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Fundamentals of Project Management Fourth EditionThis page intentionally left blank Fundamentals of Project Management Fourth Edition JOSEPH HEAGNEY American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C.Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel: 800–250–5308. Fax: 518–891–2372. Email: Website: To view all AMACOM titles go to: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assis tance is required, the services of a competent professional person should be sought. “PMI” and the PMI logo are service and trademarks of the Project Management Institute, Inc. which are registered in the United States of America and other nations; “PMP” and the PMP logo are certification marks of the Project Management Institute, Inc. which are registered in the United States of America and other nations; “PMBOK”, “PM Network”, and “PMI Today” are trademarks of the Project Management Institute, Inc. which are registered in the United States of America and other nations; “. . . building professionalism in project management . . .” is a trade and service mark of the Project Management Institute, Inc. which is registered in the United States of America and other nations; and the Project Management Journal logo is a trade mark of the Project Management Institute, Inc. PMI did not participate in the development of this publication and has not reviewed the content for accuracy. PMI does not endorse or otherwise sponsor this publication and makes no warranty, guarantee, or representation, expressed or implied, as to its accuracy or content. PMI does not have any financial interest in this publication, and has not contributed any financial resources. Additionally, PMI makes no warranty, guarantee, or representation, express or implied, that the successful completion of any activity or program, or the use of any product or publication, de signed to prepare candidates for the PMP® Certification Examination, will result in the com pletion or satisfaction of any PMP® Certification eligibility requirement or standard. Library of Congress CataloginginPublication Data Heagney, Joseph. Fundamentals of project management / Joseph Heagney.—4th ed. p. cm. Includes bibliographical references and index. ISBN13: 9780814417485 ISBN10: 0814417485 1. Project management. I. Title. HD69.P75L488 2011 658.4'04—dc22 2011012421 © 2012 American Management Association. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1To the memory of Mackenzie Joseph Heagney, sleeping with the angels.This page intentionally left blank CONTENTS CONTENTS Figure List ix Preface to the Fourth Edition xi Acknowledgments xv Chapter 1 An Overview of Project Management 1 Chapter 2 The Role of the Project Manager 24 Chapter 3 Planning the Project 32 Chapter 4 Developing a Mission, Vision, Goals, and Objectives for the Project 45 Chapter 5 Creating the Project Risk Plan 55 Chapter 6 Using the Work Breakdown Structure to Plan a Project 68 Chapter 7 Scheduling Project Work 81 Chapter 8 Producing a Workable Schedule 93 Chapter 9 Project Control and Evaluation 112 Chapter 10 The Change Control Process 125 Chapter 11 Project Control Using Earned Value Analysis 141 Chapter 12 Managing the Project Team 156 Chapter 13 The Project Manager as Leader 168 Chapter 14 How to Make Project Management Work in Your Company 180 Answers to Chapter Questions 185 Index 189 About the Authors 201 viiThis page intentionally left blank FIGURE LIST FIGURE LIST 1–1. Triangles showing the relationship between P, C, T, and S. 1–2. Life cycle of a troubled project. 1–3. Appropriate project life cycle. 1–4. The steps in managing a project. 3–1. Two pain curves in a project over time. 3–2. Planning is answering questions. 4–1. Chevron showing mission, vision, and problem statement. 4–2. Risk analysis example. 5–1. Risk matrix. 5–2. Risk register. 6–1. WBS diagram to clean a room. 6–2. WBS level names. 6–3. Partial WBS. 6–4. Responsibility chart. 7–1. Bar chart. 7–2. Arrow diagrams. 7–3. WBS to do yard project. 7–4. CPM diagram for yard project. 7–5. WBS to clean room. 8–1. Network to illustrate computation methods. 8–2. Diagram with EF times filled in. 8–3. Diagram showing critical path. ixx Figure List 8–4. Bar chart schedule for yard project. 8–5. Schedule with resources overloaded. 8–6. Schedule using float to level resources. 8–7. Schedule with inadequate float on C to permit leveling. 8–8. Schedule under resourcecritical conditions. 8–9. Network for exercise. 10–1. Triple constraints triangle. 10–2. Project change control form. 10–3. Project change control log. 11–1. BCWS curve. 11–2. Bar chart schedule illustrating cumulative spending. 11–3. Cumulative spending for the sample bar chart. 11–4. Plot showing project behind schedule and overspent. 11–5. Project ahead of schedule, spending correctly. 11–6. Project is behind schedule but spending correctly 11–7. Project is ahead of schedule and underspent. 11–8. Percentage complete curve. 11–9. Earned value report. 13–1. Leadership style and alignment. A1. WBS for the camping trip. A2. Solution to the WBS exercise. A3. Solution to the scheduling exercise.Preface to the Fourth Edition Sending a satellite to Mars Planning a conference or implement ing new software You have chosen the right book. The great value of project management is that it can be applied across in dustries and situations alike, on multiple levels. It would be diffi cult to find a more nimble organizational discipline. Whether or not your title says project manager, you can benefit from the prac tical applications presented in this book, which is intended as a brief overview of the tools, techniques, and discipline of project management as a whole. Three notable topics have been ex panded for this edition, with new chapters on the project man ager as leader, managing project risk, and the change control process. Although each topic is important individually, together they can establish the basis for project success or failure. Projects are often accomplished by teams, teams are made up of people, and people are driven by . . . project leaders. Conspic uously absent from the preceding is the term “manager,” as in “project manager.” If project managers manage projects, what do they do with the people who make up their teams or support net works in the absence of a formal team Successful project leaders lead the people on their teams to consistent goal attainment and xixii Preface to the Fourth Edition enhanced performance. They combine a command of project tools and technical savvy with a real understanding of leadership and team performance. Consistently successful projects depend on both. It is a balancing act of execution and skilled people man agement. Ignoring one or the other is inviting project failure and organizational inconsistency regarding project performance. Risk is an element inherent in every project. The project manager must consider several variables when determining how much to invest in the mitigation and management of that risk. How experienced is my team or support personnel Do I have the appropriate skill sets available Can I count on reliable data from previous projects, or am I wandering in the wilderness Whatever the assessment, project risk is something that needs to be addressed early in the life of the project. As with any other process you will be introduced to in this book, risk must be man aged formally, with little deviation from the template, while al lowing for some flexibility. Project managers cannot afford to wait for bad things to happen and then fix them. Reactive man agement is too costly. The practical SixStep process presented on pages 57–62 can and should be applied to any project. How it is applied directly depends on the variables that confront that project. Death, taxes, and change. Project managers need to expand the list of certainties in life. To paraphrase James P. Lewis, author of the first three editions of this book, in Chapter 3, project failures are caused primarily by the failure to plan properly. I often tell my seminar attendees that planning is everything and that most proj ects succeed or fail up front. This is not an overstatement. But what often gets lost in project execution is the absolute necessity to keep the plan current based on the changes that have affected the project from day one. Have the changes affected the scope of the project Has the schedule or budget been impacted in any sig nificant way These are the questions that must be asked and an swered when applying effective change control to the project. Failure to manage and communicate change results in serious mis alignment and probably failure. Chapter 10 presents the readerPreface to the Fourth Edition xiii with a practical change control process that can help ensure proj ect success. As a former Global Practice Leader for project management at the American Management Association, I had the luxury of benchmarking multiple organizations worldwide and identified several projectrelated best practices. The applications discussed here represent some of those practices, as well as those pre ® sented in the latest version of the PMBOK Guide. With this ex panded edition of Fundamentals of Project Management, I hope to enhance your chances of bringing projects in on time, on bud get with an excellent deliverable—every time. Joseph J. Heagney Sayville, NY February 2011This page intentionally left blank Acknowledgments A special thanks to Nicolle Heagney for her technical assistance in creating many of the figures and charts presented in the book. Her expertise and diligence made my life a lot easier. Thanks to Kyle Heagney for allowing me to miss some of his soccer games. xvThis page intentionally left blank Fundamentals of Project Management Fourth EditionThis page intentionally left blank CHAPTER 1 CHAPTER 1 An Overview of Project Management hat’s all the fuss about, anyway Since the first edition of this book was published, in 1997, the Project Management ® Institute (PMI ) has grown from a few thousand members to nearly 450,000 in 2011. For those of you who don’t know, W W PMI is the professional organization for people who manage projects. You can get more information from the institute’s website, In addition to providing a variety of member services, a major objective of PMI is to advance project management as a profession. To do so, it has established a certi fication process whereby qualifying individuals receive the Proj ® ect Management Professional (PMP ) designation. To do so, such individuals must have work experience (approximately five thousand hours) and pass an online exam that is based on the ® Project Management Body of Knowledge, or the PMBOK Guide. A professional association Just for project management Isn’t project management just a variant on general management Yes and no. There are a lot of similarities, but there are enough differences to justify treating project management as a discipline separate from general management. For one thing, proj ects are more scheduleintensive than most of the activities that 1 American Management Association • www.amanet.org2 Fundamentals of Project Management general managers handle. And the people in a project team often don’t report directly to the project manager, whereas they do re port to most general managers. So just what is project management, and, for that matter, what is a project PMI defines a project as “a temporary endeavor undertaken to PMI defines a proj produce a unique product, service, or ect as “. . . a tem ® result” (PMBOK Guide, Project Man agement Institute, 2008, p. 5). This porary endeavor means that a project is done only one undertaken to time. If it is repetitive, it’s not a project. A project should have definite starting produce a unique and ending points (time), a budget product, service, (cost), a clearly defined scope—or mag nitude—of work to be done, and specific or result.” performance requirements that must be met. I say “should” because seldom does a project conform to the desired definition. These constraints on a project, by the way, are referred to throughout this book as the PCTS targets. Dr. J. M. Juran, the quality guru, also defines a project as a problem scheduled for solution. I like this definition because it re minds me that every project is conducted A project is a to solve some kind of problem for a com pany. However, I must caution that the problem scheduled word “problem” typically has a negative for solution. meaning, and projects deal with both positive and negative kinds of problems. —J. M. Juran For example, developing a new product is a problem, but a positive one, while an environmental cleanup project deals with a negative kind of problem. Project Failures In fact, the Standish Group ( has found that only about 17 percent of all software projects done in the American Management Association • www.amanet.orgAn Overview of Project Management 3 United States meet the original PCTS targets, 50 percent must have the targets changed—meaning they are usually late or over spent and must have their performance requirements reduced— and the remaining 33 percent are actually canceled. One year, U.S. companies spent more than 250 billion on software devel opment nationwide, so this means that 80 billion was com pletely lost on canceled projects. What is truly astonishing is that 83 percent of all software projects get into trouble Now, lest you think I am picking on software companies, let me say that these statistics apply to many different kinds of proj ects. Product development, for example, shares similar dismal rates of failure, waste, and cancellation. Experts on product devel opment estimate that about 30 percent of the cost to develop a new product is rework. That means that one of every three engi neers assigned to a project is working full time just redoing what two other engineers did wrong in the first place I also have a colleague, Bob Dudley, who has been involved in construction projects for thirtyfive years. He tells me that these jobs also tend to have about 30 percent rework, a fact that I found difficult to believe, because I have always thought of con struction as being fairly well defined and thus easier to control than might be the case for research projects, for example. Never theless, several colleagues of mine confirm Bob’s statistics. The reason for these failures is consistently found to be inad equate project planning. People adopt a readyfireaim approach in an effort to get a job done really fast and end up spending far more time than necessary by reworking errors, recovering from diversions down “blind alleys,” and so on. I am frequently asked how to justify formal project manage ment to senior managers in companies, and I always cite these sta tistics. However, they want to know whether using good project management really reduces the failures and the rework, and I can only say you will have to try it and see for yourself. If you can achieve levels of rework of only a few percent using a seatofthe pants approach to managing projects, then keep doing what you’re doing However, I don’t believe you will find this to be true. American Management Association • www.amanet.org4 Fundamentals of Project Management The question I would ask is whether general management makes a difference. If we locked up all the managers in a company for a couple of months, would business continue at the same levels of perfor Project manage mance, or would those levels decline If they decline, then we could argue that ment is application management must have been doing of knowledge, skills, something positive, and vice versa. I doubt that many general managers tools, and tech would want to say that what they do doesn’t matter. However, we all know niques to project that there are effective and ineffective activities to achieve general managers, and this is true of proj ect managers, as well. project require ments. Project What Is Project management is ac Management ® complished through The PMBOK Guide definition of proj ect management is “application of the application and knowledge, skills, tools, and techniques to project activities to meet the project integration of the requirements. Project management is ac project manage complished through the application and integration of the 42 logically grouped ment processes of project management processes compris initiating, planning, ing the 5 Process Groups: initiating, planning, executing, monitoring and con executing, monitor ® trolling, and closing” (PMBOK Guide, ing and controlling, Project Management Institute, 2008, p. 6). Project requirements include the and closing. PCTS targets mentioned previously. The various processes of initiating, planning, and so on are addressed later in this chapter, and the bulk of this book is devoted to explain ing how these processes are accomplished. American Management Association • www.amanet.orgAn Overview of Project Management 5 ® It would be better if the PMBOK Guide specified that a proj ect manager should facilitate planning. One mistake made by in experienced project managers is to plan the project for the team. Not only do they get no buyin to their plan, but that plan is usually full of holes. The first rule of Managers can’t think of everything, their project manage estimates of task durations are wrong, and the entire thing falls apart after the ment is that the project is started. The first rule of project people who must management is that the people who must do the work should help plan it. do the work should The role of the project manager is help plan it. that of an enabler. Her job is to help the team get the work completed, to “run interference” for the team, to get scarce resources that team members need, and to buffer them from outside forces that would disrupt the work. She is not a project czar. She should be—above everything—a leader, in the true sense of the word. The best definition of leadership that I have found is the one by Vance Packard, in his book The Pyramid Climbers. He says, “Leadership is the art of getting others to want to do something that you be “Leadership is the lieve should be done.” The operative art of getting word here is “want.” Dictators get oth ers to do things that they want done. So others to want to do guards who supervise prison work do something that teams. But a leader gets people to want to do the work, and that is a significant you believe should difference. The planning, scheduling, and con be done.” trol of work represent the management —Vance Packard or administrative part of the job. But, without leadership, projects tend to just satisfy bare minimum requirements. With leadership, they can ex ceed those bare minimums. I offer a comprehensive application of project leadership techniques in Chapter 13. American Management Association • www.amanet.org6 Fundamentals of Project Management It Is Not Just Scheduling One of the common misconceptions about project management is that it is just scheduling. At last report, Microsoft had sold a ® huge number of copies of Microsoft Project , yet the project fail ure rate remains high. Scheduling is certainly a major tool used to manage projects, but it is not nearly as important as developing a shared understanding of what the project is supposed to accom plish or constructing a good work breakdown structure (WBS) to identify all the work to be done (I discuss the WBS in Chapter 6). In fact, without practicing good project management, the only thing a detailed schedule is going to do is allow you to document your failures with great precision I do want to make one point about scheduling software. It doesn’t matter too much which package you select, as they all have strong and weak points. However, the tendency is to give people the software and expect them to learn how to use it without any training. This simply does not work. The features of scheduling software are such that most people don’t learn the subtleties by themselves. They don’t have the time, because they are trying to do their regular jobs, and not everyone is good at selfpaced learn ing. You wouldn’t hire a green person to run a complex machine in a factory and put him to work without training, because you know he will destroy something or injure himself. So why do it with software OnePerson Projects When is managing a project not project management When only one person is involved. A lot of people are sent to my seminars to learn how to manage projects, but they are the only person working on their projects. Now it is true that a oneperson job can be called a project, because it has a definite starting point, target, end date, specific perfor mance requirements, defined scope of work, and a budget. How ever, when no one else is working on the project (including outside vendors), there is no need for a critical path schedule. A critical American Management Association • www.amanet.orgAn Overview of Project Management 7 path schedule is one that has a number of parallel paths, and one of them is longer than the others and determines how long it will take to complete the job or, ultimately, whether the given end date can be met. When you’re working on a job by yourself, there aren’t any parallel paths—unless you are ambidextrous Oneperson projects do require good selfmanagement, or good time management, but all you need is a good todo list, which comes from a task listing. However, unless you are coordi nating the work of other people, you aren’t practicing true project management. The Big Trap—Working Project Managers It is common to have individuals serve as project managers and require also that they do part of the actual work in the project. This is a certain prescription for problems. If it is a true team, con sisting of several people, the project manager inevitably finds her self torn between managing and getting her part of the work done. Naturally, the work must take precedence, or the schedule will slip, so she opts to do the work. That means that the managing does not get done. She hopes it will take care of itself, but it never does. After all, if the team could manage itself, there would be no need for a project manager in the first place (remember our argu ment about whether project management matters). Unfortunately, when the time comes for her performance evaluation, she will be told that her managing needs improving. Actually, she just needs to be allowed to practice management in the first place. Yes, for very small teams—perhaps up to three or four people— a project manager can do some of the work. But, as team sizes in crease, it becomes impossible to work and manage both, because you are constantly being pulled away from the work by the needs of your team members. One of the reasons for this situation is that organizations don’t fully understand what project management is all about, and they think that it is possible for individuals to do both. The result is that nearly everyone in the company is trying to manage projects, and, American Management Association • www.amanet.org8 Fundamentals of Project Management as is true in every discipline, some of them will be good at it and others will have no aptitude whatsoever. I have found that a far better approach is to select a few individuals who have the apti tude and desire to be project managers and let them manage a number of small projects. This frees “technical” people (to use the term broadly) to do technical work without having to worry about administrative issues and allows project managers to get really good at their jobs. It is outside the scope of this book to discuss how to select project managers, but, for the interested reader, the topic is cov ered in a book by Wysocki and Lewis titled The WorldClass Proj ect Manager (Perseus, 2001). You Can’t Have It All One of the common causes of project failures is that the project sponsor demands that the project manager must finish the job by a certain time, within budget, and at a given magnitude or scope, while achieving specific performance levels. In other words, the sponsor dictates all four of the project constraints. This doesn’t work. The relationship among the PCTS constraints can be written as follows: C = f(P, T, S) In words, this says, “Cost is a function of Performance, Time, and Scope.” Graphically, I like to show it as a triangle, in which P, C, and T are the sides and S is the area. This is shown in Figure 11. In geometry, we know that if we are given values for the sides of a triangle, we can compute the area. Or, if we know the area and the length of two sides, we can compute the length of the remaining side. This translates into a very practical rule of project management: The sponsor can assign values to any three variables, but the project manager must determine the remain ing one. American Management Association • www.amanet.orgAn Overview of Project Management 9 Figure 11.  Triangles showing the relationship between P, C, T, and S. C P P C S S T T So let’s assume that the sponsor requires certain performance, time, and scope from the project. It is the project manager’s job to determine what it will cost to achieve those results. However, I always caution project managers that they should have a para medic standing by when they give the cost figure to the sponsor because she will probably have a stroke or heart attack, and the paramedic will have to revive her. Invariably, the sponsor exclaims, “How can it cost that much” She had a figure in mind, and your number will always exceed her figure. And she may say, “If it’s going to cost that much, we can’t justify doing the job.” Exactly And that is the de cision she should make. But she is certain to try to get the project manager to commit to a lower number, and, if you do, then you only set up yourself—and her—to take a big fall later on. It is your obligation to give the sponsor a valid cost so that she can make a valid decision about whether or not the project should be done. If you allow yourself to be intimidated into committing to a lower number, it is just going to be a disaster later on, and you are far better off taking your lumps now than being hanged later on. Of course, there is another possibility. If she says she can afford only so much for the job, then you can offer to reduce the scope. If the job is viable at that scope level, then the project can be done. Otherwise, it is prudent to forget this project and do something else that can make profits for the company. As someone has said, American Management Association • www.amanet.org10 Fundamentals of Project Management there is a higher probability that things will accidentally go wrong in a project than that they will accidently go right. In terms of cost estimates, this means that there is always There is a higher a higher likelihood that the budget will be overrun than that the project will probability that come in below budget. This is just an things will acciden other way of stating Murphy’s law, that “whatever can go wrong will go wrong.” tally go wrong in a project than that The Phases of a Project they will acciden There are many different models for the phases a project goes through during its tally go right. life cycle. One of these captures the all toofrequent nature of projects that are not managed well and is shown in Figure 12. I have shown this diagram to people all over the world, and they invariably laugh and say, “Yes, that’s the way it works.” Figure 12.  Life cycle of a troubled project. American Management Association • www.amanet.orgAn Overview of Project Management 11 I suppose the comfort I can take is that we Americans are not the only ones who have the problem, but the bad news is that there are a lot of dysfunctional projects if everyone recognizes the model. At the simplest level, a project has a beginning, middle, and end. I prefer the lifecycle model shown in Figure 13, but there are other versions that are equally valid. In my model, you will notice that every project begins as a concept, which is always “fuzzy,” and that the project team must formalize the definition of the job before doing any work. However, because of our readyfireaim mentality, we often start working on the job without ensuring that we have a proper definition or that the mission and vision for the job are shared by everyone. This invariably leads to major problems as the project progresses. This is illustrated by the example that follows. Definition Phase Some years ago, a project manager in one of my client companies called me and said, “I’ve just had a conference call with key members of my project team, and I realized that we don’t agree on what the project is supposed to accomplish.” I assured him that this was common. “What should I do” he asked. I told him that he had no choice but to get the team members Figure 13.  Appropriate project life cycle. CONCEPT DEFINITION PLANNING EXECUTION CLOSEOUT Define Develop Marketing DoallWork FinalReports Problem Strategy Input Monitor Lessons Develop Implementation Progress Learned Surveyof Vision Planning Competition Corrective Review WriteMission Risk Action Statement Management EFFORTEXPENDEDINPLANNING American Management Association • www.amanet.org12 Fundamentals of Project Management all going in the same direction by clarifying the mission of the proj ect. He asked me to facilitate a meeting to do this. At the meeting, I stood in front of a flip chart and began by saying, “Let’s write a problem statement.” Someone immediately countered by saying, “We don’t need to do that. We all know what the problem is.” I was unmoved by this comment. I said, “Well, if that is true, it’s just a formality and will only take a few minutes, and it would help me if we wrote it down, so someone help me get started.” I’m going to be a little facetious to illustrate what happened next. Someone said, “The,” and I wrote the word on the chart, and someone else said, “I don’t agree with that” Three hours later, we finally finished writing a problem statement. The project manager was right. The team did not agree on what the problem was, much less how to solve it. This is funda mental—and is so often true that I begin to think we have a de fective gene in all of us that prohibits us from insisting that we have a good definition of the problem before we start the work. Remember, project management is solving a problem on a large scale, and the way you define a problem determines how you will solve it. If you have the wrong definition, you may come up with the right solution—to the wrong problem In fact, I have become convinced that projects seldom fail at the end. Rather, they fail at the definition stage. I call these proj ects headlesschicken projects because they are like the chicken that has had its head chopped off and runs around spewing blood everywhere before it finally falls over and is “officially” dead. Proj ects work the same way. They spew blood all over the place, until someone finally says, “I think that project is dead,” and indeed it is. But it was actually dead when we chopped off its head in the beginning—it just took a while for everyone to realize it. Once the project is defined, you can plan how to do the work. There are three components to the plan: strategy, tactics, and lo gistics. Strategy is the overall approach or “game plan” that will be followed to do the work. An example of strategy was related to me by a friend who is into military history. American Management Association • www.amanet.orgAn Overview of Project Management 13 Strategy During World War II, defense contractors were under great pres sure to build weaponry at an intense level. To accelerate con struction of ships and planes in particular, many new assembly methods were invented. Avondale shipyards, for example, worked on the method of building ships. The traditional way had always been to build the ship in an upright position. However, ships built from steel required welding in the bottom, or keel area of the boat, and this was very difficult to do. Avondale decided to build its ships upside down, to make the welding easier, and then turn them over to complete the structures above the top deck. This strategy was so effective that Avondale could build boats faster, cheaper, and of higher quality than their competitors, and the strategy is still being used today, nearly seventy years later. Implementation Planning This phase includes tactics and logistics. If you are going to build boats upside down, you must work out the details of how it will be done. A fixture must be constructed that will hold the boat and allow it to be turned over without being damaged. This is called “working out the tactics.” It also includes the sequence in which the work will be done, who will do what, and how long each step will take. Logistics deal with making sure the team has the materials and other supplies needed to do their jobs. Ordinarily we think about providing teams with the raw materials they need, but if the project is in a location where they can’t get food, work will soon come to a grinding halt. So provisions must be made for the team to be fed—and possibly housed. Execution and Control Once the plan has been developed and approved, the team can begin work. This is the execution phase, but it also includes con trol, because, while the plan is being implemented, progress is monitored to ensure that the work is progressing according to the plan. When deviations from the plan occur, corrective action is American Management Association • www.amanet.org14 Fundamentals of Project Management taken to get the project back on track, or, if this is not possible, the plan is changed and approved, and the revised plan becomes the new baseline against which progress is tracked. Closeout When all the work has been completed, the closeout phase re quires that a review of the project be conducted. The purpose is to learn lessons from this job that can be applied to future ones. Two questions are asked: “What did we do well” and “What do we want to improve next time” Notice that we don’t ask what was done wrong. This ques tion tends to make people defensive, and they try to hide things that may result in their being punished. In fact, a lessonslearned review should never be conducted in a blameandpunishment mode. If you are trying to conduct an inquisition, that’s different. The purpose of an inquisition is usually to find who is responsible for major disasters and punish them. Lessonslearned sessions should be exactly what the words imply. I have learned during the past few years that very few organi zations do regular lessonslearned reviews of their projects. There is a reluctance to “open a can of worms.” And there is a desire to get on with the next job. The problem is that you are almost sure to re peat the mistakes made on the previous project if no one knows about them or has an understanding of how they happened so that they can determine how to prevent them. But, perhaps most im portant, you can’t even take advantage of the good things you did if you don’t know about them. It has been said that the organizations that survive and thrive in the future will be those that learn faster than their competitors. This seems especially true for projects. The Steps in Managing a Project The actual steps to manage a project are straightforward. Accom plishing them may not be. The model in Figure 14 illustrates the steps. American Management Association • www.amanet.orgAn Overview of Project Management 15 Figure 14.  