WEBFBETW03 09/22/2015 11:51:58 Page xvi

WEBFFIRS 09/22/2015 11:49:41 Page i

THE FASTFORWARDMBA INPROJECT

MANAGEMENTFIFTH EDITION

ERIC VERZUH

WEBFFIRS 09/22/2015 11:49:41 Page ii

´

Cover image:iStock.com/marigold_88Cover design: Wiley

This book is printed on acid-free paper.

Copyright 2016 by Eric Verzuh. All rights reserved

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

No part of this publication may be reproduced, stored in a retrieval system, ortransmitted in any form or by any means, electronic, mechanical, photocopying,recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the1976 United States Copyright Act, without either the prior written permission of thePublisher, or authorization through payment of the appropriate per-copy fee to theCopyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750­8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to thePublisher for permission should be addressed to the Permissions Department, JohnWiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201)748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have usedtheir best efforts in preparing this book, they make no representations or warrantieswith the respect to the accuracy or completeness of the contents of this book andspecifically disclaim any implied warranties of merchantability or fitness for aparticular purpose. No warranty may be created or extended by sales representatives orwritten sales materials. The advice and strategies contained herein may not be suitablefor your situation. You should consult with a professional where appropriate. Neitherthe publisher nor the author shall be liable for damages arising herefrom.

For general information about our other products and services, please contact ourCustomer Care Department within the United States at (800) 762-2974, outside theUnited States at (317) 572-3993 or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand.Some material included with standard print versions of this book may not be includedin e-books or in print-on-demand. If this book refers to media such as a CD or DVD thatis not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

Verzuh, Eric.The fast forward MBAba in project management / Eric Verzuh.— Fifth edition.

1 online resource.— (Fast forward mba series)Revised edition of the author's The fast forward MBAba in project management, 2011.Includes index.

Description based on print version record and CIP data provided by publisher;resource not viewed.

ISBN 978-1-119-08667-3 (pdf) — ISBN 978-1-119-08658-1 (epub) —ISBN 978-1-119-14822-7 (hardback); ISBN 978-1-119-08657-4 (paperback)1. Project management. I. Title.HD69.P75658.4 04—dc23 2015032111

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

WEBFTOC 09/22/2015 11:31:57 Page iii

C O N T E N T S

FORMSAVAILABLE ONLINE xiiACKNOWLEDGMENTS xiiiABOUT THE AUTHOR xvPREFACE xvii

PART 1INTRODUCTION

CHAPTER 1—PROJECTMANAGEMENT:A PLATFORM FOR INNOVATION 2

Project Management Is Keeping Pace with

A Practical Checklist for Successful Projects:

Introduction 2

Global Change 4Project Management Is an Essential Leadership Skillset 5Successful Projects Deliver Value 5The Art and Science of Project Leadership 6

How This Book Will Help You 8Beyond the Book: Tools for Application and

Continuous Learning 11

iii

WEBFTOC 09/22/2015 11:31:57 Page iv

CONTENTS

End Point 13Stellar Performer: OrthoSpot 14Stellar Performer: PM4NGOs 15

CHAPTER 2—FOUNDATION PRINCIPLES OFPROJECTMANAGEMENT 17

Introduction 17Projects Require Project Management 17The Challenge of Managing Projects 19The Evolution of a Discipline 20The Definition of Success 24Project Management Functions 26Project Life Cycle 28Organizing for Projects 31Project Managers Are Leaders 35End Point 36Stellar Performer: Seattle Children’s Hospital and

Regional Medical Center 37

CHAPTER 3—BUILD GREAT PRODUCTS:LESSONS FROMAGILE, LEAN START-UP,AND STAGE-GATE 42

Defining Value: A New Lens for Judging Projects

Best Practices for Capturing Requirements Are

Innovation Projects Experiment to Discover

Stellar Performer: The Lean Startup Innovation

Introduction 42

Informs the Development Process 43Leverage a Consistent Product Development Process 44

Integrated into a Product Development Process 47A Development Process Is Not Project Management 48

Desirability and Viability 49End Point 51

Movement 53Stellar Performer: The Agile Approach to Software

Development 57Stellar Performer: The Stage-Gate System for

New-Product Development 65

iv

WEBFTOC 09/22/2015 11:31:58 Page v

CONTENTS

PART 2DEFINING THE PROJECT

CHAPTER 4—PROJECT INITIATION: TURNINGA PROBLEMOROPPORTUNITY INTO A PROJECT 74

Managing Requirements Is Tightly Linked to

Stellar Performer: The Logical Framework

Introduction 74Project Initiation’s Place in the Project Life Cycle 75A Proposal Defines the Future Business Value 77

