Business Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
Project Management (MGT 323)
Due Date: 05/10/2024 @ 23:59
Course Name: Project Management
Student’s Name:
Course Code: MGT323
Student’s ID Number:
Semester: First Semester
CRN:
Academic Year:2024-25-1st
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
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The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted. Peer-Reviewed Journals are required as
references.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
• Do not make any changes in the cover page.
Assignment Workload:
• This Assignment comprise of a Case Study and Discussion Questions.
• Assignment is to be submitted by each student individually.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-1 students will able to understand the
1. Defining the concepts, theories and approaches of project management. (L.O-1.1)
2. Estimate the project budget and cost control. (L.O-2.2)
3. Analyze to work effectively and efficiently as a team member for project related
cases. (L.O-3.1)
Assignment-1
Assignment Case Study Question:
( Marks 6)
Please read the Case-2.1 “Hector Gaming Company.” from Chapter 2 “Organization
strategy and Project Selection” given in your textbook – Project Management: The
Managerial Process 8th edition by Larson and Gray page no: 61 also refer to specific
concepts you have learned from the chapter to support your answers. Answer the following
questions with 500 Words limit.
Peters has hired you as a consultant. She has suggested the following format for your
consulting contract. You are free to use another format if it will improve the effectiveness
of the consulting engagement.
Provide a detailed action plan that attacks the problem. Be specific and provide examples
that relate to HGC.
1. What is our major problem? (2 Marks)
2. Identify some symptoms of the problem. (2 Marks)
3. What is the major cause of the problem? (2 Marks)
Discussion Question:
(4 Marks)
4. What impact will artificial intelligence (AI) have on the field of project
management? (2 Marks) Refer Chapter-2
5. How are projects linked to the strategic plan? (2 Marks) Refer Chapter-2
Answers:
Patentometrics,” Journal of Technology Management Innovation, vol.
7, no. 3 (2012).
Raskin, P., et al., Great Transitions: The Promise and Lure of the Times
Ahead, www.gtinitiative.org/documents/Great_Transitions.pdf.
Accessed 6/3/08.
Schwartz, Peter, and Doug Randall, “An Abrupt Climate Change
Scenario and its Implications for United States National Security,”
Global Business Network, Inc., October 2003.
Shenhar, A., “Strategic Project Leadership: Focusing Your Project on
Business Success,” Proceedings of the Project Management Institute
Annual Seminars & Symposium, San Antonio, Texas, October 3–10,
2002, CD.
Swanson, S., “All Things Considered,” PM Network, February 2011,
pp. 36–40.
Case 2.1
Hector Gaming Company
Hector Gaming Company (HGC) is an educational gaming company
specializing in young children’s educational games. HGC has just
completed their fourth year of operation. This year was a banner year for
HGC. The company received a large influx of capital for growth by issuing
stock privately through an investment banking firm. It appears the return on
investment for this past year will be just over 25 percent with zero debt!
The growth rate for the last two years has been approximately 80 percent
each year. Parents and grandparents of young children have been buying
HGC’s products almost as fast as they are developed. Every member of the
56-person firm is enthusiastic and looking forward to helping the firm grow
to be the largest and best educational gaming company in the world. The
founder of the firm, Sally Peters, has been written up in Young
Entrepreneurs as “the young entrepreneur to watch.” She has been able to
develop an organizational culture in which all stakeholders are committed
to innovation, continuous improvement, and organization learning.
Last year, 10 top managers of HGC worked with McKinley Consulting
to develop the organization’s strategic plan. This year the same 10 managers
had a retreat in Aruba to formulate next year’s strategic plan using the same
process suggested by McKinley Consulting. Most executives seem to have
page 61
a consensus of where the firm should go in the intermediate
and long term. But there is little consensus on how this should
be accomplished. Peters, now president of HGC, feels she may be losing
control. The frequency of conflicts seems to be increasing. Some
individuals are always requested for any new project created. When
resource conflicts occur among projects, each project manager believes his
or her project is most important. More projects are not meeting deadlines
and are coming in over budget. Yesterday’s management meeting revealed
some top HGC talent have been working on an international business game
for college students. This project does not fit the organization vision or
market niche. At times it seems everyone is marching to his or her own
drummer. Somehow more focus is needed to ensure everyone agrees on
how strategy should be implemented, given the resources available to the
organization.
Yesterday’s meeting alarmed Peters. These emerging problems are
coming at a bad time. Next week HGC is ramping up the size of the
organization, number of new products per year, and marketing efforts.
Fifteen new people will join HGC next month. Peters is concerned that
policies be in place that will ensure the new people are used most
productively. An additional potential problem looms on the horizon. Other
gaming companies have noticed the success HGC is having in their niche
market; one company tried to hire a key product development employee
away from HGC. Peters wants HGC to be ready to meet any potential
competition head on and to discourage any new entries into their market.
Peters knows HGC is project driven; however, she is not as confident that
she has a good handle on how such an organization should be managed—
especially with such a fast growth rate and potential competition closer to
becoming a reality. The magnitude of emerging problems demands quick
attention and resolution.
Peters has hired you as a consultant. She has suggested the following
format for your consulting contract. You are free to use another format if it
will improve the effectiveness of the consulting engagement.
What is our major problem?
Identify some symptoms of the problem.
What is the major cause of the problem?
Provide a detailed action plan that attacks the problem. Be specific and
provide examples that relate to HGC.
Case 2.2
Film Prioritization
The purpose of this case is to give you experience in using a project priority
system that ranks proposed projects by their contribution to the
organization’s objectives and strategic plan.
COMPANY PROFILE
The company is the film division for a large entertainment conglomerate.
The main office is located in Anaheim, California. In addition to the feature
film division, the conglomerate includes theme parks, home videos, a
television channel, interactive games, and theatrical productions. The
company has been enjoying steady growth over the past 10 years. Last year
total revenues increased by 12 percent to $21.2 billion. The company is
engaged in negotiations to expand its theme park empire to mainland China
and Poland. The film division generated $274 million in revenues, which
was an increase of 7 percent over the past year. Profit margin was page 62
down 3 percent to 16 percent because of the poor response to three
of the five major film releases for the year.
page i
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page iv
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page v
Project Management
The Managerial
Process
Eighth Edition
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page vi
PROJECT MANAGEMENT: THE MANAGERIAL PROCESS, EIGHTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2021 by
McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous
editions © 2018, 2014, and 2011. 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 consent of
McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or
transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers
outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20 19
ISBN 978-1-260-23886-0 (bound edition)
MHID 1-260-23886-5 (bound edition)
ISBN 978-1-260-73615-1 (loose-leaf edition)
MHID 1-260-73615-6 (loose-leaf edition)
Portfolio Manager: Noelle Bathurst
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Library of Congress Cataloging-in-Publication Data
Names: Gray, Clifford F., author. | Larson, Erik W., 1952- author.
Title: Project management : the managerial process / Erik W. Larson,
Clifford F. Gray, Oregon State University.
Description: Eighth edition. | New York, NY : McGraw-Hill Education, [2021]
| Clifford F. Gray appears as the first named author in earlier
editions. | Includes bibliographical references and index. | Summary:
“Our motivation in writing this text continues to be to provide a
realistic, socio-technical view of project management. In the past,
textbooks on project management focused almost exclusively on the tools
and processes used to manage projects and not the human dimension”–
Provided by publisher.
Identifiers: LCCN 2019028390 (print) | LCCN 2019028391 (ebook) |
ISBN 9781260238860 (paperback) | ISBN 1260238865 (paperback) |
ISBN 9781260242379 (ebook)
Subjects: LCSH: Project management. | Time management. | Risk management.
Classification: LCC HD69.P75 G72 2021 (print) | LCC HD69.P75 (ebook) |
DDC 658.4/04–dc23
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The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a
website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGrawHill Education does not guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
page vii
About the Authors
Erik W. Larson
ERIK W. LARSON is professor emeritus of project management at the
College of Business, Oregon State University. He teaches executive,
graduate, and undergraduate courses on project management and leadership.
His research and consulting activities focus on project management. He has
published numerous articles on matrix management, product development,
and project partnering. He has been honored with teaching awards from
both the Oregon State University MBA program and the University of
Oregon Executive MBA program. He has been a member of the Project
Management Institute since 1984. In 1995 he worked as a Fulbright scholar
with faculty at the Krakow Academy of Economics on modernizing Polish
business education. He was a visiting professor at Chulalongkorn
University in Bangkok, Thailand, and at Baden-Wuerttemberg Cooperative
State University in Bad Mergentheim, Germany. He received a B.A. in
psychology from Claremont McKenna College and a Ph.D. in management
from State University of New York at Buffalo. He is a certified Project
Management Professional (PMP) and Scrum master.
Clifford F. Gray
CLIFFORD F. GRAY is professor emeritus of management at the College
of Business, Oregon State University. He has personally taught more than
100 executive development seminars and workshops. Cliff has been a
member of the Project Management Institute since 1976 and was one of the
founders of the Portland, Oregon, chapter. He was a visiting professor at
Kasetsart University in Bangkok, Thailand, in 2005. He was the president
of Project Management International, Inc. (a training and consulting firm
specializing in project management) 1977–2005. He received his B.A. in
economics and management from Millikin University, M.B.A. from Indiana
University, and doctorate in operations management from the College of
Business, University of Oregon. He is a certified Scrum master.
page viii
“Man’s mind, once stretched by a new idea,
never regains its original dimensions.”
Oliver Wendell Holmes, Jr.
