Schaauia resources & costs ‘ntraduetion ff [Ogenzation acid ; 1 srateoy | nope “ears Outsourcing 4 0. 4 2 @u Unierstand why project management (P's «null n todays wert, 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. This isa good time to be reading 2 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 inno~ vation, developing new products and serviees, and improving, both. productivity- and. “quality of work. This is the world of project management, Project management pro- ‘ides poopie with a powerful set of tools that improves their ability to plan, implenient, and manage activities to accomplish specific objectives. But project management is more than just a set of tool; it is. a,results-oriented management style that places a premium on building collaborative relationships ariing & diverse cast. oF characters. Exefting opportunities await peopie skilled in project management. “A¢fhe project mppréaclphas long been the style of doing business in the construc- tion industly, US: Department of Defense contracts, and Hollywood, as well as big consulting firms, Now project management has spread to all avenues of work, 3‘Today, project teams carry out everything from port expansions to hospital restructur- ‘ng to upgrading information systems. They are creating next-generation fuel-efficient vehicles, developing sustainable sources of energy, and exploring the farthest reaches of outer space, The impact of project mattagement 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 provid ing emergency aid to areas hit by natural disasters, devising a strategy for reducing ctime 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, Pethaps the best indicator of demand for project management can be seen in the rapid expansion of the Project Management Institute (PMI), a professional organiza- tion for project managers. PMI membership has grown from 93,000 in 2002 t0 more than 565,000 in 2019. See Snapshot from Practice 1.1: The Project Management Insti- tute for information regarding professionel 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 petvent of the U.S. gross national product) is spent on projects each year in the United States alone. Other countries are increesingly spending more on projeeis, Millions of people around the world consider project management the msjor task in their profession 4 captor Modern Projo Management oe | } toe elena eat Oa The Pec Mnegeest ste fied eas LO) tocoutscay pe nnn Toe i het ents on ere than 10 cents end moe on $5000, Pl essed coe om Aye markt, cng espace, on te.dess rnogenetcrtion eget, tna ertin tp, ere el texans PU oes cll eso Peet Manoge- ier Prfenion (PMP somcoe wo ns ae ted ie et oxic, ed on the Pl cee of poten coh an deme Se noc of eet of roe mache peng # contre oemectonbrd on he Poa agen dy 2 amotge PEON when BS son, The nan of pote target gov ety emt Jr 99 te eo han 30 ed Fraect noir Motes. 8201 te tremor 81000 PP Sates CPA am astral, png he a eam may Deco th snd “The Project Management Institute project managers. Some companies ar coauling that i tl project managers be PMP ceed. Mocoover, ‘many jb postings oe rested to PMS. Jo seokers, in gereral, are tig that belng PMP cuted isan advantage inthe marketplace PMI added a certain asa Conte Associate in Project Management (CAPA. CAPM’ designed for roject tere mesers and enty-fevel eject manag 5, es well as quliied undergraduate and graduate students who went 4 credential to recognize thie mastery of the project management ody of know frig, CAPM does not require the extensive project management experience esscited with the PUP. In fac, studors often quay fr teking the CAPM ‘exam by taking a course on prac management. Fer ‘more detas on PMP and CAPM, google PMI totind te ‘curont west fr the Projet Manegement Ist, This toa provides a sold foundation for pessing itor exam. However, we persoally found i neces ryt study a good PMPICAPM exam “prep book" ass the eam, Tis recommended, cven the format and nature ofthe exam. “Py, Meh 299,54C SNAPSHOT FROM PRACTICE 1.2 Chostor Mader Project Management 5 Most of the people who excel at managing projects never have the title of project manager. They include accountants, lawyers, administrator, scientists, contractors, coaches, public health officials, teachers, and community advocates whose suc- ‘cess 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 fecountants, events for artists, and renovations for contractors. For others, projects “nly be a sata but ertical part oftheir Work. For example, a high school teacher who teaches four classes a day is responsible for coaching a group of students to compete in @ national debate competition. A store manager who oversees daily operations i ccharged 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 ttle but a critical job requirement. It is hard to think