Creating a methodology case study

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PROJECT MANAGEMENT

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Dr. Kerzner’s 16 Points to Project Management Maturity

1. Adopt a project management methodology and use it consistently.

2. Implement a philosophy that drives the company toward project management maturity and communicate it to everyone.

3. Commit to developing effective plans at the beginning of each project.

4. Minimize scope changes by committing to realistic objectives.

5. Recognize that cost and schedule management are inseparable.

6. Select the right person as the project manager.

7. Provide executives with project sponsor information, not project management information.

8. Strengthen involvement and support of line management.

9. Focus on deliverables rather than resources.

10. Cultivate effective communication, cooperation, and trust to achieve rapid project management maturity.

11. Share recognition for project success with the entire project team and line management.

12. Eliminate nonproductive meetings.

13. Focus on identifying and solving problems early, quickly, and cost effectively.

14. Measure progress periodically.

15. Use project management software as a tool—not as a substitute for effective planning or interpersonal skills.

16. Institute an all-employee training program with periodic updates based upon documented lessons learned.

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PROJECT MANAGEMENT

A Systems Approach to Planning, Scheduling,

and Controlling

E L E V E N T H E D I T I O N

H A R O L D K E R Z N E R , P h . D . Senior Executive Director for Project Management

The International Institute for Learning New York, New York

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Cover illustration: xiaoke ma/iStockphoto

This book is printed on acid-free paper.

Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada

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Library of Congress Cataloging-in-Publication Data: Kerzner, Harold.

Project management : a systems approach to planning, scheduling, and controlling / Harold Kerzner, Ph. D. Senior Executive Director for Project Management, the International Institute for Learning, New York, New York. — Eleventh edition.

pages cm Includes bibliographical references and index. ISBN 978-1-118-02227-6 (cloth); ISBN 978-1-118-41585-6 (ebk); ISBN 978-1-118-41855-0 (ebk); ISBN 978-1-118-43357-7

(ebk); ISBN 978-1-118-48322-0 (ebk); ISBN 978-1-118-48323-7 (ebk) 1. Project management. 2. Project management—Case studies. I. Title.

HD69.P75K47 2013 658.4’04 —dc23

2012026239 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1

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http://www.copyright.com
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To

Dr. Herman Krier,

my Friend and Guru,

who taught me well the

meaning of the word “persistence”

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Contents

Preface xxiii

1 OVERVIEW 1

1.0 Introduction 1 1.1 Understanding Project Management 2 1.2 Defining Project Success 7 1.3 Success, Trade-Offs, and Competing Constraints 8 1.4 The Project Manager–Line Manager Interface 9 1.5 Defining the Project Manager’s Role 14 1.6 Defining the Functional Manager’s Role 15 1.7 Defining the Functional Employee’s Role 18 1.8 Defining the Executive’s Role 19 1.9 Working with Executives 19 1.10 Committee Sponsorship/Governance 20 1.11 The Project Manager as the Planning Agent 23 1.12 Project Champions 24 1.13 The Downside of Project Management 25 1.14 Project-Driven versus Non–Project-Driven Organizations 25 1.15 Marketing in the Project-Driven Organization 28 1.16 Classification of Projects 30 1.17 Location of the Project Manager 30 1.18 Differing Views of Project Management 32 1.19 Public-Sector Project Management 34 1.20 International Project Management 38 1.21 Concurrent Engineering: A Project Management Approach 38 1.22 Added Value 39 1.23 Studying Tips for the PMI® Project Management Certification Exam 40

Problems 42

Case Study Williams Machine Tool Company 44

vii

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2 PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS 47

2.0 Introduction 47 2.1 General Systems Management 48 2.2 Project Management: 1945–1960 48 2.3 Project Management: 1960–1985 49 2.4 Project Management: 1985–2012 55 2.5 Resistance to Change 59 2.6 Systems, Programs, and Projects: A Definition 64 2.7 Product versus Project Management: A Definition 66 2.8 Maturity and Excellence: A Definition 68 2.9 Informal Project Management: A Definition 69 2.10 The Many Faces of Success 70 2.11 The Many Faces of Failure 73 2.12 The Stage-Gate Process 76 2.13 Project Life Cycles 78 2.14 Gate Review Meetings (Project Closure) 83 2.15 Engagement Project Management 84 2.16 Project Management Methodologies: A Definition 85 2.17 Enterprise Project Management Methodologies 87 2.18 Methodologies Can Fail 91 2.19 Organizational Change Management and Corporate Cultures 94 2.20 Project Management Intellectual Property 100 2.21 Systems Thinking 101 2.22 Studying Tips for the PMI® Project Management Certification Exam 104