To my family, who have always encircled me
with love and encouragement—my parents
(Samuel and Charlotte), my wife (Mary), my
sons and their wives (Kevin and Dawn, Robert
and Sally), and their children (Ryan, Carly,
Connor and Lauren).
C.F.G.
“The reasonable man adapts himself to the
world; the unreasonable one persists in trying to
adapt the world to himself. Therefore all
progress depends on the unreasonable man.”
Bernard Shaw, Man and Superman
To Ann, whose love and support have brought
out the best in me. To our girls Mary, Rachel,
and Tor-Tor for the joy and pride they give me.
And to our grandkids, Mr. B, Livvy, Jasper
Jones!, Baby Ya Ya, Juniper Berry, and Callie,
whose future depends upon effective project
management. Finally, to my muse, Neil—walk
on!
E.W.L
page ix
Preface
Our motivation in writing this text continues to be to provide a realistic,
socio-technical view of project management. In the past, textbooks on
project management focused almost exclusively on the tools and processes
used to manage projects and not the human dimension. This baffled us,
since people, not tools, complete projects! While we firmly believe that
mastering tools and processes is essential to successful project
management, we also believe that the effectiveness of these tools and
methods is shaped and determined by the prevailing culture of the
organization and interpersonal dynamics of the people involved. Thus, we
try to provide a holistic view that focuses on both the technical and social
dimensions and how they interact to determine the fate of projects.
Audience
This text is written for a wide audience. It covers concepts and skills that
are used by managers to propose, plan, secure resources, budget, and lead
project teams to successful completions of their projects. The text should
prove useful to students and prospective project managers in helping them
understand why organizations have developed a formal project management
process to gain a competitive advantage. Readers will find the concepts and
techniques discussed in enough detail to be immediately useful in newproject situations. Practicing project managers will find the text to be a
valuable guide and reference when dealing with typical problems that arise
in the course of a project. Managers will also find the text useful in
understanding the role of projects in the missions of their organizations.
Analysts will find the text useful in helping to explain the data needed for
project implementation as well as the operations of inherited or purchased
software.
Members of the Project Management Institute will find the text is well
structured to meet the needs of those wishing to prepare for PMP (Project
Management Professional) or CAPM (Certified Associate in Project
Management) certification exams. The text has in-depth coverage of the
most critical topics found in PMI’s Project Management Body of
Knowledge (PMBOK). People at all levels in the organization assigned to
work on projects will find the text useful not only in providing them with a
rationale for the use of project management processes but also because of
the insights they will gain into how to enhance their contributions to project
success.
Our emphasis is not only on how the management process works but
also, and more importantly, on why it works. The concepts, principles, and
techniques are universally applicable. That is, the text does not specialize
by industry type or project scope. Instead, the text is written for the
individual who will be required to manage a variety of projects in a variety
of organizational settings. In the case of some small projects, a few of the
steps of the techniques can be omitted, but the conceptual framework
applies to all organizations in which projects are important to survival. The
approach can be used in pure project organizations such as construction,
research organizations, and engineering consultancy firms. At the same
time, this approach will benefit organizations that carry out many small
projects while the daily effort of delivering products or services continues.
page x
Content
In this and other editions we continue to try to resist the forces that
engender scope creep and focus only on essential tools and concepts that
are being used in the real world. We have been guided by feedback from
reviewers, practitioners, teachers, and students. Some changes are minor
and incremental, designed to clarify and reduce confusion. Other changes
are significant. They represent new developments in the field or better ways
of teaching project management principles. Below are major changes to the
eighth edition.
All material has been reviewed and revised based on the latest edition of
Project Management Body of Knowledge (PMBOK), Sixth Edition, 2017.
Discussion questions for most Snapshots from Practice are now at the
end of each chapter.
Many of the Snapshots from Practice have been expanded to more fully
cover the examples.
Agile Project Management is introduced in Chapter 1 and discussed
when appropriate in subsequent chapters, with Chapter 15 providing a
more complete coverage of the methodology.
A new set of exercises have been developed for Chapter 5.
New student exercises and cases have been added to chapters.
The Snapshot from Practice boxes feature a number of new examples of
project management in action.
The Instructor’s Manual contains a listing of current YouTube videos that
correspond to key concepts and Snapshots from Practice.
Overall the text addresses the major questions and challenges the
authors have encountered over their 60 combined years of teaching project
management and consulting with practicing project managers in domestic
and foreign environments. These questions include the following: How
should projects be prioritized? What factors contribute to project failure or
success? How do project managers orchestrate the complex network of
relationships involving vendors, subcontractors, project team members,
senior management, functional managers, and customers that affect project
success? What project management system can be set up to gain some
measure of control? How are projects managed when the customers are not
sure what they want? How do project managers work with people from
foreign cultures?
Project managers must deal with all these concerns to be effective. All
of these issues and problems represent linkages to a socio-technical project
management perspective. The chapter content of the text has been placed
within an overall framework that integrates these topics in a holistic
manner. Cases and snapshots are included from the experiences of
practicing managers. The future for project managers is exciting. Careers
will be built on successfully managing projects.
Student Learning Aids
Student resources include study outlines, online quizzes, PowerPoint slides,
videos, Microsoft Project Video Tutorials, and web links. These can be
found in Connect.
page xi
Acknowledgments
We would like to thank Scott Bailey for building the end-of-chapter
exercises for Connect; Pinyarat Sirisomboonsuk for revising the
PowerPoint slides; Ronny Richardson for updating the Instructor’s Manual;
Angelo Serra for updating the Test Bank; and Pinyarat Sirisomboonsuk for
providing new Snapshot from Practice questions.
Next, it is important to note that the text includes contributions from
numerous students, colleagues, friends, and managers gleaned from
professional conversations. We want them to know we sincerely appreciate
their counsel and suggestions. Almost every exercise, case, and example in
the text is drawn from a real-world project. Special thanks to managers who
graciously shared their current project as ideas for exercises, subjects for
cases, and examples for the text. John A. Drexler, Jim Moran, John Sloan,
Pat Taylor, and John Wold, whose work is printed, are gratefully
acknowledged. Special gratitude is due Robert Breitbarth of Interact
Management, who shared invaluable insights on prioritizing projects.
University students and managers deserve special accolades for identifying
problems with earlier drafts of the text and exercises.
We are indebted to the reviewers of past editions who shared our
commitment to elevating the instruction of project management. We thank
you for your many thoughtful suggestions and for making our book better.
Of course, we accept responsibility for the final version of the text.
Paul S. Allen, Rice University
Victor Allen, Lawrence Technological University
Kwasi Amoako-Gyampah, University of North Carolina–Greensboro
Gregory Anderson, Weber State University
Mark Angolia, East Carolina University
Brian M. Ashford, North Carolina State University
Dana Bachman, Colorado Christian University
Robin Bagent, College of Southern Idaho
Scott Bailey, Troy University
Nabil Bedewi, Georgetown University
Anandhi Bharadwaj, Emory University
James Blair, Washington University–St. Louis
Mary Jean Blink, Mount St. Joseph University
S. Narayan Bodapati, Southern Illinois University at Edwardsville
Warren J. Boe, University of Iowa
Thomas Calderon, University of Akron
Alan Cannon, University of Texas–Arlington
Susan Cholette, San Francisco State
Denis F. Cioffi, George Washington University
Robert Cope, Southeastern Louisiana University
Kenneth DaRin, Clarkson University
Ron Darnell, Amberton University
Burton Dean, San Jose State University
Joseph D. DeVoss, DeVry University
David Duby, Liberty University
Michael Ensby, Clarkson University
Charles Franz, University of Missouri, Columbia
Larry Frazier, City University of Seattle
Raouf Ghattas, DeVry University
Edward J. Glantz, Pennsylvania State University
Michael Godfrey, University of Wisconsin–Oshkosh
Jay Goldberg, Marquette University
Robert Groff, Westwood College
Raffael Guidone, New York City College of Technology
Brian Gurney, Montana State University–Billings
Owen P. Hall, Pepperdine University
Chaodong Han, Towson University
Bruce C. Hartman, University of Arizona
Mark Huber, University of Georgia
Richard Irving, York University
Marshall Issen, Clarkson University
page xii
Robert T. Jones, DePaul University
Susan Kendall, Arapahoe Community College
George Kenyon, Lamar University
Robert Key, University of Phoenix
Elias Konwufine, Keiser University
Dennis Krumwiede, Idaho State University
Rafael Landaeta, Old Dominion University
Eldon Larsen, Marshall University
Eric T. Larson, Rutgers University
Philip Lee, Lone Star College–University Park
Charles Lesko, East Carolina University
Richard L. Luebbe, Miami University of Ohio
Linh Luong, City University of Seattle
Steve Machon, DeVry University–Tinley Park
Andrew Manikas, University of Louisville
William Matthews, William Patterson University
Lacey McNeely, Oregon State University
Carol Miller, Community College of Denver
William Moylan, Lawrence Technological College of Business
Ravi Narayanaswamy, University of South Carolina–Aiken
Muhammad Obeidat, Southern Polytechnic State University
Edward Pascal, University of Ottawa
James H. Patterson, Indiana University
Steve Peng, California State University–East Bay
Nicholas C. Petruzzi, University of Illinois–Urbana/Champaign
Abirami Radhakrishnan, Morgan State University
Emad Rahim, Bellevue University
Tom Robbins, East Carolina University
Art Rogers, City University
Linda Rose, Westwood College
Pauline Schilpzand, Oregon State University
Teresa Shaft, University of Oklahoma
Russell T. Shaver, Kennesaw State University
William R. Sherrard, San Diego State University
Erin Sims, DeVry University–Pomona
Donald Smith, Texas A&M University
Kenneth Solheim, DeVry University–Federal Way
Christy Strbiak, U.S. Air Force Academy
Peter Sutanto, Prairie View A&M University
Jon Tomlinson, University of Northwestern Ohio
Oya Tukel, Cleveland State University
David A. Vaughan, City University
Mahmoud Watad, William Paterson University
Fen Wang, Central Washington University
Cynthia Wessel, Lindenwood University
Larry R. White, Eastern Illinois University
Ronald W. Witzel, Keller Graduate School of Management
G. Peter Zhang, Georgia State University
In addition, we would like to thank our colleagues in the College of
Business at Oregon State University for their support and help in
completing this project. In particular, we recognize Lacey McNeely, Prem
Mathew, and Jeewon Chou for their helpful advice and suggestions. We
also wish to thank the many students who helped us at different stages of
this project, most notably Neil Young, Saajan Patel, Katherine Knox, Dat
Nguyen, and David Dempsey. Mary Gray deserves special credit for editing
and working under tight deadlines on earlier editions. Special thanks go to
Pinyarat (“Minkster”) Sirisomboonsuk for her help in preparing the last five
editions.