of a profession or a career path that ‘would not beaefit from being good at managing projects. Not oniy is project manazement critical to most careers, bu also the skill st is trans- ferable 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 erate new services, refinbish aging oper ‘ions, and.so forth, In a world where'it fs estifed that each person is Ikely to expe ‘ence 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 manage ment, primarily for engineers. Today most universities offer multiple sections of “ ADozen Examples of Projects Given to Recent College Graduates 1. Business information: Joli a 9,Systems engineer: Become a project team jet tam charged with isa -momberafaprojecte devon data nrg of med ‘ng anew data socurty ster cal papers and tales rtd to cugofeay, 2. Physical education; Design and 10. Accounting: Work onan aud of alr ent develop a new fness rogram fr 11.Publle health: Rosearch and design 3 mectcal senioccltrens that combines pricples of og arjuanaeducatlonal ogra, andacrobles 12.Bnglish: Cente 9 web-based user maual fora 3. Marketing: Execute a sales program for 9 new new electronics product. home apie, 4. Industrial engineering: Manage a foam to ce. ate a vlue cain rapa for every aspect of key product rom design to custoner delivery, 5. Chemistry: Develop a.qually contr progr for an oxgaizations dug production feces {5 Management: npementanewstore layout doin. 7. reamed neurology student: Jina roject tau tring mind mapping to an imbedded peostet ‘that wlllow ing people to incon now noxaly 1. Sports communication: Join the stletcs sat at Nontana State Univesity to promote women's testa J Fecelx@en images tLe1 chapter Maden Prjeer Monagement project management classes, with the core group of engineers being supplemented bby 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! 1) exposure to project management is providing them with distiict advantages When it | comes time to }o0k for jobs, More and more employers are looking for graduates with project management skis. 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 understand- ing the uniqueness of a project and of project managers. © 1.1 Whats a Project Ow ‘What do the following heains have in common? Millions Watch World Cup Finals ide 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 Distinguish a project from routine operations. All of these events are projects. ‘The Project Management Institute provides the following definition of a project: A project temporary endeavor undertaken to ereate& unique produc, service, ot restChester Modern Project Management 7 Like most organizational efforts, the, major goal of a project is to satisfy & “Customer's need. Beyond this fundamental similaity, the chsritteristics.of a.project, help differentiate it from other endeavors of the organiza Th ‘major charaeteris- tics of a project are as follows: j 1, An established objective, 2, A defined lifespan with a beginning and an end. 3, Usually, the involvement of several departments and professionals, 4. ‘Typically, doing something that has never been done before. 5. Specific time, cost, and performance requirements, First, projects have a defined obje snether it is constructing @ 12-story apart- ‘ment complex by Jaflary I 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. rojects have a defined endpoint, tional jobs. Instead with Second, because there is a specified objective, which is contrary fo the ongoing duties and respon: oF Staying i Ae Job; individuals Oren MOVE different groups of people. For example, after helping, to 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 separaie 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 itis nonroutine and has. some. unique _slements. This is not an either/or issue but a matter of degree. Obviously, accomplish- ing something that has never been done before, such as building an electric automobile or landing two mechanical rovers on Mars, requires salving previously. unsolved prob: Jems and using breakthrough technology. On the other hand, even basic construction projects that involve established sets of FObtines and procedures require some degtee of customization that makes them unique, See Snapshot from Practice 1.3: London Calling: Seattle Seahawks versus Oakland Raiders for en 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 ofthe primary funetions of project management, which is balancing the trade-offs among time, eos, 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 proj- ct 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. Program versus Project In practice the terms project and program cause confusion. They are often used synon- ymously. A program is a group of related projects designed to accomplish a common8 chart SNAPSHOT E ROM: Modern Project Management ENO Glee tie) (Octane, 201, the