authority 41–3 352 inputs 242 maintaining authority after mistake 43–4 morale 46–7 outputs 242, 243 personal work styles 44–6 responsibility boundaries 48 selection of team members 39–41 socializing 46 tools and techniques for 242–3 project team members 30, 34 PMI definition 34 selection of 39–41 skills matrix 40 project time management 8, 181–99 processes used 162–3 see also main entry: time management projectized organizations 23–4 examples 24 implications for project management 24–5 projects as activity class 8–14 definitions 3, 8, 12–13 features 10 identifying 14 and processes 8–11 and programmes 13–14 sizes/types public sector organization, case study 28 published estimating data 170 qualitative risk analysis 272, 280–2 inputs 281 output 280, 281, 282 tools and techniques for 280–2, 281 quality alternative approaches 202–3, 204–5 Crosby approach 202, 204–5 Deming approach 202, 204–5 IBM definition 249n4 introduction to 202–7 Ishikawa approach 202, 204–5 ISO 9000 definition 208 Juran approach 202, 204–5 PMI definition 208 quality assurance contrasted with quality control 216–29 IBM definition 217 ISO 9000 definition 208, 217 PMI definition 217 quality assurance process 207, 217–20 inputs 218 outputs 218–9, 218, 220 tools and techniques for 218, 219–20 quality assurance report, example 218–9 quality audit 219–20 ISO 9000 definition 220 quality baseline 210, 216 quality checklists 210, 216 quality control contrasted with quality assurance 216–29 IBM definition 217 ISO 9000 definition 209, 220 quality control process 207, 220–9 inputs 221–2, 221 outputs 221, 229 PMI definition 220 tools and techniques for 221, 222–9 quality management 8, 201–31 processes used 207, 209–29 quality management system, ISO 9000 definition 208 quality metrics 210, 215–6 quality objectives 215 ISO 9000 definition 208 quality plan 210, 215 example 209–10 DGPM_Z05.QXD 27/2/07 14:14 Page 353 Index meaning of term 209 quality planning 207, 209–16 inputs 210, 211–12 ISO 9000 definition 208 outputs 210, 215–6 tools and techniques for 210, 212–15 quantitative analysis of cost relationships method (for cost estimating) 192, 194 quantitative risk analysis 272, 282–5 inputs 283 output 283, 285 tools and techniques for 283–4, 283 updates 281, 282, 283, 285, 286 risk response planning 272, 285–7 inputs 286 outputs 286 tools and techniques for 286–7, 286 risk response strategies 286–7 risk review 287 risk urgency assessment 282 roles and responsibilities of project staff 236, 239, 242, 274 rolling wave planning 164 root cause analysis 279 readers of [this] book recognition and rewards, in team development 240, 241 ‘recognized picture’ 70 meaning of term 105n3 requested changes (requests for change) in communications management 259, 261–2, 262 in integration management 120–1, 124, 125 in quality management 218, 220, 221 in scope management 145 in time management 166, 170, 174 requirement, ISO 9000 definition 209 reserve analysis 173, 191, 192, 290 PMI definition 173 resource availability 169 resource breakdown structure 170 resource calendars 170, 171, 174, 176 resource cost rates determination 192, 194 resource levelling 176 resource requirements 170, 171, 174 updates 177 resources 111 resources outside project’s control, influencing and coordinating 89–90 responsibility matrix 238 risk analysis qualitative 272, 280–2 quantitative 272, 282–5 risk assessment 287 risk audit 288 risk categories 274, 275–7 external 276 organizational 276 PMI definition 275 project management 276 technical 275–6 risk categorization 282 risk control, phasing in 56–8 risk data quality assessment technique 281–2 risk identification 272, 277–80 diagramming techniques 279 inputs 277, 277 output 277, 279–80 tools and techniques for 277, 278–9 risk management 8, 269–91 costs associated 274 meaning of term 270–2 methodology 274 PMI definition 270 principles 272 processes used 272, 273–90 purpose 271–2 risk management plan 274–5 risk management planning 272, 273–7 inputs 273–4, 274 outputs 274–5, 274 risk monitoring and control process 272, 287–90 inputs 288 outputs 287, 288 tools and techniques for 287–90 risk probability/impact matrix 280–1, 281 risk register 277, 277, 279–80 PMI definition 280 schedule baseline 178 schedule change control system 178 schedule comparison bar charts 178 schedule compression techniques 175 schedule control 163, 178 inputs 178 outputs 178 tools and techniques for 178 schedule development 163, 173–7 inputs 174 outputs 177 tools and techniques for 174–7 schedule model 177 data 177 PMI definition 176 schedule network analysis 174 schedule network diagrams 167–8, 174 schedule network templates 168 schedule performance index 288, 289 scope 56, 103–4 and cost 186–7 PMI definition 104, 144 scope control 145, 146, 147, 154 PMI definition 154 ‘scope creep’ 103, 152–4 danger signs 153–4 