Problems 107

Case Study Creating a Methodology 108

3 ORGANIZATIONAL STRUCTURES 111

3.0 Introduction 111 3.1 Organizational Work Flow 113 3.2 Traditional (Classical) Organization 114 3.3 Developing Work Integration Positions 117 3.4 Line-Staff Organization (Project Coordinator) 121 3.5 Pure Product (Projectized) Organization 122 3.6 Matrix Organizational Form 125 3.7 Modification of Matrix Structures 132 3.8 The Strong, Weak, or Balanced Matrix 136 3.9 Center for Project Management Expertise 136 3.10 Matrix Layering 137

viii CONTENTS

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3.11 Selecting the Organizational Form 138 3.12 Structuring the Small Company 143 3.13 Strategic Business Unit (SBU) Project Management 146 3.14 Transitional Management 147 3.15 Barriers to Implementing Project Management in Emerging Markets 149 3.16 Seven Fallacies that Delay Project Management Maturity 156 3.17 Studying Tips for the PMI® Project Management Certification Exam 159

Problems 161

Case Studies Jones and Shephard Accountants, Inc. 166 Coronado Communications 168

4 ORGANIZING AND STAFFING THE PROJECT OFFICE AND TEAM 171

4.0 Introduction 171 4.1 The Staffing Environment 172 4.2 Selecting the Project Manager: An Executive Decision 174 4.3 Skill Requirements for Project and Program Managers 178 4.4 Special Cases in Project Manager Selection 184 4.5 Selecting the Wrong Project Manager 184 4.6 Next Generation Project Managers 188 4.7 Duties and Job Descriptions 189 4.8 The Organizational Staffing Process 193 4.9 The Project Office 199 4.10 The Functional Team 204 4.11 The Project Organizational Chart 205 4.12 Special Problems 208 4.13 Selecting the Project Management Implementation Team 210 4.14 Mistakes Made by Inexperienced Project Managers 213 4.15 Studying Tips for the PMI® Project Management Certification Exam 214

Problems 216

5 MANAGEMENT FUNCTIONS 223

5.0 Introduction 223 5.1 Controlling 225 5.2 Directing 225 5.3 Project Authority 230 5.4 Interpersonal Influences 237 5.5 Barriers to Project Team Development 240 5.6 Suggestions for Handling the Newly Formed Team 243

Contents ix

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5.7 Team Building as an Ongoing Process 246 5.8 Dysfunctions of a Team 247 5.9 Leadership in a Project Environment 250 5.10 Life-Cycle Leadership 252 5.11 Value-Based Project Leadership 255 5.12 Organizational Impact 257 5.13 Employee–Manager Problems 259 5.14 Management Pitfalls 262 5.15 Communications 265 5.16 Project Review Meetings 274 5.17 Project Management Bottlenecks 275 5.18 Cross-Cutting Skills 276 5.19 Active Listening 277 5.20 Project Problem-Solving 278 5.21 Brainstorming 288 5.22 Project Decision-Making 293 5.23 Predicting the Outcome of a Decision 301 5.24 Facilitation 303 5.25 Handling Negative Team Dynamics 306 5.26 Communication Traps 307 5.27 Proverbs and Laws 309 5.28 Human Behavior Education 311 5.29 Management Policies and Procedures 312 5.30 Studying Tips for the PMI® Project Management Certification Exam 313

Problems 318

Case Studies The Trophy Project 327 Communication Failures 329 McRoy Aerospace 332 The Poor Worker 333 The Prima Donna 334 The Team Meeting 335 Leadership Effectiveness (A) 337 Leadership Effectiveness (B) 341 Motivational Questionnaire 347

6 MANAGEMENT OF YOUR TIME AND STRESS 355

6.0 Introduction 355 6.1 Understanding Time Management 356 6.2 Time Robbers 356 6.3 Time Management Forms 358

x CONTENTS

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6.4 Effective Time Management 359 6.5 Stress and Burnout 360 6.6 Studying Tips for the PMI® Project Management Certification Exam 362