Natlonal Foot ball League (NFL) Seat Seahawes ‘wake tha fed havog pay thei best game ofthe season, onto fa som to the undefeated Los Angeles Rams, 33-31. Now nthe schedule was an away gare Wi the Oakland Ralors. Instead of hoading about {570 mils south to Oaktond, Calfona, however, the ‘Seahawks flew rary 000 miles to London, Ecard, ‘ight tne zones aay, to spresd the gospel of he NEL ‘Sending an NFL ten oversas dng the seasons ne 00s ask. Adaced planing sera. Payessneed passprts, Accommodations have tobe foundand tans- etaon arangec The equipment sia ser suples ‘months in advance. Alto, the Seahawks ended up shipping 21,000 pond gear anc products rcluclag 1.150 ro of atte tape, 2 tons of medal sips, 350 power adap, ad 500 paso shoes! “Two ofthe bigest challenges the “Hanks” faced were jt ag and estactors. Many of the players and staf had never been oversees. London would be a stange, cng exporonce. With tis in mind, head each Peto Carol cacti to ty eay te Landon on Widnes, October 10. This woud alow plaars to better acs tet sleep pattems whe providing some feo tine to explore London, WEDNESDAY, OCTOBER 10 The Seas Dore! acartres jt ht Included 45 ‘Seeping podstn fst es fre veteran players. Coach roland hs stat stin the fist ro of buns ass ookls and members ofthe practice squad sat behind om. Rogar dass, everyone go: the same men boo ot, Cjur chicka or er rastd salmon, Typicaly, on chs to to cast Sam Ramsden, the team’s recto of heath and play performance, tls layers to sty awake so they wil be ted and seen well when they ave. Foc the London tp, thouph, Romsden reversed the program: he ti! players to sleep as ich 2s possbe on the fght so when they ‘stv in London a Thursday aflrncos, they would have enough energy fo stay up unt 9 or 10 pm. and then get afl rights rest. “We ty to protect their ead ys. as mich a pase” Rarasln sald ‘cacy aso kun as boey clack sna ‘a}.ntemel syste thats designed regat footings of Seepiness and wakehiness ove & 24hcur peri. Ramsden’ sta gave eat player spec seo ets ‘hat induced tackout eye masks. Some players took ‘elatonir or Abies, while ofers used headphones ‘hal plyod the sounds ef win and cashing water to Frauee seop. London Calling: Seattle Seahawks versus Oakland Raiders* THURSDAY, OCTOBER 11 Tro Seahawks landed on Thursday apout 130 p.m, {630 an. Sestle tine}. Buses 10k them to a got ‘couse resort at of Lond, Atnigt the olyets tof some steem ata Topgol {acy Hete organized ito o0gs cf four, they ied to nt gol bts io lant holes to score pots. ees rang ‘out everytie they vere wily cf target FRIDAY, OCTOBER 12 [Aer severel haus of meetings and a practice, say er Were ee to exlore Loncon. They scattered to the various comes of London. On eturing to the rscrt before the TOO pun curem, a few ofthe players compan abo the warm nish bet The Olan Rade arved ntendon 00 pn, 52 hous before gome tine, ‘SATURDAY, OCTOBER 13 ‘oacn Carol kes to take his payers to the stadium the day betare @ road gare so they can visualize condions ahead of tine. At £30 pn, the Seahawks rove to Wembley, whore the sw tha fly Seahaw- ‘eulped locker room and ef, the mast fous Soccer sith i Englnd The fel appaaced sick, so the equipment manager hed loge sewn cleats zralale forthe players. The Hews returned to thelr "eso for thelr normal pregame everbg routine, GAMEDAY, OCTOBER 14 During the couse of the game, the TY announcers ‘commented seveal times tat the Raiders seemed hgh wile the Sethawas were starp and ocised Tie Seahavs donated the game wnaing 27-3 DavesLeestaterstck il, 6, “Sean bn Laon Wy Ts Shan ‘Staguon GfinO No val Hee Suey thnenatbare ‘cm. Oreber 1, 2018 Bb, Fourstar ine Wrnyines.c, Oc 20,2018 ezete 1722,Own dott th eitferont stags of project ite pte. Chapter Adorn Prolect Management 8 TABLE 1.1 Comparison of Routine Work with Projects Routine, Repetitive Work Projects Taking class notes \Witing a torm paper Daky entering sales recebpts into the Setting up a sales Mosk fora professional accounting accounting ledger meeting Responding to supply-chain request Developing a supplychain information system Practicing cees onthe plano iting anew piano plece Routine marufactuce ofan Apple Pod Designing an iPod thats approximately 2 x inches, interfaces with PC, and stores 10,000 songs ‘Mtachlng tagsona manufactured product Witetag projets for GE and Walmart goal over an extended period of time. Bach project within a program has a project ‘manager, The major differences lie in seale and time span. Program management is the process of managing a group of ongoing, interdepen- dent, related projects in a coordinated way to achieve strategic objectives. For exam- ple, a pharmaceutical organization could have a program for curing eancer. The cancer program includes and coordinates ail 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 onganization goals, The Project Life Cycle Another way of illustrating the unique nature of project work is in terms of the project life eyele. The life eycle recognizes that projects have a limited tifespan 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 ‘The project life eycle 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 tothe customer. 