The steps in managing a project. Define the Problem Develop SolutionOptions Plan the Project What must be done Who willdo it How willitbe done When must itbe done How much willitcost What do we need todo it Execute the Plan Monitor Control Progress Are we on target If not, what must be done Should the plan be changed Close Project What was done well What should be improved What else didwe learn Subsequent chapters of this book elaborate on how each step is accomplished. For now, here is a brief description of the actions involved. American Management Association • www.amanet.org16 Fundamentals of Project Management Define the Problem As was discussed previously, you need to identify the problem to be solved by the project. It helps to visualize the desired end re sult. What will be different What will you see, hear, taste, touch, or smell (Use sensory evidence if things can’t be quantified.) What client need is being satisfied by the project Develop Solution Options How many different ways might you go about solving the prob lem Brainstorm solution alternatives (you can do this alone or as a group). Of the available alternatives, which do you think will best solve the problem Is it more or less costly than other suit able choices Will it result in a complete or only a partial fix Plan the Project Planning is answering questions: what must be done, by whom, for how much, how, when, and so on. Naturally, answering these questions often requires a crystal ball. We discuss these steps in more detail in Chapters 2 through 4. Execute the Plan Obvious. Once the plan is drafted, it must be implemented. In terestingly, we sometimes find people going to great effort to put together a plan, then failing to follow it. If a plan is not followed, there is not much point in planning, is there Monitor and Control Progress Plans are developed so that you can achieve your end result suc cessfully. Unless progress is monitored, you cannot be sure you will succeed. It would be like having a roadmap to a destination but not monitoring the highway signs along the way. Of course, if a deviation from the plan is discovered, you must ask what must be done to get back on track, or—if that seems impossible—how the plan should be modified to reflect new realities. American Management Association • www.amanet.orgAn Overview of Project Management 17 Close the Project Once the destination has been reached, the project is finished, but there is a final step that should be taken. Some people call it an audit, others a postmortem (sounds a bit morbid, doesn’t it). Whatever you call it, the point is to learn something from what you just did. Note the way the questions are phrased: What was done well What should be improved What else did we learn We can always improve on what we have done. However, asking “What did we do wrong” is likely to make people a bit defen sive, so the focus should be on improvement, not on placing blame. More on this later. The Project Management Body of ® Knowledge (PMBOK ) The Project Management Institute has attempted to determine a minimum body of knowledge that is needed by a project manager in order for him or her to be effective. As I mentioned earlier when I defined project management, there are five processes ® defined by the PMBOK Guide, together with nine general areas of knowledge, and I will give brief summaries of them. If you want a complete document, you can get one by visiting the PMI website: Project Processes A process is a way of doing something. As previously mentioned, ® the PMBOK Guide identifies five processes that are used to man age projects. Although some of them will be predominant at cer tain phases of a project, they may come into play at any time. Broadly speaking, however, they tend to be employed in the se quence listed as the project progresses. That is, initiating is done first, then planning, then executing, and so on. In the event that a project goes off course, replanning comes into play, and if a proj ect is found to be in serious trouble, it may have to go all the way back to the initiating process to be restarted. American Management Association • www.amanet.org18 Fundamentals of Project Management Initiating Once a decision has been made to do a project, it must be initi ated or launched. There are a number of activities associated with this. One is for the project sponsor to create a project char ter, which defines what is to be done to meet the requirements of project customers. This is a formal process that is often omitted in organizations. The charter should be used to authorize work on the project; define the authority, responsibility, and accountability of the project team; and establish scope boundaries for the job. When such a document is not produced, the team members may misinterpret what is required of them, and this can be very costly. Planning One of the major causes of project failures is poor planning. Ac tually, I am being kind. Most of the time the problem is caused by there being no planning The team simply tries to “wing it,” to do the work without doing any planning at all. As I have explained earlier in this chapter, many of us are task oriented, and we see planning as a waste of time, so we would rather just get on with the work. As we will see when we turn to controlling the project, failing to develop a plan means that there can be no actual con trol of the project. We are just kidding ourselves. Executing There are two aspects to the process of project execution. One is to execute the work that must be done to create the product of the project. This is properly called technical work, and a project is conducted to produce a product. Note that we are using the word “product” in a very broad sense. A product can be an actual tangible piece of hardware or a building. It can also be software or a service of some kind. It can also be a result—consider, for ex ample a project to service an automobile that consists of changing the oil and rotating the tires. There is no tangible deliverable for such a project, but there is clearly a result that must be achieved, and if it is not done correctly the car may be damaged as a result. American Management Association • www.amanet.orgAn Overview of Project Management 19 Executing also refers to implementing the project plan. It is amazing to find that teams often spend time planning a project, then abandon the plan as soon as they encounter some difficulty. Once they do this, they cannot have control of the work, since without a plan there is no control. The key is to either take cor rective action to get back on track with the original plan or to re vise the plan to show where the project is at present and continue forward from that point. Monitoring and Controlling Monitoring and controlling can actually be thought of as two separate processes, but because they go hand in hand, they are considered one activity. Control is exercised by compar ing where project work is to where it is supposed to be, then taking action to correct for any deviations from target. Now the plan tells where the work should be. Without a plan, you don’t know where you should be, so control is impossible, by definition. Furthermore, knowing where you are is done by monitoring progress. An assessment of quantity and quality of work is made using whatever tools are available for the kind of work being done. The result of this assessment is compared to the planned level of work; if the actual level is ahead or behind of the plan, something will be done to bring progress back in line with the plan. Naturally, small deviations are always present and are ig nored unless they exceed some preestablished threshold or show a trend toward drifting further off course. Closing In too many cases, once the product is produced to the cus tomer’s satisfaction, the project is considered finished, or closed. This should not be the case. A final lessonslearned review should be done before the project is considered complete. Failing to do a lessonslearned review means that future projects will likely suffer the same headaches encountered on the one just done. American Management Association • www.amanet.org20 Fundamentals of Project Management Knowledge Areas ® As previously mentioned, the PMBOK Guide identifies nine knowledge areas that project managers should be familiar with in order to be considered professionals. These are as follows. Project Integration Management Project integration management ensures that the project is prop erly planned, executed, and controlled, including the exercise of formal project change control. As the term implies, every activity must be coordinated or integrated with every other one in order to achieve the desired project outcomes. Project Scope Management Changes to project scope are often the factors that kill a project. Project scope management includes authorizing the job, devel oping a scope statement that will define the boundaries of the project, subdividing the work into manageable components with deliverables, verifying that the amount of work planned has been achieved, and specifying scope change control procedures. Project Time Management I consider this a bad choice of terms, as “time management” im plies personal efforts to manage one’s time. Project time man agement specifically refers to developing a schedule that can be met, then controlling work to ensure that this happens It’s that simple. Because everyone refers to this as scheduling, it should really be called schedule management. (I know, I may be booted out of PMI for such heresy) Project Cost Management This is exactly what it sounds like. Project cost management in volves estimating the cost of resources, including people, equip ment, materials, and such things as travel and other support details. After this is done, costs are budgeted and tracked to keep the proj ect within that budget. American Management Association • www.amanet.orgAn Overview of Project Management 21 Project Quality Management As I have commented earlier, one cause of project failure is that quality is overlooked or sacrificed so that a tight deadline can be met. It is not very helpful to complete a project on time, only to discover that the thing delivered won’t work properly Project quality management includes both quality assurance (planning to meet quality requirements) and quality control (steps taken to monitor results to see if they conform to requirements). Project Human Resources Management Project human resources management, often overlooked in proj ects, involves identifying the people needed to do the job; defining their roles, responsibilities, and reporting relationships; acquiring those people; and then managing them as the project is executed. Note that this topic does not refer to the actual daytoday manag ® ing of people. The PMBOK Guide mentions that these skills are necessary but does not attempt to document them. Given that these are the most important skills that a project manager must ® have, the PMBOK Guide is deficient in omitting them. Project Communications Management As the title implies, project communications management in volves planning, executing, and controlling the acquisition and dissemination of all information relevant to the needs of all proj ect stakeholders. This information might include project status, accomplishments, and events that may affect other stakeholders or projects. Again, this topic does not deal with the actual process of communicating with someone. This topic is also mentioned ® but not included in the PMBOK Guide. Project Risk Management Project risk management is the systematic process of identifying, quantifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events American Management Association • www.amanet.org22 Fundamentals of Project Management to project objectives. This is an extremely important aspect of proj ect management that sometimes is overlooked by novice project managers. Project Procurement Management Procurement of necessary goods and services for the project is the logistics aspect of managing a job. Project procurement manage ment involves deciding what must be procured, issuing requests for bids or quotations, selecting vendors, administering contracts, and closing them when the job is finished. Key Points to Remember A project is a temporary endeavor undertaken to produce a unique product, service, or result. A project is also a problem scheduled for solution. Project management is application of knowledge, skills, tools, and techniques to project activities to meet project require ments. Project management is accomplished by applying the processes of initiating, planning, executing, monitoring and controlling, and closing. All projects are constrained by Performance, Time, Cost, and Scope requirements. Only three of these can have values assigned. The fourth must be determined by the project team. Projects tend to fail because the team does not take time to ensure that they have developed a proper definition of the problem being solved. The major phases of a project include concept, definition, planning, execution and control, and closeout. American Management Association • www.amanet.orgAn Overview of Project Management 23 Questions for Review 1. Project management is not just: a. planning b. rework c. scheduling d. controlling 2. The problem with being a working project manager is that, in a conflict between working and managing: a. You don’t know what priorities to set. b. Your boss will think you’re slacking off. c. There will never be enough time to do both. d. The work will take precedence and managing will suffer. ® 3. The PMBOK Guide refers to: a. The body of knowledge identified by PMI as needed by project managers to be effective. b. A test administered by PMI to certify project managers c. An acronym for a special kind of risk analysis, like FMEA (Failure Mode and Effects Analysis) d. None of the above 4. Project scope defines: a. A project manager’s visibility to the end date. b. The magnitude or size of the job. c. How often a project has been changed. d. The limits of a project manager’s authority. American Management Association • www.amanet.orgCHAPTER 2 CHAPTER 2 The Role of the Project Manager he role of project managers seems to be very misunder stood throughout the world. Because many project man agers arrive at their position as a natural progression from their The primary respon T T jobs as engineers, programmers, sibility of the project scientists, and other kinds of jobs, both they and their bosses see the job as a manager is to ensure technical job. This simply isn’t true. that all work is If you remember that every project produces a product, service, or result, completed on time, then there is a technical aspect to the within budget and job. However, it is a question of who is responsible for what, and project man scope, and at the agers who must manage the project and handle technical issues are set up to fail correct performance from the beginning. I will explain this level. later on. For now, suffice it to say that the primary responsibility of the project manager is to ensure that all work is completed on time, within budget and scope, and at the correct performance level. That is, 24 American Management Association • www.amanet.orgThe Role of the Project Manager 25 she must see that the PCTS targets are met. Her primary role is to manage the project, not do the work What Is Managing The PMI definition of project management does not completely capture the true nature of project management. Remember, it says that “project management is application of knowledge, skills, tools, and techniques to project activities to meet the project re quirements. Project management is accomplished through the ap plication and integration of the 42 logically grouped project management processes comprising the 5 Process Groups: initiat ing, planning, executing, monitoring and controlling, and clos ® ing” (PMBOK Guide, Project Management Institute, 2008, p. 6). That sounds nice on paper, but what is it that a person really does when he manages I don’t know if it is really possible to convey what managing actually is. One reason is that project management is a perform ing art, and it is difficult to convey in words what an actor, ath lete, or artist does. However, we can describe the various roles of a project manager, and that is the focus of this chapter. What should be clear is that you can’t very well become something if you can’t describe and define it, so this is a necessary exercise. Definitions of Management One common definition of management says that a manager gets work done by other people. Only a bit of thought is needed to re alize how useless this definition is. Dictators get work done by other people, but I wouldn’t call that management. Dr. Peter Drucker, whom many credit with being the “father” of manage ment because he first made people realize that management was a profession, rather than a job, has said that a manager is sup posed to make an unsolicited contribution to the organization. That is, a manager looks around to see what needs to be done to advance the cause of the organization and does it without asking American Management Association • www.amanet.org26 Fundamentals of Project Management permission or having to be told to do it. This is often called being proactive, as opposed to reactive, and it is. But, most important, a manager can’t do this unless she un derstands the mission and vision for the organization and takes initiative to help achieve these. And I believe this applies equally well to project managers. First, they must understand the mission and vision of the Project managers organization; then they must see how must understand the project they are managing meshes with the organization’s mission; then the mission and they must steer the project to ensure that v ision of the organi the interests of the organization are met. zation first, then It’s about People they must see how In addition, I said earlier that the job is not a technical job. It is about getting the project they are people to perform work that must be done to meet the objectives of the proj managing meshes ect. In that respect, the classical defini with the organiza tion is correct, but Drucker has pointed out that the manager must get people to tion’s mission, and perform above the minimum acceptable they must steer the performance level. The reason is that this minimum level is the survival level for project to ensure the organization, and any company that that the interests just manages to survive will not do so for long. Eventually the competition will of the organization pass it by, and the organization will die. So the first skills that a project man are met. ager needs are people skills. Herein lies the source of major problems for many project managers—and general managers, too, for that matter. I have found that most managers know more about getting performance from comput ers, machines, and money than they do about getting people to perform. There are many reasons for this, but chief among them is that nobody has ever taught them practical methods for dealing American Management Association • www.amanet.orgThe Role of the Project Manager 27 with people, and we simply aren’t born knowing how. So far as I know, the geneticists have not yet found a peopleskills gene that endows a person with these skills. Furthermore, many project managers who have strong tech nical backgrounds find it difficult to deal with people effectively. They are “things oriented,” not people oriented, and some will even go so far as to say that they hate this aspect of the job. My recommendation is that they forget about being project managers if this is true. You usually aren’t very effective at something you hate doing, but, beyond that, why spend your life doing some thing you hate The Working Project Manager In fact, one of the biggest traps for project managers is to be what is euphemistically called a working project manager. This means that the project manager is indeed responsible for performing technical work, in addition to managing the job. The problem with this is that when there is a conflict between managing and doing work—and there always is such a conflict—the work will take priority and the managing will be neglected. However, when it comes time for the manager’s performance appraisal, he will be told that his technical work was okay, but the managing was in adequate. This is a double bind that should not exist. Authority The universal complaint from project managers is that they have a lot of responsibility but no authority. It is true, and it is not likely to change. It is the nature of the job, I’m afraid. However, you can’t delegate responsibility without giving a person the authority commensurate with the responsibility you want him to take, so, while the project manager’s authority might be limited, it cannot be zero. A word to project managers, however. I learned early in my career as an engineer that you have as much authority as you are willing to take. I know that sounds strange. We see authority as something granted to us by the organization, but it turns out that American Management Association • www.amanet.org28 Fundamentals of Project Management those individuals who take authority for granted usually get it of ficially. Of course, I am not advocating that you violate any of the policies of the organization. That is not a proper use of authority. But when it comes to making decisions, rather than checking with your boss to see if something is okay, make the decision yourself, take action that is appropriate and does not violate pol icy, and then inform your boss what you have done. Many man agers have told me that they wish their people would quit placing all decisions on their shoulders to make. And they wish their peo ple would bring them solutions, rather than problems. In other words, your boss is looking for you to take some of the load and leave her free to do other things. A Moment of Truth Jan Carlzon was the youngest ever CEO of Scandinavian Airlines, and he successfully turned around the ailing airline. He did so in part by empowering all employees to do their jobs without having to ask permission for every action they felt they should take to meet customer needs. He pointed out that every interaction be tween an employee and a customer was a moment of truth in which the customer would evaluate the airline’s service. If that service was good, then the customer would be likely to fly SAS again; conversely, if it wasn’t good, the customer would be less likely to do so. As Carlzon pointed out, from the customer’s point of view, the SAS employee is the airline. Furthermore, Carlzon revised the standard organization chart, which is typically a triangle with the CEO at the apex and successive levels of managers cascading down below, eventuat ing to the frontline employees at the very bottom. This implies that there is more and more authority as you go from the bottom toward the apex at the top and that the people at the lowest level have almost no authority at all. Carlzon simply inverted the triangle, placing the apex at the bottom and the frontline employees at the top. In doing so, he said that the job of managers is to make it possible for the front line to American Management Association • www.amanet.orgThe Role of the Project Manager 29 deliver the services that the customer expects. The manager is an enabler of employees. They are actually servants of employees, not their masters, when you look at it this way. This is, to me, the essence of the project manager’s role. Since you have very little authority anyway, consider that your job is to ensure that everyone in the project Since you have very team has what he needs to do his job well. If you do, then most of your team little authority any will perform at appropriate levels. way, consider the Leadership and job to ensure that Management Finally, because the project manager’s everyone in the proj job is mostly about dealing with peo ect team has what ple, it is absolutely essential that you exercise leadership as well as manage they need to do ment skills (see Chapter 13). I have their job well. defined management as making an unsolicited contribution to the organi zation. The definition of leadership that seems to me to best ex press the meaning of the word is this (from The Pyramid Climbers): “Leadership is the art of getting others to want to do something that you believe should be done.” The operative word in the defin ition is “want.” As I said previously, dictators get people to do things. Leaders get them to want to do things. There is a big difference. As soon as the dictator turns her back, people quit working. When the leader turns her back, people continue working, because they are working willingly. Clearly, a project manager needs to exercise leadership, since he lacks authority. But, most important, the dictator can control only those people within his immediate range of sight. The leader can get people to perform without having to closely supervise them. And this is necessary in projects. However, a project manager must also exercise management American Management Association • www.amanet.org30 Fundamentals of Project Management skills. In fact, the two sets of skills must be integrated into the job of project management because management deals with the administrated aspects of the job—budgets, schedules, logistics, and so on—while leadership gets people to perform at optimum levels. If you exercise one set of skills to the exclusion of the other, the outcome will be far less effective than if you integrate the two skill sets. Do You Want to Be a Project Manager Project management is not for everyone. I emphasized earlier that it is not a technical job. It is about getting people to perform work that must be done to meet the objectives of the project. So when I am asked what I consider to be the most important attributes for project So when I am asked managers to have, I always say that peo what I consider to ple skills are number one through three. Then, below that, comes everything else. be the most impor If you can deal with people, you can ei ther learn to do everything else or dele tant attributes for gate it to someone who can do it. But project managers being able to do everything else without being good at dealing with people just to have, I always won’t cut it. say that people Now the question is, do you really want to be a project manager Do you skills are number like having responsibility with very lim one through three. ited authority Do you enjoy working to impossible deadlines, with limited re sources and unforgiving stakeholders Are you, in other words, a bit masochistic If you are, then you will love being a project manager. If you are the boss of project managers, these are things you should consider in selecting people for the job. Not everyone is cut out for the job. American Management Association • www.amanet.orgThe Role of the Project Manager 31 Key Points to Remember A project manager must understand the mission and vision of the organization first, see how the project they are managing meshes with the organization’s mission, and then steer the project to ensure that the interests of the organization are met. The first skills a project manager needs are people skills. One of the biggest traps for project managers is to perform technical work in addition to managing the job, because, when there is a conflict between performing the two, the proj ect manager cannot neglect the management aspects. Instead of asking for authority, make decisions yourself, take action that is appropriate and does not violate policy, and then inform your boss what you have done. The project manager’s job is to ensure that everyone in the project team has what he needs to do his job well. A project manager must exercise both leadership and man agement skills. American Management Association • www.amanet.orgCHAPTER 3 CHAPTER 3 Planning the Project n Chapter 1, I talked about the high cost of project failures. Almost every study finds that failures are caused primarily by poor project management, especially the failure to plan properly. There are two barriers to good planning. The first I I is prevailing paradigms, and the second is the nature of human beings. A paradigm is a belief about what the world is like. You can tell what people believe by watching what they do, because they always behave consistently with their deeply held beliefs. It is not necessarily what they say they believe but what they really be lieve that counts. Chris Argyris, in his book Overcoming Organi zational Defenses: Facilitating Organization Learning, has called these beliefs one’s theory espoused as opposed to one’s theory in practice. To illustrate, a fellow who attended my seminar on the tools of project management later told me that, upon return ing to work, he immediately convened a meeting of his project team to prepare a plan. His boss called him out of the confer ence room. “What are you doing” asked the boss. “Planning our project,” explained the fellow. 32 American Management Association • www.amanet.orgPlanning the Project 33 “Oh, you don’t have time for that nonsense,” his boss told him. “Get them out of the conference room so they can get the job done” It is clear that his boss didn’t believe in planning, which raises this question: Why did he send the fellow to a training program if he really didn’t believe in what is taught Go figure. The second reason that people don’t plan is that they find the activity painful. Some individuals, especially engineers and pro grammers, are concerned that they will be held to estimates of task durations that they have made using their best guesses. Be cause they have no historical data to draw on, this is all they can do. But they also know that such numbers are highly uncertain, and they are afraid that failure to meet established targets will get them in trouble. As one of my engineers told me once, “You can’t schedule creativity.” I replied that this may be true, but we must pretend we can, because no one will fund the project unless we put down a time. Since then, I have changed my mind—you can schedule creativ ity, within limits. In fact, there is no better stimulus to creative thinking than a tight deadline. If you give people forever, they simply mess around and don’t produce anything. Nevertheless, we find that, when people are required to plan a project, they find the activity painful, and they resist the pain it causes. The net result is that they wind up on the pain curve numbered 1 in Figure 31. The net result of being on this curve is to experience a lot of pain, because the total pain experienced is represented by the area under the curve. In curve 2 of the figure, there is a lot of pain early on, but it diminishes over time, and the total area under the curve is less than that under curve 1. The Absolute Imperative of Planning If you consider the major function of managing, it is to ensure that desired organization objectives are met. This is accomplished by exercising control over scarce resources. However, the word American Management Association • www.amanet.org34 Fundamentals of Project Management Figure 31.  Two pain curves in a project over time. 1 2 Time control has two connotations, and we must be careful which one we intend. One meaning of the word is “power and domination.” In management, this is sometimes called Control is exercised the commandandcontrol approach, which in its worst form degenerates into by comparing where the use of fear and intimidation to get things done. This method works when you are to where people have no other desirable options you are supposed for employment or are not free to leave (as in the military or a prison). However, to be so that cor in a robust economy, very few employees rective action can tolerate such management for long. The second meaning of control—and be taken when there the one I advocate for managers—is high is a deviation. lighted in the idea that control is exer American Management Association • PainPlanning the Project 35 cised by comparing where you are to where you are supposed to be so that corrective action can be taken when there is a deviation. Notice that this is an information systems or guidance definition. Furthermore, note that two things are necessary for control to exist. First, you No plan, no control must have a plan that tells where you are supposed to be in the first place. If you have no plan, then, you cannot possibly have control. I think we need to remind ourselves of this almost every day, because it is so easy to forget when you are constantly being assaulted by demands to do this and that and a million other things. Second, if you don’t know where Predicting the future you are, you can’t have control. Know ing where you are isn’t as easy as it may is easy. It’s knowing seem, especially in doing knowledge what’s going on now work. For example, you say you expect to write ten thousand lines of code by that’s hard. today, and you’ve written eight thou —Fritz R. S. Dressler sand. Does that mean you’re 80 per cent of where you should be Not necessarily. You may have found a more efficient way to write the code. In any event, the major point to remember is that you cannot have control unless you have a plan, so planning is not optional. Another trap that causes people not to plan is to believe that they have no time to plan; they need to get the job done really fast This is counterintuitive, but think about it—if you have forever to get something done, then you don’t need a plan. It’s when the deadline is tight that the plan becomes really impor tant. As a simple example, imagine flying into Chicago and being late. You have a meeting across town in less than an hour. You’ve never been to Chicago, but when the rental car atten dant asks if you need a map, you say, “I don’t have time for a map. I’ve got to get to my meeting really fast” Not very likely, is it American Management Association • www.amanet.org36 Fundamentals of Project Management Planning Defined Planning is quite simply answering the questions shown in Figure 32. They may be called the “who, what, when, why, how much, how long” questions that you learned if you ever studied inter viewing methods. It is that simple. And it is that hard. I say hard because answering some of these questions requires a crystal ball—especially questions like “How long will that take” On tasks for which no history is available, this is a very hard question to answer. As my engineer said, “You can’t schedule creativity.” Figure 32.  Planning is answering questions. WHO WILL BY WHEN MUST DO IT IT BE DONE HOW MUCH WILL IT COST HOW SHOULD IT BE DONE WHAT MUST HOW GOOD BE DONE DOES IT HAVE TO BE Strategy, Tactics, and Logistics To plan a project properly, you must attend to three kinds of ac tivities that may have to be performed during the life of the job. These are strategy, tactics, and logistics. Strategy refers to the overall method you will employ to do the job, sometimes referred to as a “game plan.” As I related in Chapter 1, for thousands of years boats have been built with the keel down so that when one wishes to put the boat in the water, it is already right side up. This method worked fine until the American Management Association • www.amanet.orgPlanning the Project 37 1940s, when World War II placed tremendous pressure on ship yards to build military ships faster and ships were being built out of steel plate, rather than wood. Shipbuilders quickly found that it was extremely difficult to weld in the keel area. From the out side, you had problems getting under the ship, and inside you had to stand on your head to weld. Avondale shipyards decided that it would be easier to build steel boats if ships were built upside down. The welding in the keel area now could be done from outside, standing above the ship, and to work on the inside one could stand upright. This strategy proved so effective that Avondale could build boats faster, cheaper, and of higher quality than its competitors, and the ap proach is still being used today. Too often planners choose a project strategy because “it has always been done that way,” rather than because it is best. You should always ask yourself, “What would be the best way to go about this” before you proceed to do detailed implementation planning. Implementation Planning Once you have decided to build boats upside down, you must work out all of the details of how it will be done. Sometimes we say that we must be sure to dot all of the “i’s” and cross all the “t’s.” This is where you answer those “who, what, when, and where” questions. In fact, it is implementation planning that many people think of when they talk about planning. However, a welldeveloped implementation plan for the wrong project strat egy can only help you fail more efficiently. Logistics Military people can quickly tell you the benefit of attention to lo gistics. You can’t fight a battle if people have no ammunition, food, clothing, or transportation. It is logistics that attends to these things. I once saw a project scheduling program (regrettably now defunct) that allowed construction managers to record when a certain quantity of bricks was delivered to their site; it American Management Association • www.amanet.org38 Fundamentals of Project Management then showed when they would run out, given a specific utiliza tion rate. This would alert managers to schedule delivery of a new supply just before the existing stock was depleted. I was also told about a road construction project in India that had very bad living conditions for the workers. The food was bad, sleeping conditions were poor, and the workers were suffering low morale. The project manager and his staff were all staying in a nice hotel in a nearby city. They finally realized the problem and moved to the site with the workers. Living conditions imme diately improved, and so did worker morale. This is an example of the importance of a peripheral aspect of logistics. Plan Ingredients Following are the minimum ingredients that should be contained in a project plan. It is a good idea to keep these in a centralized project database. Initially, the electronic file will contain only the plan. As the project is managed, reports, changes, and other docu ments will be added, so that when the project is completed the file will contain a complete history of the project, which can be used by others as data for planning and managing their own projects. Here are the items that make up the project plan: Problem statement. Project mission statement (see Chapter 4 for instructions on how to develop a mission statement). Project objectives (see discussion in Chapter 4). Project work requirements, including a list of all deliverables, such as reports, hardware, software, and so on. It is a good idea to have a deliverable at each major project milestone so that progress can be measured more easily. Exit criteria. Each milestone should have criteria established that will be used to determine whether the preceding phase of work is actually finished. If no deliverable is provided at a milestone, exit criteria become very important. American Management Association • www.amanet.orgPlanning the Project 39 Enditem specifications to be met. This means engineering specifications, architectural specs, building codes, govern ment regulations, and so on. Work breakdown structure (WBS). This is an identification of all of the tasks that must be performed in order to achieve project objectives. A WBS is also a good graphic portrayal of project scope (see Chapter 6). Schedules (both milestone and working schedules should be provided; see Chapters 7 and 8). Required resources (people, equipment, materials, and facili ties). These must be specified in conjunction with the schedule (see Chapters 7 and 8). Control system (see Chapters 9, 10, and 11). Major contributors. Use a linear responsibility chart (see Chapter 6). Risk areas with contingencies when possible (see Chapters 4 and 5). SignOff of the Plan Once the plan has been prepared, it STAKEHOLDER: should be submitted to stakeholders for their signatures. Anyone who has a Following are some comments about vested interest in the meaning of a signature and sugges tions for handling the process: the project. These A signature means that the individ include contribu ual is committed to his contribution, tors, customers, agrees with the scope of work to be done, and accepts the specs as valid. managers, and A signature on the part of a contrib f inancial people. utor does not mean a guarantee of American Management Association • www.amanet.org40 Fundamentals of Project Management performance. It is a commitment. Because there are factors outside our control, few of us would like to guarantee our per formance. However, most would be willing to make a com mitment, meaning we promise to do The project plan our best to fulfill our obligations. If a signature is treated as a guarantee, ei should be reviewed ther signers will refuse to sign or they and signed off in will sign without feeling really com mitted to the agreement. Neither re a meeting—not sponse is desirable. through interoffice The plan should be signed in a proj ect plan review meeting, not by mail. mail Circulating copies for signature by mail seldom works, as people may be too busy to read in depth and may miss important points that would be brought out in a signoff meeting. People should be encouraged to Encourage people “shoot holes in the plan” during the review meeting, rather than wait to spot problems until problems develop later on. Nat during the signoff urally, this does not mean that they should nitpick the plan. The objec meeting, not later. tive is to ensure that the plan is workable—that is all. Changing the Plan It would be nice to think that a plan, Make changes in an once developed, would never change. However, that is unrealistic. No one has orderly way, follow 20/20 foresight. Unforeseen problems ing a standard are almost certain to arise. The impor tant thing is to make changes in an or change procedure. derly way, following a standard change procedure. American Management Association • www.amanet.orgPlanning the Project 41 If no change control is exercised, the project may wind up over budget, behind schedule, and hopelessly inadequate, with no warning until it is too late. Here are suggestions for handling changes to the plan: Changes should be made only when a significant deviation occurs. A significant change is usually specified in terms of percent tolerances relative to the original targets. Change control is necessary to pro Any plan is bad tect everyone from the effects of scope creep—changes to the project which is not sus that result in additional work. If ceptible to change. changes in scope are not identified and managed properly, the project —Bartolommno de San may come in considerably over bud Concordio (1475–1517) get and/or behind schedule. Causes of changes should be documented for reference in planning future projects. The causes should be factual, not blameandpunishment statements. A comprehensive process for managing project change is pre sented in Chapter 10. Suggestions for Effective Planning Here are some ideas to help you plan effectively: Plan to plan. It is always difficult to get people together to develop a plan. The planning session itself should be planned, or it may turn into a totally disorganized meeting of the type that plagues many organizations. This means that an agenda must be prepared, the meeting should be time limited to the degree pos sible, and people should be kept on track. If someone goes off on a tangent, the meeting facilitator should get the person back on track as quickly as possible. There are many excellent guides to American Management Association • www.amanet.org42 Fundamentals of Project Management running meetings (e.g., Mining Group Gold by Tom Kayser); the reader is referred to those. Rule: The people The people who must implement a plan should participate in preparing it. who must do the Otherwise, you risk having contributors work should partici who feel no sense of commitment to the plan; their estimates may be erroneous, pate in developing and major tasks may be forgotten. the plan. The first rule of planning is to be prepared to replan. Unexpected obstacles will undoubtedly crop up and must be handled. This also means that you should not plan in too much detail if there is a like lihood that the plan will have to be The first rule of changed, as this wastes time. planning is to be Because unexpected obstacles will prepared to replan crop up, always conduct a risk analysis to anticipate the most likely ones (see Chap ter 5). Develop Plan B just in case Plan A doesn’t work. Why not just use Plan B in the first place Because Plan A is better but has a few weaknesses. Plan B has weaknesses also, but they must be dif ferent from those in Plan A, or there is no use in considering Plan B a backup. The simple way to do a risk analysis Identify project is to ask, “What could go wrong” This should be done for the schedule, work risks and develop performance, and other parts of the contingencies to project plan. Sometimes, simply identi fying risks can help avert them, but, if deal with them if that cannot be done, at least you’ll have they occur. a backup plan available. One caution: If you are dealing with very analytical people, they may go into analysis paralysis here. You are not trying to identify every possible risk—just those that are fairly likely. American Management Association • www.amanet.orgPlanning the Project 43 Begin by looking at the purpose of doing whatever is to be done. Develop a problem statement. All actions in an organiza tion should be taken to achieve a result, which is another way of saying “solve a problem.” Be careful here to identify what the end user really needs Consider the little to solve the problem. Sometimes we see mouse, how saga projects in which the team thinks a solu tion is right for the client, but that solu cious an animal it tion is never used, resulting in significant is which never waste to the organization. entrusts its life Use the Work Breakdown Struc ture (discussed in Chapter 6) to divide the to one hole only. work into smaller chunks for which you can develop accurate estimates for dura —Plautus (254–184 B.C.) tion, cost, and resource requirements. Project Planning Steps The basic planning steps are as follows. Note that some of these topics are covered in the next chapter. Be sure the project Define the problem to be solved by the project. really satisfies the Develop a mission statement, followed customer’s needs, by statements of major objectives. rather than being Develop a project strategy that will what the team meet all project objectives. thinks the cus Write a scope statement to define project boundaries (what will and tomer should get will not be done). Develop a Work Breakdown Structure (WBS). Using the WBS, estimate activity durations, resource require ments, and costs (as appropriate for your environment). American Management Association • www.amanet.org44 Fundamentals of Project Management Prepare the project master schedule and budget. Decide on the project organization structure—whether ma trix or hierarchical (if you are free to choose). Create the project plan. Get the plan signed off by all project stakeholders. Key Points to Remember If you have no plan, you have no control. The people who must execute a plan should participate in preparing it. Have the plan signed off in a meeting, not by sending it through the interoffice mail. Keep all project documentation in an electronic project file. Use exit criteria to determine when a milestone has actually been achieved. Require that changes to the project plan be approved before you make them. Risk management should be part of all project planning. A paradigm is a belief about what the world is like. Planning is answering the “who, what, when, how, how long, and how much” questions. Logistics refers to supplying people with materials and sup plies they need to do their jobs. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . We have talked about strategy, tactics, and logistics. Which must be decided first What is the function of tactics When would you plan for logistics American Management Association • www.amanet.orgCHAPTER 4 CHAPTER 4 Developing a Mission, Vision, Goals, and Objectives for the Project efore a project team does any work, it should spend time ensuring that it has a shared understanding of where it is going. The terms used to define that destination are “mis sion,” “vision,” “goals,” and “objectives.” And it is at this B very early stage that projects tend to fail, because everyone B takes for granted that “we all know what the mission is.” Defining the Problem Every project solves a problem of some kind, but people are in clined to skip over the definition of the problem. This is a big mis take. The way you define a problem determines how you will solve it, so it is critical that a proper definition be developed. For example, too often a problem is defined in terms of a solution. A person may say, “I have a problem. My car has quit, and I have no way to get to work. How am I going to get my car repaired, because I have no money to do it” The problem has essentially been defined as “How do I repair 45 American Management Association • www.amanet.org46 Fundamentals of Project Management my car” The actual problem, however, at its most fundamental level, is that the person has no way to get to work—or so he says. But could he ride the bus, go with a coworker, or ride a bike until he has the money to have the car repaired It is true that having no money to repair the car is a problem, but it is important to dis tinguish between the basic or core problem and those at another level. I once heard a sales manager berate a salesman, saying, “The company has spent a lot of money developing this new product, and none of you are selling it. If you don’t get out there and sell this product, I’m going to find myself some salespeople who can sell” It is clear how he has defined the problem—he has a group of salespeople who can’t sell. However, given that none of them can sell the product, I am sure he is wrong. There is something wrong with the product or market, or A problem is a gap the competition is killing them. You are very unlikely to have all bad salespeople between where you Nevertheless, this manager has de fined the problem in terms of people, and are and where you that is the way it must be solved. Imagine want to be, with that he replaces all of the salespeople. He will still have the same problem, because obstacles existing he has not addressed the actual cause. that prevent easy People sometimes define a problem as a goal. A goal in itself is not a problem. movement to close It is when there are obstacles that make the gap. it difficult to reach the goal that one has a problem. Given this definition of a prob lem, we can say that problem solving involves finding ways to deal with obstacles: They must be overcome, bypassed, or removed. Confusion of Terms Suppose a person tells you that she is taking a new job in a distant city, and she plans to move there. She immediately realizes that American Management Association • www.amanet.orgDeveloping a Mission, Vision, Goals, and Objectives 47 she must find a place to live. So she says, “I have a problem. I have to find a place to live.” You ask her what her mission is. “To find a place to live,” she says. And how about her vision “To have a place to live,” she an swers, a little confused. No wonder she is confused. All three statements sound alike She needs to understand the difference between them if she is to solve this problem. Remember, a problem is a gap. Suppose we were to ask her to tell us where she wants to be when her problem is solved. She would say, “I would have a place to live in the new city.” “And where are you now” you ask. “I have no place to live,” she says. Then the gap is between having a place and not having one. This can be stated simply as “I have no place to live.” And, in deed, this is the problem she is trying to solve. But—would just any place be okay Of course not. She doesn’t want to live under a bridge, although homeless people sometimes do. So if you ask her, “What kind of place are you looking for” she can tell you. “It needs to have three bedrooms, the house must be of a certain size, and I prefer a certain style,” she says. This is her vision for the kind of place she wants to live in. That vision literally paints a picture in her mind, and, when she finds a place that comes close to that picture, she will have “arrived” at her destination. This is the function of vision—it defines “done.” Her mission, then, is to find a place that conforms to her vi sion. Another way to say this is that the mission of a project is al ways to achieve the vision. In doing so, it solves the stated problem. So you may want to diagram it as shown in Figure 41. Note that the vision has been spelled out as a list of things she must have, along with some that she wants to have and a few that would be nice to have if she could get them. American Management Association • www.amanet.org48 Fundamentals of Project Management Figure 41.  Chevron showing mission, vision, and problem statement. Problem: I havenoplaceto live. NICE MUSTS WANTS 3bedrooms roomfor fireplacein homeoffice familyroom 2,500 sq. ft. 2cargarage basement 1acre lot largefamily room Mission: To find aplacethat meetsall mustsandas manyof the othersas possible. The Real World Okay, now we know the differences among the mission, vision, and problem, but in the “real world” you never get them in this order. Your boss or project sponsor will say, “Here is your mis sion,” without any mention of a problem statement. It is possible that some discussion of the sponsor’s vision of the end result will take place, but even that may be fairly sketchy. So the first order of business for a project team is to develop these into a form that everyone will accept. The major “political” problem you may encounter is that the sponsor will undoubtedly have given you a mission that is based on his definition of the problem to be solved. Sometimes his defi nition will be incorrect, and you will have to confront this. Other wise, you will spend a lot of the organization’s money, only to American Management Association • www.amanet.orgDeveloping a Mission, Vision, Goals, and Objectives 49 find that you have developed the right solution to the wrong problem. The Real Mission of Every Project I said earlier that the mission is always to achieve the vision. However, I should add that the vision you are trying to achieve is the one the customer holds. Another way to say this is that you are trying to satisfy the customer’s needs. That is the primary ob jective. Your motive may be to make a profit in the process, but the mission is always to meet the needs of the customer. That means, of course, that you must know what those needs are, and sometimes this isn’t easy, because even the customer isn’t clear about them. So you have to translate or interpret as best you can. Your best safeguard is to keep the customer involved in the proj ect from concept to completion so that there is a constant check on whether what you are doing will achieve the desired result. The mission of the project can be written by answering two questions: 1. What are we going to do 2. For whom are we going to do it In the previous edition of this book, it was suggested that you also state how you will go about meeting those customer needs, but this should not be part of the mission statement itself. The mis sion statement defines “what” you are doing; “how” you are going to do it is project strategy and should be dealt with separately. Developing Project Objectives Once a mission statement has been developed, you can write your project objectives. Note that objectives are much more spe cific than the mission statement itself and define results that must be achieved in order for the overall mission to be accomplished. Also, an objective defines the desired end result. American Management Association • www.amanet.org50 Fundamentals of Project Management I may want to finish this chapter by 10 o’clock this morning. That is my desired outcome or result—my objective. The way in which I achieve that objective is to per form a number of tasks. These might in Goal setting has clude typing text into my computer, traditionally been reviewing some other literature on the topic about which I am writing, calling a based on past colleague to ask a question for clarifica p erformance. This tion, and printing out the chapter, proof ing it, and entering some revisions into practice has tended my computer. to perpetuate the The following acronym may help you remember the essential qualities sins of the past. that a statement of objectives must have. We say that an objective must be SMART, —J. M. Juran each letter standing for a condition as follows: Specific Measurable Attainable An objective specifies Realistic a desired end result Time limited to be achieved. A Dr. W. Edwards Deming has raised some serious questions about the advis task is an activity ability of trying to quantify goals and ob performed to achieve jectives. He argued that there is no point in setting quotas for a manufacturing that result. An ob process to reach. If the system is stable, jective is usually he argued, then there is no need to spec ify a goal, since you will get whatever the a noun, whereas a system can produce. A goal beyond the task is a verb. capability of the system can’t be achieved. American Management Association • www.amanet.orgDeveloping a Mission, Vision, Goals, and Objectives 51 On the other hand, according to Deming, if the system is not stable (in the statistical sense of the word), then again there is no need to specify a quota, since there is no way to know what the capability of the system is. In project work, we may know the capability of a person by looking at his or her past performance, but, unless you have a large number of samples, you have no way of knowing exactly what the person can do, since there is always variability in people’s performance. Furthermore, it does no good to base a quota on what someone else has done. The quota must be valid for the per son who is going to do the job this time. We all know that some people are capable of more output than others. So defining the measurement and attainability aspects of goal or objective setting is very difficult. I go into this more in Chapter 6 when I discuss time estimating. I have found the following two questions to be useful both in setting objectives and in monitoring progress toward those objectives: 1. What is our desired outcome This is called the outcome frame. It helps keep you focused on the result you are trying to achieve, rather than on the effort being expended to get there. 2. How will we know when we achieve it I call this the evi dence question. This question is very useful for establishing exit criteria for objectives that cannot be quantified. What follows are a couple of examples of objectives: Our objective is to develop a oneminute commercial to so licit contributions to WXYZ to air on local TV stations by June 5, 2012. Our objective is to raise 600,000 in funds from local view ers by September 18, 2012. American Management Association • www.amanet.org52 Fundamentals of Project Management The Nature of Objectives Note that these examples of objectives do not say how they will be achieved. I consider an objective to be a statement that tells me what result is to be achieved. The “how” is problem solving, and I prefer to keep that open so that solutions can be brain stormed later. If the approach is written into the objective state ment, it may lock a team into a method that is not really best for the project. Assessing Project Risks Once you have established your objectives, you can develop plans for how to achieve them. Unfortunately, the best plans sometimes don’t work. One safeguard in managing projects is to think about the risks ahead that could sink the job. This can be done for critical objectives and for other parts of the plan. The simplest way to conduct a risk analysis is to ask, “What could go wrong” or “What could keep us from achieving our objective” It is usually best to list the risks first, then think about contingen It is helpful to as cies for dealing with them. One way to sess risks of failure look at risk is to divide a flip chart page in half, have the group brainstorm the of the following: risks, which you write down on the left The schedule side of the page, and then go back and list the contingencies—things you can The budget do to manage the risks if they do mate Project quality rialize. An example of a risk analysis for a photography project is shown in Fig Customer satis ure 42. One benefit of doing a risk analysis faction in this manner is that it may help you avert some risks. When you cannot avert a risk, you will at least have a backup plan. Unexpected risks can throw a project into a tailspin. American Management Association • www.amanet.orgDeveloping a Mission, Vision, Goals, and Objectives 53 Figure 42.  Risk analysis example. What could go wrong Contingency 1. Exposure wrong Bracket the exposure 2. Shots unacceptable Take extra photos 3. Film lost or damaged Hand carry to client 4. Weather delays Allow extra time I mentioned this point previously, but it bears repeating: You are not trying to identify every possible risk, just some of the more likely ones. This point should be made to Risk analysis team members who are highly analytical or who perhaps have a tendency to be should not lead to negative in general. Also, risk analysis al ways has a positive thrust—that is, you analysis paralysis are asking, “If it happens, what will we do about it” You don’t want people to say, “Ain’t it awful” In Chapter 5, I present detailed tools and techniques to address risk management in the project environment. Key Points to Remember The way a problem is defined determines how you will solve it. A problem is a gap between where you are and where you want to be, with obstacles making it hard to reach the goal. A goal by itself is not a problem. Obstacles must exist for there to be a problem. Vision is what the final result will “look like.” It defines “done.” The mission is to achieve the vision. It answers the two ques tions “What are we going to do” and “For whom are we going to do it” American Management Association • www.amanet.org54 Fundamentals of Project Management Objectives should be SMART. You can identify risks by asking, “What could go wrong” Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Choose a project that you are going to do or perhaps have just started. Answer the questions that follow to the best of your ability. If you need to confer with others to answer some of them, fine. Remember, the people who have to follow the plan should partici pate in preparing it. What are you trying to achieve with the project What need does it satisfy for your customer Who exactly is going to actually use the project deliverable(s) when it is finished (That is, who is your real customer) What will distinguish your deliverable from those already available to the customer Write a problem statement on the basis of your answers to the first question. What is the gap between where you are now and where you want to be What obstacles prevent easy movement to close the gap Write a mission statement, answering the two basic questions: 1. What are we going to do 2. For whom are we going to do it Talk to your customer about these issues. Do not present your writ ten statements to her. Instead, see whether you can get confirma tion by asking openended questions. If you can’t, you may have to revise what you have written. American Management Association • www.amanet.orgCHAPTER 5 CHAPTER 5 Creating the Project Risk Plan s mentioned in Chapter 1, risk management is the system atic process of identifying, analyzing, and responding to project risk. Systematic is a key word here, as many project man A formal, compre A A agers attempt to deal with risks on hensive project risk an informal basis with little or no prior planning. Any project manager plan allows the proj who operates in this manner is inviting failure, if not disaster. These are strong ect manager to be words, but appropriate for an important proactive regarding topic. A formal, comprehensive project risk plan allows the project manager to the innumerable be proactive regarding the innumerable things that can things that can and do go wrong with a project. Without this plan, you are and do go wrong forced to manage reactively when with a project. things go wrong—easily the most ex pensive approach. A systematic process adds discipline and efficiency when creating the plan. At the end of Chapter 4, a highlevel overview of the risk process was 55 American Management Association • www.amanet.org56 Fundamentals of Project Management presented. Here we present a comprehensive approach to proj ect risk management. Defining Project Risks Project risk management begins early in the life cycle. A clear un derstanding of the risks that face the project must be established. The sources of project risk are almost limitless, emphasizing the need for a wellthoughtout, detailed plan. Typical examples in clude the loss of a key team member, weather emergencies, tech nical failures, and poor suppliers. This section introduces general concepts of risk and briefly discusses what should be done early in the process. Many project managers wait too long to assess risk factors and delay the risk plan because they assume they don’t know enough yet, that there are too many unknowns. This is a com mon trap that you should try to avoid. During the initiation phase of the project life cycle, an initial highlevel assessment ought to be conducted. You and your team members should take a strate gic approach to “what can go wrong” and begin laying the foun dation for the detailed plan to follow. Without this foundation, projects often experience the negative impact of risks that become reality, risks Project risk manage that might have been prevented or miti gated through contingency planning. ment is “the process This is reactive behavior, and you must of conducting risk live in the proactive world to be success ful as a project manager. Potential oppor management plan tunities are sometimes referred to as ning, identification, positive risks, where the project man ager strives to optimize the positive im analysis, response pact on project objectives. planning, and moni As previously noted, project risk man agement is identified as one of the nine toring and control ® knowledge areas of the PMBOK Guide. ® The PMBOK Guide describes project on a project.” American Management Association • www.amanet.orgCreating the Project Risk Plan 57 risk management as “the process of conducting risk manage ment planning, identification, analysis, response planning, and monitoring and control on a project.” By definition, a process can be considered a formal, controlled undertaking with little or no variation. When applied to processes, variation often equals inefficiency. It is important for you to manage risks formally by applying an agreedupon process to establish the risk manage ment plan. Given the realities and variables of the typical project environment, a certain amount of flexibility is appropriate. As you gain experience in managing risks, an intuitive feel for flexibility will develop depending upon style and the length, width, depth, and breadth of the projects. The SixStep Process The SixStep process is a common and practical approach to es tablishing the project risk plan. This process should not be created in a vacuum but typically involves a great deal of research and col laboration with the project team. Step 1: Make a List Brainstorm. Making a list of potential risks to the project should not be an analysis but a formal brainstorming session, when all ideas are captured. Steps 2 and 3 of the process allow for a vetting of these ideas. Step 1: Make a list. It is important that the entire team get involved in identifying threats and highlighting what can go wrong. Some project managers make the mistake of trying to ac complish this on their own to allow team members to complete other tasks. This is shortsighted and a bad idea. This initial step of the process must be collaborative and involve the individuals who are expert at that portion of the project work for which they are responsible. Leverage the intellectual capital (smarts) that is your team. If one or more members are left out, it is likely that some risks will remain unidentified and pose a threat to project American Management Association • www.amanet.org58 Fundamentals of Project Management success. Remember, involve everyone—a procurement specialist will not be helpful in identifying potential software development problems, and vice versa. When you work with the support of an informal team, you will need to be disciplined and realize that a certain amount of re search is necessary before moving forward. This may include phone calls, emails, office visits, or videoconferencing—what ever it takes to elicit the information you need. You typically start with the informal team members or contributors to the project and initiate a dialogue as to what might go wrong. Usually, these discussions identify other ancillary individuals who should be contacted. Functional department managers can be very helpful in these circumstances, either assisting directly or identifying oth ers in their department who can. In either case, you should take a holistic approach to estab lishing the list, as all types of risks will need to be identified and dealt with accordingly. Steps 2 3: Determine the Probability of Risk Occurrence and Negative Impact I am combining steps 2 and 3 because they are the prioritization factors. They assist you in vetting the list of risks. These two steps allow you to prioritize all identified Steps 2 3: Deter threats to the project and help you de termine how much time, effort, staff, mine the probability and money should be devoted to pre of risk occurrence venting or mitigating each. Again, this must be accomplished not in a vacuum and negative impact. but with full input from team members and subject matter experts (SMEs). How probable is it that each risk will become a reality This question needs to be asked and answered. It is often sufficient to use a HighMediumLow (HML) scale and apply it to the list of brainstormed risks. If a risk is considered highly probable, it re ceives an H; if the probability is medium, it receives an M; and if American Management Association • www.amanet.orgCreating the Project Risk Plan 59 the probability is low, it receives an L. These labels should not be applied arbitrarily, emphasizing the need for team collaboration or research and analysis by the project manager. If the risk becomes a reality, how badly will it damage the proj ect This is the next question that needs to be asked and answered. All aspects of the project should be considered when rating the negative impact of any risk. If the risk becomes reality, how will it affect the budget, schedule, resource utilization, scope of work, and so on The output of steps 2 and 3 results in a list of potential risks with corresponding values for probability and negative impact: Risk Probability Impact AM L BM M CL L DH H Given the assessment of risks A through D in the table, it is clear that you should focus most of your efforts mitigating risk D and that very little attention should be paid to risk C. Please remember that you could be wrong (unfortunately, I needed to be reminded of this as a young project manager). Just because you label a risk Low probability and Low impact does not guarantee that it will be, so leave it on your radar screen. For those who prefer metrics, a simple numberbased scale can be applied. As you rate probability and impact, you assign a value to each risk. The probability scale can be based on a range of 1 through 10, with 1 representing unlikely and 10 being very likely. Negative impact can be represented by the same scale or in budgetary impact: Risk Probability Impact Total A3 1K = 3K B7 1K = 7K C2 14K = 28K D5 3K = 15K American Management Association • www.amanet.org60 Fundamentals of Project Management According to this analysis, risk C will demand most of this project team’s attention because of its relative value of 28K. It should be noted that the same method can be used to focus on schedule impact or even resource utilization. Step 4: Prevent or Mitigate the Risk Some risks can be prevented; others can only be mitigated. Earth quakes or the retirement of an important stakeholder, for instance, cannot be prevented. Some risks can and should be prevented in step 4. If a risk Step 4: Prevent or has been identified and you have the abil mitigate the risk. ity to prevent its occurrence, do so. Proactivity is the project manager’s best friend. Kill the risk before it has a chance to grow and flourish, and you won’t have to deal with it again. For example, if a vendor or supplier is targeted for your project and one of your team members has had previous dealings with the company and was not impressed, he will inform you that the supplier’s material deliveries are frequently late and often rejected. Assuming that the supplier is not a sole source (your only choice), you can prevent the risk by finding an alternate supplier that is more reliable. For those risks that cannot be prevented, an attempt should be made to mitigate or lessen the probability and/or impact should they occur. Using the example of the unreliable supplier, if you must use that company, you can create concrete steps to pro actively expedite the delivery of the material, thereby mitigating the impact of the risk. If management threatens to deprioritize your project, you can lobby on your project’s behalf, mitigating the chances that this will occur. Step 5: Consider Contingencies Preventive measures are those steps Step 5: Consider taken before the risk becomes reality. contingencies. Contingencies represent the specific American Management Association • www.amanet.orgCreating the Project Risk Plan 61 actions that will be taken if the risk occurs. Here, you answer the question “If the risk becomes reality, what will we do” For example, if acceptance testing for a supplier’s widgets has been identified as medium to high risk and a test failure occurs, an appropriate contingency might be to supply engineering support at the vendor’s expense. Another contingency might be to switch to another predetermined vendor if he has widgets in stock. Contingencies are directly linked to the prioritization factors introduced in steps 2 and 3. If the risk is a high priority (high probability, high negative impact) you will want to identify multi ple contingencies. Since there is a good chance that the risk will occur and that when it does, it will hurt the project, you want to be covered. If the risk falls in the middle range of the prioritiza tion scale, you should establish at least one contingency. Those risks that fall in the lower level should not require much atten tion; it is best to invest your efforts elsewhere. When establish ing your contingencies, be careful of the very low probability, very high impact risk. These tend to be totally ignored because of the low probability, but they can and sometimes do bring proj ects down. Step 6: Establish the Trigger Point The trigger point is often the most important element of the proj ect risk plan. There is a direct relationship between the trigger point and the contingencies. True to its name, the trigger point is the point at Step 6: Establish which the risk becomes enough of a re the trigger point. ality that the project manager needs to trigger the contingency. It is a judgment call meant to maximize the value of the predetermined contin gency by implementing it at the optimal time. Trigger too soon and you will probably spend time, effort, or money for no good reason. Trigger too late and you may end up experiencing the full impact of the occurrence, with little value added by imple menting the contingency. Let’s return to our example. American Management Association • www.amanet.org62 Fundamentals of Project Management If a usually reliable supplier has experienced labor issues and has shut down because of a strike, perhaps your contingency plan has identified suppliers B and C as alternatives. Each has widgets in stock and has quoted a lead time of two calendar weeks for prep and delivery. If the required delivery date is February 15, your trigger should include the twoweek lead time plus a few days’ buffer. An appropriate trigger point here would be January 31. If the contingency affects a task or tasks on the critical path (see Chapter 7), additional buffer days should be considered. The trigger should be a specific point in time or a defined range of time. Most project managers consider this to be the trick iest part of the project risk plan, but it is well worth the effort. Often, in my role as consultant, I come across wellthoughtout plans that were wasted due to untimely or nonexistent contin gency implementation. The trigger point is a best practice for proj ect managers that will improve the efficacy of the entire plan. Establishing Reserves The most comprehensive risk plan can be compromised if you re alize that you do not have the time or means to take appropriate action. Establishing reserves enables you to leverage the plan to its fullest poten The most compre tial. The bestlaid plans are impotent hensive risk plan can without the time and/or budget to allow for effective implementation. As a result, be compromised if you need to establish contingency and you realize that you management reserves. Contingency reserves are designated do not have the time amounts of time and/or budget to ac count for risks to the project that have or means to take been identified and actively accepted. appropriate action. They are created to cover known risks to the project. There is a direct relationship between contingency reserves and the previously discussed Six Step process (or a similar approach). Once the process is com American Management Association • www.amanet.orgCreating the Project Risk Plan 63 plete, you should estimate the required reserves to cover the risks that have been identified and accepted. For example, if your project team has identified the loss of a key team member to retirement as a highpriority risk (probability and impact), contingency actions will require the hiring of a re placement from outside the organization. The cost and schedule impact of the hiring process and team member assimilation must be estimated and added to the contingency reserve. Management reserves are designated amounts of time and/ or budget included in your plan to account for risks to the project that cannot be predicted. Sometimes you don’t know what you don’t know. Management reserves are created to cover unknown risks to the project. For example, if the current project involves a high percentage of research and development and an analysis of past similar projects using actuals (historical data) indicates an av erage budgetary overrun of 10 percent, this 10 percent is not at tributed to any particular risk event. However, it should trigger the need for a 10 percent increase to the overall project budget as a management reserve. Managing Multiproject Risks Many, if not most, project managers find themselves leading more than one project. The multiproject manager confronts unique issues not normally encountered when managing a single project. In the multiproject world, many projects overlap or ex perience direct dependencies with other projects, similar to those in a typical network diagram (see Chapters 7 and 8). Two perspectives are required here. First, you must focus on the individual project and the associated risks for each. Then, you must assess your entire portfolio and determine the nature of the relationship of these projects. Your portfolio is the sum of all projects under your purview. The relationship among these proj ects may vary widely. A program typically involves multiple projects working toward the completion of a single deliverable. These projects must all be American Management Association • www.amanet.org64 Fundamentals of Project Management properly integrated toward this end. In the portfolio environment, you must identify where the projects coincide or overlap with re gard to any project work. You then determine what might go wrong in these areas where the projects “touch.” The same is done in the program en A program typically vironment, where project relationships are usually more clearly defined. For ex involves multiple ample, track and field includes events in volving four runners that must pass a projects working baton from one to the other. The fastest toward the com team does not always win because the baton may not be handed off smoothly, pletion of a single or it may even be dropped. Many proj deliverable. ects will have direct predecessorsucces sor relationships (one must be completed before the next can begin) in the pro gram world. In order to promote a smooth transition from one project to the next, you must focus on this “baton” handoff. The multiproject risk plan focuses on just these events. Coordination Points In either case, the areas where the projects touch are called co ordination points. You need to identify these points, after which a standard multiproject risk plan can be created. It is important to emphasize that the SixStep focus here must be on the coordina tion points exclusively. In reality, you focus on creating a risk plan for each project individually to manage intraproject risks and then turn your attention to the coordination points and perform the same process to manage interproject risks. The portfolio or pro gram risk plan is meant to supplement and enhance the individual risk plan in the multiproject environment. Risk Matrix A useful tool when managing many risks across projects is the standard risk matrix, as shown in Figure 51. American Management Association • www.amanet.orgCreating the Project Risk Plan 65 Figure 51. Risk matrix. Low Med High Probability Once the threats have been plotted onto the risk matrix, an HML prioritization can be applied where the highest priority risks are positioned toward the upper right corner and lower pri ority ones toward the lower left. You can then color code individ ual risks as they apply to each project. In the fog of the portfolio or program management world, this can prove to be a very effective approach. Risk Register The risk register is a useful tool in managing actions taken regard ing accepted risks to the project, as shown in Figure 52. Figure 52. Risk register. ID Risk Outcome/Response Owner P I Active P = Probability I = Impact Source: The American Management Association seminar, “Improving Your Project Management Skills: The Basics for Success.” American Management Association • Impact Low Med High66 Fundamentals of Project Management The risk register is the last ingredient of the project risk plan. It is a living, breathing dynamic tool that can help you to track risk status as your project matures through the life cycle. The risk reg ister also helps you identify ownership of contingency implemen tation, outcomes of actions taken, and active and inactive risks. If a thorough risk analysis is not developed, you and your team will live in the reactive world, putting out fires throughout the project life cycle. This is easily the most expensive way to op erate in terms of time, effort, and money, and it will jeopardize the success of any project. You must invest yourself early by adding this crucial element to your overall project plan. Key Points to Remember Project risk management should begin early in the process and continue through the life cycle. A key to success in deal ing with risk is to start early and lay the foundation for risk management; be proactive, not reactive; manage risks for mally with a process; and be flexible. The SixStep process to establishing a project risk plan in cludes making a list of potential risks; determining the prob ability of risk occurrence; determining its negative impact; preventing or mitigating the risk; considering contingencies; and establishing trigger points for activating contingencies. Establishing contingency and management reserves enables you to leverage your project risk plan to its fullest potential. Coordination points must be identified and analyzed in the multiproject risk environment. A standard risk matrix is a useful tool when managing many risks across projects. The risk register can be an effective tool for organizing and prioritizing threats to the project. American Management Association • www.amanet.orgCreating the Project Risk Plan 67 Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Choose one of your current or recent projects, and practice the Six Step process. Make a list of potential risks to the project and prior itize each, utilizing HML or a simple metricbased scale. Pick any three risks and establish: Prevent measures Contingencies Trigger points Two or three bullet points for each should suffice. American Management Association • www.amanet.orgCHAPTER 6 CHAPTER 6 Using the Work Breakdown Structure to Plan a Project n a previous chapter, I said that planning answers the questions “What must be done”, “How long will it take”, and “How much will it cost”. Planning the what is vital; projects frequently fail because a significant I part of the work is forgotten. In addition, once tasks have I been identified, the time and resource requirements must be determined. This is called estimating. A major problem in project planning is determining how long tasks will take and what it will cost to do them. Inaccurate estimates are a leading cause of project failures, and missed cost targets are a common cause of stress and recrimination in project management. The most useful tool for accomplishing all of these tasks is the work breakdown structure (WBS). The idea behind the WBS is simple: You can subdivide a complicated task into smaller tasks until you reach a level that cannot be further subdivided. At that point, it is usually easier to estimate how long the small task will 68 American Management Association • www.amanet.orgUsing the Work Breakdown Structure to Plan a Project 69 take and how much it will cost to perform than it would have been to estimate these factors for the higher levels. Nevertheless, it is still not easy to estimate task durations for activities that have never been performed before. Because this is the typical situation in engineering hardware and software devel opment projects, we might expect many of these estimates to be in error, and this seems to be demonstrated by experience. Still, the work breakdown structure makes it easier to estimate knowl edge tasks than any other tool we have. A Simple Example As an example, if I want to clean a room (see Figure 61), I might begin by picking up clothes, toys, and other things that have been dropped on the floor. I could use a vacuum cleaner to get dirt out of the carpet. I might wash the windows and wipe down the walls, then dust the furniture. All of these activities are subtasks performed to clean the room. As for vacuuming the room, I might have to get the vacuum cleaner out of the closet, connect the hose, plug it in, push the vac uum cleaner around the room, empty the bag, and put the machine Figure 61.  