Finally, we want to extend our thanks to all the people at McGraw-Hill
Education for their efforts and support. First, we would like to thank Noelle
Bathurst and Sarah Wood, for providing editorial direction, guidance, and
management of the book’s development for the eighth edition. And we
would also like to thank Sandy Wille, Sandy Ludovissy, Egzon Shaqiri,
Beth Cray, and Angela Norris for managing the final production, design,
supplement, and media phases of the eighth edition.
Erik W. Larson
Clifford F. Gray
page xiii
Guided Tour
Established Learning Objectives
Learning objectives are listed both at the beginning of each chapter and are
called out as marginal elements throughout the narrative in each chapter.
End-of-Chapter Content
Both static and algorithmic end-of-chapter content, including Review
Questions and Exercises, are assignable in Connect.
SmartBook
The SmartBook has been updated with new highlights and probes for
optimal student learning.
Snapshots
The Snapshot from Practice boxes have been updated to include a number
of new examples of project management in action. New discussion
questions based on the Snapshots have been added to the end-of-chapter
material and are assignable in Connect.
New and Updated Cases
Included at the end of each chapter are between one and five cases that
demonstrate key ideas from the text and help students understand how
project management comes into play in the real world. Cases have been
reviewed and updated across the eighth edition.
Instructor and Student Resources
Instructors and students can access all of the supplementary resources for
the eighth edition within Connect or directly at www.mhhe.com/larson8e.
page xiv
Note to Student
You will find the content of this text highly practical, relevant, and current.
The concepts discussed are relatively simple and intuitive. As you study
each chapter we suggest you try to grasp not only how things work but also
why things work. You are encouraged to use the text as a handbook as you
move through the three levels of competency:
I know.
I can do.
I can adapt to new situations.
The field of project management is growing in importance and at an
exponential rate. It is nearly impossible to imagine a future management
career that does not include management of projects. Resumes of managers
will soon be primarily a description of their participation in and
contributions to projects.
Good luck on your journey through the text and on your future projects.
Chapter-by-Chapter Revisions for the Eighth
Edition
Chapter 1: Modern Project Management
New Snapshot: Project Management in Action 2019.
New Snapshot: London Calling: Seattle Seahawks versus Oakland
Raiders.
New case: A Day in the Life—2019.
New section on Agile Project Management.
Chapter 2: Organization Strategy and Project Selection
Chapter text refined and streamlined.
New section describing the phase gate model for selecting projects.
Chapter 3: Organization: Structure and Culture
New section on project management offices (PMOs).
New Snapshot: 2018 PMO of the Year.
Chapter 4: Defining the Project
Consistent with PMBOK 6th edition, the scope checklist includes
product scope description, justification/business case, and acceptance
criteria.
Discussion of scope creep expanded.
New case: Celebration of Color 5K.
page xv
Chapter 5: Estimating Project Times and Costs
Snapshot from Practice on reducing estimating errors incorporated in the
text.
Snapshot from Practice: London 2012 Olympics expanded.
A new set of six exercises.
Chapter 6: Developing a Project Schedule
Chapter 6 retitled Developing a Project Schedule to better reflect content.
New case: Ventura Baseball Stadium.
Chapter 7: Managing Risk
New Snapshot: Terminal Five—London Heathrow Airport.
Consistent with PMBOK 6e, “escalate” added to risk and opportunity
responses and “budget” reserves replaced by “contingency” reserves.
Chapter 8 Scheduling Resources and Costs
Two new exercises.
New case: Tham Luang Cave Rescue.
Chapter 9: Reducing Project Duration
Snapshot 9.1: Smartphone Wars updated.
New case: Ventura Baseball Stadium (B).
Chapter 10: Being an Effective Project Manager
Effective Communicator has replaced Skillful Politician as one of the 8
traits associated with being an effective project manager.
Research Highlight 10.1: Give and Take expanded.
Chapter 11: Managing Project Teams
A new review question and exercises added.
Chapter 12: Outsourcing: Managing Interorganizational
Relations
Snapshot 12.4: U.S. Department of Defense Value Engineering Awards
updated.
New exercise added.
Chapter 13 Progress and Performance Measurement and
Evaluation
Expanded discussion of the need for earned value management.
New case: Ventura Stadium Status Report.
Chapter 14: Project Closure
New case: Halo for Heroes II.
page xvi
Chapter 15: Agile Project Management
Chapter revised to include discussions of Extreme programming,
Kanban, and hybrid models.
New Snapshot: League of Legends.
New case: Graham Nash.
Chapter 16: International Projects
Snapshots from Practice: The Filming of Apocalypse Now and River of
Doubt expanded.
New case: Mr. Wui Goes to America.
MCGRAW-HILL CUSTOMER CARE CONTACT INFORMATION
At McGraw-Hill, we understand that getting the most from new technology
can be challenging. That’s why our services don’t stop after you purchase
our products. You can e-mail our Product Specialists 24 hours a day to get
product-training online. Or you can search our knowledge bank of
Frequently Asked Questions on our support website. For Customer Support,
call 800-331-5094 or visit www.mhhe.com/support. One of our Technical
Support Analysts will be able to assist you in a timely fashion.
page xvii
Brief Contents
Preface
ix
1.
Modern Project Management
2
2.
Organization Strategy and Project Selection
3.
Organization: Structure and Culture
4.
Defining the Project
5.
Estimating Project Times and Costs
6.
Developing a Project Schedule
7.
Managing Risk
8.
Scheduling Resources and Costs
9.
Reducing Project Duration
10.
Being an Effective Project Manager
11.
Managing Project Teams 390
12.
Outsourcing: Managing Interorganizational Relations
13.
Progress and Performance Measurement and Evaluation 474
14.
Project Closure
15.
Agile Project Management
16.
International Projects
28
68
104
134
168
212
318
532
590
258
562
354
434
APPENDIX
One Solutions to Selected Exercises
Two Computer Project Exercises
GLOSSARY
626
639
656
ACRONYMS 663
PROJECT MANAGEMENT EQUATIONS 664
CROSS REFERENCE OF PROJECT MANAGEMENT
665
SOCIO-TECHNICAL APPROACH TO PROJECT
MANAGEMENT 666
INDEX 667
page xviii
Contents
Preface
ix
Chapter 1
Modern Project Management
1.1
What Is a Project?
What a Project Is Not
2
6
7
Program versus Project
7
The Project Life Cycle
9
The Project Manager
10
Being Part of a Project Team
11
1.2
Agile Project Management
12
1.3
Current Drivers of Project Management
Compression of the Product Life Cycle
Knowledge Explosion
15
15
Triple Bottom Line (Planet, People, Profit)
Increased Customer Focus
15
15
Small Projects Represent Big Problems
1.4
15
16
Project Management Today: A Socio-Technical Approach
Summary
18
Chapter 2
Organization Strategy and Project Selection
28
2.1
Why Project Managers Need to Understand Strategy
2.2
The Strategic Management Process: An Overview
30
31
17
2.3
Four Activities of the Strategic Management Process
31
The Need for a Project Priority System
36
Problem 1: The Implementation Gap
Problem 2: Organization Politics
36
37
Problem 3: Resource Conflicts and Multitasking
2.4
Project Classification
2.5
Phase Gate Model
39
2.6
Selection Criteria
41
Financial Criteria
43
Two Multi-Criteria Selection Models
43
Applying a Selection Model
46
Project Classification
2.8
38
41
Nonfinancial Criteria
2.7
38
46
Sources and Solicitation of Project Proposals
47
Ranking Proposals and Selection of Projects
49
Managing the Portfolio System
Senior Management Input
52
52
Governance Team Responsibilities
52
Balancing the Portfolio for Risks and Types of Projects
Summary
52
54
Chapter 3
Organization: Structure and Culture
68
3.1
70
Project Management Structures
Organizing Projects within the Functional Organization
Organizing Projects as Dedicated Teams
73
Organizing Projects within a Matrix Arrangement
Different Matrix Forms
70
77
78
3.2
Project Management Office (PMO)
3.3
What Is the Right Project Management Structure?
Organization Considerations
Project Considerations
83
83
81
83
3.4
Organizational Culture
84
What Is Organizational Culture?