Project Initiation 78Common Principles for Project Initiation 80Basic Project Proposal Content 85Designing a Realistic Initiation Process 88End Point 89

Approach 90

CHAPTER 5—KNOWYOUR KEY STAKEHOLDERSANDWIN THEIR COOPERATION 98

Stakeholder Management Is Risk Management for

Affected Stakeholders Can Make Crucial

Introduction 98Stakeholder Focus Throughout the Life of the Project 99

People 101Stakeholder Roles: Project Manager 102Stakeholder Roles: Project Team 102Stakeholder Roles: Management 103Stakeholder Roles: The Customer 106

Contributions 108Engage Affected Stakeholders 110Lead the Stakeholders 112End Point 113Fast Foundation in Project Management 113

CHAPTER 6—WRITE THE RULES: KEY DOCUMENTSTOMANAGE EXPECTATIONS ANDDEFINE SUCCESS 116

Introduction 116Project Rules Are the Foundation 117

v

WEBFTOC 09/22/2015 11:31:58 Page vi

CONTENTS

Publish a Project Charter 119Write a Statement of Work 121Statement of Work: Minimum Content 122Responsibility Matrix 129End Point 132Fast Foundation in Project Management 133

PART 3THE PLANNING PROCESS

CHAPTER 7—RISKMANAGEMENT:MINIMIZE THETHREATS TO YOUR PROJECT 137

Introduction 137All Project Management Is Risk Management 138The Risk Management Framework 141Step One: Identify the Risks 142Step Two: Analyze and Prioritize the Risks 146Step Three: Develop Response Plans 152Step Four: Establish Contingency and Reserve 158Step Five: Continuous Risk Management 159Unexpected Leadership 160End Point 160Fast Foundation in Project Management 161

CHAPTER 8—WORK BREAKDOWN STRUCTURE:BREAK YOUR PROJECT INTOMANAGEABLEUNITS OFWORK 164

Introduction 164Defining the Work Breakdown Structure 165Building a Work Breakdown Structure 168Criteria for a Successful Work Breakdown Structure 172Work Package Size 175Planning for Quality 177Breaking Down Large Programs 179Contractors or Vendors Can Provide a WBS 180End Point 180

vi

WEBFTOC 09/22/2015 11:31:58 Page vii

CONTENTS

CHAPTER 9—REALISTIC SCHEDULING 183Introduction 183Planning Overview 183Planning Step Two: Identify Task Relationships 185Planning Step Three: Estimate Work Packages 189Planning Step Four: Calculate an Initial Schedule 195Planning Step Five: Assign and Level Resources 203Small Projects Need Smaller Plans 213End Point 214Fast Foundation in Project Management 214

CHAPTER 10—MANAGING AGILE DEVELOPMENTWITH SCRUM 216

Introduction

Make the Plan Visible: Task Boards and Burndown

216Scrum Is a Framework 217Managing the Product Backlog 223

Charts 225Key Factors for Scrum to Be Effective 227End Point 229

CHAPTER 11—THE ART AND SCIENCE OFACCURATE ESTIMATING 230

Introduction 230Estimating Fundamentals 231Estimating Techniques 237Building the Detailed Budget Estimate 246Generating the Cash Flow Schedule 253End Point 254Fast Foundation in Project Management 254Stellar Performer: Tynet, Inc. 255Stellar Performer: Adobe Systems 258

CHAPTER 12—BALANCING THE TRADE-OFFAMONG COST, SCHEDULE, ANDQUALITY 264

Introduction 264Three Levels of Balancing a Project 265

vii

WEBFTOC 09/22/2015 11:31:58 Page viii

CONTENTS

Balancing at the Project Level 266Balancing at the Business Case Level 278Balancing at the Enterprise Level 283End Point 284Stellar Performer: Safeco Field 285Stellar Performer: Boeing 767-400ER Program 289

PART 4CONTROLLING THE PROJECT

CHAPTER 13—BUILDING AHIGH-PERFORMANCEPROJECT TEAM 294

A Framework for Building High-Performance

Summary of Building a Positive Team

Introduction 294

Teams 298Leadership Responsibilities 302Building a Positive Team Environment 306Ground Rules 307Team Identity 309Team Listening Skills 313Meeting Management 317

Environment 317Collaborative Problem Solving 319Problem Analysis 319Decision Modes 321Conflict Management 326Continuous Learning 329Summary of Collaborative Problem Solving 333Job Satisfaction 333End Point 334Stellar Performer: Habitat for Humanity 335