1, Defining stage. Specifications of the project are defined; project objectives are established; feams are formed; major responsibilities are assigned. 2, Planning stage. ‘The level of effort increases, and plans are developed to deter- ‘mine 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. 1s the project ‘on schedule, on budget, and meeting specifications? What are the forecasts of each of these measures? What revisions/changes ate necessary? 4. Closing stage. Closing includes three activities: delivering the project product to the customer, redeploying project resources, andl conducting & post-project review.40 Choper 1 Mdern Project Manager! FIGURE 1.1 Project Life Cycle Level ofettort Defining Planning Beccuting closing 1.Goas 1 Scnecules 1.Stetusroperts 1. Tran eustomer 2.Specticatons 2. Bugete 2. changes 2. Transfer documents 3.Tasks 3. Resources 3. Quality 3. Release resources 4:Responsioiies. 4. Risks 4 Forecasts 44 Evalution 5 Stating 5: Lossans eemed Delivery of the project might inelude customer training, and transferring documents. Redeptoyment usually involves releasing project equipment/materials to other proj- ects 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 theit major effort to increase in the latter stages of the project life cycle, Because most organizations have a portfotio 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 proj- ect. 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 toupe of characters 10 complete projects. They are typically the direct link to the customer and must manage the tension between customer expectations and what is feasible and reasonable. Project managersChapter Modern Pract Management 14 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, atthe tight 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 differ- cnt from the last, Since most projects arc 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 immenss pride in their accomplishment, whether it is a new bridge, a new product, ot 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 10 complete a specific project. Sometimes this work is full time, ‘but in most cases people work part time on one oF more projects. They must fearn how to juggle their day-to-day commitments with additional project responsibilities. ‘They may join a tcam with a long history of working together, in which case roles ‘and norms are firmly established. Alternatively their tcam 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 char- ter 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 mast 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 mothods 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,42. Chapter Aad Project Management 1985 BS Bishess Admintaion— (regon State Unversity 1985-1990 Food Produts Manfacuing | Wood Products Manufectuing Glas Products Manufocwing 1990-1994 1994-Cucent ‘Upon corpieton of my business dag at Oregon Sate University, was recruited by 2 Fert 100 food products company fra Fst ne production supend- 0 pesion In that role, an opportunity care up for re fo manage a project at ivolved ong out anew stitial package-weigh contr! program througbout the factory. Successfully completing thet project wes Ingrumental in accelerating my carer win the com am advancing om sypensr to productmanagern Fessthan tee years ‘er fur ya non prot accepts an fer ‘ena wood produc manufacturing compar riilly nny role inthis company was tun resource manage. My HR responses incudes managing Several ro} ‘ecto prove safety and employee eterton, Success: ‘ut complet ofthese projes led 1 8 promotion to pant manager In the part manager rl, Iwas tasked Wit bulking and managing a rew woos oor manufac: tung factory. Aa siccestuly erg tha factory 0 ‘ulproducton, was promotedagain, to coporatenan- Ron Parker project Involved Inplementing total quay manage ment troughout 3 diferent manfecuring fectoiosas vet asa teint ard support futons win the ‘orporavon. Stony after wo sucessful grained ts now cute in te company, the anor passed away, leading mot lok for ctor ompaymnt. | was abet overage my previous experience end success to comince the owner ofa stugaing glass fabrication company to hire me, In ths new sole as general manager, wos tsked wi tung the cont pany around. Tis wos ny largest project ye. Tring company arcu involves myid of sna improve- met projets spanring from feces and ecurent improvements to preduct line ations and deletions to sales and macketng stotogy and eventing In botcen. nour