85
Identifying Cultural Characteristics
3.5
Implications of Organizational Culture for Organizing Projects
Summary
89
92
Chapter 4
Defining the Project
4.1
87
104
Step 1: Defining the Project Scope
Employing a Project Scope Checklist
106
107
4.2
Step 2: Establishing Project Priorities
4.3
Step 3: Creating the Work Breakdown Structure
Major Groupings in a WBS
113
113
How a WBS Helps the Project Manager
A Simple WBS Development
111
113
114
4.4
Step 4: Integrating the WBS with the Organization
4.5
Step 5: Coding the WBS for the Information System
4.6
Process Breakdown Structure
118
118
121
page xix
4.7
Responsibility Matrices
4.8
Project Communication Plan
Summary
122
124
126
Chapter 5
Estimating Project Times and Costs
5.1
134
Factors Influencing the Quality of Estimates
Planning Horizon
136
Project Complexity
136
People
136
Project Structure and Organization
137
136
Padding Estimates
137
Organizational Culture
Other Factors
137
137
5.2
Estimating Guidelines for Times, Costs, and Resources
5.3
Top-Down versus Bottom-Up Estimating
5.4
Methods for Estimating Project Times and Costs
139
142
Top-Down Approaches for Estimating Project Times and Costs
142
Bottom-Up Approaches for Estimating Project Times and Costs
146
A Hybrid: Phase Estimating
5.5
Level of Detail
149
5.6
Types of Costs
150
Direct Costs
147
151
Direct Project Overhead Costs
151
General and Administrative (G&A) Overhead Costs
5.7
Refining Estimates
5.8
Creating a Database for Estimating
5.9
Mega Projects: A Special Case
152
154
155
Summary 158
Appendix 5.1: Learning Curves for Estimating
Chapter 6
Developing a Project Schedule
164
168
6.1
Developing the Project Network
169
6.2
From Work Package to Network
170
6.3
Constructing a Project Network
172
Terminology
151
172
Basic Rules to Follow in Developing Project Networks
172
6.4
Activity-on-Node (AON) Fundamentals
173
6.5
Network Computation Process
Forward Pass—Earliest Times
177
176
138
Backward Pass—Latest Times
179
Determining Slack (or Float)
180
6.6
Using the Forward and Backward Pass Information
6.7
Level of Detail for Activities
6.8
Practical Considerations
Network Logic Errors
Activity Numbering
184
184
184
184
Use of Computers to Develop Networks
Calendar Dates
185
185
Multiple Starts and Multiple Projects
6.9
183
185
Extended Network Techniques to Come Closer to Reality
Laddering
188
Use of Lags to Reduce Schedule Detail and Project Duration
188
An Example Using Lag Relationships—the Forward and Backward Pass
Hammock Activities
Summary
193
194
Chapter 7
Managing Risk
212
7.1
Risk Management Process
214
7.2
Step 1: Risk Identification
216
7.3
Step 2: Risk Assessment
219
Probability Analysis
7.4
222
Step 3: Risk Response Development
Mitigating Risk
223
Avoiding Risk
225
Transferring Risk
7.5
188
225
Escalating Risk
225
Retaining Risk
225
Contingency Planning
Technical Risks
227
Schedule Risks
229
226
223
192
Cost Risks
229
Funding Risks
229
7.6
Opportunity Management
7.7
Contingency Funding and Time Buffers
Contingency Reserves
231
Management Reserves
232
Time Buffers
230
231
232
7.8
Step 4: Risk Response Control
233
7.9
Change Control Management
234
Summary 237
Appendix 7.1: PERT and PERT Simulation
248
page xx
Chapter 8
Scheduling Resources and Costs
258
8.1
Overview of the Resource Scheduling Problem
8.2
Types of Resource Constraints
8.3
Classification of a Scheduling Problem
8.4
Resource Allocation Methods
Assumptions
262
263
263
263
Time-Constrained Projects: Smoothing Resource Demand
Resource-Constrained Projects
8.5
260
264
265
Computer Demonstration of Resource-Constrained Scheduling
270
The Impacts of Resource-Constrained Scheduling
8.6
Splitting Activities
8.7
Benefits of Scheduling Resources
8.8
Assigning Project Work
8.9
Multiproject Resource Schedules
274
277
278
279
280
8.10
Using the Resource Schedule to Develop a Project Cost Baseline
281
Why a Time-Phased Budget Baseline Is Needed
Creating a Time-Phased Budget
282
Summary 287
Appendix 8.1: The Critical-Chain Approach
Chapter 9
Reducing Project Duration
281
308
318
9.1
Rationale for Reducing Project Duration
9.2
Options for Accelerating Project Completion
Options When Resources Are Not Constrained
Options When Resources Are Constrained
9.3
Project Cost-Duration Graph
Explanation of Project Costs
9.4
324
327
330
Practical Considerations
Crash Times
332
332
333
Linearity Assumption
333
Choice of Activities to Crash Revisited
333
Time Reduction Decisions and Sensitivity
334
What If Cost, Not Time, Is the Issue?
Reduce Project Scope
335
336
Have Owner Take on More Responsibility
336
Outsource Project Activities or Even the Entire Project
Brainstorm Cost Savings Options
Summary
337
Chapter 10
328
328
Using the Project Cost-Duration Graph
9.6
322
Constructing a Project Cost-Duration Graph
A Simplified Example
321
327
Determining the Activities to Shorten
9.5
320
336
336
Being an Effective Project Manager
354
10.1
Managing versus Leading a Project
10.2
Engaging Project Stakeholders
10.3
Influence as Exchange
Task-Related Currencies
357
361
362
Position-Related Currencies
363
Inspiration-Related Currencies
363
Relationship-Related Currencies
363
Personal-Related Currencies
10.4
364
Social Network Building
364
Mapping Stakeholder Dependencies
364
Management by Wandering Around (MBWA)
Managing Upward Relations
Leading by Example
356
366
367
369
10.5
Ethics and Project Management
10.6
Building Trust: The Key to Exercising Influence
10.7
Qualities of an Effective Project Manager
Summary
372
373
375
378
Chapter 11
Managing Project Teams
390
11.1
The Five-Stage Team Development Model
11.2
Situational Factors Affecting Team Development
11.3
Building High-Performance Project Teams
Recruiting Project Members
397
Conducting Project Meetings
399
Establishing Team Norms
401
Establishing a Team Identity
Creating a Shared Vision
403
404
Managing Project Reward Systems
406
Orchestrating the Decision-Making Process
Managing Conflict within the Project
410
408
393
397
395
Rejuvenating the Project Team
413
11.4
Managing Virtual Project Teams
11.5
Project Team Pitfalls
Groupthink
419
419
Bureaucratic Bypass Syndrome
419
Team Spirit Becomes Team Infatuation
Summary
415
419
421
Chapter 12
Outsourcing: Managing Interorganizational Relations
12.1
Outsourcing Project Work
434
436
page xxi
12.2
Request for Proposal (RFP)
440
Selection of Contractor from Bid Proposals
12.3
441
Best Practices in Outsourcing Project Work
Well-Defined Requirements and Procedures
442
442
Extensive Training and Team-Building Activities
444
Well-Established Conflict Management Processes in Place
Frequent Review and Status Updates
Co-location When Needed
447
448
Fair and Incentive-Laden Contracts
449
Long-Term Outsourcing Relationships
12.4
The Art of Negotiating
449
450
1. Separate the People from the Problem
2. Focus on Interests, Not Positions
452
3. Invent Options for Mutual Gain
453
4. When Possible, Use Objective Criteria
Dealing with Unreasonable People
12.5
445
451
454
454
A Note on Managing Customer Relations
Summary 458
Appendix 12.1: Contract Management
467
455
Chapter 13
Progress and Performance Measurement and Evaluation
474
13.1
476
Structure of a Project Monitoring Information System
What Data Are Collected?
476
Collecting Data and Analysis
Reports and Reporting
13.2
476
476
The Project Control Process
Step 1: Setting a Baseline Plan
477
477
Step 2: Measuring Progress and Performance
Step 3: Comparing Plan against Actual
Step 4: Taking Action
13.3
Control Chart
478
478
478
479
Milestone Schedules
13.4
477
Monitoring Time Performance
Tracking Gantt Chart
479
Earned Value Management (EVM)
The Need for Earned Value Management
Percent Complete Rule
Methods of Variance Analysis
480
484
485
Developing a Status Report: A Hypothetical Example
Assumptions
487
Baseline Development
487
Development of the Status Report
13.6
480
484
What Costs Are Included in Baselines?