CHAPTER 14—CLEAR COMMUNICATIONAMONGPROJECT STAKEHOLDERS 337

Introduction 337Embrace Your Role as a Leader 338Creating a Communication Plan 338

viii

3GFTOC 05/19/2016 0:23:28 Page ix

Change Management: Promote Behavior Change inAffected Stakeholders 345

Communicating Within the Project Team 353Stellar Performer: Lockheed Martin Aeronautics 359Closeout Reporting 361End Point 362Fast Foundation in Project Management 363

CHAPTER 15—CONTROL SCOPE TODELIVER VALUE 365

Introduction 365The Change Control Process 366Configuration Management 372Change Control Is Essential for Managing

Expectations 374End Point 374Fast Foundation in Project Management 374

CHAPTER 16—MEASURING PROGRESS 376Introduction 376Measuring Schedule Performance 376Measuring Cost Performance 380Earned Value Reporting 382Cost and Schedule Baselines 391End Point 393

CHAPTER 17—SOLVING COMMON PROJECTPROBLEMS 396

Introduction 396Responsibility Beyond Your Authority 396Disaster Recovery 397Reducing the Time to Market 398When the Customer Delays the Project 399The Impossible Dream 400Fighting Fires 401Managing Volunteers 401End Point 402

CONTENTS

ix

WEBFTOC 09/22/2015 11:31:59 Page x

CONTENTS

PART 5ADVANCING YOUR PRACTICE OF

PROJECTMANAGEMENT

CHAPTER 18—ENTERPRISE PROJECTMANAGEMENT:COORDINATE ALL PROJECTS AND PROJECTRESOURCES IN YOURORGANIZATION 405

Introduction 405Defining Enterprise Project Management 407Three Tiers of Management Within EPM 409The Four Components of EPM 411Establish Consistent EPM Processes 412Technology Enables EPM Processes 415The People Who Deliver Projects 419Support Project Management: The Project Office 420End Point 428Stellar Performer: Bill & Melinda Gates Foundation:

Enterprise Project Management Office 430

CHAPTER 19—REQUIREMENTS ENGINEERING:THE KEY TO BUILDING THE RIGHT PRODUCT 437

James Rivera and Eric Verzuh

Introduction 437Requirements Engineering and Project Management

Requirement Types Illustrate the Evolving ProductAre Intimately Connected 438

Vision 439Requirements Engineering Scope and Processes 441Requirements Development Activities 443Requirements Management Activities 445Requirements Documentation Techniques 447Requirements Engineering Demands Discipline 447End Point 449

CHAPTER 20—PROJECT PORTFOLIOMANAGEMENT: ALIGN PROJECT RESOURCESWITH BUSINESS STRATEGY 450

Ralph Kliem and Eric VerzuhIntroduction 450

x

WEBFTOC 09/22/2015 11:31:59 Page xi

CONTENTS

The Scope and Goals of the Portfolio 452Stakeholders: Roles in Project Portfolio Management 453PPM Information Supports Decisions 455Project Selection and Prioritization 456Ongoing Portfolio Management 459Monitor the Results of Projects and the Portfolio 460Culture Change 461End Point 461

CHAPTER 21—PMP EXAM PREPARATION 462Tony Johnson

Introduction 462Requirements to Earn the PMP 463Top 10 Study Tips for the PMP Exam 463End Point 467

CHAPTER 22—MICROSOFT PROJECT:GUIDELINES FOR EFFECTIVE USE 468

Project Management Software Supports

Task Types: Fix the Duration, Work, or

Introduction 468

the Discipline 469Looking Under the Hood: The Design of Project 469Set Up the Project First 471Follow the Planning Model in This Book 471

Resource Level 473Assigning Resources to a Project 473Resource Leveling Your Schedule 476Maintaining the Plan Throughout the Project 478Project Server and Project Web App 479End Point 480

APPENDIX A: THE DETAILED PLANNINGMODEL 481APPENDIX B: DOWNLOADABLE FORM SAMPLES 490NOTES 495INDEX 497

xi

WEBFLAST 09/22/2015 11:42:14 Page xii

F O R M S A V A I L A B L E O N L I N E

The following downloadable forms mentioned in thebook are available online fromwww.VersatileCompany.com/FFMBAinPM. Original purchasers of this book canthen open, edit, and print any of the documents usingMicrosoft Word or other word processing software.

Checklist for Successful ProjectsProject ProposalStakeholder AnalysisProject CharterStatement of WorkSmall Project Statement of WorkResponsibility MatrixDefinition ChecklistRisk Analysis TemplateRisk LogHome Landscape Action PlanPlanning ChecklistKickoff ChecklistCommunication PlanTask AssignmentMeeting AgendaStatus ReportControl ChecklistClosure ReportChange LogChange RequestIssues Log

xii

WEBFBETW02 09/22/2015 11:54:0 Page xiii

A C K N O W L E D G M E N T S

PI have the privilege to both travel with the project managementmovement and to record the journey. To all of the project teams andproject leaders who continue to innovate and move the state of the artforward, I wish to thank you for your example and the freedom withwhich you share what you learn.