years we succesfully tumed the com ary around othe extent that he owner was abe to salto company ane comforaby rete. Successful tuning tat lass company around got the allenton of 2 much lager corpettor of ur, resulting in ar offer of emplayment. This now offer involve the startup of» $304 hgh och glass ranufacurng facity In another state. We were ‘able totake that feclity rom a dt fel othe highest- volume manufacturing filly ofits Kind in the word in jut theo yeas. After blling and operating tis factory at a wotle-lase Benchmark level for olght years, | etme across a new and exiting appor- gor of continous provement. Ths “cuture charge” tui to help exoand a rong glass febecation 2 Agile Project Management ‘Traditional project management focuses on thorough planning up front, Planning 1-4 requires predictability. For plans to be effective, managers have to have a good under standing of what is to be accomplished and how to do it. For example, when it comes Deserbe how Agile PM cette to building a bridge engineers ean draw upon proven technology und design princ- ima ples to plan and build the bridge. Not all projects enjoy such predictability. Figure 1.2 speaks fo this issue, Project uncertainty varies according to the extent the project scope is known and stable and the technology to he used is known and proven. Many projects, like the bridge project, product extensions, events, marketing campaiens, and so forth have well-established scopes and use proven technology, which provide the predictabil- ity 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). |company In Canada. spent four years successtuly Arastoning this Canaan company from a meta sized lass fabreation facity to ono ofthe largest ‘and mest succesful ef Rs nd io North Americ, ‘fe ring of the “Great White Nort I found an ‘opportunity to tac the largest and mast impact profect oF my coreet. 'm curenty VP of operations Ina venturefurded, high-tech, startup company In 1h role, I'm overseeing the constuction and sie up ofthe fst fulscale,high-alune electocivomie ‘ass fbrcation factory inthe worl. This new project Chapter Modern Project Management 13 Invotvesbuliding @ company from the ground up 2nd tacing an oxitng new tecmnlogy fom the 12d to fuscale commerdazaton, Success In this role, although sti fer fom being certain, wil eventualy revolutlrze the gless industry through the Intro- ucton of «procuct thet dramatically improves the energy efficiency ané eccupant comfort of bukings ‘round the work Looking back on my exer, is apparent that ny egioe of sucess hes largely been the resut of aking ‘on ad sucess completing success larger ané Increasingly impact profes. ‘Theresa saying thats always resonated with me “1 your nly oo is hare, ll your prtlems look ‘ke oals* Gad tots are hard to come by and neawy to camy esound, | ke my tol beg fl with gener ‘lst tools things Ike corwmunication sl, leader shi, common sense, Jelgrnt, reasoning, og, and 2 song serse of ugency | offen wonder how much mor could have accorpishec, hu actualy tuted project management and had mere of tat woke In ‘my ag, With 2 beg ful af song gore tol, you can tackle ary problem inary business. Projet ran- agerrent icles on of tase skis where the Detter you ar atl tho highor yeur chances ofsuecos in ay busines enonment. Having the tols is ony pat ‘ofthe equnton, thewgh. To be succesful you must ‘50 be wing to run at problemsfoppotuites when Ron Pack ‘everyone oles runing away rom hen. Entor 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 seopes 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 uncer- tainty. Examples of people encountering high-uncertainty work include software systems engineers, product designers, explorers, doctors, lawyers, and many problem-solving engineers. 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 cach iteration is to make tangible progress such as define a key ‘i.should be noted tt PHBOK also nes Ieemtertal on eave as two adanal asprosche, wich are beyend te scop of stent. Sonch por or fuer cata.Chapter! Modern Project Menagemnt FIGURE 1.2 Project Uncertainty Unknown Project scope wnat Predtesablo Known & stable 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 previ- ‘us iterations until the project is completed and the customer i satisfied, PM focuses on active collaboration between the project team and customer representatives, breaking projects into small functional pieces, and adapting t9 chang- ing 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 stall teams of four to eight members. Instead of directing and integrating the work of others, the project manager serves as a facilita- tor and coach, The team manages itself, deciding who should do what and how it shold be done. Agile PM will be discussed in depth in Chapter 15 and where appropriate through out the text, FIGURE 