13.5
477
488
Indexes to Monitor Progress
Performance Indexes
492
493
Project Percent Complete Indexes
494
Software for Project Cost/Schedule Systems
Additional Earned Value Rules
494
495
13.7
Forecasting Final Project Cost
13.8
Other Control Issues
496
498
Technical Performance Measurement
498
487
Scope Creep
500
Baseline Changes
500
The Costs and Problems of Data Acquisition
502
Summary 503
Appendix 13.1: The Application of Additional Earned Value Rules 522
Appendix 13.2: Obtaining Project Performance Information from MS
Project 2010 or 2016 528
Chapter 14
Project Closure
532
14.1
Types of Project Closure
14.2
Wrap-up Closure Activities
14.3
Project Audits
Project Retrospectives
540
543
Project Audits: The Big Picture
Level 1: Ad Hoc Project Management
14.5
536
539
The Project Audit Process
14.4
534
543
546
Level 2: Formal Application of Project Management
546
Level 3: Institutionalization of Project Management
547
Level 4: Management of Project Management System
547
Level 5: Optimization of Project Management System
548
Post-implementation Evaluation
Team Evaluation
548
548
Individual, Team Member, and Project Manager Performance Reviews
Summary 552
Appendix 14.1: Project Closeout Checklist
Chapter 15
Agile Project Management
555
562
15.1
Traditional versus Agile Methods
15.2
Agile PM
15.3
Agile PM in Action: Scrum
566
569
564
550
Roles and Responsibilities
Scrum Meetings
570
572
Product and Sprint Backlogs
573
Sprint and Release Burndown Charts
575
page xxii
15.4
Extreme Programming and Kanban
Kanban
577
15.5
Applying Agile PM to Large Projects
15.6
Limitations and Concerns
15.7
Hybrid Models
Summary
576
578
580
580
581
Chapter 16
International Projects
16.1
590
Environmental Factors
Legal/Political Factors
Security
593
593
Geography
594
Economic Factors
Infrastructure
Culture
592
594
596
597
16.2
Project Site Selection
16.3
Cross-Cultural Considerations: A Closer Look
Adjustments
599
601
Working in Mexico
602
Working in France
605
Working in Saudi Arabia
Working in China
606
608
Working in the United States
609
Summary Comments about Working in Different Cultures
Culture Shock
16.4
600
611
611
Selection and Training for International Projects
614
Summary
617
Appendix One: Solutions to Selected Exercises
Appendix Two: Computer Project Exercises
Glossary
656
Acronyms
663
Project Management Equations
639
664
Cross Reference of Project Management
665
Socio-Technical Approach to Project Management
Index
667
626
666
page xxiii
Project Management
The Managerial Process
page 2
CHAPTER
ONE
1
Modern Project Management
LEARNING OBJECTIVES
After reading this chapter you should be able to:
1-1
Understand why project management (PM) is crucial in today’s world.
1-2
Distinguish a project from routine operations.
1-3
Identify the different stages of a project life cycle.
1-4
Describe how Agile PM is different from traditional PM.
1-5
Understand that managing projects involves balancing the technical and
sociocultural dimensions of the project.
OUTLINE
1.1
What Is a Project?
1.2
Agile Project Management
1.3
Current Drivers of Project Management
1.4
Project Management Today: A Socio-Technical Approach
Summary
Text Overview
page 3
All of mankind’s greatest accomplishments—from building
the great pyramids to discovering a cure for polio to putting
a man on the moon—began as a project.
LO 1-1
Understand why project management (PM) is crucial in today’s world.
This is a good time to be reading a book about project management.
Business leaders and experts have recognized that project management is
critical to sustainable economic growth. New jobs and competitive
advantage are achieved by constant innovation, developing new products
and services, and improving both productivity and quality of work. This is
the world of project management. Project management provides people
with a powerful set of tools that improves their ability to plan, implement,
and manage activities to accomplish specific objectives. But project
management is more than just a set of tools; it is a results-oriented
management style that places a premium on building collaborative
relationships among a diverse cast of characters. Exciting opportunities
await people skilled in project management.
The project approach has long been the style of doing business in the
construction industry, U.S. Department of Defense contracts, and
Hollywood, as well as big consulting firms. Now project management has
page 4
spread to all avenues of work. Today, project teams carry out
everything from port expansions to hospital restructuring to
upgrading information systems. They are creating next-generation fuelefficient vehicles, developing sustainable sources of energy, and exploring
the farthest reaches of outer space. The impact of project management is
most profound in high-tech industries, where the new folk heroes are young
professionals whose Herculean efforts lead to the constant flow of new
hardware and software products.
Project management is not limited to the private sector. Project
management is also a vehicle for doing good deeds and solving social
problems. Endeavors such as providing emergency aid to areas hit by
natural disasters, devising a strategy for reducing crime and drug abuse
within a city, or organizing a community effort to renovate a public
playground would and do benefit from the application of modern project
management techniques.
Perhaps the best indicator of demand for project management can be
seen in the rapid expansion of the Project Management Institute (PMI), a
professional organization for project managers. PMI membership has grown
from 93,000 in 2002 to more than 565,000 in 2019. See Snapshot from
Practice 1.1: The Project Management Institute for information regarding
professional certification in project management.
It’s nearly impossible to pick up a newspaper or business periodical and
not find something about projects. This is no surprise! Approximately $2.5
trillion (about 25 percent of the U.S. gross national product) is spent on
projects each year in the United States alone. Other countries are
increasingly spending more on projects. Millions of people around the
world consider project management the major task in their profession.
SNAPSHOT FROM PRACTICE 1.1
The Project Management Institute*
The Project Management Institute (PMI) was founded in 1969 as an
international society for project managers. Today PMI has members from
more than 180 countries and more than 565,000 members. PMI
professionals come from virtually every major industry, including
aerospace, automotive, business management, construction, engineering, financial
services, information technology, pharmaceuticals, healthcare, and telecommunications.
PMI provides certification as a Project Management Professional (PMP)—
someone who has documented sufficient project experience, agreed to follow the PMI
code of professional conduct, and demonstrated mastery of the field of project
management by passing a comprehensive examination based on the Project
Management Body of Knowledge (PMBOK), which is in its 6th edition. The number of
people earning PMP status has grown dramatically in recent years. In 1996 there were
fewer than 3,000 certified Project Management Professionals. By 2019 there were more
than 910,000 PMPs.
Just as the CPA exam is a standard for accountants, passing the PMP exam may
become the standard for project managers. Some companies are requiring that all their
project managers be PMP certified. Moreover, many job postings are restricted to PMPs.
Job seekers, in general, are finding that being PMP certified is an advantage in the
marketplace.
PMI added a certification as a Certified Associate in Project Management (CAPM).
CAPM is designed for project team members and entry-level project managers, as well
as qualified undergraduate and graduate students who want a credential to recognize
their mastery of the project management body of knowledge. CAPM does not require the
extensive project management experience associated with the PMP. In fact, students
often qualify for taking the CAPM exam by taking a course on project management. For
more details on PMP and CAPM, google PMI to find the current website for the Project
Management Institute.
This text provides a solid foundation for passing either exam. However, we personally
found it necessary to study a good PMP/CAPM exam “prep book” to pass the exam. This
is recommended, given the format and nature of the exam.
*
PMI Today, March 2019, p. 4.
page 5
Most of the people who excel at managing projects never have the title
of project manager. They include accountants, lawyers, administrators,
scientists, contractors, coaches, public health officials, teachers, and
community advocates whose success depends upon being able to lead and
manage project work. For some, the very nature of their work is project
driven. Projects may be cases for lawyers, audits for accountants, events for
artists, and renovations for contractors. For others, projects may be a small
but critical part of their work. For example, a high school teacher who
teaches four classes a day is responsible for coaching a group of students to
compete in a national debate competition. A store manager who oversees
daily operations is charged with developing an employee retention program.
A sales account executive is given the additional assignment of team lead to
launch daily deals into a new city. A public health official who manages a
clinic is also responsible for organizing a Homeless Youth Connect event.
For these and others, project management is not a title but a critical job
requirement. It is hard to think of a profession or a career path that would
not benefit from being good at managing projects.
Not only is project management critical to most careers, but also the
skill set is transferable across most businesses and professions. Project
management fundamentals are universal. The same project management
methodology that is used to develop a new product can be adapted to create
new services, organize events, refurbish aging operations, and so forth. In a
world where it is estimated that each person is likely to experience three to
four career changes, managing projects is a talent worthy of development.
The significance of project management can also be seen in the
classroom. Twenty years ago major universities offered one or two classes
in project management, primarily for engineers. Today most universities
page 6
offer multiple sections of project management classes, with the
core group of engineers being supplemented by business
students majoring in marketing, management information systems (MIS),
and finance, as well as students from other disciplines such as
oceanography, health sciences, computer sciences, and liberal arts. These
students are finding that their exposure to project management is providing
them with distinct advantages when it comes time to look for jobs. More
and more employers are looking for graduates with project management
skills. See Snapshot from Practice 1.2: A Dozen Examples of Projects
Given to Recent College Graduates for examples of projects given to recent
college graduates. The logical starting point for developing these skills is
understanding the uniqueness of a project and of project managers.
SNAPSHOT FROM PRACTICE 1.2
A Dozen Examples of Projects Given to Recent College
Graduates
1. Business information: Join a project team charged with installing a
new data security system.
2. Physical education: Design and develop a new fitness program for
senior citizens that combines principles of yoga and aerobics.
3. Marketing: Execute a sales program for a new home air purifier.
4. Industrial engineering: Manage a team to create a value chain report for every
aspect of a key product from design to customer delivery.
5. Chemistry: Develop a quality control program for an organization’s drug
production facilities.
6. Management: Implement a new store layout design.
7. Pre-med neurology student: Join a project team linking mind mapping to an
imbedded prosthetic that will allow blind people to function near normally.
8. Sports communication: Join the athletics staff at Montana State University to
promote women’s basketball.
9. Systems engineer: Become a project team member of a project to develop data
mining of medical papers and studies related to drug efficacy.
10. Accounting: Work on an audit of a major client.
11. Public health: Research and design a medical marijuana educational program.
12. English: Create a web-based user manual for a new electronics product.
John Fedele/Blend Images LLC
1.1 What Is a Project?
LO 1-2
Distinguish a project from routine operations.
What do the following headlines have in common?
Millions Watch World Cup Finals
Citywide WiFi System Set to Go Live
Hospitals Respond to New Healthcare Reforms
Apple’s New iPhone Hits the Market
City Receives Stimulus Funds to Expand Light Rail System
All of these events are projects.