There are, of course, particular friends and colleagues that made adirect contribution to this fifth edition, and to whom I owe particularrecognition.

Don Kingsberry and The Bill & Melinda Gates Foundation, who doso much for improving lives around the world, will now be contri­buting to excellence in project management. Thank you for sharingthe details of your Enterprise Project Management Office.

Robert Cooper is a world-renowned expert on new product devel­opment. For this edition he offered his insights on the most currentpractices for launching successful new products. Working with Dr.Cooper is a delight and an education.

Tim Creasey enthusiastically accepted my invitation to contributehis expertise on change management, the practices that motivateemployees to change their behavior in support of project goals. Timand his company, Prosci, are building a body of research in this fieldand are tireless advocates of the value of change management on

Project management remains a dynamic field, moving forwardthrough the accumulated effort of many thousands of professionalswho face new, interesting challenges and then generously share theirlessons learned during conferences, at trade shows, through associ­ations and over coffee with friends.

xiii

WEBFBETW02 09/22/2015 11:54:0 Page xiv

ACKNOWLEDGMENTS

projects. I appreciate his willingness to become involved in this bookand to accept my editorial direction.

Mandy Dietz epitomizes the synthesis required to effectively leadprojects. She long ago mastered the science of project management,and she is expert at integrating additional concepts from processmanagement and leadership. I rely on her facilitation skills to delightour customers and appreciate her contribution to this edition withinsights on stakeholder management.

DonnaMcEwen has a gift for translating her substantial leadershipexperience into practical advice in a manner that is constantly engag­ing. She has been a valuedmember of our team for well over a decade.Donna ensured the new content on Scrum and product developmentstayed relevant to project managers.

Both Sam Huffman and Tony Johnson examined and updated thechapters they had developed for previous editions, on MicrosoftProject and PMP Exam Preparation, respectively. I appreciate thefriendship and support of these two experts.

At the risk of missing other friends who spent time discussing thisedition, I wish to recognize several who made valuable suggestions:Ernie Baker, Ralph Kliem, Robin Nicklas, Dale Christenson, JeffLynch, Jon Wagner, and Barry Otterholt.

Richard Narramore, my editor at John Wiley & Sons, excels at therole of catalyst, expanding my vision for this edition and providing thecritical voice of the customer. Seventeen years ago, an editor at Wileytook a risk on an unpublished author. I am very grateful for theopportunity that Wiley provides and the partnership that continues.

My wife, Marlene Kissler, again played the critical role of soundingboard and editor. This book is readable because she reads it first.

xiv

WEBFBETW03 09/22/2015 11:51:58 Page xv

A B O U T T H E A U T H O R

ERIC VERZUH

Eric Verzuh is president of The Versatile Company, a project man­agement training and consulting firm based in Seattle, Washington.

His company trains thousands of professionals every year in thefundamentals of successful project management, including how to getthe most out of Microsoft Project. Versatile’s consulting practicefocuses on helping firms establish consistent, practical methods formanaging their projects and implementing Microsoft’s enterpriseproject management solution. The company’s client list includes largecorporations as well as government agencies, small companies, andnonprofit organizations.

Verzuh has been certified as a Project Management Professional(PMP) by the ProjectManagement Institute, and he is a founding boardmember of PM4NGOs, a nonprofit organization committed to pro­moting project management in developing countries. His other publi­cations include articles, conference papers, and The Portable MBA inProject Management (2003), also published by John Wiley & Sons,Inc.

Verzuh can be reached via his company’s website at www.VersatileCompany.com or you can e-mail Eric directly at EVerzuh@VersatileCompany.com.

xv

WEBFBETW03 09/22/2015 11:51:58 Page xvi

WEBFPREF 09/22/2015 11:35:38 Page xvii

P R E F A C E

Eindustries.This fifth edition retains the book’s primary focus on excellence in

project management and continues to include the enterprise projectmanagement factors that influence project success.

Parts 1 through 4 have been refreshed to stay current, including agreater emphasis on stakeholdermanagement and the introduction ofchange management. Industry is increasingly concerned with meas­uring projects by the value they contribute to the firm. This emphasiscan be seen inmany chapters, particularly Chapter 4, which describesthe core questions related to authorizing a project.

The most substantial updates to this edition address iterativedevelopment and the reality that innovation continues to play a largerrole for nearly all firms. Chapters 3 and 10 are completely new.

More than ever, organizations are in need of leaders who cansynthesize facts and assumptions to set a direction. Many govern­ment, for-profit, and nonprofit organizations have less predictabilityabout their future than at any time in the past 50 years. Projectmanagement continues to be a discipline for navigating throughturbulent circumstances.