1.3 Rolling Wave Development rnitetion QE eration 3 eration 4 Iesretion S iy Ey Closeoutgee 1.3 Current Drivers of Project Management Chapter! Modern Project Management 18 Project management is no longer special-need management. Its 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 furure 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 indus- tries the product life cycle is averaging 6 months to 3 years. Only 30 years ago, life cycles of 10 to 15 yeats were not uncommon, Time-to-market far new products with short lif cycles has become increasingly important. A common rule of thum in the ‘world of high-tech product development is that a 6-month project delay ean result in a 33 percent loss in product revenue share. Speed, therefore, becomes a competitive advantage; more and more organizations are relying on cross-functional 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 2 somewhat simple process. ‘Today, ench area has increased in complex- ity, including materials, specifications, codes, aesthetics, equipment, and requited 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 (AT). 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 fore- front. Businesses can no longer simply focus on maximizing profit to the detriment of the environment and society. Efforts fo reduce carbon imprint and utilize renewable resources are realized through effective project management. The inopact ofthis miove- ‘mont toward sustainability can be seen in changes in the objectives and techniques used to complete projects. For example, achicving a high LEED certification award is often an objective on construction projects.” Increased Customer Focus Increased competition has placed 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 LEED ceriieation was develoed by Leadership in Energy an Frvrormenta esha =D] edison ofthe mos popu geen busing ceticaon progres used work.16 chapter Modern Project Management CO cre | Businesses and nonpromts thre and survne based on tok abaty 19 ‘manage projects that produce prot ats and serves that meet market needs, Here & & small sample of Does thatareimporiant to tel companies fates INTUITIVE SURGICAL INC.: MONARCH PROJECT “The Monarch platform is an Aldiven cabot fetwing wa ems ath along, blue ube altace that allows octertostee a camera an oter sg implements deep insite he bey. itive hopes to one dey se robots tonotonly lagnose but aso wea ng cancer WALT DISNEY/MARVEL STUDIOS: CAPTAIN MARVEL opto: Marvel isa superhero fn based on Mar- vel Comics character Carol DanversCaptain Mate The fam tars Acadamy Avacd-winnr Be Larson a the tie role, Its Mawel fist fmaloded supernero move and & soon by many asa respense to DCs popular Wonder Wann fim. PROJECT C.UR.E.: CARGO ‘Caago projects deliv sortralie-sted cargo conta ers carying mediaton donations ta underesourcad osptats, cles, acd communty heath centers a veloping counts. Each 40-00t container delivers an average 4 milion wort of medica supples and ‘equmert. Project Management in Action: 2019° SIKORSICY-BOEING: DEFIANT PROJECT Boeing and Sitoshy have teamed up to develop a protalype forthe next generation litany heleopter Tho SB Defiant Is bebag bull to travel este, longer tnd more qulely than other models. AL sake i & bilon-dllaps contact withthe US. Department of Detense. AUDI: ETRON SUV tron is Aud’ fst entry into the alkcecrie vee mae. is 2 fly equipped, hnaxy SUV with 0 220: rile range. Wit saring price of $74,800, ts meant to compete ageinst Tasks elec SUV and Jaguar's Paco, as wel as estash Aud a signa player Ine growing al-lectc markt. DOMINICAN REPUBLIC: TROPICAL FOREST RESTORATION In many parts of the topes, deforestation resus aes dominates by cloaking fers. The Dominan restoration project vows manual removing fers ‘and planting natve tees and shrubs “cho, "Ths Robot Can Detect Lng Cac” ices, gr 2.2018; Coppa, Procacten Unde ‘yo Mae hfe Captin Mae Maelo. March 3.2018 “CURE Cao: pojatexmog accesses 2513, kod, Ke NetWare PM Nom, Jae 2018, 6, Sadat tr sige bettie, “Demcah ep: Resong Top Fores! Stes ores by Dtopogani Fen THERES" seree oc ec 25/5, “Tek ton UV tne Shot esas ethan com, Sopemba 8, 2018 Aecesed 229, sales representatives are assuming mote of a project manager's role as they work with their organization to satisfy the unique needs and requests of clients. 