The Project Management Institute provides the following definition of a
project:
A project is a temporary endeavor undertaken to create a unique product, service, or result.
page 7
Like most organizational efforts, the major goal of a project is to satisfy a
customer’s need. Beyond this fundamental similarity, the characteristics of
a project help differentiate it from other endeavors of the organization. The
major characteristics of a project are as follows:
1.
2.
3.
4.
5.
An established objective.
A defined lifespan with a beginning and an end.
Usually, the involvement of several departments and professionals.
Typically, doing something that has never been done before.
Specific time, cost, and performance requirements.
First, projects have a defined objective—whether it is constructing a 12story apartment complex by January 1 or releasing version 2.0 of a specific
software package as quickly as possible. This singular purpose is often
lacking in daily organizational life in which workers perform repetitive
operations each day.
Second, because there is a specified objective, projects have a defined
endpoint, which is contrary to the ongoing duties and responsibilities of
traditional jobs. Instead of staying in one job, individuals often move from
project to project, working with different groups of people. For example,
after helping to install a security system, an IT engineer may be assigned to
develop a database for a different client.
Third, unlike much organizational work that is segmented according to
functional specialty, projects typically require the combined efforts of a
variety of specialists. Instead of working in separate offices under separate
managers, project participants, whether they be engineers, financial
analysts, marketing professionals, or quality control specialists, work
together under the guidance of a project manager to complete a project.
The fourth characteristic of a project is that it is nonroutine and has
some unique elements. This is not an either/or issue but a matter of degree.
Obviously, accomplishing something that has never been done before, such
as building an electric automobile or landing two mechanical rovers on
Mars, requires solving previously unsolved problems and using
breakthrough technology. On the other hand, even basic construction
projects that involve established sets of routines and procedures require
some degree of customization that makes them unique. See Snapshot from
Practice 1.3: London Calling: Seattle Seahawks versus Oakland Raiders for
an unusual change in routine.
Finally, specific time, cost, and performance requirements bind projects.
Projects are evaluated according to accomplishment, cost, and time spent.
These triple constraints impose a higher degree of accountability than
typically found in most jobs. These three also highlight one of the primary
functions of project management, which is balancing the trade-offs among
time, cost, and performance while ultimately satisfying the customer.
What a Project Is Not
Projects should not be confused with everyday work. A project is not
routine, repetitive work! Ordinary daily work typically requires doing the
same or similar work over and over, while a project is done only once; a
new product or service exists when the project is completed. Examine the
list in Table 1.1 that compares routine, repetitive work and projects.
Recognizing the difference is important because too often resources can be
used up on daily operations, which may not contribute to longer-range
organization strategies that require innovative new products.
TABLE 1.1
Comparison of Routine Work with Projects
Routine, Repetitive Work
Taking class notes
Projects
Writing a term paper
Daily entering sales receipts into Setting up a sales kiosk for a professional accounting
the accounting ledger
meeting
Responding to a supply-chain
request
Developing a supply-chain information system
Practicing scales on the piano
Writing a new piano piece
Routine manufacture of an AppleDesigning an iPod that is approximately 2 × 4 inches,
iPod
interfaces with PC, and stores 10,000 songs
Attaching tags on a manufacturedWire-tag projects for GE and Walmart
product
Program versus Project
In practice the terms project and program cause confusion. They are often
used synonymously. A program is a group of related projects designed to
accomplish a common goal over an extended period of time. Each page 8
project within a program has a project manager. The major
differences lie in scale and time span.
SNAPSHOT FROM PRACTICE 1.3
London Calling: Seattle Seahawks versus Oakland
Raiders*
On October 7, 2018, the National Football League (NFL) Seattle Seahawks
walked off the field having played their best game of the season, only to fall
short to the undefeated Los Angeles Rams, 33–31. Next on the schedule
was an away game with the Oakland Raiders. Instead of heading about
670 miles south to Oakland, California, however, the Seahawks flew nearly 5,000 miles
to London, England, eight time zones away, to spread the gospel of the NFL.
Sending an NFL team overseas during the season is no easy task. Advanced
planning is critical. Players need passports. Accommodations have to be found and
transportation arranged. The equipment staff sends supplies months in advance. All
total, the Seahawks ended up shipping 21,000 pounds of gear and products, including
1,150 rolls of athletic tape, 2 tons of medical supplies, 350 power adapters, and 500
pairs of shoes!
Two of the biggest challenges the “Hawks” faced were jet lag and distractions. Many
of the players and staff had never been overseas. London would be a strange, exciting
experience. With this in mind, head coach Pete Carroll decided to fly early to London on
Wednesday, October 10. This would allow players to better adjust their sleep patterns
while providing some free time to explore London.
WEDNESDAY, OCTOBER 10
The Seahawks boarded a chartered jet that included 45 sleeping pods in first class for
the veteran players. Coach Carroll and his staff sat in the first row of business class.
Rookies and members of the practice squad sat behind them. Regardless of class,
everyone got the same menu: beef filet, Cajun chicken, or herb-roasted salmon.
Typically, on flights to the east, Sam Ramsden, the team’s director of health and
player performance, tells players to stay awake so they will be tired and sleep well when
they arrive. For the London trip, though, Ramsden reversed the program: he told players
to sleep as much as possible on the flight so when they arrived in London on Thursday
afternoon, they would have enough energy to stay up until 9 or 10 p.m. and then get a
full night’s rest. “We try to protect their circadian rhythms as much as possible,”
Ramsden said. Circadian rhythm (also known as body clock) is a natural, internal system
that’s designed to regulate feelings of sleepiness and wakefulness over a 24-hour
period.
Ramsden’s staff gave each player special sleep kits that included blackout eye
masks. Some players took melatonin or Ambien, while others used headphones that
played the sounds of wind and rushing water to induce sleep.
THURSDAY, OCTOBER 11
The Seahawks landed on Thursday about 1:30 p.m. (5:30 a.m. Seattle time). Buses took
them to a golf course resort north of London.
At night, the players let off some steam at a Topgolf facility. Here organized into
groups of four, they tried to hit golf balls into giant holes to score points. Jeers rang out
every time they were wildly off target.
FRIDAY, OCTOBER 12
After several hours of meetings and a practice, players were free to explore London.
They scattered to the various corners of London. On returning to the resort before the
11:00 p.m. curfew, a few of the players complained about the warm English beer.
The Oakland Raiders arrived in London at 1:00 p.m., 53 hours before game time.
SATURDAY, OCTOBER 13
Coach Carroll likes to take his players to the stadium the day before a road game so they
can visualize conditions ahead of time. At 1:30 p.m., the Seahawks drove to Wembley,
where they saw their fully Seahawk-equipped locker room and the field, the most famous
soccer pitch in England. The field appeared slick, so the equipment manager had longer
screw-in cleats available for the players. The Hawks returned to their resort for their
normal pregame evening routine.
GAMEDAY, OCTOBER 14
During the course of the game, the TV announcers commented several times that the
Raiders seemed sluggish, while the Seahawks were sharp and focused. The Seahawks
dominated the game, winning 27–3.
David Lee/Shutterstock
*
Bell, G., “Seahawks Arrive in London. Why Twins Shaquill and Shaquem Griffin Did Not
Travel Here Equally,” thenewstribune.com, October 11, 2018. Belson, K., “Four
Thousand Miles for the W,” nytimes.com, October 20, 2018; Accessed 10/22/18.
page 9
Program management is the process of managing a group of ongoing,
interdependent, related projects in a coordinated way to achieve strategic
objectives. For example, a pharmaceutical organization could have a
program for curing cancer. The cancer program includes and coordinates all
cancer projects that continue over an extended time horizon (Gray, 2011).
Coordinating all cancer projects under the oversight of a cancer team
provides benefits not available from managing them individually. This
cancer team also oversees the selection and prioritizing of cancer projects
that are included in their special “Cancer” portfolio. Although each project
retains its own goals and scope, the project manager and team are also
motivated by the higher program goal. Program goals are closely related to
broad strategic organization goals.
The Project Life Cycle
LO 1-3
Identify the different stages of a project life cycle.
Another way of illustrating the unique nature of project work is in terms of
the project life cycle. The life cycle recognizes that projects have a limited
lifespan and that there are predictable changes in level of effort and focus
over the life of the project. There are a number of different life-cycle
models in project management literature. Many are unique to a specific
industry or type of project. For example, a new-software development
project may consist of five phases: definition, design, code, integration/test,
and maintenance. A generic cycle is depicted in Figure 1.1.
FIGURE 1.1
Project Life Cycle
The project life cycle typically passes sequentially through four stages:
defining, planning, executing, and closing. The starting point begins the
moment the project is given the go-ahead. Project effort starts slowly, builds
to a peak, and then declines to delivery of the project to the customer.
1. Defining stage. Specifications of the project are defined; project
objectives are established; teams are formed; major responsibilities are
assigned.
2. Planning stage. The level of effort increases, and plans are developed to
determine what the project will entail, when it will be scheduled, whom it
will benefit, what quality level should be maintained, and what the
budget will be.
3. Executing stage. A major portion of the project work takes place—both
physical and mental. The physical product is produced (e.g., a bridge, a
report, a software program). Time, cost, and specification measures are
used for control. Is the project on schedule, on budget, and meeting
specifications? What are the forecasts of each of these measures? What
revisions/changes are necessary?
4. Closing stage. Closing includes three activities: delivering the project
product to the customer, redeploying project resources, and conducting a
post-project review. Delivery of the project might include page 10
customer training and transferring documents. Redeployment
usually involves releasing project equipment/materials to other projects
and finding new assignments for team members. Post-project reviews
include not only assessing performance but also capturing lessons
learned.