Problems 363

Case Study The Reluctant Workers 364

7 CONFLICTS 365

7.0 Introduction 365 7.1 Objectives 366 7.2 The Conflict Environment 367 7.3 Types of Conflicts 368 7.4 Conflict Resolution 371 7.5 Understanding Superior, Subordinate, and Functional Conflicts 372 7.6 The Management of Conflicts 374 7.7 Conflict Resolution Modes 375 7.8 Studying Tips for the PMI® Project Management Certification Exam 377

Problems 379

Case Studies Facilities Scheduling at Mayer Manufacturing 382 Telestar International 383 Handling Conflict in Project Management 384

8 SPECIAL TOPICS 391

8.0 Introduction 392 8.1 Performance Measurement 392 8.2 Financial Compensation and Rewards 399 8.3 Critical Issues with Rewarding Project Teams 405 8.4 Effective Project Management in the Small Business Organization 408 8.5 Mega Projects 410 8.6 Morality, Ethics, and the Corporate Culture 411 8.7 Professional Responsibilities 414 8.8 Internal Partnerships 417 8.9 External Partnerships 418 8.10 Training and Education 420 8.11 Integrated Product/Project Teams 422 8.12 Virtual Project Teams 424 8.13 Breakthrough Projects 427

Contents xi

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xii CONTENTS

8.14 Managing Innovation Projects 427 8.15 Agile Project Management 430 8.16 Studying Tips for the PMI® Project Management Certification Exam 431

Problems 437

Case Study Is It Fraud? 440

9 THE VARIABLES FOR SUCCESS 443

9.0 Introduction 443 9.1 Predicting Project Success 444 9.2 Project Management Effectiveness 448 9.3 Expectations 449 9.4 Lessons Learned 450 9.5 Understanding Best Practices 451 9.6 Best Practices versus Proven Practices 458 9.7 Studying Tips for the PMI® Project Management Certification Exam 459

Problems 460

Case Study Radiance International 460

10 WORKING WITH EXECUTIVES 463

10.0 Introduction 463 10.1 The Project Sponsor 464 10.2 Handling Disagreements with the Sponsor 474 10.3 The Collective Belief 475 10.4 The Exit Champion 476 10.5 The In-House Representatives 477 10.6 Stakeholder Relations Management 478 10.7 Politics 486 10.8 Studying Tips for the PMI® Project Management Certification Exam 487

Problems 488

Case Studies Corwin Corporation 491 The Prioritization of Projects 499 The Irresponsible Sponsors 500 Selling Executives on Project Management 502

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11 PLANNING 505

11.0 Introduction 505 11.1 Validating the Assumptions 508 11.2 Validating the Objectives 509 11.3 General Planning 510 11.4 Life-Cycle Phases 513 11.5 Proposal Preparation 516 11.6 Kickoff Meetings 516 11.7 Understanding Participants’ Roles 519 11.8 Project Planning 519 11.9 The Statement of Work 521 11.10 Project Specifications 526 11.11 Milestone Schedules 528 11.12 Work Breakdown Structure 529 11.13 WBS Decomposition Problems 536 11.14 Work Breakdown Structure Dictionary 540 11.15 Role of the Executive in Project Selection 541 11.16 Role of the Executive in Planning 546 11.17 The Planning Cycle 546 11.17 Work Planning Authorization 547 11.19 Why Do Plans Fail? 548 11.20 Stopping Projects 549 11.21 Handling Project Phaseouts and Transfers 550 11.22 Detailed Schedules and Charts 551 11.23 Master Production Scheduling 554 11.24 Project Plan 556 11.25 Total Project Planning 561 11.26 The Project Charter 565 11.27 Project Baselines 566 11.28 Verification and Validation 570 11.29 Requirements Traceability Matrix 571 11.30 Management Control 572 11.31 The Project Manager–Line Manager Interface 575 11.32 Fast-Tracking 577 11.33 Configuration Management 578 11.34 Enterprise Project Management Methodologies 579 11.35 Project Audits 582 11.36 Studying Tips for the PMI® Project Management Certification Exam 583