Economic upheavals have sharpened the need to effectively managetransformation and innovation. Project management remains criticalbut is no longer sufficient; project portfolio management is nowwidely embraced as a strategy for aligning resources with strategicdirection and iterative development methods are spreading to new

xvii

WEBFPREF 09/22/2015 11:35:38 Page xviii

PREFACE

The basics of project management can be learned quickly from thisbook. True understanding comes only through practice. I wish yougood luck as you learn and practice the art and science of projectleadership.

—Eric VerzuhSeattle, Washington

xviii

WEBPART01 10/07/2015 4:7:49 Page 1

P A R T

11Introduction

As the pace of change increases in every aspect of oursocieties, from government to health care to business,the ability to manage projects continues to grow inimportance.

Why has project management become a strategic capa­bility for organizations and a popular career track forindividuals? In Part 1 of this book, you will find answersto these questions and more.

Every project has a start and finish, and every project isunique. That makes managing projects different frommanaging ongoing operations. The tools and techniquespresented in this book have evolved over 60 years to dealwith these challenges. Chapters 1 and 2 introduce thevalue of mastering project management and give an over­view of the discipline.

Innovation is accomplished through projects. But ittakes more than project management to create break­through products and services. Chapter 3 shows the con­nection that project management has to other importantdisciplines.

We live in a world where change—and the rate ofchange—is constantly increasing. In order to survive andprosper, organizations need to continually modify theirproducts and services. Projects are the means by whichthese innovations are delivered.

Greater change = more innovations = more projects.

WEBC01 09/24/2015 11:3:20 Page 2

C H A P T E R

11ProjectManagement: APlatform forInnovation

INTRODUCTION

Projects dominate our headlines.Reform—in health care, in education, on Wall Street—is accom­

plished through projects.Electric cars are a reality. Biodiesel, solar, wave, and wind energy

are supplying an increasing proportion of energy. And the gadgetfactory is in high gear. Devices you’d never have dreamed of five yearsago are already out of style. The constant drive to innovate makes theability to deliver new products a core asset of technology companies.

Projects dominate our workplace.Our project-based workforce creates advertising campaigns,

repairs freeways, remodels homes, writes articles, revises compen­sation plans, and connects the world with cellular communicationnetworks. We grow our organizations as we open new stores, mergewith rivals, and expand or consolidate distribution networks. We areconstantly transforming our global civilization in tiny increments.

Projects help us react, survive, and thrive. A global economy on therise or in recession creates constant change, and the pace is increas­ing. The changes are disruptive for some: those whose companies andindustries have become irrelevant faster than they could imagine. Forothers, it is an endless opportunity. For everyone, it is a challenge to

2

WEBC01 09/24/2015 11:3:20 Page 3

PROJECT MANAGEMENT

navigate and prosper in an environment in which we are forced tolearn, to adapt, and to contribute our own changes.

In the past it was possible to leave the management and mastery ofprojects to innovation leaders like Boeing, Apple Computer, Ford, orDisney. But the new pace of change affects every organization, andthose that don’t adapt don’t survive. Project management is a must-have capability for every organization and a personal job skill that willonly become more valuable in the years ahead.

Projects Drive Innovation

Project management is not new. The pyramids and aqueducts ofantiquity certainly required the coordination and planning skills ofa project manager. While supervising the building of St. Peter’sBasilica in Rome, Michelangelo experienced all the torments of amodern-day project manager: incomplete specifications, insufficientlabor, unsure funding, and a powerful customer. Michelangelo wasthe exception in his day. Now, 500 years later, our global economy ispowered by innovation. Although not every project aspires to beinnovative, every innovation is the result of one or more projects.

To connect project management and innovation, we must firstunderstand projects. Projects are all the work we do one time.Whether it’s designing an aircraft, building a bakery display case,or creating a business logo, every project produces an outcome andevery project has a beginning and an end. Fundamental to under­standing the importance of projects is realizing that each one pro­duces something unique. Designing and tooling up to build a newsports car is a project (actually a lot of projects), but manufacturingthousands of sports cars is not. Manufacturing and other repetitiveprocesses are defined as ongoing operations.

Project management techniques cover a range of topics:

• Communicatingwith teammembers and stakeholders from projectconception through completion.

• Estimating the effort, cost, and time it will take to deliver a project,and evaluating whether the benefits of the project will justify theforecasted costs.

• Rapidly building cohesive project teams that are highly productiveeven though team members have not worked together before.

• Coordinating the actions of a diverse workforce, assembled spe­cifically for a project, to achieve the goal for the least possibleexpense and in a reasonable time frame.