WBS diagram to clean a room. Clean Room Vacuum Clean Pick up toys Wash walls Dust carpets curtains clothes furniture Get vacuum outof closet Connect hose and plug Push around room Empty bag American Management Association • www.amanet.org70 Fundamentals of Project Management back in the closet. These are still smaller tasks to be performed in accomplishing the subtask called vacuuming. The diagram in Figure 61 shows how this might be portrayed in WBS format. Note that we do not worry about the sequence in which work is performed when we do a WBS. That will be worked out when we develop a schedule. However, you will probably find yourself thinking A work breakdown sequentially, as it seems to be human structure does not nature to do so. The main idea of doing a WBS is to capture all of the tasks. So if show the sequence you find yourself and other members of in which work is your team thinking sequentially, don’t be too concerned, but don’t get hung up performed Such on trying to diagram the sequence or sequencing is de you will slow down the process of task identification. termined when The typical WBS has three to six lev els, and these can be named as shown in a schedule is Figure 62. It is, of course, possible to developed. have projects that require a lot more lev els. Twenty levels is considered to be the upper limit, and that is a huge project. Note that level 1 is called the program level. The difference between a program and a proj ect is just one of degree. An example of a program is the development of an airplane. For example, the WBS for the program might be drawn as shown in Figure 63. Notice that the engine, wing, and avionics are large enough jobs to be called projects in their own right. In fact, the program manager’s job is to make sure that the projects are all properly integrated. The engine mounts on the wing, so, some where in the structure to develop the engine, there will be an ac tivity called “Design wing mounts.” And for the wing, there will be an activity called “Design engine mounts.” If these are not co ordinated properly, you will wind up with an engine that won’t mount on the wing. The job of coordinating these is called sys tem integration. American Management Association • www.amanet.orgUsing the Work Breakdown Structure to Plan a Project 71 Figure 62.  WBS level names. 1. Program 2. Project 3. Task 4. Subtask 5. Work Package 6. Level of Effort Guidelines for Developing the WBS One important question in constructing a WBS is “When do you stop breaking down the work” The general guideline is that you stop when you reach a point where ei ther you can estimate time and cost to Stop breaking down the desired degree of accuracy or the work when you work will take an amount of time equal to the smallest units you want to sched reach a low enough ule. If, for instance, you want to sched level to do an esti ule to the nearest day, you break down the work to the point where tasks take mate of the desired about a day to perform. If you are going accuracy. to schedule to the nearest hour, then you stop when task durations are in that range. American Management Association • www.amanet.org72 Fundamentals of Project Management Figure 63.  Partial WBS. Design Airplane Design Design Design Wing Engine Avionics Remember the rule that the people who must do the work should participate in planning it That applies here. Usually a core group identifies toplevel parts of the WBS; those parts are further refined by other members of the team and then integrated to ob tain the entire WBS. One important point: the WBS should The WBS should be developed before the schedule. In fact, always be devel the WBS is the device that ties the entire project together. It allows the manager oped before the to assign resources and to estimate time schedule is worked and cost and shows the scope of the job in graphic form. Later, as the project is out, but without tracked, the work can be identified as falling in a particular box in the WBS. trying to identify There is at least one software pack the sequence of age, SuperProject Expert™, that prints a WBS after schedule data have been en activities. tered. That is a nice feature, since it gives a graphically attractive WBS, but the rough drawing should be made before you use the scheduling software. The reason is quite simple: Until everyone has agreed that all tasks have been identified, it is misleading to develop a schedule. You cannot be sure that the critical path identified by a partial schedule will be the same for the full schedule. American Management Association • www.amanet.orgUsing the Work Breakdown Structure to Plan a Project 73 There are a number of approaches to developing the WBS. Ideally, you proceed topdown, following development of a good problem statement and mission statement. As I have mentioned, however, the mind does not always op erate in such nice, linear fashion; as you A WBS does not develop the WBS, you may sometimes have to be symmet find that it helps you to understand the job better. For that reason, I am not a rical. All paths do purist about doing things in a specific not have to go down order. You do what works best for you. The WBS does not have to be sym to the same level. metrical. That is, all paths need not be broken down to level 6 (or whatever level you stop at). Since the rule is to break work down to a level sufficient to achieve the estimating accuracy you desire, one path may take six levels, while another may need only three. Uses of the WBS As I have said, the WBS is a good way to show the scope of a job. If you have ever given someone an estimate for project cost or time and seen the person’s horri fied look, you know that the person is The WBS is a good seeing the project in her mind as much way to portray the simpler than it is. When you show a project in WBS form, it is clear to most scope of a project. individuals why the job costs so much. In fact, I have had the experience of finding the planning group members themselves overwhelmed by the complexity and mag nitude of the WBS. If it impresses them, think of its impact on an outsider. Assigning responsibility for tasks is another important use of the WBS. Each task to be performed should be assigned to a par ticular person who will be responsible for its completion. These assignments can then be listed on a separate form, often called a responsibility chart (see Figure 64). American Management Association • www.amanet.org74 Fundamentals of Project Management Figure 64.  Responsibility chart. Linear Responsibility Chart Project: Date Issued: Sheet Number: of Manager: Date Revised: Revision No. File: LRCFORM.61 Project Contributors Task Descriptions CODES: 1 = ACTUAL RESPONSIBILITY; 2 = SUPPORT; 3 = MUST BE NOTIFIED; BLANK = NOT INVOLVED Estimating Time, Costs, and Resources Once the work is broken down, you can estimate how long it will take. But how Suppose I ask you how long it will take to sort a standard deck of playing cards that has been thoroughly shuffled into numerical order by suit. How would you answer that question The most obvious way would be to try the task several times and get a feel An estimate can ing for it. But if you didn’t have a deck of be made only by cards handy, you would probably think about it, imagine how long it would starting with the take, and give me an answer. People gen assumption that a erally give me answers ranging from two minutes to ten minutes. My tests indicate certain resource that about three minutes is average for will be assigned. most adults. Suppose, however, we gave the cards to a child about four or five years old. It might take a lot longer, since the child would not be that familiar with the sequence in American Management Association • www.amanet.orgUsing the Work Breakdown Structure to Plan a Project 75 which cards are ordered and perhaps not yet even that comfort able with counting. So we must reach a very important conclusion: You cannot do a time or cost estimate Parkinson’s Law: without considering who will actually perform the task. Second, you must base Work expands to fill the estimate on historical data or a mental model. Historical data are best. the time allowed. Generally, we use average times to plan projects. That is, if it takes three minutes on average for adults to sort a deck of cards, I would use three minutes as my es timate of how long it will take during execution of my project. Naturally, when I use averages, in reality some tasks will take longer than the time allowed, and some should take less. Overall, however, they should average out. That is the idea, anyway. Parkinson’s Law discredits this notion, however. We must be careful Parkinson said that work always expands not to penalize to fill the time allowed. That means that tasks may take longer than the estimated workers who per time, but they almost never take less. form better than One reason is that when people find themselves with some time left, they expected by loading tend to refine what they have done. them down with Another is that people fear that if they turn work in early, they may be expected e xcessive work. to do the task faster the next time or that they may be given more work to do. This is a very important point: If people are penalized for per forming better than the target, they will quit doing so. We also have to understand variation. If the same person sorts a deck of cards over An exact estimate and over, we know the sort times will is an oxymoron vary. Sometimes it will take two min utes, while other times it will take four. The average may be three, but we may expect that half the time it will take three minutes or less and half the time it will take American Management Association • www.amanet.org76 Fundamentals of Project Management three minutes or more. Very seldom will it take exactly three minutes. The same is true for all project tasks. The time it takes to per form them will vary, because of forces outside the person’s con trol. The cards are shuffled differently every time. The person’s attention is diverted by a loud noise outside. He drops a card while sorting. He gets tired. And so on. Can you get rid of the variation No way. Can you reduce it Yes—through practice, by changing the process by which the work is done, and so on. But it is important to note that the variation will always be there, and we must rec ognize and accept it. The Hazards of Estimating Consider the case of Karen. One day, her boss stopped by her desk at about one o’clock. “Need for you to do an estimate for me,” he told her. “Promised the Big Guy I’d have it for him by four o’clock. You with me” Karen nodded and gave him a thin smile. The boss described the job for her. “Just need a ballpark number,” he assured her and drifted off. Given so little time, Karen could compare the project her boss described only to one she had done about a year before. She added a little for this and took a little off for that, put in some con tingency to cover her lack of information, and gave the estimate to the boss. After that, she forgot all about the job. Two months passed. Then the bomb was dropped. Her boss appeared, all smiles. “Remember that estimate you did for me on the xyz job” She had to think hard to remember, but, as her boss droned on, it came back to her. He piled a big stack of specifications on her desk. “It’s your job now,” he told her and drifted off again into manager dreamland. As she studied the pile of paper, Karen felt herself growing more concerned. There were significant differences between this set of specs and what her boss had told her when she did the es timate. “Oh, well, I’m sure he knows that,” she told herself. American Management Association • www.amanet.orgUsing the Work Breakdown Structure to Plan a Project 77 Finally, she managed to work up a new estimate for the job on the basis of the real specs. It was almost 50 percent higher than the ballpark figure. She checked her figures carefully, as sured herself that they were correct, and went to see her boss. He took one look at the numbers and went ballistic. “What are you trying to do to me” he yelled. “I already told the old man we would do it for the original figure. I can’t tell him it’s this much more. He’ll kill me.” “But you told me it was just a ballpark number you needed,” Karen argued. “That’s what I gave you. But this is nothing like the job I quoted. One of the primary It’s a lot bigger.” causes of project “I can’t help that,” her boss argued. “I already gave him the figures. You’ll failures is that have to find a way to do it for the origi nal bid.” ballpark estimates Naturally, you know the rest of the become targets. story. The job cost even more than Karen’s new estimate. There was a lot of moaning and groaning, but, in the end, Karen survived. Oh, they did send her off to a course on project management—hoping, no doubt, that she would learn how to estimate better in the future. Here are some guidelines for documenting estimates: Show the percent tolerance that is likely to apply. Tell how the estimate was made and what assumptions were used. Specify any factors that might affect the validity of the estimate (such as whether the estimate will still be valid in six months). Could you fault Karen for anything Well, perhaps. If she failed to tell the boss that a ballpark estimate might have a toler ance of perhaps "25 percent but that the margin of error could range from –10 percent to +100 percent, then she allowed him to think that the estimate was better than it was. Also, she should have documented all working assumptions, explaining how she American Management Association • www.amanet.org78 Fundamentals of Project Management did the estimate, what project she had used for comparison, and so on. Then, if management still pulled a whammy on her, at least she would have had some protection. In fact, it is impossible to make sense of any estimate unless these steps are taken, so they should be standard practice. Consensual Estimating In recent years, a new method of estimating knowledge work has been developed that seems to work better than older techniques. Rather than have individuals estimate task durations, the new method asks at least three people to estimate each activity in the project that they know something about. They do this without discussing their ideas with one another. They then meet to find out what they have put on paper. In a typical situation, there may be a range of times, such as, for example, ten days, twelve days, and thirty days, in which two of the estimates are close together, but one is very different. How do you handle the discrepancy The best approach is to discuss what each person was con sidering when he made the estimate. It may be that the person who put down thirty days was thinking about something that the other two had overlooked. Or, conversely, the other two might convince the thirtyday person that his number is way too high and get him to come down to a figure nearer their estimates. In any case, they try to arrive at a number that they all can support. This is called consensus. There are three advantages to this approach. First, no one per son is on the hook for the final number. Second, inexperienced people learn to estimate from those more experienced. Third, sev eral people are likely to collectively consider more issues than any one person would do working alone. For that reason, you are more likely to get an accurate estimate, although it is important to remember that it is still by definition not exact Improving Estimating Ability People cannot learn unless they receive feedback on their perfor mance. If you went out every day and ran one hundred yards, American Management Association • www.amanet.orgUsing the Work Breakdown Structure to Plan a Project 79 trying to improve your speed, but you never timed yourself, you would have no idea whether you were getting better or worse. You could be doing something that slowed you down, but you wouldn’t know it. In the same way, if you estimate task durations but never record the actual time it takes to do the task, you are never going to get better at estimating. Furthermore, you have to track progress by recording times daily. If you record times once a week, I can promise you that you will be just guessing, and that won’t be helpful. Key Points to Remember Do not try to work out sequencing of activities when you de velop a WBS. You will do that when you develop a schedule. A WBS ties the entire project together. It portrays scope graphically, allows you to assign resources, permits you to develop estimates of time and costs, and thus provides the basis for the schedule and the budget. An estimate is a guess, and an exact estimate is an oxymoron Be careful that ballpark estimates don’t become targets. Consensual estimating is a good way to deal with activities for which no history exists. No learning takes place without feedback. Estimate; then track your actual time if you want to improve your estimating ability. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Following is a list of tasks to be performed in preparation for a camping trip. Draw a WBS that places the tasks in their proper re lationship to one another. The solution is contained in the Answers section. American Management Association • www.amanet.org80 Fundamentals of Project Management Arrange for supplies and equipment. Select campsite. Make site preparations. Make site reservation. Arrange time off from work. Select route to site. Prepare menu for meals. Identify source of supplies and equipment. Load car. Pack suitcases. Purchase supplies. Arrange camping trip (project). American Management Association • www.amanet.orgCHAPTER 7 CHAPTER 7 Scheduling Project Work ne of the primary features that distinguishes project manage ment from general management is the special attention to scheduling. Remember from Chapter 1 that Dr. J. M. Juran says a project is a problem sched O O Project manage uled for solution. Unfortunately, some people ment is not just think that project management is noth ing but scheduling, and this is incorrect. scheduling. Scheduling is just one of the tools used to manage jobs and should not be considered the primary one. People today tend to acquire sched uling software, of which there is an Suggestion: What abundance, and think that will make ever scheduling them instant project managers. They soon find that that idea is wrong. In fact, software you it is nearly impossible to use the software effectively unless you understand project choose, get some management (and scheduling methodol professional train ogy in particular). I do have one suggestion about soft ing on how to use it. 81 American Management Association • www.amanet.org82 Fundamentals of Project Management ware. Whatever you pick, get some professional training on how to use it. In the early days of personal computers, there was a pretty significant difference between the lowend and the high end software that was available. The lowend packages were pretty easy to use, whereas the highend ones were not. The gap between low and highend software has closed to the point that this is no longer true. They are all difficult to use now, and the training materials (tutorials and manuals) that come with the soft ware are often not very good. In addition, it is hard to find time to work through a tutorial without being interrupted several times, which means that selflearning is difficult. The most effi cient way is to take a class. Do check out the instructor’s knowledge of project manage ment before choosing which class to take. Some of the people teaching the software know very little about project management itself, and, when you have questions, they can’t answer them. You should expect to spend from two to three days of class room time becoming really proficient with the software. That is still a good investment, considering the time the software can save you in the long run. A Brief History of Scheduling Until around 1958, the only tool for scheduling projects was the bar chart (see Figure 71). Because Henry Gantt developed a complete notational system for showing progress with bar charts, they are often called Gantt charts. They are simple to construct and read and remain the best tool to use for commu nicating to team members what they need to do within given time frames. Arrow diagrams tend to be too complicated for some teams. Nevertheless, it is often helpful to show an arrow diagram to the people doing the work so that they understand interdependencies and why it is important that they complete certain tasks on time. Bar charts do have one serious drawback—it is very difficult to determine the impact of a slip on one task on the rest of the American Management Association • www.amanet.orgScheduling Project Work 83 Figure 71.  Bar chart. A B C Time project (e.g., if Task A in Figure 71 gets behind, it is hard to tell how this will affect the rest of the work). The reason is that the bar chart (in its original format) did not show the interdependen cies of the work. (Contemporary software does show links be tween bars, making them easier to read. The actual name for these bar charts is “timeline critical path schedules.”) To overcome this problem, two methods of scheduling were developed in the late 1950s and early 1960s, both of which use arrow diagrams CPM: Critical Path to capture the sequential and parallel rela tionships among project activities. One of Method these methods, developed by Du Pont, PERT: Program is called Critical Path Method (CPM), and the other, developed by the U.S. Evaluation and Navy and the Booz Allen Hamilton con Review Technique sulting group, is called Program Evalua tion and Review Technique (PERT). Although it has become customary to call all arrow diagrams PERT networks, strictly speaking the PERT method makes use of probability techniques, whereas CPM does not. In other words, with PERT it is possible to calculate the prob ability that an activity will be completed by a certain time, whereas that is not possible with CPM. American Management Association • TaskActivity B 84 Fundamentals of Project Management Network Diagrams To show the sequence in which work is performed, diagrams like those in Figure 72 are used. In these diagrams, Task A is done before B, while Task C is done in parallel with them. The network in the bottom half of Figure 72 uses activityon arrow notation, in which the arrow represents the work being done and the circle represents an event. An event is binary; that is, it has either occurred or it has not. An activity, on the other hand, can be partially complete. Note that this is a special use of the word “event.” We speak of a football game as an event, even though it spans time. In scheduling terminology, however, an event is a specific point in time where something has just started or has just been finished. Figure 72.  Arrow diagrams. An activityonnodenetwork Activity A Activity B Activity D Activity C An activityonarrownetwork 2 1 3 4 Activity C Activity D American Management Association • Activity AScheduling Project Work 85 The network in the top half of Figure 72 uses activityon node notation, which shows the work as a box or node, and the arrows show the sequence in which the work is performed. Events are not shown in activityonnode networks unless they are milestones—points in the project at which major portions of the work are completed. Why two forms of diagrams Probably a tyranny to confuse the uninitiated. Actually, it simply happens that the schemes were developed by different practitioners. Is one better than the other No. The critical path is They both get the same results in figuring out when work is supposed to be com the longest path pleted. Both forms are still used, although activityonnode is used a bit more than through a project the other, simply because much of network. Because today’s personal computer software is programmed to use node notation. it has no slack, all What is the benefit of using either activities on the CPM or PERT The main advantage is that you can tell whether it is possible to critical path must meet an important project completion date, and you can also tell exactly when be completed as various tasks must be finished in order to scheduled, or the meet that deadline. Furthermore, you can tell which tasks have some leeway end date will begin and which do not. In fact, both CPM to slip—one day for and PERT determine the critical path, which is defined as the longest series of each day a critical activities (that can’t be done in parallel) activity is delayed. and which therefore governs how early the project can be completed. The Reason for Scheduling Naturally, the primary reason for scheduling a project is to ensure that the deadline can be met. Most projects have a deadline im posed. Furthermore, since the critical path method helps identify American Management Association • www.amanet.org86 Fundamentals of Project Management which activities will determine the end date, it also helps guide how the project should be managed. However, it is easy to get carried away with scheduling and spend all of your time updating, revising, and so on. The sched uling software in use today should be viewed as a tool, and man agers should not become slaves to the tool. It is also very easy to create schedules that look good on paper but don’t work in practice. The main reason is usually that resources are not available to do the work when it comes due. In fact, unless resource allocation is handled properly, schedules are next to useless. One company Fortunately, today’s scheduling software found that when handles resource allocation fairly well, but we leave discussion of the methods it stopped having used to the software manuals. In this people work on book, we simply examine how networks are used to show us where we need to multiple projects, manage. I am often told that scope and priori workers’ produc ties change so often in a given organiza tivity doubled tion that it doesn’t make sense to spend time finding critical paths. There are two points worth considering here. One is that if scope is changing often in a project, not enough time is being spent doing upfront definition and planning. Scope changes most often occur because something is forgotten. Better attention to what is being done in the beginning usually reduces scope creep. Second, if priorities are changing often, management does not have its act together. Generally, the organization is trying to tackle too much work for the number of resources available. We all have “wish lists” of things we want to do personally, but we have to put some of them on hold until time, money, or both become available. The same is true of organizations. Experience shows that when you have individuals working on many projects, productivity suffers. One company found, as an example, that when it stopped having people work on multiple American Management Association • www.amanet.orgScheduling Project Work 87 projects, employees’ productivity doubled That obviously is highly significant. What does CPM have to do with this Knowing where the crit ical path is in a project allows you to determine the impact on the project of a scope or priority change. You know which activities will be impacted most heavily and what might need to be done to regain lost time. In addition, managers can make informed deci sions when you can tell them the impact of changes to the project. Thus, CPM can be an invaluable tool when used properly. Definitions of Network Terms ACTIVITY An activity always consumes time and may also consume resources. Examples include paperwork, labor, negotiations, machinery operations, and lead times for purchased parts or equipment. CRITICAL A critical activity or event is one that must be achieved by a certain time, having no latitude (slack or float) whatsoever. CRITICAL PATH The critical path is the longest path through a net work and determines the earliest completion of project work. EVENTS Beginning and ending points of activities are known as events. An event is a specific point in time. Events are commonly denoted graphically by a circle and may carry identity nomenclature (e.g., words, numbers, alphanumeric codes). MILESTONE Milestones are events that represent a point in a project of special significance. Usually, it is the completion of a major phase of the work. Project reviews are often conducted at milestones. NETWORK Networks are called “arrow diagrams.” They pro vide a graphical representation of a project plan showing the relationships of the activities. American Management Association • www.amanet.org88 Fundamentals of Project Management Constructing an Arrow Diagram As was pointed out in Chapter 6, a work breakdown structure (WBS) should be developed before work on the project is sched uled. Also, we saw that a WBS can contain from two to twenty levels. To illustrate how a schedule is constructed from a WBS, we consider a simple job of maintaining the yard around a home. The WBS is shown in Figure 73. In the case of this WBS, it is appropriate to schedule the tasks at the lowest level. However, this is not always true. Sometimes work is broken down to level 6 but only activities up to level 5 are entered into the Don’t schedule in schedule. The reason is that you may not more detail than be able to keep level 6 tasks on schedule. That is, you can’t manage that tightly. you can manage. So you schedule at a level that you can manage. This follows the general rule that you should never plan (or schedule) in more detail than you can manage. Some proj ects, such as overhauling a large power generator, are scheduled Figure 73.  WBS to do yard project. Yard Project Cleanup Cut Grass Trimwork Prepare Trim Equipment Hedge Pick up 30 Put gas in Mow front45 Weeds trash15 equipment5 trees30 Bag grass30 Get out Mow back30 Edge hedge sidewalk15 Hedge clipper5 clippings15 Haul to dump45 American Management Association • www.amanet.orgScheduling Project Work 89 in increments of hours. Others are scheduled in days, while some big construction jobs are scheduled to the nearest month. While planning in too much detail is undesirable, if you plan in too little detail, you might as well not bother. As a practical example, a manager told me that his staff wanted to create schedules showing tasks with twenty sixweek durations. He protested that A good rule of the staff would never complete such thumb to follow is schedules on time. They would backend load them, he argued. that no task should What he meant was that there is a lot of security in a twentysixweek task. have a duration When the start date comes, if the person much greater than doing the task is busy, she might say, “I can always make up a day on a twenty four to six weeks. sixweek activity. I’ll get started tomor For knowledge work, row.” This continues until she realizes she has delayed too long. Then there is a durations should big flurry of activity as she tries to finish be in the range of on time. All the work has been pushed out to the end of the twentysixweek one to three weeks, time frame. A good rule of thumb to follow is because knowledge that no task should have a duration work is harder to much greater than four to six weeks. A twentysixweek task can probably be track than tangible broken down into five or six subtasks. work. Such a plan generally keeps people from backend loading. There are two ways you can develop a schedule. One is to begin at the end and work back until you arrive at the beginning. The second method is to start at the beginning and work toward the end. Usually, it is easiest to start at the beginning. The first step is to decide what can be done first. Sometimes, several tasks can start at the same time. In that case, you simply draw them side by side and start working from there. Note the American Management Association • www.amanet.org90 Fundamentals of Project Management Figure 74.  