In practice, the project life cycle is used by some project groups to
depict the timing of major tasks over the life of the project. For example,
the design team might plan a major commitment of resources in the
defining stage, while the quality team would expect their major effort to
increase in the latter stages of the project life cycle. Because most
organizations have a portfolio of projects going on concurrently, each at a
different stage of each project’s life cycle, careful planning and
management at the organization and project levels are imperative.
The Project Manager
At first glance project managers perform the same functions as other
managers. That is, they plan, schedule, motivate, and control. However,
what makes them unique is that they manage temporary, nonrepetitive
activities to complete a fixed-life project. Unlike functional managers, who
take over existing operations, project managers create a project team and
organization where none existed before. They must decide what and how
things should be done instead of simply managing set processes. They must
meet the challenges of each phase of the project life cycle and even oversee
the dissolution of their operation when the project is completed.
Project managers must work with a diverse troupe of characters to
complete projects. They are typically the direct link to the customer and
must manage the tension between customer expectations and what is
page 11
feasible and reasonable. Project managers provide direction,
coordination, and integration to the project team, which is often
made up of part-time participants loyal to their functional departments.
They often must work with a cadre of outsiders—vendors, suppliers, and
subcontractors—who do not necessarily share their project allegience.
Project managers are ultimately responsible for performance (frequently
with too little authority). They must ensure that appropriate trade-offs are
made among the time, cost, and performance requirements of the project.
At the same time, unlike their functional counterparts, project managers
often possess only rudimentary technical knowledge to make such
decisions. Instead, they must orchestrate the completion of the project by
inducing the right people, at the right time, to address the right issues and
make the right decisions.
While project management is not for the timid, working on projects can
be an extremely rewarding experience. Life on projects is rarely boring;
each day is different from the last. Since most projects are directed at
solving some tangible problem or pursuing some useful opportunity, project
managers find their work personally meaningful and satisfying. They enjoy
the act of creating something new and innovative. Project managers and
team members can feel immense pride in their accomplishment, whether it
is a new bridge, a new product, or a needed service. Project managers are
often stars in their organization and well compensated.
Good project managers are always in demand. Every industry is looking
for effective people who can get the right things done on time. See Snapshot
from Practice 1.4: Ron Parker for an example of someone who leveraged
his ability to manage projects to build a successful career in the glass
products industry. Clearly project management is a challenging and exciting
profession. This text is intended to provide the necessary knowledge,
perspective, and tools to enable students to accept the challenge.
Being Part of a Project Team
Most people’s first exposure to project management occurs while working
as part of a team assigned to complete a specific project. Sometimes this
work is full time, but in most cases people work part time on one or more
projects. They must learn how to juggle their day-to-day commitments with
additional project responsibilities. They may join a team with a long history
of working together, in which case roles and norms are firmly established.
Alternatively their team may consist of strangers from different departments
and organizations. As such, they endure the growing pains of a group
evolving into a team. They need to be a positive force in helping the team
coalesce into an effective project team.
Not only are there people issues, but project members are also expected
to use project management tools and concepts. They develop or are given a
project charter or scope statement that defines the objectives and parameters
of the project. They work with others to create a project schedule and
budget that will guide project execution. They need to understand project
priorities so they can make independent decisions. They must know how to
monitor and report project progress. Although much of this book is written
from the perspective of a project manager, the tools, concepts, and methods
are critical to everyone working on a project. Project members need to
know how to avoid the dangers of scope creep, manage the critical path,
engage in timely risk management, negotiate, and utilize virtual tools to
communicate.
page 12
SNAPSHOT FROM PRACTICE 1.4
Ron Parker
1986
BS Business Administration—Oregon State University
1986–1990
Food Products Manufacturing
1990–1994
Wood Products Manufacturing
1994–Current Glass Products Manufacturing
Upon completion of my business degree at Oregon State University, I was recruited by a
Fortune 100 food products company for a first-line production supervisor position. In that
role, an opportunity came up for me to manage a project that involved rolling out a new
statistical package-weight-control program throughout the factory. Successfully
completing that project was instrumental in accelerating my career within the company,
advancing from supervisor to product manager in less than three years.
After four years in food products I accepted an offer to join a wood products
manufacturing company. Initially my role in this company was human resource manager.
My HR responsibilities included managing several projects to improve safety and
employee retention. Successful completion of these projects led to a promotion to plant
manager. In the plant manager role, I was tasked with building and managing a new
wood door manufacturing factory. After successfully taking that factory to full production,
I was promoted again, to corporate manager of continuous improvement. This “culture
change” project involved implementing total quality management throughout 13 different
manufacturing factories as well as all the indirect and support functions within the
corporation. Shortly after we successfully ingrained this new culture in the company, the
owner passed away, leading me to look for other employment.
I was able to leverage my previous experience and success to convince the owner of
a struggling glass fabrication company to hire me. In this new role as general manager, I
was tasked with turning the company around. This was my largest project yet. Turning a
company around involves a myriad of smaller improvement projects spanning from
facilities and equipment improvements to product line additions and deletions to sales
and marketing strategy and everything in between. In four years we successfully turned
the company around to the extent that the owner was able to sell the company and
comfortably retire.
Successfully turning that glass company around got the attention of a much larger
competitor of ours, resulting in an offer of employment. This new offer involved the startup of a $30M high-tech glass manufacturing facility in another state. We were able to
take that facility from a dirt field to the highest-volume manufacturing facility of its kind in
the world in just three years. After building and operating this factory at a world-class
benchmark level for eight years, I came across a new and exciting opportunity to help
expand a strong glass fabrication company in Canada. I spent four years successfully
transitioning this Canadian company from a medium-sized glass fabrication facility to one
of the largest and most successful of its kind in North America.
After tiring of the “Great White North,” I found an opportunity to tackle the largest and
most impactful project of my career. I’m currently VP of operations in a venture-funded,
high-tech, start-up company. In this role, I’m overseeing the construction and start-up of
the first full-scale, high-volume electrochromic glass fabrication factory in the world. This
new project involves building a company from the ground up and taking an exciting new
technology from the lab to full-scale commercialization. Success in this role, although still
far from being certain, will eventually revolutionize the glass industry through the
introduction of a product that dramatically improves the energy efficiency and occupant
comfort of buildings around the world.
Looking back on my career, it is apparent that my degree of success has largely been
the result of taking on and successfully completing successively larger and increasingly
impactful projects.
There’s a saying that’s always resonated with me: “If your only tool is a hammer, all
your problems look like nails.” Good tools are hard to come by and heavy to carry
around. I like my tool bag filled with generalist tools: things like communication skills,
leadership, common sense, judgment, reasoning, logic, and a strong sense of urgency. I
often wonder how much more I could have accomplished, had I actually studied project
management and had more of that toolset in my bag. With a bag full of strong generalist
tools, you can tackle any problem in any business. Project management is clearly one of
those skills where the better you are at it, the higher your chances of success in any
business environment. Having the tools is only part of the equation, though. To be
successful, you must also be willing to run at problems/opportunities when everyone else
is running away from them.
©Ron Parker
1.2 Agile Project Management
LO 1-4
Describe how Agile PM is different from traditional PM.
Traditional project management focuses on thorough planning up front.
Planning requires predictability. For plans to be effective, managers have to
have a good understanding of what is to be accomplished and how to do it.
For example, when it comes to building a bridge, engineers can draw upon
proven technology and design principles to plan and build the bridge. Not
all projects enjoy such predictability. Figure 1.2 speaks to this issue.
FIGURE 1.2
Project Uncertainty
Project uncertainty varies according to the extent the project scope is
known and stable and the technology to be used is known and proven.
Many projects, like the bridge project, product extensions, events,
marketing campaigns, and so forth have well-established scopes and use
proven technology, which provide the predictability for effective planning.
However, when the project scope and/or technology is not fully known,
things become much less predictable and plan-driven methods suffer. Such
was the case for software development projects where it was estimated that
in 1995 American firms and agencies spent $81 billion for canceled
software projects (The Standish Group, 1995).
page 13
Enter Agile project management (Agile PM). Agile methodologies
emerged out of frustration with using traditional project management
processes to develop software. Software projects are notorious for having
unstable scopes in which end user requirements are discovered not defined
up front. Agile PM is now being used across industries to manage projects
with high levels of uncertainty. Examples of people encountering highuncertainty work include software systems engineers, product designers,
explorers, doctors, lawyers, and many problem-solving engineers.1
Fundamentally, Agile PM employs an incremental, iterative process
sometimes referred to as a “rolling wave” approach to complete projects
(see Figure 1.3). Instead of trying to plan for everything up front, the scope
of the project evolves. That is, the final project design/outcome is not
known in great detail and is continuously developed through a series of
incremental iterations (waves). Iterations typically last from one to four
weeks. The goal of each iteration is to make tangible progress such as
page 14
define a key requirement, solve a technical problem, or create
desired features to demonstrate to the customer. At the end of
each iteration, progress is reviewed, adjustments are made, and a different
iterative cycle begins. Each new iteration subsumes the work of the
previous iterations until the project is completed and the customer is
satisfied.
FIGURE 1.3
Rolling Wave Development
Agile PM focuses on active collaboration between the project team and
customer representatives, breaking projects into small functional pieces,
and adapting to changing requirements.
It is not simply a question of either/or. Agile methods are often used up
front in the defining phase to establish specifications and requirements, and
then traditional methods are used to plan, execute, and close the project.