• Accounting for progress and productivity to provide accurate fore­casts of project completion dates and budget amounts.

3

WEBC01 09/24/2015 11:3:20 Page 4

THE FAST FORWARD MBA IN PROJECT MANAGEMENT

• Managing the varying staffing needs that result from continuallyrunning multiple projects concurrently, all of which share a com­mon pool of personnel.

With that understanding of projectmanagement, it is easier tomakethe connection between projects and innovation. For our purposes,innovation is a fresh, new approach to solving a problem that isimportant to people. Apply that definition to education, transportation,ortelecommunication,andyou’llfindmanyprojectsdrivinginnovation.Clayton Christensen1 classically identified two kinds of innovation:disruptive and sustaining. Disruptive innovationwill destroy a currentparadigm or market, in the way that online universities could changetraditional on-campus college educations. Sustaining innovationsmake our current products and services better and more valuable toour customers.

The world is experiencing a fundamental shift from rewardingexcellence in ongoing operations to rewarding the ability to chart aneffective path of change and deliver on the goals. The discipline ofprojectmanagement provides themethods and techniques tomeet thechallenge.

PROJECTMANAGEMENT IS KEEPING PACEWITH GLOBAL CHANGE

Project management is a discipline—a set of methods, theories, andtechniques that have evolved to manage the complexities of workthat is unique and temporary. Even as the discipline continues toevolve, it can claim a proven track record. Millions of projectsaround the globe routinely rely on the concepts found in this andother project management books. The Project Management Institute(PMI), headquartered in the United States; the International ProjectManagement Association (IPMA), serving Europe, Asia, and Africa;and other standards organizations have formalized this disciplineover the past 60 years.

The proliferation of projects has led to substantial growth in thenumber of people who call themselves project managers, and projectmanager is now a common role in nearly every kind of organization.The related phenomenon is the rise of the certified project manager.PMI and IPMA both offer professional certification programs toformally recognize skills, knowledge, or both.

Examples of how project management is spreading to new parts ofour global workplace can be found in the profiles at the end of thischapter on two organizations, OrthoSpot and PM4NGOs. The first is abusiness start-up, and the second is a nonprofit that is promoting the

4

WEBC01 09/24/2015 11:3:20 Page 5

PROJECT MANAGEMENT

use of project management in developing countries by aid agencies.In both cases, these organizations have used the proven projectmanagement framework as a starting point, and then adjusted it tomeet the needs of their unique audience.

PROJECTMANAGEMENT IS AN ESSENTIALLEADERSHIP SKILLSET

Given the importance of thriving in a project-drivenworld, the peoplewho lead projects—who turn visions of what might be into tangibleproducts and services—stand out. But it has been proven that projectmanagers alone can’t carry the burden of creating mature organiza­tions whose project management capability produces a strategicadvantage. In fact, as the pace of change continues to increase,leaders at every level must be able to speak the language of projectmanagement.

• Executives select projects. They also stand behind projects aschampions or sponsors, overseeing project progress and providingadvice to the project manager and team. Every major project orprogram has an executive who is ultimately accountable for itssuccess. Executives are also accountable for the project portfolio,the collection of all active projects that have been selected as thebest way to achieve the organization’s goals.

• Functional managers sponsor, lead, or oversee projects withintheir departments. They make decisions about project prioritiesas they assign their staff to project teams.

• Team members who understand project management make theentire project run more smoothly. They make the project managermore effective because they make better estimates, identify risks,and participate in planning and problem solving.

How does project management fit into your personal careergoals? In an economy that is pushing each of us to learn and adapt,how much change do you expect in your job over the next decade? Ifthe new normal is continuous transformation, isn’t the ability tonavigate new territory the most enduring skill?

SUCCESSFUL PROJECTS DELIVER VALUE

Twenty years ago, the project management communitycould agree that a successful project was on time, on budget, anddelivered to specification. But times change. Too many projects have“delivered to specification” without actually being valuable to the

5

WEBC01 09/24/2015 11:3:20 Page 6

THE FAST FORWARD MBA IN PROJECT MANAGEMENT

organization that paid for them. The most common offenders havebeen expensive information technology (IT) projects that producedreports or systems that didn’t make a positive difference to thebusiness, either because the system was rejected by the users or itdidn’t solve the real problem driving the project. But IT isn’t alone.Any project team that focuses only on delivering the specified productor service, but loses sight of the context of the project can be guilty offailing to deliver value.

Amore current definition of a successful project is one that deliversbusiness value. The implication is that the project manager shouldunderstand the business case—why was this project approved? It hasalso broadened the perception of who is a project stakeholder. Afterall, if a solution to my part of the organization causes pain to your partof the organization, have we made things better or worse?