CPM diagram for yard project. DU 30 TRIM WEEDS ES LS EF LF 15 DU 45 30 30 DU DU DU PICK UP TRASH MOW FRONT BAG GRASS MOW BACK EF ES LS EF LF ES LS LF ES LS EF LF ES LS EF LF 0 45 DU HAUL TRASH DU 15 DU 5 ES LS EF LF DU 15 EDGE SIDEWALK PUT GAS IN EQ. BUNDLE TRASH EF ES LS LF ES LS EF LF EF ES LS LF 0 5 30 DU DU GET HEDGE CL. TRIM HEDGE ES LS EF EF LF ES LS LF 0 progression in the diagram in Figure 74. It sometimes takes several iterations before the sequencing can be worked out completely. This small project might be thought of as having three phases: preparation, execution, and cleanup. There are three prepara tion tasks: pick up trash, put gas in equip Schedules should ment, and get out hedge clipper. The cleanup tasks include bagging grass, be developed accord bundling clippings, and hauling trash to the dump. ing to what is logi In doing this schedule diagram, I have cally possible, and followed a rule of scheduling, which is to diagram what is logically possible, then resource allocation deal with resource limitations. For a yard should be done later. project, if I have no one helping me, then there really can be no parallel paths. On This will yield the the other hand, if I can enlist help from optimum schedule. the family or neighborhood youth, then parallel paths are possible, so this rule says go ahead and schedule as if it were possible to get help. This is es pecially important to remember in a work setting, or you will never get a schedule put together. You will be worrying about who will be available to do the work and end up in analysis paralysis. American Management Association • www.amanet.orgScheduling Project Work 91 Another rule is to keep all times in the same increments. Don’t mix hours and minutes—schedule everything in minutes, then convert to hours and minutes as a last step. For this sched ule, I have simply kept everything in minutes. I suggest that you draw your network on paper and check it for logical consistency before entering anything into a computer scheduling program. If the network has logical errors, the computer will just give Another rule is to you a garbagein, garbageout result, but it will look impressive, having come from keep all times in the a computer. same increments. It is also important to remember that there is usually no single solution to a network problem. That is, someone else might draw the arrow diagram a bit differently than you have done. There may be parts of the diagram that have to be done in a certain order, but often there is flexibility. For example, you can’t deliver papers until you have printed them, so if the diagram showed that sequence, it would be wrong. The conclusion is that there is no single right solution, but a diagram can be said to be wrong if it violates logic. It is hard to tell The network for the yard project whether a network could get a lot more complicated. You could have edge front sidewalk and is absolutely cor edge back sidewalk. You could talk about trimming around trees in both rect, but it can be front and back, and so on. But there said to be wrong if is no need to make it too complicated. We don’t usually try to capture ex logic is violated. actly how we will do the work, just the gist of it. The next step is to figure out how long it will take to do the job. Time estimates for each task are made by using history, tak ing into account how long each activity has taken in the past. Re member, though, that the estimate is valid only for the individual who is going to do the task. If my daughter, who is sixteen, does American Management Association • www.amanet.org92 Fundamentals of Project Management the lawn mowing using a push mower, it will probably take less time than if my son, who is only twelve, does the same task. In the following chapter, we see how to find the critical path through the network so that we can know how long it will take. Key Points to Remember Project management is not just scheduling. Arrow diagrams allow an easier assessment of the impact of a slip on a project than is possible with Gantt charts. Schedule at a level of detail that can be managed. No task should be scheduled with a duration much greater than four to six weeks. Subdivide longer tasks to achieve this objective. Software and engineering tasks should be divided even further, to durations not exceeding one to three weeks. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the following WBS (Figure 75), draw an arrow diagram. One solution is shown in the Answers section. Figure 75.  WBS to clean room. Clean Room Vacuum Clean Pickuptoys Washwalls Dust carpets curtains clothes furniture American Management Association • www.amanet.orgCHAPTER 8 CHAPTER 8 Producing a Workable Schedule nce a suitable network has been drawn, with durations assigned to all activities, it is necessary to determine where the longest path is in the network and to see whether it will meet the target completion date. Since the longest path O O through the project determines minimum project duration, any activity on that path that takes longer than planned will cause the end date to slip accordingly, so that path is called the critical path. Schedule Computations Normally, you would let a computer do these computations for you, so you may wonder why it is necessary to know how to do them manually. My belief is that unless you know how the com putations are done, you do not fully understand the meanings of float, early and late dates, and so on. Further, you can easily fall prey to the garbagein, garbageout malady. So here is a brief treatment of how the calculations are done by the computer. (For most schedules, the computer has the added bonus of converting times to calendar dates, which is no easy task to do manually.) 93 American Management Association • www.amanet.org94 Fundamentals of Project Management First, consider what we want to know about the project. If it starts at some time = zero, we want to know how soon it can be finished. Naturally, in most actual Failure to consider work projects, we have been told when we must be finished. That is, the end date resource allocation is dictated. Furthermore, the start date for in scheduling almost the job is often constrained for some rea son: resources won’t be available, specs always leads to a won’t be written, or another project won’t be finished until that time. So schedule that can scheduling usually means trying to fit the not be achieved. work between two fixed points in time. Whatever the case, we still want to know how long the project will take to complete; if it won’t fit into the re quired time frame, then we will have to do something to shorten the critical path. In the simplest form, network computations are made for the network on the assumption that activity durations are exactly as specified. However, activity durations are a function of the level of resources applied to the work, and, if that level is not actually available when it Initial schedule comes time to do the work, then the computations are scheduled dates for the task cannot be met. It is for this reason that network made assuming computations must ultimately be made that unlimited with resource limitations in mind. An other way to say this is that resource al r esources are avail location is necessary to determine what kind of schedule is actually achievable able. This yields the Failure to consider resources almost bestcase solution. always leads to a schedule that cannot be met. Still, the first step in network computations is to determine where the critical path is in the schedule and what kind of lati tude is available for noncritical work, under ideal conditions. Naturally, the ideal situation is one in which unlimited resources American Management Association • www.amanet.orgProducing a Workable Schedule 95 are available, so the first computations made for the network are done without consideration of resource requirements. It is this method that is described in this chapter, and resource allocation methods are deferred to scheduling software manuals, as I said previously. Network Rules In order to compute network start and finish times, only two rules apply to all networks. These are listed as rules 1 and 2. Other rules are sometimes applied by the scheduling software it self. These are strictly a function of the software and are not ap plied to all networks. Rule 1. Before a task can begin, all tasks preceding it must be completed. Rule 2. Arrows denote the logical order of work. Basic Scheduling Computations Scheduling computations are illustrated using the network in Fig ure 81. First, let us examine the node boxes in the schedule. Each has the notations ES, LS, EF, LF, and DU. These mean: ES = Early Start LS = Late Start EF = Early Finish LF = Late Finish DU = Duration (of the task) ForwardPass Computations Consider a single activity in the network, such as picking up trash from the yard. It has a duration of fifteen minutes. Assuming that it starts at time = zero, it can finish as early as fifteen minutes later. Thus, we can enter 15 in the cell labeled EF. American Management Association • www.amanet.org96 Fundamentals of Project Management Figure 81.  Network to illustrate computation methods. DU 30 TRIM WEEDS ES LS EF LF 45 15 DU 30 30 DU DU DU PICK UP TRASH MOW FRONT BAG GRASS MOW BACK ES LS EF LF ES LS EF LF EF ES LS EF ES LS LF LF 0 45 DU HAUL TRASH DU 15 5 ES LS EF DU LF 15 DU EDGE SIDEWALK PUT GAS IN EQ. BUNDLE TRASH ES LS EF LF ES LS EF LF ES LS EF LF 0 5 DU DU 30 GET HEDGE CL. TRIM HEDGE ES LS EF EF LF ES LS LF 0 Putting gas in the mower and the weed whacker takes only five minutes. The logic of the diagram says that both of these tasks must be completed before we can begin trimming weeds, cutting the front grass, and edging the The Earliest Start sidewalk. The cleanup task takes fifteen minutes, whereas the gas activity takes for a task is the only five minutes. How soon can the fol latest Late Finish lowing activities start Not until the cleanup has been finished, since it is the of preceding tasks. longest of the preceding activities. In fact, then, the Early Finish for That is, the longest cleanup becomes the Early Start for the path determines next three tasks. It is always true that the latest Early Finish for preceding tasks the earliest that a becomes the Early Start for subsequent following task can tasks. That is, the longest path determines how early subsequent tasks can start. be started. Following this rule, we can fill in Ear liest Start times for each task, as shown in Figure 82. This shows that the project will take a total of 165 minutes to complete, if all work is conducted exactly as shown. We have just performed what American Management Association • www.amanet.orgProducing a Workable Schedule 97 Figure 82.  Diagram with EF times filled in. DU 30 TRIM WEEDS ES LS EF LF 15 45 45 DU 15 DU 30 30 DU DU PICK UP TRASH MOW FRONT BAG GRASS MOW BACK ES LS EF LF ES LS EF LF ES LS EF ES LS EF LF LF 015 15 60 60 90 90 120 45 DU HAUL TRASH DU 15 5 ES LS EF LF DU 15 DU 120 165 EDGE SIDEWALK PUT GAS IN EQ. BUNDLE TRASH ES LS EF LF ES LS EF LF ES LS EF LF 05 15 30 90 105 5 DU DU 30 GET HEDGE CL. TRIM HEDGE ES LS EF LF ES LS EF LF 0 5 5 35 are called forwardpass computations to determine Earliest Finish times for all activities. Computer programs do exactly the same thing and additionally convert the times to calendar dates, making quick work of the computations. RULE: When two or more activities precede another activity, the earliest time when that activity can be started is the longer of the durations of the activities preceding it. NOTE: The time determined for the end or final event is the earliest finish for the project in working time. Once weekends, holidays, and other breaks in the sched ule are accounted for, the end date may be consider ably later than the earliest finish in working time. BackwardPass Computations A backward pass is made through the network to compute the latest start and latest finish times for each activity in the net work. To do that, we must decide how late the project can finish. By convention, we generally don’t want a project to end any later than its earliest possible completion. To stretch it out longer would be inefficient. American Management Association • www.amanet.org98 Fundamentals of Project Management We also won’t insist (for now) that the project end earlier than the earliest possible finish calculated in the previous steps. If we want to finish earlier, we will have to When doing back redraw the network or shorten some ac tivities (e.g., by applying more resources wardpass calcula or working more efficiently). For now, we will accept the 165minute working tions, always use time and let it be the Latest Finish for the smallest num the project. If Hauling Away Trash has a Late ber for the LF of Finish of 165 minutes and has a dura previous activities. tion of 45 minutes, what is the latest that it could start Clearly, if we subtract 45 from 165, we have 120 minutes, which is the Latest Start for the task. Proceeding in this manner, we get LS times for Bagging Grass and Bundling Clippings of 90 and 105 minutes, respec tively. One of these two numbers must be the LF time for each of the preceding activities. Which one When an activity Well, assume we try 105 minutes. If we do that, the schedule would say that has no float, it is Bagging Grass could start as late as 105 called critical, since minutes, since subsequent tasks can begin as soon as preceding tasks are fin failure to complete ished. But if we add 30 minutes for Bag ging to the 105minute ES time, we will work as scheduled finish at 135 minutes, which is later will cause the end than the 120 minutes previously deter mined, and we will miss the 165minute date to slip. end time for the project. Therefore, when we are doing backwardpass calculations, the Latest Finish for a preceding task will always be the smallest of the Late Start times for the subsequent tasks. (A simpler way to say this is: Always use the smallest number) RULE: When two or more activities follow another, the latest time that the preceding activity can be achieved is the smaller of the times. American Management Association • www.amanet.orgProducing a Workable Schedule 99 Now examine the path in Figure 83 that includes activities highlighted by bold lines. Each activity has the same ES/LS and EF/LF times. There is no float (or latitude for slippage) on this path. By convention, an activity with no float is called critical, and a total path with no float is called the critical path, which means that if any of the work on this path falls behind schedule, then the end date will slip accordingly. All of the activities that have ES/LS or EF/LF times that differ are said to have float. For example, Trim Weeds has an ES time of fifteen minutes and an LS time of sixty minutes, giving it fortyfive minutes of float. The final network is shown in Figure 83. Note that some tasks have the same EF and LF times, as well as the same ES and LS times. These tasks are on the critical path. In Figure 83, they are shown with bold outlines, to indicate exactly where the crit ical path lies. The critical path activities have no latitude. They must be completed as scheduled or the entire project will take longer than 165 minutes. Knowing where the critical path is tells a manager where his attention must be applied. The other tasks have lati tude, or float. This does not mean that they can be ignored, but they have less chance of delaying the project if they encounter problems. The Edge Sidewalk task, for example, has an ES time of fifteen minutes and an LS time of seventyfive. The difference between the two is sixty minutes, which is the float for the task. What good is the float Well, we know we can start the task as late as seventyfive minutes into the job and still finish the proj ect on time. If your son is doing this task, he can watch a sixty minute television program during that time and still get his Edging task done on time. Remember, too, that the times are all estimates. This means that tasks might take more or less than the scheduled time. So long as they do not take longer than the scheduled time plus the available float time, the job can be completed on time. Critical tasks, which have no float, must be managed in such a way that they take the scheduled time. This is usually done by adjusting the resources (effort) applied, either by assigning more resources or by working overtime (increasing resources in either case). American Management Association • www.amanet.org100 Fundamentals of Project Management Figure 83.  Diagram showing critical path. DU 30 TRIM WEEDS ES LS EF LF 15 60 45 90 45 45 DU DU DU 15 15 15 DU DU DU 30 30 30 30 30 DU DU DU DU PICK PICK UP TRASH UP TRASH MOW FRONT BAG BAG GRASS GRASS MOW BACK ES LS EF LF ES LS EF LF ES LS EF ES LS EF LF LF 0 0 15 15 15 15 60 60 60 60 90 90 90 90 120 120 45 45 DU DU HAUL TRASH TRASH DU 15 5 ES LS EF LF DU 15 DU 120 120 165 165 EDGE SIDEWALK PUT GAS IN EQ. BUNDLE TRASH ES LS EF LF ES LS EF LF ES LS EF LF 010 515 15 75 30 90 90 105 105 120 5 DU DU 30 GET HEDGE CL. TRIM HEDGE ES LS EF LF ES LS EF LF 0 55 5 60 5 60 35 90 This is not always possible. Applying overtime often increases errors, leading to rework, which may mean that you don’t get the job done any faster than if you had just worked a normal schedule. Furthermore, It is bad practice to there is always a point of diminishing re schedule a project turns when you add bodies to a task. At some point, they just get in each other’s so that overtime is way, actually slowing work down rather required to meet than speeding it. Note that overtime should be kept in reserve in case of prob the schedule, since lems, so it is never a good idea to schedule if problems are a project in a way that requires overtime just to meet the original schedule. encountered, it may Another point of great importance: All members of the project team should be not be possible to encouraged to keep float times in reserve work more overtime as insurance against bad estimates or un foreseen problems. People tend to wait to solve them. until the latest possible start time to start a task; then, when problems occur, they miss the end date. If there is no float left, when the task takes longer than originally planned, American Management Association • www.amanet.orgProducing a Workable Schedule 101 it will impact the end date for the entire project, since, once a task runs out of float, it becomes part of the critical path In fact, the true meaning of Once you have used the word “critical” is that there is no float. up the float on a The task must be done on time. task, it becomes Using the Network to Manage the Project part of the critical As I have indicated previously, the point path. of developing a CPM diagram is to use it to manage the project. If this is not done, scheduling is simply a worthless exercise. So here are some point ers that I have found helpful in managing my own jobs: Try to stay on schedule. It is always harder to catch up than to stay on target to begin with. Keep float in reserve in case of unexpected problems or bad estimates. Apply whatever effort is needed to keep critical tasks on schedule. If a task on the critical path can be finished ahead of schedule, do it Then start the next task. Avoid the temptation to perfect everything—that’s what the nextgeneration product or service is all about. Note: I did not say it is okay to do the job sloppily or that you shouldn’t do your best work. I said don’t be tempted to make it per fect. By definition, you will never reach perfection. Estimates of task durations are made on the assumption that certain people will work on those tasks. If someone else is ac tually used, you may have to adjust durations accordingly. This is especially true if the new person is less skilled than the intended resource. This was stated in Chapter 7 but is repeated here because of its importance: No task should be scheduled with a duration much greater than four to six weeks. If you do, people tend American Management Association • www.amanet.org102 Fundamentals of Project Management to have a false sense of security and put off starting, under the assumption “I can always make up one day.” By the time they start, they often have slipped several days and find that they cannot finish as scheduled. We say that they backend load the task by pushing all the effort toward the back end. If a task has a duration greater than six weeks, it is a good idea to subdivide it, creating an artificial break if necessary. Then review progress at that point. That will help keep it on target. If the people doing the work did not develop the network, explain it to them and show them the meaning of float. Don’t hide it from them. However, give them a bar chart to work to—it is much easier to read a bar chart than a network dia gram. Show them that if they use up float on a given task, then the following tasks may become critical, leaving the peo ple who must do those activities feeling really stressed. It is possible to shorten a task by adding resources, reducing its scope, doing sloppy (poorquality) work, being more effi cient, or changing the process by which the work is done. With the exception of doing sloppy work, all of the methods may be acceptable. A reduction in scope must be negotiated with your customer, of course. Scheduling is done initially on the assumption that you will have the resources you planned on having. If people are shared with other projects or if you plan to use the same person on several tasks, you may find that you have her overloaded. Mod ern software generally warns you that you have overloaded your resources and may be able to help you solve the problem. Converting Arrow Diagrams to Bar Charts While an arrow diagram is essential to do a proper analysis of the relationships between the activities in a project, the best working tool is the bar chart. The people doing the work will find it much easier to see when they are supposed to start and finish their jobs if you give them a bar chart. The arrow diagram in Figure 83 has American Management Association • www.amanet.orgProducing a Workable Schedule 103 been portrayed as a bar chart in Figure 84, making use of what was learned about the schedule from the network analysis. Figure 84.  Bar chart schedule for yard project. PICKUPTRASH PUTGASINEQUIPMENT GETOUTHEDGECLIPPER TRIMWEEDS MOWFRONTLAWN EDGESIDEWALK TRIMHEDGE MOWBACKYARD BAGGRASSTRASH BUNDLEHEDGECLIPPINGS HAULAWAYTRASH TIME,MINUTES 0 25 50 75 100 125 150 175 TASKWITHFLOAT CRITICALTASK Note that the critical path in the bar chart is shown as solid black bars. Bars with float are drawn hollow with a line trailing to indicate how much float is available. The task can end as late as the point at which the trailing line ends. This is fairly conventional notation. Scheduling software always allows you to print a bar chart, even though a CPM network is used to find the critical path and to calculate floats. One caution: Many programs display the critical path in red on a color monitor and often color started tasks with green or blue. When these bars are printed on a blackandwhite printer, all of them may look black, implying that they are all critical, confusing the people trying to read them. It is usually possible to have the computer display shading or crosshatching instead of color so that when they are printed in blackandwhite, there will be no ambiguity. Assigning Resources to Tasks I have already said that the first step in developing a schedule is to assume that you have unlimited resources, because this is the American Management Association • www.amanet.org104 Fundamentals of Project Management best situation you can ever assume, and if you can’t meet your project completion date with an unlimited resource schedule, you may as well know it early. However, once you have deter mined that the end date can somehow be met, you now must see whether your assumption of unlimited resources has over loaded your available resources. Normally, you will find that you have people double and triple scheduled, which clearly won’t work. These kinds of resource overloads can be resolved only by using computer software, except for very simple schedules. This is where the software really excels, and yet estimates are that only a few percent of all the people who purchase software actually use it to level resources. Consider the small schedule in Figure 85. It contains only four tasks. Two are critical, and two have float. Task A requires two workers if it is to be completed in three weeks, and tasks B and C need one person each. When it comes time to do the proj Figure 85.  Schedule with resources overloaded. Need 2 A Need 1 B Need 1 C D Need 2 Have 3 available Time, weeks American Management Association • www.amanet.orgProducing a Workable Schedule 105 ect, however, you find that there are only three workers avail able. How did this happen It is possible that no more than three people were ever avail able, but because you followed the rule to schedule in parallel tasks that could logically be done in parallel, you inevitably over loaded your people. It is also possible that, when the plan was constructed, four workers were available but that one has since been assigned to another job that has priority over yours. Whatever the reason, this schedule won’t work unless some thing is changed. There are a number of possibilities. There are three areas to examine. You should first see whether any task has enough float to allow it to be delayed until resources become available. In this particular example, it turns out that this is pos sible. The solution is shown in Figure 86. Of course, this solution is a nice textbook example that just happens to work out. It is never so easy in a real project. Notice Figure 86.  Schedule using float to level resources. Need 2 A Need 1 B Need 1 C D Need 2 Have 3 available Time, weeks American Management Association • www.amanet.org106 Fundamentals of Project Management that task C has enough float that it can slide over and wait until activity B is finished. But what usually happens is that task C runs out of float before B is completed. Also, assume that task D needs three people, rather than two. As you can see, this complicates the situation considerably. This is shown in Figure 87. Since this is the typical situation, we must be prepared to handle it. There are two more places to look for help. The first is the functional relationship among the variables: C = f(P, T, S) You should ask whether you can reduce scope, change the time limit, or reduce performance. Usually, performance is not ne gotiable, but the others may be. For example, sometimes you can reduce scope, and the project deliverable will still be acceptable to the client. Of course, if you can get another person for a short Figure 87.  Schedule with inadequate float on C to permit leveling. Need 2 A Need 1 B Need 1 C D Need 3 Have 3 available Time, weeks American Management Association • www.amanet.orgProducing a Workable Schedule 107 time, you won’t have to consider reducing scope or performance. So you go shopping. You ask the manager who “owns” the resources whether she can provide another person. She says sadly that she cannot and that she was even considering trying to take back another of the three she has already given you. Somehow you convince her not to do this. You then ask the project sponsor if it is okay to reduce scope. It is not. It is also not okay to reduce performance. Nor can you find a contract employee in time to do the job. You are between a rock and a hard place. So you now ask whether there is another process that could be used to do the work. For example, if you can spray paint a wall instead of using a roller, it may go much faster. Suppose you try this and again you come up emptyhanded. You decide the only thing left to do is resign your job. You never really wanted to be a project manager, anyway. But wait. Perhaps there is something else you can do. Think back to what I said earlier. You use up all the float on C, and it is now a criticalpath task. When you tell your software to level resources, it wants to know whether you want to sched ule within the available float (or slack, as it is also called). If you say “yes,” as soon as a task runs out of float, it won’t move over any further. This is also called timecritical resource leveling, be cause time is of the essence for your project. (It always is) However, suppose you answer “no” to the question “Do you want to level within the available slack” In this case, you are telling the software to continue sliding tasks over until resources become available, even if it means slipping the end date. (This is called resourcecritical leveling.) When you try this with our ex ample schedule, you arrive at the solution shown in Figure 88. Not bad, unless you can’t live with the slip. In fact, sometimes the slip is so bad that it seems almost ridiculous. Your project was originally going to end in December of the current year. Now the software says it is so starved for re sources that it will end in the year 2013 Ridiculous What good is a schedule that goes out that far American Management Association • www.amanet.org108 Fundamentals of Project Management Figure 88.  Schedule under resourcecritical conditions. Need 2 A Need 1 B C Need 1 D Need 3 Have 3 available Time, weeks It can be used to bring the issue to everyone’s attention. It shows the impact of inadequate resources and forces a tradeoff as described earlier—that is, if everyone believes your schedule in the first place. I have just had an experience with a fellow who said that he didn’t believe the schedules in the first place because he thought they were always unrealistic, so an unrealistic sched ule subjected to fancy calculations didn’t prove anything to him. I’m sure that’s true. However, if people are willing to accept the limitations of what we are doing when we plan a project, this is at least a way of showing the limitations you face. Everyone must understand that estimating is guessing, as is true of market and weather forecasting, neither of which has a stellar record. Moreover, all activities are subject to variation, as I have pointed out. If people don’t understand this, then I suggest you turn in your project manager’s hat for a better job. American Management Association • www.amanet.orgProducing a Workable Schedule 109 Resource Availability A major factor in dealing with resource allocation is the availability of each person to do project work. One guideline that industrial en gineers follow is that no person is available to work more than 80 percent of the time. If you assume an eighthour day, that means 6.4 hours a day available for work, and prudence says to just make it six hours. The 20 percent lost availability goes to three factors called PFD. P means personal—every individual must take breaks. F is for fatigue—you lose productive time as people get tired. And D means delays—people lose time waiting for inputs from others, supplies, or instructions on what to do. Experience shows, however, that the only people who are available to work even 80 percent of the time are those whose jobs tie them to their work stations. This is true for factory work ers and others who do routine jobs like processing insurance claims (and even these people move around). With knowledge workers, you never get 80 percent of a day in productive work. The figure is usually closer to 50 percent, and it may be lower One company that I know of did a time study in which people logged their time every hour for two weeks, and they found that project work accounted for only 25 percent of their time. The rest went to meetings, nonproject work that had to be done, old jobs that were finished long ago but came back to the person who originally worked on them, work on budgets for the next year, customer support, and on and on. Most software programs allow you to specify the number of working hours needed for a task and the percentage of a day that a person will work on the task; the software then translates those estimates into calendar time. So, as an example, if a person is working on your project only half time and the task she is doing is supposed to take twenty hours of actual working time, then it will be a week (or more) before she finishes it. It is especially important that you know the availability of peo ple to do project work, or you will produce schedules that are worse than useless. I say worse, because they will be misleadingly American Management Association • www.amanet.org110 Fundamentals of Project Management short, and they will wreak havoc with your organization. Do a time study to determine the number, then use it. And if people don’t like the fact that a lot of time is being lost to nonproject activities, then correct the problem by removing those disruptive activities. The usual solution is that people must work overtime to get their project work done because of all the disruptions that occur during the day. The problem is that studies have found that over time has a very negative impact on productivity. So it is a losing battle. Shortterm overtime is fine, but long spans just get organi zations into trouble. Key Points to Remember You should ignore resource limitations when you begin devel oping a schedule. If two tasks can logically be done in parallel, draw them that way. The critical path is the one that is longest and has no float. Note that you can have a project on which the task with the longest path is not critical because it has float. Nobody is available to do productive work more than 80 percent of a workday. You lose 20 percent to personal time, fatigue, and delays. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the network in Figure 89, calculate the early and late times and the float available on noncritical activities. Which activities form the critical path Answers are in the Answers section at the back of the book. American Management Association • www.amanet.orgProducing a Workable Schedule 111 Figure 89.  Network for exercise. DU 15 10 DU 15 DU ES LS EF LF ES LF ES LF LS EF LS EF 0 DU 20 DU 10 ES LS EF LF ES LF LS EF 0 20 DU ES LS EF LF 0 American Management Association • www.amanet.orgCHAPTER 9 CHAPTER 9 Project Control and Evaluation very step taken up to now has been for one purpose—to achieve control of the project. This is what is expected of a project manager—that she manage organization resources in such a way that critical results are achieved. E E However, there are two connotations to the word “control,” and it is important that we use the one that is appropriate in today’s world. One meaning of “control” refers to domination, power, command. We control people and things through the use of that power. When we say “Jump,” people ask, “How high” At least they used to. It doesn’t work that well today. I have previously discussed the fact that project managers often have a lot of responsibility but little authority. Let’s examine that and see whether it is really a problem. I have asked several corporate officers (presidents and vice presidents), “Since you have a lot of authority, does that authority guarantee that people will do what you want done” Uniformly, they answer, “No.” “What does get them to do what you want done” “Well, in the end analysis, they have to want to do it,” they say. “Then what does your authority do for you” I ask. 112 American Management Association • www.amanet.orgProject Control and Evaluation 113 “Well, it gives me the right to exercise sanctions over them, but that’s all.” So we find that having authority is no guarantee that you will be able to get people to do your bidding. In the end, you have to get them to do it willingly, and that says you have to understand the motivations There are two kinds of people so that you can influence them of authority: One is to do what needs to be done. A second kind of authority has to do power over people, with taking actions unilaterally—that is, and the other is without having to get permission first. In this sense of the word, we do have a lot the ability to make of organizational problems. I meet proj ect managers who have project budgets decisions and to in the millions of dollars (as much as act unilaterally. 