Agile methods may be used to address certain technical issues on a project
while most of the project work is being managed in the traditional way.
The internal dynamics on Agile projects is quite different from the
traditional PM approach. Agile works best in small teams of four to eight
members. Instead of directing and integrating the work of others, the project
manager serves as a facilitator and coach. The team manages itself,
deciding who should do what and how it should be done.
Agile PM will be discussed in depth in Chapter 15 and where
appropriate throughout the text.
page 15
1.3 Current Drivers of Project Management
Project management is no longer a special-need management. It is rapidly
becoming a standard way of doing business. See Snapshot from Practice
1.5: Project Management in Action: 2019. An increasing percentage of the
typical firm’s effort is being devoted to projects. The future promises an
increase in the importance and role of projects in contributing to the
strategic direction of organizations. Several reasons for this are discussed
briefly in this section.
Compression of the Product Life Cycle
One of the most significant driving forces behind the demand for project
management is the shortening of the product life cycle. For example, today
in high-tech industries the product life cycle is averaging 6 months to 3
years. Only 30 years ago, life cycles of 10 to 15 years were not uncommon.
Time-to-market for new products with short life cycles has become
increasingly important. A common rule of thumb in the world of high-tech
product development is that a 6-month project delay can result in a 33
percent loss in product revenue share. Speed, therefore, becomes a
competitive advantage; more and more organizations are relying on crossfunctional project teams to get new products and services to the market as
quickly as possible.
Knowledge Explosion
The growth in new knowledge has increased the complexity of projects
because projects encompass the latest advances. For example, building a
road 30 years ago was a somewhat simple process. Today, each area has
increased in complexity, including materials, specifications, codes,
aesthetics, equipment, and required specialists. Similarly, in today’s digital,
electronic age it is becoming hard to find a new product that does not
contain at least one microchip. The same is likely to be true soon for
artificial intelligence (AI). Product complexity has increased the need to
integrate divergent technologies. Project management has emerged as the
key discipline for achieving this task.
Triple Bottom Line (Planet, People, Profit)
The threat of global warming has brought sustainable business practices to
the forefront. Businesses can no longer simply focus on maximizing profit
to the detriment of the environment and society. Efforts to reduce carbon
imprint and utilize renewable resources are realized through effective
project management. The impact of this movement toward sustainability
can be seen in changes in the objectives and techniques used to complete
projects. For example, achieving a high LEED certification award is often
an objective on construction projects.2
Increased Customer Focus
Increased competition has placed a premium on customer satisfaction.
Customers no longer simply settle for generic products and services. They
want customized products and services that cater to their specific needs.
This mandate requires a much closer working relationship between the
provider and the receiver. Account executives and sales page 16
representatives are assuming more of a project manager’s role as
they work with their organization to satisfy the unique needs and requests of
clients.
SNAPSHOT FROM PRACTICE 1.5
Project Management in Action: 2019*
Businesses and nonprofits thrive and survive based on their ability to
manage projects that produce products and services that meet market
needs. Here is a small sample of projects that are important to their
companies’ futures.
INTUITIVE SURGICAL INC.: MONARCH PROJECT
The Monarch platform is an AI-driven robot featuring two arms with a long, blue tube
attached that allows a doctor to steer a camera and other surgical implements deep
inside the body. Intuitive hopes to one day use robots to not only diagnose but also treat
lung cancer.
WALT DISNEY/MARVEL STUDIOS: CAPTAIN MARVEL
Captain Marvel is a superhero film based on Marvel Comics character Carol
Danvers/Captain Marvel. The film stars Academy Award–winner Brie Larson in the title
role. It is Marvel’s first female-led superhero movie and is seen by many as a response
to D.C.’s popular Wonder Woman film.
PROJECT C.U.R.E.: CARGO
Cargo projects deliver semi-trailer-sized cargo containers carrying medication donations
to underresourced hospitals, clinics, and community health centers in developing
countries. Each 40-foot container delivers an average $4 million worth of medical
supplies and equipment.
SIKORSKY-BOEING: DEFIANT PROJECT
Boeing and Sikorsky have teamed up to develop a prototype for the next-generation
military helicopter. The SB-1 Defiant is being built to travel faster, longer, and more
quietly than other models. At stake is a billion-dollar-plus contract with the U.S.
Department of Defense.
AUDI: E-TRON SUV
E-tron is Audi’s first entry into the all-electric vehicle market. It is a fully equipped, luxury
SUV with a 220-mile range. With a starting price of $74,800, it is meant to compete
against Tesla’s electric SUV and Jaguar’s I-Pace, as well as establish Audi as a
significant player in the growing all-electric market.
DOMINICAN REPUBLIC: TROPICAL FOREST RESTORATION
In many parts of the tropics, deforestation results in areas dominated by colonizing ferns.
The Dominican restoration project involves manually removing ferns and planting native
trees and shrubs.
*Chafkin, M., “This Robot Can Detect Lung Cancer,” BusinessWeek, April 2, 2018;
Coggan, D., “Production Underway on Marvel Studios’ ‘Captain Marvel,’” Marvel.com,
March 3, 2018; “C.U.R.E. Cargo,” projectcure.org. Accessed 2/15/19; Rockwood, K.,
“The Next Wave,” PM Network, June 2018, pp. 6–7; Society for Ecological Restoration,
“Dominican Republic: Restoring Tropical Forest at Sites Dominated by Anthropogenic
Fern Thickets,” ser-rrc.org. Accessed 2/25/19; “The Audi e-tron SUV Is an Electric Shot
at Tesla,” techcrunch.com, September 9, 2018. Accessed 2/22/19.
Increased customer attention has also prompted the development of
customized products and services. For example, 25 years ago buying a set
of golf clubs was a relatively simple process: you picked out a set based on
price and feel. Today there are golf clubs for tall players and short players,
clubs for players who tend to slice the ball and clubs for those who hook the
ball, high-tech clubs with the latest metallurgic discovery guaranteed to add
distance, and so forth. Project management is critical both to developing
customized products and services and to sustaining lucrative relationships
with customers.
Small Projects Represent Big Problems
The velocity of change required to remain competitive or simply keep up
has created an organizational climate in which hundreds of projects are
implemented concurrently. This climate has created a multiproject
environment and a plethora of new problems. Sharing and page 17
prioritizing resources across a portfolio of projects is a major
challenge for senior management. Many firms have no idea of the problems
involved with inefficient management of small projects. Small projects
typically carry the same or more risk as large projects. Small projects are
perceived as having little impact on the bottom line because they do not
demand large amounts of scarce resources and/or money. Because so many
small projects are going on concurrently and because the perception of the
inefficiency impact is small, measuring inefficiency is usually nonexistent.
Unfortunately, many small projects soon add up to large sums of money.
Many customers and millions of dollars are lost each year on small projects
in product and service organizations. Small projects can represent hidden
costs not measured in the accounting system.
Organizations with many small projects going on concurrently face the
most difficult project management problems. A key question becomes one
of how to create an organizational environment that supports multiproject
management. A process is needed to prioritize and develop a portfolio of
small projects that supports the mission of the organization.
In summary, there are a variety of environmental forces interacting in
today’s business world that contribute to the increased demand for good
project management across all industries and sectors.
1.4 Project Management Today: A SocioTechnical Approach
LO 1-5
Understand that managing projects involves balancing the technical and sociocultural
dimensions of the project.
Managing a project is a multidimensional process (see Figure 1.4). The first
dimension is the technical side of the management process, which consists
of the formal, disciplined, purely logical parts of the process. This technical
dimension includes planning, scheduling, and controlling projects. Clear
project scope statements are written to link the project and customer and to
facilitate planning and control. Creation of the deliverables and work
breakdown structures facilitates planning and monitoring the progress of the
project. The work breakdown structure serves as a database that links all
levels in the organization, major deliverables, and all work—right page 18
down to the tasks in a work package. Effects of project changes are
documented and traceable. Thus, any change in one part of the project is
traceable to the source by the integrated linkages of the system. This
integrated information approach can provide all project managers and the
customer with decision information appropriate to their level and needs. A
successful project manager will be well trained in the technical side of
managing projects.
FIGURE 1.4
A Socio-Technical Approach to Project Management
The second and opposing dimension is the sociocultural side of project
management. In contrast to the orderly world of project planning, this
dimension involves the much messier, often contradictory and paradoxical
world of implementation. It centers on creating a temporary social system
within a larger organizational environment that combines the talents of a
divergent set of professionals working to complete the project. Project
managers must shape a project culture that stimulates teamwork and high
levels of personal motivation as well as a capacity to quickly identify and
resolve problems that threaten project work. Things rarely go as planned
and project managers must be able to steer the project back on track or alter
directions when necessary.
The sociocultural dimension also involves managing the interface
between the project and external environment. Project managers have to
assuage and shape the expectations of customers, sustain the political
support of top management, and negotiate with their functional
counterparts, monitor subcontractors, and so on. Overall, the manager must
build a cooperative social network among a divergent set of allies with
different standards, commitments, and perspectives.
Some suggest that the technical dimension represents the “science” of
project management, while the sociocultural dimension represents the “art”
of managing a project. To be successful, a manager must be a master of
both. Unfortunately, some project managers become preoccupied with the
planning and technical dimension of project management. Often their first
real exposure to project management is through project management
software, and they become infatuated with network charts, Gantt diagrams,
and performance variances; they attempt to manage a project from a
distance. Conversely there are other managers who manage projects by the
“seat of their pants,” relying heavily on charisma and organizational politics
to complete a…
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