Introduction to Project

Management
Reducing Project Duration
Rationale for Reducing Project Duration
• Time Is Money: Cost-Time Tradeoffs
–Reducing the time of a critical activity usually incurs
additional direct costs.
• Cost-time solutions focus on reducing (crashing) activities on the
critical path to shorten overall duration of the project.

–Reasons for imposed project duration dates:

• Customer requirements and contract commitments
• Time-to-market pressures
• Incentive contracts (bonuses for early completion)
• Unforeseen delays
• Overhead and goodwill costs
• Pressure to move resources to other projects
Options for Accelerating Project
Completion
• Adding Resources • Fast-Tracking
• Outsourcing Project Work • Critical-Chain
• Scheduling Overtime • Reducing Project Scope
• Establishing a Core Project Team • Compromise Quality
• Do It Twice—Fast and Correctly
Explanation of Project Costs
• Project Indirect Costs
–Costs that cannot be associated with any particular
work package or project activity
• Supervision, administration, consultants, and interest
–Costs that vary (increase) with time
• Reducing project time directly reduces indirect costs.
• Direct Costs
–Normal costs that can be assigned directly to a specific
work package or project activity
• Labor, materials, equipment, and subcontractors
–Crashing activities increases direct costs
Reducing Project Duration to Reduce Project
Cost

Identifying direct costs to reduce project time

Gather information about direct and indirect

costs of specific project durations.

Search critical activities for lowest direct-cost

activities to shorten project duration.

Compute total costs for specific durations and

compare to benefits of reducing project time.
Project Cost—Duration Graph

FIGURE 9.1
Constructing a Project Cost—Duration Graph

• Find total direct costs for selected project durations.

• Find total indirect costs for selected project
durations.
• Sum direct and indirect costs for these selected
project durations.
• Compare additional cost alternatives for benefits.
Constructing a Project Cost—Duration Graph
• Determining Activities to Shorten
–Shorten the activities with the smallest increase in cost
per unit of time.
–Assumptions:
• The cost relationship is linear.
• Normal time assumes low-cost, efficient methods to complete the
activity.
• Crash time represents a limit—the greatest time reduction
possible under realistic conditions.
• Slope represents a constant cost per unit of time.
• All accelerations must occur within the normal and crash times.
Activity Graph

FIGURE 9.2
Cost—Duration Trade-off Example

FIGURE 9.3
Cost—Duration Trade-off Example (cont’d)

FIGURE 9.3 (cont’d)

Cost—Duration Trade-off Example (cont’d)
Cost—Duration Trade-off Example (cont’d)

FIGURE 9.4 (cont’d)

Cost—Duration Trade-off Example (cont’d)

FIGURE 9.4 (cont’d)

Summary Costs by Duration

FIGURE 9.5
Project Cost—Duration Graph

FIGURE 9.6
 Practical Considerations
• Using the project cost—duration graph
• Crash times
• Linearity assumption
• Choice of activities to crash revisited
• Time reduction decisions and sensitivity
 What if Cost, Not Time Is the Issue?
• Commonly Used Options for Cutting Costs
–Reduce project scope
–Have owner take on more responsibility
–Outsourcing project activities or even the entire project
–Brainstorming cost savings options
 Leadership: Being an
Effective Project Manager
Managing versus Leading a Project
• Managing: Coping with
Complexity
• Formulate plans and
objectives
• Monitor results
• Take corrective action
• Expedite activities
• Solve technical problems
• Serve as peacemaker
• Make tradeoffs among time,
costs, and project scope
• Leading: Coping with
Change
• Recognize the need to
change to keep the project
on track
• Initiate change
• Provide direction and
motivation
• Innovate and adapt as
necessary
• Integrate assigned resources
Managing Project Stakeholders

• Project Management Maxims:

–You can’t do it all and get it all done.
• Projects usually involve a vast web of relationships.
–Hands-on work is not the same as leading.
• More pressure and more involvement can reduce your
effectiveness as a leader.
–What’s important to you likely isn’t as important to
someone else.
• Different groups have different stakes (responsibilities,
agendas, and priorities) in the outcome of a project.
–Remember: project management is tough, exciting, and
rewarding—endeavor to persevere.
Network of Stakeholders