35 million in one case), yet who must have all expenditures approved. If a proj ect plan and budget have been approved before the work was started and if the project manager is spending within the ap proved limits of the plan, why should she have to get more sig natures for approved expenditures Only if a deviation from the plan is going to result should more signatures be needed, and then the plan should be revised to reflect those changes. Consider the messages being sent to these managers. On the one hand, they are being told, “We trust you to administer 35 million of our money.” On the other hand, they are told, “But when you spend it, you must have every expenditure approved by someone of A negative message higher authority.” One is a positive mes always takes sage: We trust you. The other is nega tive. Which do you think comes through priority over a loud and clear You bet The negative. positive one. Interestingly, we complain that peo ple in organizations won’t take more re sponsibility for themselves; then we treat them as though they are irresponsible and wonder why they don’t behave responsibly American Management Association • www.amanet.org114 Fundamentals of Project Management So the first meaning of “control” has a power connotation. Another meaning is summed up by the highlighted definition. This definition was introduced in an earlier chapter. Control is the act of comparing progress to plan so con•trol: to com that corrective action can be taken when a deviation from planned performance pare progress occurs. This definition implies the use of against plan so information as the primary ingredient of control, rather than power. Thus, we that corrective talk about management information sys tems, and, indeed, these are the essence a ction can be of what is needed to achieve control in taken when a projects. Unfortunately, many organizations deviation occurs have management information systems that are good for tracking inventory, sales, and manufacturing labor but not for tracking projects. Where such systems are not in place, you will have to track progress manually. Achieving Team Member SelfControl Ultimately, the only way to control a project is for every member of the project team to be in control of his own work. A project manager can achieve control at the macro level only if it is achieved at the micro level. However, this does not mean that you should practice micromanaging It actually means that you should set up conditions under which every team member can achieve control of his own efforts. To do this requires five basic conditions. To achieve self control, team members need: 1. A clear definition of what they are supposed to be doing, with the purpose stated 2. A personal plan for how to do the required work American Management Association • www.amanet.orgProject Control and Evaluation 115 3. Skills and resources adequate to the task 4. Feedback on progress that comes directly from the work itself 5. A clear definition of their authority to take corrective action when there is a deviation from plan (and it cannot be zero) The first requirement is that every team member be clear about what her objective is. Note the difference between tasks and objectives, which was discussed in Chapter 4. State the ob jective and explain to the person (if necessary) what the purpose of the objective is. This allows the individual to pursue the objec tive in her own way. The second requirement is for every team member to have a personal plan on how to do the required work. Remember, if you have no plan, you have no control. This must apply at the indi vidual, as well as at the overall, project level. The third requirement is that the person have the skills and resources needed for the job. The need for resources is obvious, but this condition suggests that the person may have to be given training if she is lacking necessary skills. Certainly, when no em ployee is available with the required skills, it may be necessary to have team members trained. The fourth requirement is that the person receive feedback on performance that goes directly to her. If such feedback goes through some roundabout way, she cannot exercise selfcontrol. To make this clear, if a team member is building a wall, she must be able to measure the height of the wall, compare it to the planned performance, and know whether she is on track. The fifth condition is that the individual must have a clear de finition of her authority to take corrective action when there is a deviation from plan, and it must be greater than zero authority If she has to ask the project manager what to do every time a devi ation occurs, the project manager is still controlling. Furthermore, if many people have to seek approval for every minor action, this puts a real burden on the project manager. American Management Association • www.amanet.org116 Fundamentals of Project Management Characteristics of a Project Control System The control system must focus on project objectives, with the aim of ensuring that the project mission is achieved. To do that, the control system should be designed with these questions in mind: What is important to the organization What are we attempting to do Which aspects of the work are most important to track and control What are the critical points in the process at which controls should be placed Control should be exercised over what is important. On the other hand, what is controlled tends to become important. Thus, if budgets and schedules are emphasized to the exclusion of qual ity, only those will be controlled. The project may well come in on time and within budget, but at the expense of quality. Project managers must monitor performance carefully to ensure that quality does not suffer. Taking Corrective Action A control system should focus on response—if control data do not result in action, then the system is ineffective. That is, if a control system does not use deviation data to initiate corrective action, it is not really a control system but simply a monitoring system. If you are driving and realize that you have somehow gotten on the wrong road but do nothing to get back on the right road, you are not exercising control. One caution here, though. I once knew a manager whose re sponse to a deviation was to go into the panic mode and begin micromanaging. He then got in the way of people trying to solve the problem and actually slowed them down. Had he left them alone, they would have solved their problem much faster. American Management Association • www.amanet.orgProject Control and Evaluation 117 Timeliness of Response The response to control data must be timely. If action occurs too late, it will be ineffective. This is frequently a serious problem. Data on project status are sometimes delayed by four to six weeks, making them useless as a basis for taking corrective ac tion. Ideally, information on project status should be available on a realtime basis. In most cases, that is not possible. For many projects, status reports that are prepared weekly are adequate. Ultimately, you want to find out how When people fill out many hours people actually work on your project and compare that figure to time reports weekly, what was planned for them. This means without writing that you want accurate data. In some cases, people fill out weekly time reports down what they did without having written down their work ing times daily. That results in a bunch daily, they are mak of fiction, since most of us cannot re ing up fiction. Such member with any accuracy what we did a week ago. madeup data are As difficult as it may be to do, you almost worse than need to get people to record their work ing times daily so that the data will no data at all. mean something when you collect them. What’s in it for them Perhaps nothing. Perhaps future es timates will be better as a result of your having collected accurate information on this project. In any case, you need accurate data, or you may as well not waste your time collecting them. When information collection is delayed for too long, the man ager may end up making things worse, instead of better. Lags in feedback systems are a favorite topic for systems theorists. The government’s attempts to control recessions and inflation some times involve long delays, as a result of which the government winds up doing the exact opposite of what should have been done, thereby making the economic situation worse. There is one point about control that is important to note. If every member of the project team is practicing proper control American Management Association • www.amanet.org118 Fundamentals of Project Management methods, then reports that are prepared weekly are just checks and balances. This is the desired condition. Designing the Right System One control system is not likely to be correct for all projects. It may need to be scaled down for small projects and beefed up for large ones. Generally, a control system adequate for a large project will overwhelm a small one with paperwork, while one that is good for small projects won’t have enough clout for a big project. Practicing the KISS Principle KISS stands for “Keep it simple, stupid” The smallest control effort that achieves the desired result should be used. Any control data that are not essential should be eliminated. However, as was just mentioned, one common mistake is to try to control complex projects with systems No problem is so that are too simple big or so compli To keep control simple, it is a good idea to check periodically that reports cated that it can’t that are generated are actually being used for something by the people who be run away from. receive them. We sometimes create re —Charlie Brown (Charles ports because we believe the informa Schultz, Peanuts) tion in them should be useful to others, but if the recipients don’t actually use it, we are kidding ourselves. To test this point, send a memo with each report telling people to let you know whether they want to receive future reports; if you do not hear from them, their names will be removed from the distribution. You may be surprised to find that no one uses some of your reports. Those reports should be dropped completely. Project Review Meetings There are two aspects to project control. One can be called main tenance, and the other aims at improvement of performance. The maintenance review just tries to keep the project on track. The American Management Association • www.amanet.orgProject Control and Evaluation 119 improvement review tries to help project teams improve perfor mance. Three kinds of reviews are routinely conducted to achieve these purposes. They are: 1. Status reviews 2. Process or lessonslearned reviews 3. Design reviews Everyone should do status and process reviews. Design re views, of course, are appropriate only if you are designing hard ware, software, or some sort of campaign, such as a marketing campaign. A status review is aimed at maintenance. It asks where the project stands on the PCTS measures that we have used through out this book. Only if you know the value of all four of these can you be sure where you are. This is the subject of Chapter 11. Process means the way something is done, and you can be sure that process always affects task performance. That is, how something is done affects the outcome. For that reason, process improvement is the work of every manager. How this is done is covered in the next section. Project Evaluation As the dictionary definition says, to evaluate a project is to attempt to determine whether the overall status of the work is acceptable, in terms of intended value to the client once the job is finished. Project evaluation appraises the progress and performance of a job and compares e•val•u•ate: to them to what was originally planned. determine or judge That evaluation provides the basis for management decisions on how to pro the value or worth of ceed with the project. The evaluation —The Random House must be credible in the eyes of everyone Dictionary affected, or decisions based on it will not American Management Association • www.amanet.org120 Fundamentals of Project Management be considered valid. The primary tool for project evaluation is the project process review, which is usually conducted at major mile stones throughout the life of the project. Purposes of Project Evaluation Sports teams that practice without reviewing performance may get really good at playing very badly. That is why they review game films—to see where they need to improve. In other words, the purpose of a review is to learn lessons that can help the team to avoid doing things that cause undesired outcomes and to con tinue doing those that help. The review should be called a lessonslearned or process review. I have deliberately avoided the word audit, because nobody likes to be audited. Historically, an audit has been designed to catch people doing things they shouldn’t have done so that they can be penalized in some way. If you go around auditing people, you can be sure they will hide from you anything they don’t want you to know, and it is those very things that could help the com pany learn and grow. As Dr. W. Edwards Deming has pointed out, there are two kinds of organizations in this world today—those that are getting better and those that are dying. An organization that stands still is dying. It just doesn’t know it yet. The reason The competition is not sitting by idly. It is doing new things, some of which may be better than what you are doing. If you aren’t improving, you will be passed by, and soon you won’t have a Good management market. of projects can give The same is true of every part of an organization. You can’t suboptimize, im you a competitive proving just manufacturing. You have to improve every department, and that in advantage. cludes how you run projects. In fact, good project management can give you a real compet itive advantage, especially in product development. If you are sloppy in managing your projects, you don’t have good control of American Management Association • www.amanet.orgProject Control and Evaluation 121 development costs. That means that you have to either sell a lot of product or charge large margins to cover your development costs so that the project is worth doing in the first place. If you can’t sell a lot of widgets, then you have to charge the large margin. If your competitor, on the other hand, has good cost control, it can charge smaller margins and still be sure that it recovers its investment and makes money. Thus, it has a competitive advan tage over you because of its better control of project work. Additionally, in order to learn, people require feedback, like that gained by a team from reviewing game films. The last phase of a project In order to learn, we should be a final process review, con must have feedback. ducted so that the management of proj ects can be improved. However, such a Furthermore, we process review should not be conducted tend to learn more only at the end of the project. Rather, process reviews should be done at major from mistakes than milestones in the project or every three from successes, months, whichever comes first, so that learning can take place as the job pro painful though that gresses. Furthermore, if a project is get ting into serious trouble, the process may be to admit. review should reveal the difficulty so that a decision can be made to continue or terminate the work. Following are some of the general reasons for conducting pe riodic project process reviews. You should be able to: Improve project performance together with the management of the project. Ensure that quality of project work does not take a back seat to schedule and cost concerns. Reveal developing problems early so that action can be taken to deal with them. Identify areas where other projects (current or future) should be managed differently. American Management Association • www.amanet.org122 Fundamentals of Project Management Keep client(s) informed of project status. This can also help ensure that the completed project will meet the needs of the client. Reaffirm the organization’s commitment to the project for the benefit of project team members. Conducting the Project Process Review Ideally, a project process review should be conducted by an inde pendent examiner, who can remain objective in the assessment of information. However, the process review must be conducted in a spirit of learning, rather than in a climate of blame and pun ishment. If people are afraid that they will be “strung up” for problems, then they will hide those problems if at all possible. Even so, openness is hard to achieve. In many organizations, the climate has been punitive for so long that people are reluctant to reveal any Process reviews lessthanperfect aspects of project per conducted as formance. Dr. Chris Argyris, in his book Overcoming Organizational Defenses: witchhunts will Facilitating Organization Learning, has produce witches. described the processes by which organi zations continue ineffective practices. All of them are intended to help individuals “save face” or avoid em barrassment. In the end, they also prevent organizational learning. Two questions should be asked in the review. The first is “What have we done well so far,” and the second is “What do we want to improve (or do better) in the future” Notice that I am not asking “What have we done badly” That question serves only to make everyone defensive, because people will assume that you will punish them for things done wrong. Furthermore, there is always the possibility that nothing has been done wrong, but there is always room to improve. Finally, the results of the review should be published. Other wise, the only people in the organization who can take advan tage of it are the members of the team just reviewed. If other American Management Association • www.amanet.orgProject Control and Evaluation 123 teams know what was learned, then they can benefit from that information. In the next section, we look at what the report should contain. The Process Review Report A company may decide to conduct process reviews in varying de grees of thoroughness, from totally comprehensive, to partial, to less formal and cursory. A formal, comprehensive process review should be followed by a report. The report should contain as a minimum the following: Current project status. The best way to do this is to use earned value analysis, as presented in Chapter 11. However, when earned value analysis is not used, the current status should still be reported as accurately as possible. Future status. This is a forecast of what is expected to hap pen in the project. Are significant deviations expected in sched ule, cost, performance, or scope If so, the report should specify the nature of the changes. Status of critical tasks. The report should describe the sta tus of critical tasks, particularly those on the critical path. Tasks that have high levels of technical risk should be given special at tention, as should those being performed by outside vendors or subcontractors, over which the project manager may have lim ited control. Risk assessment. The report should mention any identi fied risks that could lead to monetary loss, project failure, or other liabilities. Information relevant to other projects. The report should describe what has been learned from this process review that can or should be applied to other projects, whether in progress or about to start. Limitations of the process review. The report should men tion any factors that may limit the validity of the process review. American Management Association • www.amanet.org124 Fundamentals of Project Management Are any assumptions suspect Are any data missing or perhaps contaminated Was anyone uncooperative in providing informa tion for the process review As a general comment, the simpler and more straightforward a project process review report, the better. The information should be organized so that both planned and actual results can be easily compared. Significant deviations should be highlighted and explained. Key Points to Remember The meaning of control that is important to project managers is the one that concerns the use of information, comparing actual progress to the plan so that action can be taken to cor rect for deviations from plan. The only way a project is really in control is if all team mem bers are in control of their own work. The effort used to control a project should be worthwhile. You don’t want to spend 100 to purchase a 3 battery, for ex ample. If you take no action in response to a deviation, you have a monitoring system, not a control system. Project working times must be recorded daily. If people wait a week to capture what they have done, they rely on memory and end up writing down estimates of what they did. Such data are no good for future estimating. Project evaluation is done to determine whether a project should continue or be canceled. Process reviews also should help the team learn in order to improve performance. American Management Association • www.amanet.orgCHAPTER 10 CHAPTER 10 The Change Control Process he most comprehensive, effective project plan will be wasted if some method of controlling change is not implemented. Just as your diligence and ability to invest in planning di rectly affect project success or failure, so too does the estab T T ® lishment of a change control process. The PMBOK Guide addresses the change process, stating, “When issues are found while project work is being performed, change requests are issued which may modify project policies The change control or procedures, project scope, project cost or budget, project schedule, or project process establishes quality.” If you do not keep the plan cur rent, you have no plan. The original base the stability neces line plan (the foundation) will no longer sary for you to man be valid and will lose its effectiveness in dealing with current project scenarios. age the multitude of Change control is not easy. It involves changes that affect variables and judgment calls, thresholds and signoffs. The change control process the project through establishes the stability necessary for you out its life cycle. to manage the multitude of changes that 125 American Management Association • www.amanet.org126 Fundamentals of Project Management affect the project throughout its life cycle. If left unchecked, changes to the project plan cause significant imbalance regarding scope, schedule, and budget. The project manager who focuses on managing and controlling change develops a potent weapon to fight scope creep (see Chapter 3). As changes occur, you will gain the ability to gauge their overall impact on the project and react ac cordingly. Change control cannot be accomplished in a vacuum. As you react and make adjustments, the project plan must be revised and distributed to predetermined stakeholders. These stakeholders are often identified in a project communication plan. In addition to stakeholder identification, the plan determines appropriate communication paths, levels of data dissemination, and general guidelines or protocols for the project team. This is an excellent example of how different elements of an overall project plan can complement each other. Typical stakeholders that should appear on the inform or distribution list are the project champion, team members, functional managers, support personnel, select exter nal vendors, and legal. There can be other stakeholders involved as the project dictates. Sources of Change Change happens. As things mature and grow, changes occur natu rally and are often healthy and welcome. Projects are no different. Issues arise, however, when changes occur and no corresponding assessment is made of their impact on the project, positive or neg ative. Sources of change can be many and varied, depending on the project. Think about the projects you are working on right now. What has caused you to modify your plan or make adjustments With some projects, the customer or an internal department may be driving the modifications. On others, changes can come from all possible directions. Figure 101 presents a visual illustration of this concept. As you can see, each side of the triple constraints triangle represents a key project constraint. Sources of change are gener American Management Association • www.amanet.orgThe Change Control Process 127 Figure 101. Triple constraints triangle. Time Scope ally associated with one or more sides of the triangle: scope, schedule, or budget. Project quality is a constant and should al ways be considered as a potential source and focus of change con trol. Scope changes should be identified as those that affect the project deliverable. As changes hit the tri angle, it is your job to keep the triangle Sources of change balanced by making necessary adjust are generally asso ments to your plan. If this is not accom plished, one or more sides of the triangle ciated with one or will become skewed and therefore imbal more sides of the anced. Extra work will be required to complete the project successfully. Typical triangle: scope, sources per the triangle include, but are schedule, or budget. not limited to: Scope Other projects are added due to consolidation The client changes the requirements American Management Association • www.amanet.org128 Fundamentals of Project Management Market conditions shift Problems encountered by engineering Schedule Delivery date accelerated Competition pressures Client requests early delivery Budget Management pulls 20 percent of the project budget Raw material costs escalate Project work requires the addition of a team member Understanding and identifying likely sources of change to your projects will assist you in remaining proactive. The change control process will require a decision as to whether or not to process the change request and then determine the most effective way to move forward. Some decisions are easy: the customer requests a legiti mate design improvement or the project champion deprioritizes the project and slips required delivery three months. But project fate dictates that many change requests require difficult assess ments, analyses, and various approvals before the change can be processed. It is not always evident whether a specific change adds value or merely cosmetic adjustments to the project plan. The for mal change control process really is your friend. As you will see in the next section, it helps guide you through the gray areas of change that often develop as the project matures. The Six Steps in the Change Control Process The change control process can vary but usually includes a num ber of important and mandatory steps. In this section I outline six American Management Association • www.amanet.orgThe Change Control Process 129 common steps that are found in a typical project change control process. Organizational culture, procedure, and project type di rectly affect how the steps are implemented. The project manager typically receives a change request from the requesting entity (in dividual/department/customer). At this point, it is important that you confirm the current version of the project plan. If the change is processed, its impact will be measured against the plan and ad justments made accordingly. Keep the baseline current. Step 1: Enter initial change control information into your change control log. Entering initial change control information into your change con trol log serves as the summary of all actions taken regarding changes requested and/or processed. A detailed change log can ultimately serve as a biography of the project as it matures (see Figure 103 on page 136). Step 2: Determine if the change should be processed. By determining if the change should be processed, you take on the role of the project’s gatekeeper. All too often, I have seen proj ect managers accept changes simply because they are requested. If the change doesn’t make sense—if it doesn’t add value or should not be processed for other reasons—push back. Request clarifica tion or justification to help you arrive at a reasonable decision. If the change is rejected, log it and stop the process. If the change is accepted, begin assessing the impact to the project plan. This is typ ically done by asking this question: “How does the change affect the sides of my triangle: scope, schedule, and budget” Quality, objective, and other elements of the project should also be considered when assessing impact. Prepare recommendations for implementation and then complete the change control form. Step 3: Submit recommendations to management and/or the customer for review and approval. Recommendations for review and approval should be submitted to management and/or your customer, including those for impact American Management Association • www.amanet.org130 Fundamentals of Project Management assessment. Other approvals should be obtained as necessary (i.e., functional department managers). Make appropriate modifi cations as comments are received from these stakeholders. Step 4: Update the project plan. Don’t forget to update the project plan This can be and sometimes is forgotten in the frantic pace of the project environment. It is here that you will create a new project baseline. This will become the current plan. Step 5: Distribute the updated plan. As previously mentioned, communication when the updated plan is distributed is critical. You use this step to ensure that all stake holders are aware of the change and the adjusted baseline plan (for instance, revision 7). If the distribution list is incomplete, mis alignment will occur between the project team and one or more of the stakeholders. Imagine your project team working on revi sion 3 while the California office is working on the original plan (this is actually a bad memory for me). Step 6: Monitor the change and track progress against the revised plan. The impact of the change activity may be minor or severe, good or bad. Don’t forget to check the project triangle to ensure that it remains balanced. Organizational culture impacts how you establish the change control process and manage changes to your project. Be flexible. I often ask my seminar attendees if they have an existing change control process to guide them; some do, but most don’t. That re flects my own experience. When I moved from the defense indus try (strong project processes) to the adult learning environment (less process), I needed to adjust. If you are faced with an environ ment where there are no change processes in place, that is a good news, bad news scenario. The difficulty is in establishing change control while facing resistance to change, as well as general apa American Management Association • www.amanet.orgThe Change Control Process 131 thy. Nobody wants to sign anything, and there is little support in the decisionmaking process. Do it anyway It is important for you to maintain control of the project through these changes. If a stake holder or department manager signature cannot be obtained, write the department or stakeholder/manager name on the change con trol form and note the date. This is a control mechanism, not a “gotcha.” As project manager, it is your responsibility to fight scope creep and keep the triple constraints triangle balanced and under control. This is your tool for your project. The good news in the ab sence of any process is the absence of any process. You can set this up any way you like because there is nothing to replace. Yes, this will be time consuming and a lot of work, but the payoff will be your process, your style. For those who work in an environment with established change control procedures, use them. Quite often these procedures are designed to manage changes to the product (IT, R D depart ments), not the project. Make sure you take a holistic approach to change and focus on the project itself. The Change Control Form The change control form is the controlling document for the change process. This document is the project manager’s tool for identifying, assessing, and, if necessary, processing changes that affect the proj The change control ect. In short, it keeps the project plan form is the control current. It should be filled out com pletely upon acceptance of the requested ling document for change. The data input is more than the change process. record keeping and requires analysis, es timation, and collaboration with team members, stakeholders, and subject matter experts. Without this form or a close proximity, there is no process because there is no control. American Management Association • www.amanet.org132 Fundamentals of Project Management Figure 102.  Project change control form. Project Title: Moving Relocation Project Date: 8/12/2011 Project No.: 710 Task No.: 16 Revision No.: 1 Date Revised: 8/13/2011 Objective Statement: Relocation of the accounting department to suitable and renovated quarters for 22 persons within the same building no later than December 31, 2011. Description of Change: Site 2 will not be available for evaluation until August 21 or 22. This will cause a two day delay in the evaluation of all sites. This change will probably not cause a delay to the project but may delay the final site decision by one day. Reason for Change: The site will not be available for review and evaluation due to major corporate planning sessions that will consume that space for two days. Schedule Change Information Task Task Orig. Start Orig. Comp. New Start New Comp. No. Date Date Date Date 16 Evaluate Site 2 8/15/11 8/20/11 8/17/11 8/22/11 Estimated Costs: Approvals Project Manager: Mr. Bill Boyd Date: 8/11/11 Task Manager: Mr. Dan O’Brien Date: 8/12/11 Functional Manager: Date: Senior Manager: Date: American Management Association • www.amanet.orgThe Change Control Process 133 Figure 102 is a very comprehensive, detailed version of a change form. It is important that you review the form and adjust it to your own perceived requirements when managing changes as the project matures. You may need to streamline the template, or you may want to expand some portions. This is your call. If the document is too cumbersome, you will lose efficiency. If you sim plify too much, key data will be lost. Overview data are input at the top of the form, including project number, revision number, and date revised. I always in clude the objective statement on my change documents to en sure continuity and eliminate uncertainty. Change can breed uncertainty, and uncertainty is not your friend. As changes mul tiply on a typical project, include the original objective state ment. This will keep stakeholders from wondering if the objective has changed because of the latest adjustments. If the impact is significant, a new objective statement may need to be agreed upon and communicated per the form. A brief de scription of the change is appropriate, and the reason should be included, as well. In the mercurial project environment, it may be difficult seven months and thirtyseven changes into the proj ect to recall why the team generated change order Number 2. Add the five other projects you might be managing to the sce nario, and you can see how this added element of control can be helpful. Reason for change can also serve as a check on the system to ensure that value is added by implementing the change. Schedule change information and estimated costs bring us back to the triple constraints triangle. It is crucial that you quantify the estimated impact of the change on both the project schedule and the budget. Some project managers prefer less detail than is shown in Figure 10–2 and quantify the impact by noting the over all schedule delay or time saved. This is your call and is usually de termined by style, organizational culture, project type, and so on. Sometimes, estimated costs are actual costs already realized or quotes received from vendors. Again, this will depend upon all of the variables associated with the change. American Management Association • www.amanet.org134 Fundamentals of Project Management An effective change control form is obviously important for project control, but it can also come in handy: A colleague of mine, a group program manager for the Amer ican Management Association International (AMA), was asked by a direct report managing a course revision project if she could col orize 25 percent of a Train the Trainer course book. He told her it was probably not a good idea because the production costs would be exorbitant. When she brought back a more reasonable request with appropriate approvals, the manager moved forward with the change, impacting the budget by about 10,000. At the subsequent steering committee review, he was asked about the budget increase. Expecting the question, he offered his next slide, a copy of the change request form, which two of the com mittee members had signed. He was able to proceed without needing an aspirin. Thresholds How much change is enough to trigger the process Are there changes that are just not significant enough to justify filling out the form, acquiring signatures, and mak ing other investments of time and effort Are there changes These are important questions for the proj that are just not ect manager, and they offer an excellent time to consider thresholds. Most project significant enough processes require you to employ good proj to justify filling out ect and business savvy. If the change is considered minor and the project plan can the form, acquiring absorb the change with minimal impact, make necessary adjustments and move on signatures, and (see Example 1). If, however, a severity making other invest threshold has been exceeded, this should trigger action by you and your team to im ments of time and plement the change control process (see effort Example 2). American Management Association • www.amanet.orgThe Change Control Process 135 Example 1: If a 5 million project must endure a 10 change, it would be a poor decision to trigger the proc ess. A reasonable threshold might be 500, depending upon budget constraints and industry standards. Example 2: If your project deadline is four months from the date of the change request and the estimated schedule delay is one week, the change process should be triggered. Schedule thresholds require more analysis based upon critical path implica tions (or not) and duration to complete. As al ways, you will need to take the temperature of the project environment during the decision making process. Because of the everchanging environment that surrounds most projects, thresholds are flexible, and you will often require input from teammates or other stakeholders to determine the im pact of a change on the project. If you have done your homework and invested time and effort in managing the previous project life cycle processes, you will be in a much better position to make in formed decisions regarding change. The Change Control Log As I mentioned earlier in this chapter, the change control log en ters the picture in Step 1 of the change control process. As you might expect, it is another control mechanism designed to iden tify proposed changes and track those accepted throughout the process. Figure 103 is a template that you can use as presented, streamline, or expand as you deem necessary. In the absence of an organizational standard, I recommend that you adopt a singular, comprehensive approach to tracking changes across projects. You can add or omit information as appropriate. As with many project templates, the concept is simple but not American Management Association • www.amanet.org136 Fundamentals of Project Management Figure 103. Project change control log. Change Date of Description of Requested Status Schedule Budget Comments Number Change Change By O/C Impact Impact 1 8/12/11 Site 2 not available on Jim 2 days N/A 2/11 Morrison always easy to apply. Discipline is the key ingredient here. As changes, risks, and critical path issues are swirling about, you must be disciplined enough to stop what you are doing and work the log. Much of the information you input will seem selfevident or trivial, As changes, risks, but the simplest detail may loom large as and critical path the project progresses. Change Number, Date of Change Request, and an abbre issues are swirling viated Description of Change are stan about, you must be dard information. The approach used in Figure 103 also includes columns for disciplined enough the requestor and status. There will be to stop what you instances where a change will be ac cepted but budget, schedule, technology, are doing and work skill set, or something else presents a blockage to delay or even prevent imple the log. mentation. I prefer O/C, open or closed, to identify status. You should then transfer Schedule Impact and Budget Impact from the change control form and update as nec essary. Many project managers add a column for scope or objec tive impact prior to the final input that is reserved for comments or miscellaneous issues. Typical comments may concern stake holder reluctance, technical problems, or remarks regarding other project issues. American Management Association • www.amanet.orgThe Change Control Process 137 The Project Spinoff Think about some drastic changes that have affected your proj ects in the past. Sometimes project change, whatever the source, can be grounds for spinning off a new project while continuing with the origi Sometimes project nal. Sometimes it is appropriate for the change, whatever new project to simply replace the origi nal due to skill set requirements, loca the source, can be tion, budget demands, deprioritization, grounds for spin or a host of other reasons. There are also changes so severe that they justify clos ning off a new proj ing the project down. When you get hit with the big one, it’s not often easy and ect while continuing never fun. It doesn’t even need to be with the original. one change; it may be an accumulation of changes that dramatically impacts the project. In any case, you need to have a firm grasp of the impact on the project and your recommendations moving forward. This can often be a sales job, and you will need to persuade with good data from the project plan. The project spinoff usually occurs when the change is so dramatic that The project spinoff you and your team determine that an usually occurs when entirely separate project should be ini tiated. This could be due to scope “ex the change is so dra plosion” or one or more of the many matic that you and reasons previously detailed. If a new project moves forward with the exist your team determine ing one, it can often be managed in parallel, requiring coordination and that an entirely sep alignment. If a new project manager arate project should takes over, it is probable that you will be called upon to coach her up to speed be initiated. as the project life cycle is begun. It is in American Management Association • www.amanet.org138 Fundamentals of Project Management your best interest to do a thorough job here. Some of your team resources may be shared or transferred, depending upon the in dividual project circumstances. If the new project becomes a satellite, or subproject, the im pact is far less drastic, and the new team will usually report directly to the original project manager. In contrast, if the new project re places the old, you may just move on to other projects. In the event that it makes sense to keep you in place, manage the new project as you did the original. Begin at the beginning—plan. Then con tinue through the project life cycle as appropriate. It is important here to capture all of the work and data that can be useful mov ing forward on the new project. A careful analysis should be done to separate the wheat from the chaff. In some cases, skillset re quirements will require individual team members to be replaced. You may have to recruit an entirely new team, again depending on circumstances. You may, as project manager, decide that the project should be killed; good luck. In my experience, it can be a difficult thing to do, but not impossible. If the project has lost its value, make your case. Use data, not emotion. The reasons can be many and varied, but if you have done your job, you will have the means to persuade with facts. Embracing Change Don’t fear project change; embrace and manage it. This does not have to be a difficult task if you have invested yourself and the proj ect team in establishing a formidable plan. As with scope creep, changes often represent necessary adjustments to the original proj ect plan. It’s how you manage these changes that makes all of the difference and helps you deliver the project on time and on budget, with an excellent deliverable. American Management Association • www.amanet.orgThe Change Control Process 139 Key Points to Remember Change must be controlled and communicated. Understanding and identifying likely sources of change as sists you in remaining proactive. Typical sources of change are scope, schedule, and budget adjustments. It is crucial to keep the baseline plan current. The six common steps you will take in a typical change con trol process are to enter the initial change control information into your change control log; determine if the change should be processed; submit recommendations to management and/or the customer for review and approval; update the proj ect plan; distribute the updated plan; and monitor the change and track progress against the revised plan. The change control form and log are your primary controlling documents. Thresholds should be established when determining your re sponse to project change. Project spinoff usually occurs when the project change is so dramatic that you and your team determine that an entirely separate project should be initiated. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Identify a recent change to your project that required a response. On the basis of what you’ve learned in this chapter, answer the fol lowing questions: 1. Is it appropriate to accept the change 2. Should a change control document be triggered American Management Association • www.amanet.org140 Fundamentals of Project Management 3. How did this change impact the project triangle 4. To whom should the response be communicated 5. What change thresholds are appropriate to establish for this project American Management Association • www.amanet.orgCHAPTER 11 CHAPTER 11 Project Control Using Earned Value Analysis ontrol is exercised to achieve project objectives, and we know that there are performance, cost, time, and scope tar gets that are always important. Furthermore, we have seen that control is exercised by comparing performance to plan C C and, when deviations or variances occur, taking corrective action to bring performance back on target. As I said in Chapter 9, the review that is concerned with maintenance or straightforward project control is the status re view. This review asks where the project is in terms of all four PCTS variables. Each time progress is reviewed, you must ask these three questions: 1. Where are we (in terms of PCTS) 2. When there is a deviation, what caused it 3. What should be done about the deviation Note that there are only four actions that can be taken in re sponse to question 3. These are: 141 American Management Association • www.amanet.org142 Fundamentals of Project Management 1. Cancel the project. 2. Ignore the deviation. 3. Take corrective action to get back onto the planned progress. 4. Revise the plan to reflect a change in status that can’t be corrected. Sometimes a project gets so far off track that it is no longer viable, and the best thing to do is to cancel it. Of course, this step is not taken lightly, but it should be taken in cases where you are just going to throw good money after bad. Cut your losses and get on with something better. As for ignoring a deviation, if you can control to within a cer tain percentage tolerance and you are within those limits, you should usually ignore a deviation unless it shows a trend that will definitely eventually take it outside the limits. Otherwise, tweaking may just make the situation worse. As for taking corrective action, there is no way to tell what this means, as it is specific to each project. Sometimes working people overtime gets a project back on track. Or perhaps you need to add people, or cut scope, or change the process. You must determine what must be done for your project. In the event that the project is still viable but nothing can be done to get it back on track, you may have to revise the plan. Of course, you can also consider working Another day, overtime or reducing scope, since these were not originally called for. What I am a nother zero. really referring to here, however, is a sit uation in which you cannot recover and —Alfalfa (Carl Switzer) you are revising the plan to show that Our Gang comedy series the costs will increase, the deadline will slip, or some other change to the plan will occur. Measuring Progress One of the hardest things to do in managing projects is to actu ally measure progress. When you are following a road map, you American Management Association • www.amanet.orgProject Control Using Earned Value Analysis 143 monitor the road signs and see whether they agree with your planned route. In welldefined jobs, such as construction projects, it is generally fairly easy to tell where you are. You can measure the height of a brick wall or see whether all the conduit is in stalled, and so on. That is, you can tell where you are when a part of the work is actually finished. When work is poorly de fined and it is only partially complete, however, you have to esti mate where you are. This is especially true of knowledge work—work done with one’s head, rather than one’s hands. If you are writing software code, designing something, or writing a book, it can be very hard to judge how far along you are and how much you have left to do. Naturally, if you can’t tell where you are, you can’t exercise control. And note that use of the word “estimate” in measuring progress. What exactly is an estimate It’s a guess. And so we are guessing about where we are. Yes. We’ll know where we are when we get there. Until we actually arrive, we’re guessing. Does this not sound like something from Alice in Wonderland Heavens. What was that definition of control again Let’s see—compare where you are . . . How do you know where you are . . . We’re guessing. . . . against where you are supposed to be. . . . How do you know where you’re supposed to be Oh, that’s much easier. The plan tells us. But where did the plan come from It was an estimate, too. Oh. So if one guess doesn’t agree with the other guess, we’re supposed to take corrective action to make the two of them agree, is that it That’s what this guy says in his book. Must be a book on witchcraft and magic. Well, since it is impossible to know for sure where we are, American Management Association • www.amanet.org144 Fundamentals of Project Management then perhaps we should just give up on the whole thing and keep running projects by the seat of the pants. Right Wrong. The fact that measures of progress The difficulty of are not very accurate does not justify the measuring progress conclusion that they shouldn’t be used. Remember, if you have no plan, you does not justify the have no control, and if you don’t try to conclusion that it monitor and follow the plan, you defi nitely don’t have control. And if you shouldn’t be done. have no control, there is no semblance of managing. You’re just flailing around. You cannot have What is important to note, however, control unless you is that some projects are capable of tighter control than others. Welldefined measure progress. work, which can be accurately mea sured, can be controlled to tight tolerances. Work that is more nebulous (e.g., knowledge work) has to allow larger tolerances. Management must recognize this and accept it. Otherwise, you go crazy trying to achieve 3 percent tolerances. It’s like trying to push a noodle into a straight line or nail jelly to a wall. Measuring Project Performance/Quality If you think measuring progress is hard, Work quality is try measuring quality. Were the bolts holding the steel beams together put in most likely to be properly Are all the welds sound How sacrificed when do you tell This is the hardest variable to track, deadlines are tight. and one that often suffers as a conse Constant attention quence. Also, so much attention tends to be focused on cost and schedule perfor is required to avoid mance that the quality of the work is often sacrificed. This can be a disaster, in this tendency. American Management Association • www.amanet.orgProject Control Using Earned Value Analysis 145 some cases resulting in lawsuits against a company for damages that result from poorquality work. Project managers must pay special attention to the quality variable, in spite of the difficulty of tracking it. Earned Value Analysis It is one thing to meet a project deadline at any cost. It is another to do it for a reasonable cost. Project cost control is concerned with ensuring that projects stay within their budgets, while get ting the work done on time and at the correct quality. One system for doing this, called earned value analysis, was developed in the 1960s to allow the government to decide whether a contractor should receive a progress payment for work done. The method is finally coming into its own outside govern ment projects, and it is considered the correct way to monitor and control almost any project. The method is also called simply variance analysis. Variance analysis allows the project manager to determine trouble spots in the project and to take corrective action. The fol lowing definitions are useful in understanding the analysis: Cost variance: Compares deviations and performed work. Schedule variance: Compares planned and actual work completed. BCWS (budgeted cost of work scheduled): The budgeted cost of work scheduled to be done in a given time period or the level of effort that is supposed to be performed in that period. BCWP (budgeted cost of work performed): The budgeted cost of work actually performed in a given period or the budgeted level of effort actually expended. BCWP is also called earned value and is a measure of the dollar value of the work actually accomplished in the period being monitored. American Management Association • www.amanet.org146 Fundamentals of Project Management ACWP (actual cost of work performed): The amount of money (or effort) actually spent in completing work in a given period. Variance thresholds can be established that define the level at which reports must be sent to various levels of management within an organization. Cost Variance = BCWP – ACWP Schedule Variance = BCWP – BCWS Variance: Any deviation from plan By combining cost and schedule variances, an integrated cost/ schedule reporting system can be developed. Variance Analysis Using Spending Curves Variances are often plotted using spending curves. A BCWS curve for a project is presented in Figure 111. It shows the cumulative spending planned for a project and is sometimes called a base line plan. In the event that software is not available to provide the nec essary data, Figure 112 shows how data for the curve are gener ated. Consider a simple bar chart schedule. Only three tasks are involved. Task A involves forty laborhours per week at an average loaded labor rate of 20 per hour, so that task costs 800 per week. Task B involves 100 hours per week of labor at 30 per hour, so it costs 3,000 per week. Finally, task C spends 2,400 per week, assuming sixty hours per week of labor at 40 per hour. At the bottom of the chart, we see that during the first week 800 is spent for project labor; in the second week, both tasks A and B are running, so the labor expenditure is 3,800. In the third week, all three tasks are running, so labor expenditure is the sum of the three, or 6,200. These are the weekly expenditures. The cumulative expenditures are calculated by adding the cost for each subsequent week to the previous cumulative total. These cumulative amounts are plotted in Figure 113. This is the spending curve for the project and is called a BCWS curve. Since American Management Association • www.amanet.org2,400 28,800 2,400 26,400 2,400 24,000 21,600 5,400 5,400 16,200 6,200 10,800 4,600 3,800 800 800 Project Control Using Earned Value Analysis 147 Figure 111.  BCWS curve. Time Figure 112.  Bar chart schedule illustrating cumulative spending. (40 Hrs/Wk)(20 /Hr) = 800/Wk Task A (100 Hrs/Wk)(30 /Hr) = 3,000/Wk Task B (60 Hrs/Wk)(40 /Hr) = 2,400/Wk Task C Weekly Spending Cumulative Spending American Management Association • Cumulative Spending148 Fundamentals of Project Management it is derived directly from the schedule, it represents planned per formance and therefore is called a baseline plan. Furthermore, since control is exercised by comparing progress to plan, this curve can be used as the basis for such comparisons so that the project manager can tell the status of the program. The next sec tion presents examples of how such assessments are made. Examples of Progress Tracking Using Spending Curves Consider the curves shown in Figure 114. On a given date, the project is supposed to have involved 40,000 (40K) in labor (BCWS). The actual cost of the work performed (ACWP) is 60K. These figures are usually obtained from Accounting and are derived from all the time cards that have reported labor applied to the proj ect. Finally, the budgeted cost of work performed (BCWP) is 40K. Under these conditions, the project would be behind schedule and overspent. Figure 115 illustrates another scenario. The BCWP and the ACWP curves both fall at the same point, 60K. This means that the project is ahead of schedule but spending correctly for the amount of work done. The next set of curves illustrates another status. In Figure 116, the BCWP and the ACWP curves are both at 40K. This means the project is behind schedule and under budget. However, be cause the manager spent 40K and got 40K of value for it, spend Figure 113.  Cumulative spending for the sample bar chart. 30 25 20 15 10 5 0 1 0 2 3 4 5 6 7 89 Time American Management Association • www.amanet.orgDeadline Deadline Project Control Using Earned Value Analysis 149 Figure 114.  Plot showing project behind schedule and overspent. Labor Budget BCWS 60K cv 50K sv 40K Date of Time Analysis ACWP cv = cost variance sv = schedule variance BCWP Figure 115.  Project ahead of schedule, spending correctly. Labor Budget BCWS 60K sv 50K 40K Date of Time Analysis ACWP cv = cost variance sv = schedule variance BCWP American Management Association • www.amanet.org150 Fundamentals of Project Management ing is correct for what has been done. There is a schedule vari ance, but not a spending variance. Figure 117 looks like Figure 114, except that the ACWP and the BCWP curves have been reversed. Now the project is ahead of schedule and underspent. Variance Analysis Using Hours Only In some organizations, project managers are held accountable not for costs but only for the hours actually worked on the project and for the work actually accomplished. In this case, the same analysis can be conducted by stripping the dollars off the figures. This results in the following: BCWS becomes Total Planned (or Scheduled) Hours BCWP becomes Earned Hours (Scheduled hours work accomplished) ACWP becomes Actual Hours Worked Using hours only, the formulas become: Schedule Variance = BCWP – BCWS = Earned Hours " Planned Hours Labor Variance = BCWP " ACWP = Earned Hours " Actual Hours Worked Tracking hours only does lead to one loss of sensitivity. ACWP is actually the composite of a labor rate variance times a laborhours variance. When only laborhours are tracked, you have no warning that labor rates might cause a project budget problem. Nevertheless, this method does simplify the analysis and presumably tracks the project manager only on what she can control. American Management Association • www.amanet.orgDeadline Deadline Project Control Using Earned Value Analysis 151 Figure 116.  Project is behind schedule but spending correctly. Labor Budget BCWS 60K 50K sv 40K Date of Time Analysis ACWP cv = cost variance sv = schedule variance BCWP Figure 117.  Project is ahead of schedule and underspent. Labor Budget BCWS 60K sv cv 50K 40K Date of Time Analysis ACWP cv = cost variance sv = schedule variance BCWP American Management Association • www.amanet.org152 Fundamentals of Project Management Responding to Variances It is not enough to simply detect a variance. The next step is to un derstand what it means and what caused it. Then you have to de cide what to do to correct for the deviation. Earlier, I explained that there are four responses that can be taken when there is a devia tion from plan. Which of these you choose depends in part on what caused the deviation. Following are some general guidelines: When ACWP and BCWP are almost equal and larger than BCWS (see Figure 115), it usually means that extra resources have been applied to the project, but at the labor rates originally anticipated. This can happen in several ways. Perhaps you planned for weather delays, but the weather has been good and you have gotten more work done during the analysis period than intended, but at the correct cost. Thus, you are ahead of schedule but spending correctly. When ACWP and BCWP are nearly equal and below BCWS (see Figure 116), it usually means the opposite of the pre vious situation; that is, you have not applied enough resources. Perhaps they were stolen from you, perhaps it has rained more than you expected, or perhaps everyone has decided to take a va cation at once. The problem with being in this position is that it usually results in an overspend when you try to catch up. When ACWP is below BCWS and BCWP is above BCWS (see Figure 117), you are ahead of schedule and underspent. This generally happens because the original estimate was too con servative (probably padded for safety). Another possibility is that you had a lucky break. You thought the work would be harder than it was, so you were able to get ahead. Sometimes it happens because people were much more efficient than expected. The problem with this variance is that it ties up resources that could be used on other projects. The economists call this an opportunity cost. There is also a good chance that if you were consistently padding estimates and were bidding against other companies on American Management Association • www.amanet.orgProject Control Using Earned Value Analysis 153 projects, you probably lost some bids. If your competitor is using average values for time estimates while you are padding yours, then your figures are likely to be higher, and you will lose the bid. Acceptable Variances What are acceptable variances The only answer that can be given to this question is “It all depends.” If you are doing a welldefined construction job, the variances can be in the range of " 3–5 percent. If the job is research and devel opment, acceptable variances increase generally to around " 10–15 percent. When the job is pure research, the sky is the limit. Imagine, for example, that you worked for a phar maceutical company and your boss said, “Tell me how long it will take and how much it will cost for you to discover and de velop a cure for AIDS.” For every organization, you have to develop tolerances through experience. Then you start trying to reduce them. All progress is an attempt to reduce variation in what we do. We will never reduce it to zero unless we eliminate the process altogether, but zero has to be the target. Using Percentage Complete to Measure Progress The most common way to measure progress is to simply estimate percentage complete. This is the BCWP measure, but BCWP is expressed as a dollar value, whereas percentage complete does not make that conversion. When percentage complete measures are plotted over time, you tend to get a curve like the one shown in Figure 118. It rises more or less linearly up to about 80 or 90 percent, then turns horizontal (meaning that no further progress is being made). It stays there for a while; then, all of a sudden, the work is completed. American Management Association • www.amanet.org154 Fundamentals of Project Management Figure 118.  Percent complete curve. 100 0 Time The reason is that problems are often encountered near the end of the task, and a lot of effort goes into trying to solve them. During that time, no progress is made. Another part of the problem is in knowing where you are to begin with. We have already said that you are generally estimat ing progress. Consider a task that has a tenweek duration. If you ask the person doing that task where he is at the end of the first week, he is likely to tell you, “10 percent”; at the end of week two, “20 percent”; and so on. What he is doing is making a re verse inference. It goes like this: “It is the end of the first week on a tenweek task, so I must be 10 percent complete.” The truth is, he really doesn’t know where he is. Naturally, under such condi tions, control is very loose. Still, this is the only way progress can be measured in many cases. American Management Association • Percent CompleteProject Control Using Earned Value Analysis 155 Key Points to Remember Control is exercised by analyzing from the plan. Welldefined projects can achieve tighter control over variations than poorly defined ones. There is a tendency to sacrifice quality when deadlines are difficult to meet. It is not enough to recognize a variance. Its cause must be de termined so that corrective action can be taken. Acceptable variances can be determined only through experi ence. Every system has a capability. Your team may have the ability to maintain better tolerances on their work than another team. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consider the report in Figure 119, showing earned value figures for a project. Answer the questions by analyzing the data. Answers are provided in the Answers section at the back of the book. Figure 119.  Earned value report. Cumulativetodate Variance At Completion VARIANCE WBS BCWS BCWP ACWP SCHED. COST BUDGET L. EST. 301 800 640 880 –160 –240 2,400 2,816 –416 Questions: 1. Is the task ahead or behind schedule By how much 2. Is the task overspent or underspent By how much 3. When the task is completed, will it be overspent or underspent American Management Association • www.amanet.orgCHAPTER 12 CHAPTER 12 Managing the Project Team he previous chapters have concentrated primarily on the tools of project management—how to plan, schedule, and control the work. Unfortunately, far too many project managers see these tools as all they need to manage suc T T cessfully. They assemble a team, give the members their instructions, then sit back and watch the project self destruct. Then they question whether there might be some flaw in the tools. In all likelihood, the problem was with how people were man aged. Even in those cases where a problem with the tools may have existed, it is often the failure of people to properly apply them that causes the problem, so, again, we are back to people. The tools and techniques of project management are a nec essary but not a sufficient condition for project success. As I have stated, if you can’t handle people, you will have difficulty manag ing projects, especially when the people don’t “belong” to you. Related to this is the need to turn a project group into a team. Far too little attention is paid to team building in project manage ment. This chapter offers some suggestions on how to go about it. 156 American Management Association • www.amanet.orgManaging the Project Team 157 Team Building Building an effective team begins on the first day of the team’s existence. Failure to begin the teambuilding process may result in a team that is more like a group than a team. In a group, members may be in Teams don’t just volved in but not committed to the ac happen—they tivities of the majority. The problem of commitment is a must be built major one for both organizations and project teams. It is especially significant in matrix organizations, in which members of the project team are actually members of functional groups and have their own bosses but report to the project manager on a “dottedline” basis. Later in this chapter, I present rules for how a project manager can develop commitment to a team. For now, let us turn to how to get a team organized so that it gets off to the right start. (For an indepth treatment of this topic, see Jim Lewis’s book TeamBased Project Management.) Promoting Teamwork through Planning A primary rule of planning is that those individuals who must im plement the plan should participate in preparing it. Yet, leaders often plan projects by themselves, then wonder why their team members seem to have no commitment to the plans. All planning requires some estimating—how long a task will take, given the availability of certain resources, and so on. In my seminars, I ask participants, “Do you often find that your boss thinks you can do your work much faster than you actually can” They laugh and agree. As I tell them, it seems to be some kind of psychological law that bosses are optimistic about how long it will take their staffs to get a job done. When a manager gives a person an assignment that allows inadequate time to perform, the individual naturally feels dis American Management Association • www.amanet.org158 Fundamentals of Project Management couraged, and her commitment is likely to suffer. She might say, “I’ll give it my best shot,” but her heart isn’t really in it. Getting Organized Here are the four major steps in organizing a project team: 1. Decide what must be done, using work breakdown struc tures, problem definitions, and other planning tools. 2. Determine staffing requirements to accomplish the tasks identified in the first step. 3. Recruit members for the project team. 4. Complete your project plan with the participation of team members. Recruiting Following are some of the criteria by which team members should be selected: The candidate possesses the skills necessary to perform the required work at the speed needed to meet deadlines. The candidate will have his needs met through participation in the project (see the March and Simon rules discussed later in this chapter). The applicant has the temperament to fit in with other team members who have already been recruited and with the proj ect manager and other key players. The person will not object to overtime requirements, tight timetables, or other project work requirements. Clarifying the Team’s Mission, Goals, and Objectives Peters and Waterman, in their book In Search of Excellence, have said that excellent organizations “stick to their knitting.” They American Management Association • www.amanet.orgManaging the Project Team 159 stick to what they are good at and do not go off on tangents, try ing to do something they know nothing about. (Imagine, as an example, a hockey team deciding to play basketball.) Numerous case studies and articles If possible, the en have been written about organizations that went off on tangents, at great cost, tire team should because they forgot their mission. The participate in devel same can happen to project teams. If members are not clear on the team’s oping the team’s mission, they will take the team where they think it is supposed to go, and that mission statement. may not be the direction intended by the This is a tremen organization. The procedure for develop ing a mission statement is covered in dous teambuilding Chapter 4, so no more will be said about activity in itself it here. However, working with your team to develop a mission statement is a good teambuilding activity in itself. Conflicts between Individual Goals and the Team’s Mission Experience has shown that team mem bers are most committed to a team A manager should when their individual needs are being try to satisfy the met. Sometimes members have what are called hidden agendas, personal objec needs of the organi tives that they do not want anyone to zation, while simul know about, because they are afraid other members will try to block them if taneously helping their objectives are known. Since a man individuals satisfy ager should try to help individual mem bers achieve their personal goals, while their own needs achieving team goals as well, the team leader needs to bring hidden agendas through participa into the open so that the individual can tion in the project. be helped to achieve his goal. Of course, American Management Association • www.amanet.org160 Fundamentals of Project Management a person may occasionally have a goal that runs so counter to the team’s goals that no reconciliation is possible. In that case, if the team leader can discover what the person’s goal is, the individ ual can (ideally) be moved to another team in which his goal can be reached. Team Issues There are four general issues with which a team must deal. These are goals, roles and responsibilities, procedures, and relationships. In this chapter, we have dealt with clarifying the team’s mission, goals, and objectives. This is always the first and most important step in developing a team. Once that is done, people must Every team must understand their roles. These must be deal with: clearly defined. What is expected of each individual, and by when The one prob goals lem that seems common is that team leaders think they clearly communicate roles and this information to team members. Yet, responsibilities when you ask team members if they are clear on their goals and roles, you fre procedures quently get a negative response. relationships The problem is with our failure to solicit feedback from team members in order to be sure that they understood; in addition, members themselves are sometimes reluctant to admit that they haven’t understood. This appears to be a result of our tendency in school to put people down for asking “stupid questions.” So, rather than admit that they don’t understand, they interpret what they have been told and try to do the job the best they can. Project leaders must establish a climate of open communica tion with the team in which no one feels intimidated about speaking up. The best way to do this is to comment on the prob lem: “I know some of you may feel reluctant to speak up and say you don’t understand, but we can’t operate that way. Please feel free to be candid. If you don’t understand, say so. If you don’t American Management Association • www.amanet.orgManaging the Project Team 161 agree with something, say so. That is the only way we can suc ceed. We will be lucky to have time to do the job once, much less find time to do it over because one of you There is no such failed to understand what was expected.” I have also found that people respond thing as a stupid very positively when I am willing to admit that I don’t understand something myself question—except or am apprehensive or concerned about perhaps the one you a project issue. If you project an air of infallibility, no one else is likely to admit were afraid to ask. a weakness. But, then, who wants to deal with a demigod A little human frailty goes a long way toward breaking down barriers. I know this contradicts what some managers have been taught. The macho notion of infalli bility has been with us for a long time, and I believe it is the cause of many of our organizational problems. It is time to aban don it for reality. Working Out Procedures Dealing with how we do it comes next. The key word here is processes. The work must be done as efficiently and as ef fectively as possible, and improvement of work processes is a very important issue today. It is com monly called reengineering and is the Socalled personal analysis and improvement of work proc ity conflicts are esses to make the organization more competitive. often simply the The difficulty that most teams have result of people’s with process is that they get so focused on doing the work that they forget to exam lack of good inter ine how it is done. Periodically, a team should stop working long enough to ex personal skills. This amine its processes and to see whether it lack can be resolved could use better approaches. Otherwise, the team may get very good at doing the through training. work badly. American Management Association • www.amanet.org162 Fundamentals of Project Management Relationships in Teams Friction occurs in nearly every interaction between human beings. There are misunderstandings, conflicts, personality clashes, and petty jealousies. Project managers must be prepared to deal with these. In fact, if you really dislike having to deal with the behav ioral problems that occur on projects, you should ask yourself whether you really want to manage projects at all. Like it or not, the behavioral problems come with the job, and failure to deal with them will sink a project eventually. One thing to be aware of is that many personality clashes are the result of people’s lack of good interpersonal skills. We have never been taught how to sit down and work out differences with others, so, when the inevitable conflict happens, the situation just blows up. The best way to minimize the impact of such problems is to provide training for all team members (including yourself) in interpersonal skills. This area has been sorely neglected in many organizations because there seems to be no bottomline impact. It is hard to demonstrate that there will be a 10 return on a 1 train ing investment. Because of our inability to quantify the benefits of skills train ing, we don’t provide it. Yet, if we have capital resources that don’t work well, we spend whatever is necessary to correct the problem. Interestingly, our human resources are the only ones that are renewable almost indefinitely, but we fail to take steps to keep them functioning effectively. As a project manager, you owe it to yourself to manage this aspect of the job. Stages in a Team’s Development There are a number of models that describe the stages that teams or groups go through on the way to maturity. One of the more pop ular ones has selfexplanatory titles for the stages: forming, storm ing, norming, and performing. In the forming stage, people are concerned with how they will fit in and with who calls the shots, makes decisions, and so on. During this stage, they look to the leader (or someone else) to American Management Association • www.amanet.orgManaging the Project Team 163 give them some structure—that is, to give them a sense of direc tion and to help them get started. A leader’s failure to do this may result in loss of the team to some member who exercises what we call informal leadership. The storming stage is frustrating for most people. When the team reaches this stage, people begin to question their goals. Are they on the right track Is the leader really leading them They sometimes play shoot the leader during this stage. At the norming stage, they are begin ning to resolve their conflicts and to set The most popular tle down to work. They have developed terms for the norms (unwritten rules) about how they will work together, and they feel more stages of team comfortable with one another. Each indi d evelopment are: vidual has found her place in the team and knows what to expect of the others. forming Finally, when the team reaches the performing stage, the leader’s job is easier. storming Members generally work well together norming now, enjoy doing so, and tend to produce highquality results. In other words, we performing can really call them a team at this point. Leading a Team through the Stages A newly formed team needs considerable structure, or it will not be able to get started. As I noted in the previous section, a leader who fails to provide such structure during stage 1, the forming stage, may be rejected by the group, which will then look for leadership from someone else. A directive style of leadership is called for in the forming stage. During this stage, members also want A directive style of to get to know one another and want to leadership is called understand the role each member will play on the team. In stage 1, the leader for when a team is in must help team members get to know the forming stage. one another and help them become clear American Management Association • www.amanet.org164 Fundamentals of Project Management on goals, roles, and responsibilities. Leaders who are very task ori ented tend to make a major error here: They just tell the team to “get to work,” without helping members get to know one another. They view such purely “social” activities as a waste of time; surely members can attend to such things themselves. Although it seems obvious, it is hard to see yourself as a team when you don’t know some of the “players.” Getting the team started with a kickoff party or dinner is one way to let members become acquainted in a purely social way, with no pressure to perform actual task work. If this is not feasi ble, there must be some mechanism for letting people get to know each other. As the group continues to develop, it enters stage 2, storm ing. Here, people are beginning to have some anxiety. They start to question the group’s goal: Are we doing what we’re supposed to be doing A selling or influence The leader must use influence or per style of leadership suasion to assure them that they are indeed on track. They need a lot of psy is appropriate at chological support, as well. They must the storming stage. be assured by the leader that they are valued, that they are vital to the success of the team, and so on. In other words, members need some stroking in this stage. There is a tendency to try to skip this stage, as managers feel uncomfortable with the conflict that occurs. To sweep such con flict under the rug and pretend that it doesn’t exist is a mistake. The conflict must be managed so that it does not become de structive, but it must not be avoided. If it In the norming is, the group will keep coming back to this stage to try to resolve the conflict, stage, the leader and this will inhibit progress. Better to should adopt a pay now and get it over with. As the team enters stage 3, norming, participative style it is becoming closer knit. Members are beginning to see themselves as a team of leadership. American Management Association • www.amanet.orgManaging the Project Team 165 and take some sense of personal identity from membership in the group. Members are now involved in the work, are becoming supportive of one another, and, because of their cooperation, can be said to be more of a team than a group at this point. The leader needs to adopt a participative style in this stage and share decision making more than in stages 1 and 2. By the time a group reaches stage 4, performing, it is a real team. The leader can generally sit back and concentrate on what if analysis of team progress, planning for future work, and so on. This is a delegative style of leadership Delegative leader and is appropriate. The team is achieving results, and members are usually taking ship is the proper pride in their accomplishments. In this stage, there should be signs of cama style in the per raderie, joking around, and real enjoy forming stage of a ment in working together. It is important to remember that no team’s development. team stays in a single stage forever. If Note that delega it encounters obstacles, it may drop back to stage 3, and the leader can no tive does not mean longer be delegative but must back up to abdication the stage 3 management style, which is participative. Membership in project teams often changes. When new members come on board, you should consider that for a short time the team will fall back to stage 1, and you will have to take it back through the stages until it reaches maturity again. It is es pecially important that you help everyone get to know the new member and understand what his role will be in the team. This does take some time, but it is essential if you want the team to progress properly. Developing Commitment to a Team At the beginning of this chapter, I pointed out that helping team members develop commitment to the project is a major problem for project managers. Team members are often assigned to a project American Management Association • www.amanet.org166 Fundamentals of Project Management simply because they are the best available people, not because they are the best people for the job. When this happens, they may have no commitment to the team. In their book Organizations, March and Simon present five rules for developing commitment to a team or organization. Those rules are: 1. Have team members interact frequently so that they gain a sense of being a team. 2. Be sure that individual needs are being met through partici pation in the team. 3. Let all members know why the project is important. People don’t like working on a “loser.” 