Another aspect of delivering value is the realization that if oursolutions are not really accepted and used, they probably aren’tachieving their potential impact. Therefore, the practice of changemanagement has a growing role on project teams. Change manage­ment, as the term is used here, refers to assisting affected people tochange their behaviors in support of the project goal. This should notbe confused with change control, which addresses controllingchanges to scope, schedule, budget, and other previous agreements.

When project managers see their job as leading change thatdelivers business value, they see the bigger picture and increase theircontribution to their employer and to all stakeholders.

THE ART AND SCIENCE OF PROJECT LEADERSHIP

Project management has been called both an art and ascience. In these pages, you will see how mastering the science ofproject management provides a foundation for the art of leadership.The necessary skills are common to both. There is no question that thebest project managers are also outstanding leaders. They have vision,they motivate, they bring people together, and, most of all, theyaccomplish great things.

Indeed, when we characterize the attributes of the great projectmanagers, their skill can seemmysterious andmagical, as though thegood ones are born and not made. Fortunately, that is not the case.Through over 25 years of listening tomany thousands of professionalsand observing the most successful project leaders, it has become veryclear to me that project management is a skill that can be taught andlearned. Far from magical or mysterious, I’ve learned that certaincharacteristics are consistently found on successful projects in everyindustry. Boiled down, they consist of these five project success factorsthat drive the design of this book.

6

WEBC01 09/24/2015 11:3:20 Page 7

PROJECT MANAGEMENT

1. Agreement among the project team, customers, andmanagementon the goals of the project. The importance of having clear goalsseems so obvious that it’s almost embarrassing to bring it up. Yetthousands of projects, at this very moment, do not have cleargoals, and the results of this fuzziness can be devastating.

2. A plan that shows an overall path and clear responsibilities andthat can be used to measure progress during the project. Sinceevery project is unique, the only way to understand and execute itefficiently is with a plan. Not only does a good plan show who isresponsible for what and when, but it also demonstrates what ispossible. It contains the details for estimating the people, money,equipment, and materials necessary to get the job done. Andbecause the plan is the basis for measuring progress, it can alsoact as an early warning system for tasks that are late or overbudget.

3. Constant, effective communication among everyone involved inthe project. People—not plans or software—complete projects. Asuccessful project is a result of people agreeing on goals and thenmeeting them. From concept through implementation, successdepends on the ability to come to agreement, coordinate action,recognize and solve problems, and react to changes.

4. A controlled scope. Success is in the eye of the beholder. This iswhy, from the very start, the successful project manager willensure that everyone involved understands exactly what canbe accomplished within a given time frame and budget. This iscalled managing stakeholder expectations, and it is an impor­tant, ongoing task throughout the project, especially if changesare introduced. Stakeholders must not only agree to the origi­nal scope of the project, but also understand any changes inscope.

5. Management support. Project managers rarely have enough for­mal authority to make all the decisions it takes to complete aproject. They rely on people in traditional management roles tosupply people and equipment, make policy decisions, and removeorganizational obstacles. Even the most enthusiastic, creative,motivational project leaders will stumble if they do not enlist thepeople with authority to act on their behalf.

Far from being mysterious, these five essential factors can beachieved through the diligent, persistent use of the science ofproject management. That is not to say that success comes withoutart—on the contrary, art is immensely important. Art encompassespolitical and interpersonal skills, making creative decisions whencomplete information is lacking, knowing intuitively when to

7

WEBC01 09/24/2015 11:3:20 Page 8

THE FAST FORWARD MBA IN PROJECT MANAGEMENT

delegate work, and more. But learning the basic science is requisiteto practicing this art.

That’s important for all of us, because it means that success atleading projects is not reserved for the lucky few born with the skills;rather, it is a discipline that can be taught and learned.

Processes Are Not Leadership

Project management can be viewed as a science composed oftechniques and methods, and even software. It can also be viewedas the ability to inspire a team to achievement, to make toughchoices, and to act with integrity when mistakes are made. In fact,project management can be all of these things. To grow, we mustrecognize the difference between knowing the science and prac­ticing the art.

The art of project leadership embodies skills that are gainedthrough experience, sensitivity, and a thorough knowledge of thebasic science of management. Learning the basics of project man­agement can be your first step on the road to becoming a skilledand inspiring leader. While developing all these skills will taketime, the basic science can be learned fairly quickly; able studentscan read and practice the lessons in this book on their very nextproject.