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 elubs for those who hook the ball, high-tech clubs with the fatest metallungic discovery guaranteed to add distance, and so forth. Project management is critical both to developing customized products and services and {o sustaining lucrative relation- ships 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.Chopler Modern Project Maragerint $7 Sharing and 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 ot mote 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 anclfor money. Because 50 many small projects are going on concurrently and because the perception of the inefficiency impact is small, measuring inefficiency is usually nonexistent. Unfortu- nately, 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 ompaniza- tions, 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 pro- 658 is needed to prioritize and develop a portfolio of small projects that supports the mission of the organization, In summary, there are a vatiety 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 Socio-Technical Approach © 15 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, disci- Understand that ranag- lined, purely Togical parts of the process. This technical dimension includes plan- ing oroectsimolves ba- ning, scheduling, and controlling projects. Clear project scope statements are written ancng tetecnica! and to link the project and customer and to facilitate planning and control. Creation of the sociecuuraidimersions deliverables and work breakdown structures facilitates planning and monitoring the ofthe projet progress of the project. The work breakdown structure serves as a database that links FIGURE 1.4 | SoclTechnical Approach to Project eae Sociocultural Lsedershp Problem oiing Teamwork Negotiation Poles Customer expectations Schedules Resource allocation Baseline oudgote Status reports18 Chaplr 1 Modora Project Management all Tevels in the organization, major deliverables, and all work—right down tothe 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 ad the customer with decision information appropriate to their level and needs. A suc- cessful project manager will be well trained in the technical side of managing projects. ‘The second and opposing dimension is the sociocultural side of project manage- ‘ment. In contrast to the orderly wortd of project planning, this dimension involves the much messier, often contradictory and paradoxical work! of implementation, Ii centers on creating a (emporary social system within @ larger organizational environ- ‘ment 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 asa capacity to quickly identify and resolve problems that threaten project work. ‘Things rarely go as planned and project managers :ust be able to steer the project back on track or alter directions when necessary. ‘The sociocultural dimension also involves managing the interface between the proj- cet and external environment. Project managers have to assuage and slape the expec- {ations of customers, sustain the political support of fop 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, « 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 fo 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 com- plete « project. Good project managers work with others to balance their atention to both the technical and sociocultural aspects of project management, Ei Project management is a critical skill set in today's world, A project is defined as nonroutine, one-time effort limited by time, resources, and performance sp tions designed to meet customer needs, One of the distinguishing characteristics of project management is that it has both a beginning and an end and typically consists of four phases: defining, planning, executing, and closing. Successful implementation requires both technical and social skills, Project managers have to plan and budget projects as well 2s orchestrate the contributions of others. | Text Overview RARER this text is written to provide the reader with a comprehensive, socio-technical under- standing of project management, The text focuses on both the science and the art of ‘managing projects. Following this introductory chapter,-Chapter 2 focuses on how organizations go about evaluating and selecting projects. Special attention is devotedChoptor Modern Project Management 19 to the importance of aligning project selection to the mission and strategy of the firm. ‘The organizational environment in which projects are implemented is the focus of Chapter 3. The discussion of matrix management and other organizational forms is augmented by a discussion of the significant role the culture of an organization plays in the implementation of projects. ‘The next six chapters focus on developing a plan for the project; after all, project success begins with a good plan. Chapter 4 deals with defining the scope of the project, and developing a work breakdown structure (WBS). The challenge of formulating cost and time estimates is the subject of Chapter 5. Chapter 6 focuses on utilizing the infor- mation from the WBS to create a project plan in the form of a timed and sequenced network of activities. Risks are a potential threat to every project, and Chapter 7 examines how organiza- tions and managers identify and manage risks associated with project