FIGURE 10.1
 Influence as Exchange
• The Law of Reciprocity
–One good deed deserves another, and likewise, one bad
deed deserves another.
• Quid pro Quo
–Mutual exchanges of resources and services (“back-
scratching”) build relationships.
• Influence “Currencies” (Cohen and Bradford)
–Cooperative relationships are built on the exchange of
organizational “currencies” (favors).
Commonly Traded Organizational
Currencies

Task-related currencies
Resources Lending or giving money, budget increases, personnel,
etc.
Assistance Helping with existing projects or undertaking unwanted
tasks.
Cooperation Giving task support, providing quicker response time, or
aiding implementation.
Information Providing organizational as well as technical knowledge.
Position-related currencies
Advancement Giving a task or assignment that can result in promotion.
Recognition Acknowledging effort, accomplishments, or abilities.
Visibility Providing a chance to be known by higher-ups or
significant others in the organization.
Network/contacts Providing opportunities for linking with others.
Source: Adapted from A. R. Cohen and David L. Bradford, Influence without Authority
(New York: John Wiley & Sons, 1990). Reprinted by permission of John Wiley & Sons, Inc.
TABLE 10.1
Commonly Traded Organizational
Currencies (cont’d)
Inspiration-related currencies
Vision Being involved in a task that has larger
significance for the unit, organization, customer, or society.
Excellence Having a chance to do important things really
well.
Ethical correctness Doing what is “right” by a higher standard than
efficiency.
Relationship-related currencies
Acceptance Providing closeness and friendship.
Personal support Giving personal and emotional backing.
Understanding Listening to others’ concerns and issues.
Personal-related currencies
Challenge/learning Sharing tasks that increase skills and abilities.
Ownership/involvement Letting others have ownership and influence.
Gratitude
Source: Adapted Expressing
from A. R. Cohen and David L. Bradford, Influence without Authority appreciation.
(New York: John Wiley & Sons, 1990). Reprinted by permission of John Wiley & Sons, Inc.
TABLE 10.1 (cont’d)
Social Network Building

• Mapping Dependencies
–Project team perspective:
• Whose cooperation will be needed?
• Whose agreement or approval will we need?
• Whose opposition would keep us from accomplishing the project?

–Stakeholders’ perspective:
• What differences exist between the team and those on whom the
team will depend?
• How do the stakeholders view the project?
• What is the status of our relationships with the stakeholders?
• What sources of influence does the team have relative to the
stakeholders?
Dependencies for Financial Software
Installation Project

FIGURE 10.2
Management by Wandering Around (MBWA)

• Management by Wandering Around (MBWA)

–A management style that involves managers spending the
majority of time outside of their offices in face-to-face
interactions with employees building cooperative
relationships.
• Characteristics of Effective Project Managers
–Initiate contact with key players
–Anticipate potential problems
–Provide encouragement
–Reinforce the objectives and vision of the project
–Intervene to resolve conflicts and prevent stalemates
Managing Upward Relations

• Project Success = Top Management Support

–Appropriate budgets
–Responsiveness to unexpected needs
–A clear signal to the organization of the importance
of cooperation
• Motivating the Project Team
–Influence top management in favor of the team:
• Rescind unreasonable demands
• Provide additional resources
• Recognize the accomplishments of team members
Leading by Example

FIGURE 10.4
Ethics and Project Management

• Ethical Dilemmas
–Situations where it is difficult to determine whether
conduct is right or wrong
• Padding of cost and time estimations
• Exaggerating pay-offs of project proposals
• Falsely assuring customers that everything is on track
• Being pressured to alter status reports
• Falsifying cost accounts
• Compromising safety standards to accelerate progress
• Approving shoddy work
–Code of conduct
• Professional standards and personal integrity
Contradictions of Project Management
• Innovate and maintain stability
• See the big picture while getting your
hands dirty
• Encourage individuals but stress the
team
• Hands-off/hands-on
• Flexible but firm
• Team versus organizational loyalties
Qualities of an Effective
Project Manager

• Systems thinker
• Personal integrity
• Proactive
• High emotional intelligence
• General business perspective
• Effective time management
• Skillful politician
• Optimist
Suggestions for Project Managers
• Build relationships
before you need them.