PMI definition 153 sources 153–4 scope definition 104, 145, 146, 147, 148–9 PMI definition 149 scope management 8, 143–57 in action 155–6 meaning of term 144–5 principles 145–6 processes used 145, 146, 147–58, 147 sequence of processes and activities 147 scope planning 145, 146, 147–8, 147 PMI definition 148 scope statement 92 preliminary 87, 91, 103–4, 146 in quality management 210, 211 in scope management 146, 147, 149 in time management 163, 171, 174 scope verification 145, 146, 147, 151–2 PMI definition 152 second edition [of this book], changes in seller(s) 37–8 PMI definition 38 request responses from (process) 298, 301 selection of (process) 298, 301 sequence network diagrams 168 ‘seven data points’ rule of thumb 229, 249n7 size of projects skewness of data 226 SMART (specific–measurable–achievable –realistic–timely) objectives 214 software cost management 194 integration management 106, 114, 124 time management 161, 170, 176 spiral development 54–5 sponsor 30, 31 BSI definition 32 353 DGPM_Z05.QXD 27/2/07 14:14 Page 354 Index 354 sponsor (continued) PMI definition 31 staffing management plan 236, 239, 240, 242 stage gate 98 stage gate review 98 stakeholder management, meaning of term 266 stakeholder management process 255, 265–6 inputs 265 outputs 265 tools and techniques for 265 stakeholders 36–7 examples 36 PMI definition 37 standard deviation 226 standard methodology (for project management) advantages 5–6 starting a project 93, 115 see also project initiation statement of work (SOW) 101–3, 124, 125 case study 101–2 for contract 303 example 102–3 PMI definition 101 statistical tools for quality control 222, 224, 226 status meetings 290 strawman 92 ‘student syndrome’ 317 subject matter expert 37 summary information 254 supervision, of project team 47–8 suppliers see seller(s) SWOT (strengths, weaknesses, opportunities and threats) analysis 279 definition 160 processes used 162–3, 163–82 in projects 161–3 tools and techniques for 164–5, 167–8, 170–1, 171–2, 174–7, 178 time and materials contract 302–3 timeline chart see Gantt chart tools and techniques in communications management 256, 257, 258, 262, 263, 265 in cost management 190, 191–4, 195, 197 in human resource management 236, 237, 238–9, 239, 240, 240, 241, 242–3, 242 in integration management 124, 125, 126–8, 134–5 PMI definition 122 in quality management 210, 212–5, 218, 219–20, 221, 222–9 in risk management 274, 277, 278–9, 280–2, 283–4, 286–7, 287–90 in time management 164–5, 167–8, 170–1, 171–2, 174–7, 178 tools distinct from techniques 122, 123 top-down estimating 172 trading time 161–70 example Channel Tunnel Rail Link 162 training, in team development 240, 241 two-way communication 252–3, 259 task oriented working style 44, 45 task sequencing 114 team acquisition (process) 235, 239–40 team building activities 240, 241, 341 team development (process) 235, 240–1 team management 39–48, 235, 242–3 team members 30, 34 getting to know 341 keeping them content/happy 343 selection of 39–41 skills matrix 40 team performance assessment 240, 241, 242 technical performance analysis 290 techniques distinction from tools 122, 123 see also tools and techniques templates activity lists 164 capture of lessons learned 137 human resource planning 236 performance report 265 project charter 95–6 project plan 106 schedule network 168 three-point estimate technique 172–3 time management 8, 181–99 and meetings 179–81 value creation through projects 9, 10 variable-duration activities 110 variance analysis 178 variance report 186 variance and trend analysis 288 measures used 288, 289–90 vendor bid analysis 192, 193 virtual teams 240 PMI definition 240 unexpected events, planning for recovery from 345 users 30, 38 PMI definition 38 what-if scenario planning 176 win–lose rewards vs win–win rewards 241 work authorization system 119 PMI definition 120 work breakdown structure (WBS) 56–7, 111–4, 149–50, 163 creating 114, 149–51 importance 151 PMI definition 150 reasons for creating 150 uses 114, 151 work breakdown structure (WBS) dictionary 146, 147, 151, 190, 191 work measurement methods of cost estimation 191, 192 work products, contrasted with deliverables 121 worst-case scenarios 345 ... definitive guide to project management the fast track to getting the job done on time and on budget Second Edition SEBASTIAN NOKES AND SEAN KELLY DGPM_A01.QXD 11/3/07 11:09 AM Page iv PEARSON EDUCATION... management : the fast track to getting the job done on time and on budget / Sebastian Nokes and Sean Kelly 2nd ed p cm Includes bibliographical references and index ISBN 978-0-273-71097-4 Project management. .. edition? This is the second edition of The Definitive Guide to Project Management This edition has been updated to incorporate the latest thinking on project management and current best practice Project