work. Resource allocation is added to the plan in Chapter 8, with special attention devoted to how resource limitations impact the project schedule, Afler a resource schedule is estab- lished, a project time-phased budget is developed. Finally, Chapter 9 examines strate- gies for reducing (“crashing”) project time either prio tothe initiation ofthe project or in response to problems or rew demands placed on the project. Throughout all these technical discussions, the sociocultural aspects are highlighted. ‘Chapters 10 through 12 focus on project implementation and the sociocultural ide of project management. Chapter 10 focuses on the role of the projeet manager as a leader and stresses the importance of managing project stakeholders within the organization, Chapter 11 focuses on the core project team; it combines the latest information on team dynamics with leadership skills'techniques for developing a high-performance project team. Chapter 12 continues the theme of managing project stakeholders by discussing how to outsource project work and negotiate with contrac- tors, customers, and suppliers. Chapter 13 focuses on the kinds of information managers use to monitor project progress, with special attention devoted to the key concept of earned value. The proj cot life cycle is completed with Chapter 14, which covers closing out a project and the important assessment of performance and lessons learned. Agile project management, a much more flexible approach to managing projects with high degree of uncertainty, is the subject of Chapter 15. Finally, so many projects today are global; Chapter 16 focuses on working on projects across cultures. ‘Throughout this text you will be exposed to the major aspects of the project management system. However, a tue understanding of project management comes not from knowing what a scope statement is, or the critical path, or partnering with contractors, but from comprehending how the different elements of the project ‘management system interact to determine the fate of a project. If by the end of thi text you come to appreciate and begin to master both the technical and sociocultural dimensions of project management, you should have a distinct competitive advantage ‘over others aspiring to work in the field of project management. Key Terms Agile project Program, 7 Project Management ‘management (Agile Project, 6 Professional (PMP), 4 PM), 13 Project lite c20 Chaper 1 Moder Project Monagenent Review Questions Discussion Questions Exercises Define « project. What are five characteristics that help differentiate projects from other functions carried out in the daily operations of the organization? ‘What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these forces on the management of projects? Describe the four phases of the traditional project life cycle. Which phase do you think would be the most difficult one to complete? ‘What kinds of projects is Agile PM best suited for and why? The technical and sociocultural dimensions of project management are two sides of the same coin. Explain, ‘The Project Management Institute 1, If you were a student interested in pursuing a career in project management, how important do you think being a CAPM woul he? 2, How valuable do you think being certified PMP is? London Calling: Seattle Seahawks versus Oakland Raiders 1, Why was it important to give players and staff @ chance to explore London one evening? 2, What are one or two lessons you leamed from this Snapshot? Ron Parker 1, Do you agree with Ron Parker's statement “To be successful, you must also be willing to run at problems/opportunities when everyone else is running away from them”? Review the front page of your local newspaper and try to identify all the projects contained in the articles, How many were you able to find? Individually, identify what you consider to be humanity's greatest achievements in the last five decades. Now share your list with three to five other students in the class and come up with an expanded fist. Review these great achievements in terms of the definition of a project. What does your review suggest about the {importance of project management? Individually, identify projects assigned in previous terms, Were both sociocultural and technical elements factors in the success or difficulties in the projects? Check out the Project Management Institute's home page at www-pmi.org. a. Review general information about PMI as well as membership information, b. See if there is & local PMI chapter. If not, where is the closest one? ©. Use the search function at the PMI home page to find information on Project Management Body of Knowledge (PMBOK). What are the major knowledge areas of PMBOK? 4. Explore other links that PMI provides. What do these links tell you about the nature and future of project management?