• Trust is sustained
through frequent face-
to-face contact.
Managing Project Teams
High-Performing Teams

• Synergy
– 1 + 1 + 1 =10 (positive synergy)
– 1 + 1 + 1 =2 (negative synergy)

• Characteristics of High-Performing Teams

– Share a sense of common purpose
– Make effective use of individual talents and expertise
– Have balanced and shared roles
– Maintain a problem solving focus
– Accept differences of opinion and expression
– Encourage risk taking and creativity
– Sets high personal performance standards
– Identify with the team
The Five-Stage Team Development
Model

FIGURE 11.1
Conditions Favorable to the Development of
High Performance Project Teams
• Ten or fewer team members • Members report only to the
project manager
• Voluntary team membership
• All relevant functional areas
• Continuous service on the are represented on the team
team
• The project has a compelling
• Full-time assignment to the objective
team
• Members are in speaking
• An organization culture of distance of each other
cooperation and trust
The Punctuated Equilibrium Model
of Group Development

FIGURE 11.2
Creating a High-Performance Project Team

FIGURE 11.3
Building High-Performance Project Teams

• Recruiting Project Members

–Factors affecting recruiting:
• Importance of the project
• Management structure used to complete the project
–How to recruit?
• Ask for volunteers
–Who to recruit?
• Problem-solving ability
• Availability
• Technological expertise
• Credibility
• Political connections
• Ambition, initiative, and energy
Project Team Meetings
Managing
Establishing
Subsequent
Ground Rules
Meetings

Conducting
Relationship Planning
Decisions Project Decisions
Meetings

Managing
Tracking
Change
Decisions
Decisions
Establishing a Team Identity

Effective Use
of Meetings

Co-location of
team members

Creation of project
team name

Team rituals
Requirements for an Effective Shared
Vision

FIGURE 11.4
 Managing Project Reward Systems
• Group Rewards
–Who gets what as an individual reward?
–How to make the reward have lasting significance?
–How to recognize individual performance?
• Letters of commendation
• Public recognition for outstanding work
• Desirable job assignments
• Increased personal flexibility
Orchestrating the Decision-Making Process

Problem Identification

Generating Alternatives

Reaching a Decision

Follow-up
Managing Conflict within the Project Team

• Encouraging Functional Conflict

–Encourage dissent by asking tough questions.
–Bring in people with different points of view.
–Designate someone to be a devil’s advocate.
–Ask the team to consider an unthinkable alternative.
• Managing Dysfunctional Conflict
–Mediate the conflict.
–Arbitrate the conflict.
–Control the conflict.
–Accept the conflict.
–Eliminate the conflict.
Conflict Intensity Over the
Project Life Cycle

FIGURE 11.5
Rejuvenating the Project Team

• Informal Techniques
–Institute new rituals.
–Take an off-site break as a team from the project.
–View an inspirational message or movie.
–Have the project sponsor give a pep talk.

• Formal Techniques
–Hold a team building session facilitated by an outsider to
clarify ownership issues affecting performance.
–Engage in an outside activity that provides an intense
common experience to promote social development of the
team.
Managing Virtual Project Teams
• Challenges:
–Developing trust
• Exchange of social information.
• Set clear roles for each team member.
–Developing effective patterns of communication.
• Include face-to-face if at all possible.
• Keep team members informed on how the overall project is
going.
• Don’t let team members vanish.
• Establish a code of conduct to avoid delays.
• Establish clear norms and protocols for surfacing assumptions
and conflicts.
• Share the pain in terms of multiple time zones.
24-Hour
Global
Clock

FIGURE 11.6
Project Team Pitfalls

Bureaucratic
Groupthink
Bypass Syndrome

Team Spirit Becomes

Going Native
Team Infatuation
• Group Think
–Tendency of members in highly cohesive groups to lose their
critical evaluative capabilities.
• Bureaucratic Bypass Syndrome
–Project teams licensed to get things done without having to go
through normal protocols of the parents organisation.
• Team spirit becomes team infatuation
• Going Native