A PRACTICAL CHECKLIST FOR SUCCESSFULPROJECTS: HOW THIS BOOKWILL HELP YOU

This book is written for people who need to understand the time-tested techniques of project management and how those methodsare being put to use on projects every day. It is for people who needa complete foundation in the discipline, whether they are recentgraduates, experienced executives, midlevel managers, or teammembers wanting to be team leaders. This book is primarily abouthow: how to get agreement on goals and how to reach them, how toenlist team members and project sponsors, how to negotiateschedules and budgets, and how to reduce risk and increase theodds of success.

The five project success factors introduced earlier in this chapterdrive the content in this book. As the workplace has become moreproject-driven, other factors that influence projects also needed to beaddressed. The following checklist expands on the five factors andshows you where to look in this book for practical advice.

1. Agreement among the project team, customers, andmanagementon the goals of the project.

8

WEBC01 09/24/2015 11:3:20 Page 9

PROJECT MANAGEMENT

• It is apparent why this project is worthwhile. The benefits thatwill be realized from the project have been balanced againstthe costs, both tangible and intangible, and we understand theurgency. Chapter 4 addresses the minimum content of aproject proposal.

• We know who needs to be satisfied and who will judge thesuccess of the project. Chapter 5 explains who our stakehold­ers are and how to find them.

• What will be delivered, and the actions required to complete theproject have been described at both the macro and micro level.Chapter 6 explains how the statement of work establishes agree­ments on a common goal. Chapter 8 introduces the work break­down structure, the detailed view of tasks and deliverables.

2. A plan that shows an overall path and clear responsibilities andthat can be used to measure progress during the project.

• We have planned for the unexpected and for factors beyond ourcontrol. Chapter 7 demonstrates how risk management tech­niques reveal potential threats and opportunities, allowing theteam to proactively influence or prepare for these future events.

• The schedule is constructed using a detailed understanding of thework tobeperformedand thesequencerelationshipsbetween thetasks. Chapters 8 and 9 use a step-by-step approach to breakingdown a project and building a realistic schedule.

• The schedule is based on work reasonably assigned and thepeople responsible for the work have not been over-burdened.Chapter 9 provides task estimating guidelines and an explan­ation of resource levelling, the process of evaluating a scheduleto find unrealistic assignments of work in any time period. Lookfor tips on communicating clear taskassignments inChapter 14.

• Progress against the plan is measured with a steady rhythm.Chapter16contains formulas forcalculating theprogressagainstcost and schedule baselines. Chapter 10 provides an overview ofthe Scrum method of planning and monitoring a project.

3. Constant, effective communication among everyone involved inthe project.

• We know who will be actively engaged in the project to accom­plish the work and make decisions. Chapter 5 gives us stake­holder identification techniques, and Chapter 6 describes theRACI matrix that clarifies project roles.

• Our project teamhas the trust and commitment to tell eachotherthe truth and to work together to solve problems. The attributesof cohesive project teams are described in Chapter 13.

9

WEBC01 09/24/2015 11:3:20 Page 10

THE FAST FORWARD MBA IN PROJECT MANAGEMENT

• We are prepared to assist those who will be affected by thechanges that the project creates so that they contribute toachieving the project’s goals. Chapter 14 introduces the disci­pline of change management.

• Our project infrastructure contains risk logs, issue logs, visibleschedules, and other practical methods that team memberscan easily access and update. Chapter 14 focuses on teamcommunication and Chapter 22 introduces tips for leveragingMicrosoft’s Project and SharePoint tools.

• We have established a rhythm of project reporting that isappropriate to the size and pace of the project and willkeep our team and management synchronized. Chapters 14and16present a communicationplanandguidelines for report­ing status graphically. Every technique in this book promotesmore effective communication among project stakeholders!

4. A controlled scope.

• A practical approach to documenting and managing require­ments has been adopted, so we deliver on the real businessneed. Chapter 19 introduces the discipline of requirementsengineering, explaining the different kinds of requirementsand how each helps us move toward the goal.

• We knowwhomust approve changes to schedule and cost, andwhat authority the team has for accepting changes to specifi­cations and scope. The people who will approve changes haveagreed to the process, so that change requests will be proc­essed in a timely manner. Chapter 15 describes the steps formaintaining the proper balance between what is delivered,how much it costs, and when it arrives.

• Cost and schedule estimates and commitments were createdusing reliablemodelsdeveloped fromsimilarpast projects.Readabout techniques for making accurate estimates in Chapter 11.Chapter 18 presents the role of a Project Management Office increating repeatable project management practices.

• We have realistic expectations about the potential for deviatingfrom the plan when our assumptions turn out to be wrong.Chapter 12 is full of strategies for catching up, cutting costs,and shifting the balance between cost, schedule, and quality.Chapter 17 contains classic project problems and reasonableresponses.

5. Management support.

• The project sponsor is accountable for project success and hasplanned to meet with the project manager on a regular basis to

10