4. Make sure all members share the goals of the team. One bad apple can spoil the barrel. 5. Keep competition within the team to a minimum. Competi tion and cooperation are opposites. Let members compete with people outside the team, not within it. Note that the first rule cannot always be followed if the team is scattered geographically. In that case, members should “meet” frequently through teleconferencing, videoconferencing, and/or an Internetbased tool. It is almost im possible to think of yourself as part of a Watch the movie team if the team never gets together in Stand and Deliver some manner. for an excellent A Final Suggestion e xample of true If you want some good models of how to leadership. work with teams, take a look at the best coaches and see how they do it. Be care ful, though, not to model the supermacho coach’s behavior. That might work okay with a sports team, where people are there American Management Association • www.amanet.orgManaging the Project Team 167 because they want to be there, but it is unlikely to work well with a project team where the members are there because they have to be. I also suggest that you watch the movie Stand and Deliver and see how Jaime Escalante deals with his kids. Then, the next time you are tempted to complain that you have a lot of responsibility and no authority, ask yourself how a teacher (who has even less authority than you do) can get a bunch of kids to work so hard. How did he get them to go to summer school or take math two periods a day Then you will begin to realize what true leadership is all about. Key Points to Remember Teams don’t just happen—they must be built Having the entire team participate in planning is one way to start the teambuilding process. Deal with goals, roles and responsibilities, procedures, and relationships, in that order. Socalled personality conflicts are often caused by team members’ poor interpersonal skills. For teams to function well, all members should receive training in this area. The style of leadership appropriate for a team depends on its stage of development. In the forming stage, it is directive. In storming, it is influencing. At the norming stage, switch to a participative style. Finally, when the team reaches the per forming stage, you can be delegative. American Management Association • www.amanet.orgCHAPTER 13 CHAPTER 13 The Project Manager as Leader ou must take an art and discipline approach in the proj ect environment when leading your project team: the art of managing people and the discipline of applying the necessary project processes to be successful. I hear it all Y Y the time, because it is true. It has been my experience that the There is a higher people factor can be and often is the probability that most challenging part of the project equation. The project champion, team things will acciden members, functional managers, subject tally go wrong in a matter experts, and virtually all stake holders need to be effectively managed project than that to ensure project success. Chapters 1 and 2 introduced definitions of generic lead they will acciden ership, and Chapter 12 related leader tally go right. ship style to the stages of project team development. Now I’m going to focus on what it means to be a project leader, understanding strengths and weaknesses, creating constituents, and understanding the 168 American Management Association • www.amanet.orgThe Project Manager as Leader 169 importance of motivation. I will also discuss conflict resolution, team synergies, and a practical approach to leading project meet ings (not managing them). Laying the Foundation Before you can attempt to understand and lead others, you should invest in a meaningful selfinventory. I am not suggesting days of psychoanalysis but a practical look in the mirror at your own be havior and probable drivers of this behavior. This typically provides valuable insight regarding your actions, as well as those of your team members and other project stakeholders. Understanding Leadership Characteristics When leading project management seminars, I often ask the atten dees to raise their hands if they have extra time on any given day. It is a rhetorical question, asked to emphasize the need to maxi mize every interaction. Given the frantic pace of the project envi ronment, almost every encounter can be considered critical. An improved under An improved under standing of yourself and your stakeholders standing of yourself will lead to more efficient communication and better project leadership decisions. and your stakehold Your ability to persuade, motivate, and ers will lead to more resolve conflicts will improve. When you lay the foundation regarding these peo efficient communi ple skills, you avoid behavioral misalign cation and better ment with stakeholders on all levels. Your understanding of leadership charac project leadership teristics—individual traits, strengths, and weaknesses—indicates how you should decisions. flex your style and adjust to the stake holder and the situation. This produces better overall alignment, which leads to greater efficiency. In terms of best practice, the more agile you become, the greater the chance for project success. American Management Association • www.amanet.org170 Fundamentals of Project Management Understanding Leadership Styles I have seen many projects fail because the project manager insists that stakeholders adjust to the leader’s style. As mentioned earlier, project team maturation requires you to progress from the direc tive leadership style to the delegative approach. This is logical and applies to most team scenarios, emphasizing the need for flexibil ity in your approach. As you move through a typical project day, however, you are faced with many and varied interactions, re quiring a smooth transition from one leadership style to the next. Some project leaders possess a Just as a chameleon natural aptitude for this, whereas oth ers need to work at it. You should in changes skin color vest time and effort in developing this skill. Just as a chameleon changes skin to maximize survival, color to maximize survival, so should so should you ad you adjust your approach to people, sit uations, and circumstances to ensure just your approach project efficiency. to people, situa Most of us have a natural preferred style that we are comfortable with, aptly tions, and circum named the comfort zone. This can often stances to ensure make the transition from project man ager to leader difficult to begin with. It project e fficiency. is easy for you to operate when you are behaving naturally. When circumstances require you to break out of this area, though, it requires a certain amount of work. To be an effective project leader you should be cognizant of the reluc tance you will probably encounter when changing your own be havior. If the directive style is indicated when dealing with a stakeholder and it happens to be your least preferred, make a conscience effort to be disciplined and nimble enough to modify your preferred approach and be direct. All of this attention to project leadership detail will result in improved alignment among your leadership style, your stakeholder’s behavioral char acteristics, and the numerous project scenarios encountered on a American Management Association • www.amanet.orgThe Project Manager as Leader 171 daily basis. Figure 131 presents a good visual context of this alignment: Figure 131.  Leadership style and alignment. Project Scenario 1 Your Stakeholder Project Scenario Leadership Behavioral 2 Style Characteristics Project Scenario 3 Creating Project Constituents In the late twentieth century, very little attention was paid to the concept of project manager as leader. In a typical status meeting, team members reported progress regarding assigned action items (the same as today). If the work was not completed, the team member was often singled out, or perhaps his functional man ager was called. Turnover was commonplace in the project team environment. Times have changed. Effective project leadership is recog nized by colleges, practitioners, and, yes, authors, as an integral part of overall project success. The rise of projectbased organiza tions (in which most work is accomplished through projects), the virtual nature and reach of global projects, and cultural diversity have all contributed to the demand for better leaders, not just American Management Association • www.amanet.org172 Fundamentals of Project Management managers of teams. Leaders need constituents, and project lead ers are no exception. Creating a Consistency in Working Relationships To create a constituency, team members and stakeholders who enthusiastically perform or support the It is important to project work, you need to engender trust and respect, perhaps even admiration. It “walk the talk” and is important to “walk the talk” and estab establish a consis lish a consistency in working relation ships. For example, if a coach in any tency in working sport employs a fiery, demanding style and then abandons it midseason, the relationships. team will be confused and confounded, and its performance will likely suffer. Constituents do not ex pect perfection, but most require consistency from their project leaders. If you adopt this approach, it will have a positive effect on team and stakeholder morale. Encouraging Risk Taking Although it sounds and the Elimination of counterintuitive, Fear of Failure As project leader, you should encourage mistakes can pre risk taking and try to eliminate the fear of sent important failure. If the team is afraid to make mis takes, its ability to perform at a high level opportunities. Not will be impeded. It is important to lever only can you learn age everyone’s knowledge and capability to maximize members’ contribution to from your mistakes, the project. Although it sounds counter but you can use intuitive, mistakes can present important opportunities. Not only can you learn them to mold be from your mistakes, but you can use havior and set the them to mold behavior and set the tone of the team environment. During my ca tone of the team reer as project leader, one of the best prac environment. tices that I learned was to take advantage American Management Association • www.amanet.orgThe Project Manager as Leader 173 of the first mistake I made. I would announce what I did wrong, say, “My bad,” and then explain how I intended to fix the problem. If team members see that you are open and willing to share your missteps, chances are excellent that they will act accordingly and be willing to take prudent risks as the project proceeds. Establishing a Positive Culture of Dissent “All titles are left at the door” is one of the first statements I make when meeting with the team for the first time. This is an impor tant ground rule that will help you establish a positive culture of dissent. If the project is in the second phase, storming, and meet ings are overly cordial and agreeable, you have a problem. This is, in all likelihood, a dysfunctional team that is operating in a con stricted environment. This does not mean that you encourage conflict, but you will want to promote a variety of perspectives. As project leader, it is important for you to create an environment that encourages the exchange of ideas and opinions, free of the threat of reprisals. This positive culture of dissent helps you keep ideas flowing and assists you in making strategic and tactical de cisions. If you are surrounded by “yes” people, devoid of the nec essary vetting of ideas, the project will most likely stagnate, and you will lose the real value of your constituents. Motivation All project managers require team members to complete activi ties and accomplish work on time. As an effective project leader, you need to add an additional element—maximum performance. Getting the most from your team requires you to focus on team members as individuals, not just a collective of workers meeting deadlines. If you motivate the individuals, you motivate the team and establish the foundation for a highperformance environ ment. Conversely, an unmotivated project team will have diffi culty succeeding regardless of how the technical aspects of the project are managed. Some project leads use selfassessment tools to identify traits and possible motivational triggers of the team members. While American Management Association • www.amanet.org174 Fundamentals of Project Management these have proven to be effective in many instances, I prefer the more traditional approach of spending time with team members and other key stakeholders to find out what makes them tick. If you invest time to speak and listen to team members over coffee on a Tuesday morning (try to avoid Mondays, as some of us need to adjust from the weekend) and acknowledge the contributions of colleagues over a beverage at happy hour or an occasional lunch, you will strengthen the relationship and usually gain insight into who they are. The more you know, the better equipped you will be when the need to motivate arises. MBWA, or management by walking around, was introduced in the 1970s by Bill Hewlett and Dave Packard and became known as “the HewlettPackard (HP) style.” It stresses this technique and is still practiced by proj ect leaders, CEOs, and managers at all levels because it works. This is especially true in the typical project environment where the leader is managing without formal authority. If you lack the authority to tell them, you need the ability to motivate them. Celebrate. As soon as possible, an accomplishment, big or small, should be acknowledged and celebrated as a team. As projects begin, a certain amount of inertia must be It is your job to keep overcome. Start by celebrating the small victories, and, as the project progresses, the momentum continue to acknowledge good work as appropriate. Many project leaders cele going by knowing brate with the team as milestones are your team and en reached or predetermined goals are ac complished at the end of each project suring high morale. phase. Whichever method you employ, it is your job to keep the momentum going by knowing your team and ensuring high morale. Project Leadership and the Team Environment As mentioned earlier, the idea of the project manager as leader is a relatively new concept. In the recent past, team member roles, conflictresolution strategies, and synergies were not considered American Management Association • www.amanet.orgThe Project Manager as Leader 175 critical to overall project success. As a project leader today, you need to address all of these areas. This section highlights proven techniques for leading project teams and expands the focus to in clude distributed virtual teams. Identifying and Developing Team Member Roles Although you represent the glue that holds the team together, you can also be thought of as the chef who is responsible for mixing the ingredients of project team member roles, skill sets, and personalities to maximize overall performance. Yes, it’s a mixed metaphor, but it illustrates an important concept. As the project progresses, individu als often assume roles that fit naturally into the team environment with little or no resulting conflict. In other cases, it becomes evident that the chemistry is not right, resulting in daily clashes and negative dissent. In today’s project world, you need to identify team member strengths, weaknesses, traits, and patterns to establish lasting project rapport. Each team member is present for a purpose, usually func tional or subject matter expertise. In order for the team to gel, you must observe the dynamics of the group. Be proactive and identify danger zones where potential conflicts may occur. Look for opportunities to coordinate team member efforts or even form subteams to leverage their combined talents. Your goal is to promote synergies for maximum team per formance. A common definition of synergy reads: “The whole is greater than the sum of its parts.” As project team leader, this is something for you to strive for, and it is a fulltime job. Determining the Appropriate Approach to Conflict Resolution All project teams experience conflict at some point, and, as I em phasized earlier, much of it is healthy and positive. It is when con flict becomes destructive to project work and relationships that you need to take action. Personality issues, conflicting priorities, stake holder disagreement, tight schedules, and technical issues all can be considered root causes of conflict in the project environment. How you deal with the issues that arise will be a determining fac tor in your effectiveness as project leader. Most of us develop our American Management Association • www.amanet.org176 Fundamentals of Project Management own style for dealing with conflict. As mentioned earlier in the chapter, this can lead to a comfort zone that hinders your ability to flex your style to fit the situation. Susan Junda presented five ap proaches to address conflict in the project environment (Project Team Leadership: Building Commitment Through Superior Com munication; American Management Association, 2004). 1. Avoidance. Often called the flight syndrome, avoidance occurs when an individual delays the issue, withdraws from the situ ation, or avoids the conflict altogether. 2. Accommodating. In this instance, an individual focuses on meeting the needs of the other person, to the exclusion of everything else. 3. Compromising. This is an attempt to find the middle ground in which neither party gets all that it is seeking. 4. Collaborating. Here, both parties work together to come to a mutually beneficial solution; this is typically a winwin scenario. 5. Forcing/Competing. This is the “my way or the highway” approach, when one individual forges ahead with his idea. Your task is to determine which approach is most appropriate given the project conflict scenario. If you have invested yourself in truly understanding your project constituents, this task becomes less difficult. External conflicts require that you make a more thorough assessment of the situation and individual(s) before you make an informed decision. Whichever approach you choose, re member to focus on the facts, not the emotions. Leading Project Status Meetings The importance of project status meetings is underrated. Yes, most organizations hold too many meetings that take up too much time, but status meetings are critical to your project’s success. If every CEO realized the amount of time and money wasted on inefficient American Management Association • www.amanet.orgThe Project Manager as Leader 177 meetings, everybody would be trained to You as project be effective meeting leaders and partici leader are responsi pants. You as project leader are responsi ble for making your status meetings ble for making your efficient, effective, and productive. status meetings Here are some best practices for effi ciently run project status meetings: efficient, effective, Status the work; don’t expend valu and productive. able time accomplishing the work in the meeting. Establish meeting ground rules such as: • Minimum number of members for a quorum (enough to hold the meeting). • Consensus (in case of a deadlock, if five members agree, then the meeting proceeds, with the possibility to revisit the issue). • All titles are left at the door (this is worth mentioning again). • Confidentiality (everything said stays in the meeting room). • One person speaks at a time. Start on time; end on time. Appoint a timekeeper to help you keep to your schedule. Recruit a scribe to record and distribute meeting minutes. Focus on participation to ensure that every voice is heard. Do not allow extended sidebar discussions. Ensure that all electronic devices are off or on vibrate. When establishing ground rules, it is important to include all team members to ensure buyin. If you try to dictate these to the team, nobody will adhere to them. Some project teams alternate the role of scribe. This is a bad idea. If you appoint a single scribe, that individual will develop efficient habits of recording and dis tributing the minutes in a timely manner. If the job rotates to American Management Association • www.amanet.org178 Fundamentals of Project Management share the work, each week will produce a different style, and no single team member will develop the aforementioned efficiencies. Working with Virtual Teams “Brussels, we have a problem.” I remember saying these words to a team member following my previous decision to suspend weekly videoconferencing. I did not understand the communica tion challenges that were facing my global team at the time. Needless to say, the decision was reversed. If your team resides in other buildings or is spread across the globe, you should identify your specific challenges and plan to overcome them. Most virtual teams encounter blockages that are unique or that are much more likely in a geographically dispersed environ ment. Communication on every level can become an art, a sci ence, a circus, or a torment. When team Communication members are not down the hall or up stairs, clarification can become a project on every level can in itself. Things tend to get lost in trans become an art, a lation. They fall through the everpresent but often unseen cracks. Add multicul science, a circus, tural or multilingual team members, and factions can develop along those lines. or a torment. Cultural differences, if not identified but left to fester, can prevent the development of real team unity. Dif ferences in work habits, protocol, and style are more common and consequential. To combat these added challenges, you must go back to ba sics when it comes to understanding your team members and stakeholders. Insist that the project kickoff meeting be facetoface. This may prove very difficult, especially when extensive travel is involved, but it is crucial to team bonding and future morale. You will find that this is something that must be sold to management or the project champion. If this is the case, estimate projected costs and benefits and present them as often as necessary (it once took me six attempts until I got a “yes”). If your organization is lacking the latest virtual communication American Management Association • www.amanet.orgThe Project Manager as Leader 179 tools, become a squeaky wheel. Sell the need to invest in upgrades by highlighting the costs and negative effects of outdated programs on previous projects. As the project progresses, it can also be useful to facilitate as many opportunities for informal interaction among team members as possible. This helps overcome the loss of casual interaction and assists in breaking down barriers. Key Points to Remember The more agile you become in leading others, the greater the chance for project success. It is important to “walk the talk” and establish consistency in your working relationships. Encouraging risk taking, eliminat ing fear of failure, and establishing a positive culture of dis sent will make you a more effective project leader. It is your job to keep the momentum going by knowing your team and ensuring high morale. As a project leader, you need to be able to identify and develop team member roles, determine the appropriate approach to conflict resolution, lead project status meetings, and work with virtual teams. Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analyze the project environment in your organization. Make a list of ten important project leadership characteristics that help ensure success. From that list, identify the three most important characteristics. Then contrast the list with your own abilities. Which characteristics are your strongest Which areas may need improvement American Management Association • www.amanet.orgCHAPTER 14 CHAPTER 14 How to Make Project Management Work in Your Company t is one thing to know how to manage projects. It is an other to get people to actually do the work of the project. Running by the seat of the pants seems a lot easier than doing all the planning, scheduling, and monitoring that have been I I presented in this book. Even when people invest three or I four days in project management seminars, you find that they soon forget what they have been taught and go back to the old ways. I have struggled with this problem for twenty years and finally have some answers. Here are suggestions on how to make the principles of project management work in your company: Dr. W. Edwards Deming learned more than fifty years ago that if you don’t get top management involved in a program, the program will be short lived. This doesn’t mean just having them pay lip service to it. As Tom Peters suggests in his book Thriving on Chaos, if an executive wants something to happen in the company, she has to change her calendar; she must spend time talking about project management, sit in on project planning or 180 American Management Association • www.amanet.orgHow to Make Project Management Work in Your Company 181 review meetings, start asking to see people’s project notebooks, and ask questions about how projects are doing. In other words, she must show an interest in the subject. Companies must build into performance appraisals items that evaluate a project manager’s use of the best management tools. They should reward people for practicing the best methods and, if necessary, sanction them when they do not. But be careful. Be sure upper management is not keeping managers from practic ing good methodology. It helps to have the entire team trained in the basics. After all, when you tell members of your team that you want them to do a WBS for their part of the project and they’ve never even heard the term before, they can’t very well deliver. I have found that project managers generally need a minimum of three or four days’ training in project management, and team members need about two days’ training. I have found that senior management should have a brief overview of the principles so that it knows what it is realistic to expect. One of the most common causes of project failures is un realistic expectations on the part of senior managers. However, I have found that most senior managers are so busy that you can get them together for only about three hours—if you can even do that. We have finally videotaped a briefing and cut it down to one hour and fifteen minutes, just enough time for busy execu tives to learn what they need to know to support and drive the ef fort. Today, senior managers should take advantage of the many online training options available to them. After the training is complete, pick a project that already has a pretty high probability of success—don’t pick your hardest job; the probability of failure is too high—and have your trainer/ consultant walk the team through the steps. This is the hand holding phase, and I have found it to be essential (as have a num ber of major companies with which I have worked). It really helps to have someone assist the team in practicing what it has American Management Association • www.amanet.org182 Fundamentals of Project Management learned. All new procedures feel awkward when you first try them, and an outside expert makes things go smoother. In addi tion, an outsider can be more objective than members of the team. Plan small wins for people. Forget the Pareto principle. It’s wrong in this particular instance, even from an economic point of view. According to Pareto, you should begin with your most im portant problems and solve them, then move on to the simpler ones. Sounds like good economic sense, but it isn’t. It ignores the fact that the biggest problem is also likely to be the hardest to tackle, so people are more likely to fail, become demoralized, and give up. No sports team ranked tenth would want to play the top ranked team for its first game. It would prefer to play the ninth ranked team maybe, or even the eleventh. Don’t set the team up to be slaughtered Practice a lot of MBWA (management by walking around) as the project progresses, but do it to be helpful, not in the blameandpunishment mode. Give people strokes for letting you know about problems early, not after they have turned into dis asters. Don’t be too quick to help people, though. Give them time to solve the problems themselves. Just ask them to keep you informed, and tell them to let you know if they need help. Be a resource, not a policeman. Do process reviews to learn and to try to improve when ever possible. If you find you have a problem child on your team, deal with that person as soon as possible. If you don’t know how to handle the problem, talk to someone who has the experience and who can help you. Don’t ignore the problem, as it can wreck your entire team. Be very proactive, not reactive. Take the lead. Break road blocks for your team members. Go to bat for them. Have team members make presentations to senior man agement on their part of the job. Give them credit for their con tributions. Build ownership. American Management Association • www.amanet.orgHow to Make Project Management Work in Your Company 183 If you are running a project where people are assigned temporarily but still report to their own bosses (the matrix orga nization), keep their managers informed about what they are doing. Try to build good relations with those managers. You may need their support to get the job done. For those tasks on the critical path of the project, you may find that you have to strategically locate the people doing those activities so that you don’t have them constantly pulled off to do other jobs. Major corporations are using this method more and more today on highly important projects. It may be useful to consider setting up a project support person or office to do all scheduling for your project managers. Rather than have everyone try to master the software, it may be better to train one or two people to competence level, with users trained only enough to know the capability of the software. Under this scenario, project managers give raw data to the support group, which enters them into the computer and then gives back the schedule; the schedule is then massaged until it works. Subse quently, the support group does all updates, whatif analyses, and so on for the project manager. Along this line, have a person assigned as project admin istrator. This person either does the project support or delegates it. He also sits in on project review meetings, holds the team’s hands to walk members through planning and audits, and so forth. Naturally, you need to be running quite a few projects (at least ten to twenty) to justify this position. Such a person can be helpful when the people who are managing projects have little experience with managing or perhaps have poor skills for dealing with people, or both. Benchmark other companies to find out what they do with project management. Note that, when you find companies that don’t practice good methodology, this does not give you grounds for abandoning good practices yourself. I know of one major corporation that does not track actual work put into a proj ect; yet the company is extremely successful. However, the fact American Management Association • www.amanet.org184 Fundamentals of Project Management that it doesn’t track work is going to lead to problems eventually. The company does a lot of other things really well, however, and I would not hesitate to benchmark those things. Have individuals take responsibility for being champions of various parts of the project management process. Perhaps you can make one person the earned value champion, who goes around the company trying to get everyone on board so that all team members all use the same method. Another could take re sponsibility for dealing with WBS notation, and so on. Join the Project Management Institute, attend its chapter meetings, and learn more about project management from other professionals. Try to read current management books, and glean every thing you can from them that will help you do your job better. Managing projects is a demanding job, and you need all the help you can get. Consider changing the structure of the organization to one that is project based. Tell all functional managers that they exist to serve the needs of projects. Many of them will scream. Some may even quit. But, in today’s world, where most of what gets done in organizations is in project format, this makes good sense. Set up a project management function, with dedicated proj ect managers. You don’t have everyone doing accounting. Not everyone is good at it. This is also true of project management. By making it a function, like all the others, you provide a way for ded icated individuals to hone their skills and get really good at the job. An excellent resource for this is Robert Graham and Randall L. Englund, Creating an Environment for Successful Projects. Look at managing projects as a challenge or even as a game. If it doesn’t strike you that way, it probably won’t be very exciting. Experiment with new approaches. Find out what works, and keep it. Throw out what does not. Finally—good luck American Management Association • www.amanet.orgAnswers to Chapter Questions Chapter 1 1. c 2. d 3. a 4. b Chapter 3 You should decide on project strategy before you begin imple mentation planning. At that point, you should develop tactics to execute strategy and plan logistics so that people will have what they need to execute the tactics. 185 American Management Association • www.amanet.org186 Answers to Chapter Questions Chapter 6 WBS for camping trip: Figure A1.  WBS for camping trip. Arrange camping trip Arrange for Arrange for Load car Pack suitcases Make site supplies and preparations time off equipment Select site Prepare menus Select route Identify sources Make reservations Purchase supplies Chapter 7 Solution to the WBS exercise: Figure A2.  Solution to the WBS exercise. Clean curtains Dust Pick up Vacuum Finish furniture room toys and clothes Wash walls American Management Association • www.amanet.orgAnswers to Chapter Questions 187 Chapter 8 Solution to the scheduling exercise: Figure A3.  Solution to the scheduling exercise. DU 15 15 15 10 DU DU DU ES LF LS LS EF ES LF LF ES LF LF LS LS EF LS LS EF 0 5 15 20 40 50 50 15 25 30 40 40 DU DU 20 DU 10 ES ES LF LF LS EF ES ES LF LF LS LS EF 20 10 20 40 40 0 10 20 DU 20 ES LF LF LS LS EF 0 0 20 20 Chapter 11 1. It is behind schedule by 160 worth of work. 2. It is overspent by 240. 3. It will be overspent by 416. American Management Association • www.amanet.orgThis page intentionally left blank INDEX INDEX accommodating (conflict resolution backend load, 89, 102 approach), 176 backwardpass computations, 97–101 accuracy, 71 bar charts activity(ies) for earned value analysis, 146, 147 critical, 87, 98, 99 for scheduling, 82–83, 102–103 definition of, 87 baseline plan, 125, 130, 146, 148 duration of, 94 BCWP (budgeted cost of work per in network diagrams, 84 formed), 145, 148, 150, 152, activityonarrow networks, 84 153 activityonnode networks, 84, 85 BCWS (budgeted cost of work sched uled), 145–148, 150, 152 ACWP (actual cost of work performed), 146, 148, 150, 152 behavioral problems, 162 administrative duties, 30 benchmarking, 183–184 Alfalfa (Our Gang), on another zero, bestcase solutions, 94 142 binary events, 84 American Management Association books, on management, 184 Booz, Allen, and Hamilton consulting International (AMA), 134 analysis paralysis, 42, 53, 90 group, 83 Argyris, Chris, 32, 122 brainstorming, 57 arrow diagrams, 82, 87 budgeted cost of work performed, constructing, 88–92 see BCWP creating bar charts from, 102–103 budgeted cost of work scheduled, see BCWS see also network diagrams audits, 120, see also process reviews budgets authority changes in, 127, 128 of project managers, 27–29, preparation of, 44 112–113, 174 of team members, 115 canceling projects, 138, 142 Carlzon, Jan, 28–29 average times, 75 avoidance (conflict resolution celebrating success, 174 approach), 176 centralized project databases, 38 Avondale shipyards, 13, 37 certification, PMP, 1 189 American Management Association • www.amanet.org190 Index change control, 125–139 constituents, project, 171–173 challenges with, 125–126 contingencies, 60–61, 66 embracing change for, 138 contingency reserves, 62–63 form used for, 129, 131–134 contract employees, 107 log for tracking, 129, 135–136 contributors, 39 and planning, 40–41 control, 112–119 and project spinoffs, 137–138 change, see change control and sources of change, 126–128 by comparing performance to plan, steps in, 128–131 141, 148 thresholds in, 134–135 connotations of, 34–35, 112, 114 Charlie Brown, 118 definition of, 114 charter, project, 18 earned value analysis for, see earned closeout phase, 14 value analysis closing in execution and control phase, as project process, 19 13–14 as step in project management, 17 over resources, 33 collaborating (conflict resolution as part of project plan, 39 approach), 176 as project process, 19 commandandcontrol approach, 34 review meetings used for, 118–119 commitment to team, 157, 165–166 as step in project management, 16 communication systems used for, 116–119 about changes to plans, 130 and taking responsibility, 113 by project team, 160–161 and team member selfcontrol, communications management, 21 114–115 competing (conflict resolution control system(s), 116–119 approach), 176 corrective action with, 116 competition designing the right, 118 among team members, 166 timeliness of response in, 116 with other companies, 120–121 cooperation, 166 pressures of, 128 coordinating, 70 completion dates, 104, see also finish coordination points, 64 times corrective action compromising (conflict resolution authority for taking, 115 approach), 176 and control, 35 computations, 93–102 for deviations, 141, 142, 145, 152 backwardpass, 97–101 with project control systems, 116 forwardpass, 95–97 cost management, 20 methods for, 93–94 cost(s) network rules for, 95 of change, 133 concept phase, 11 development, 121 conflict resolution, 163, 164, 175–176 in earned value analysis, 145 consensual estimating, 78 estimating, 74–79 American Management Association • www.amanet.orgIndex 191 opportunity, 152 Deming, W. Edwards, 50, 51, 120, 180 as PCTS target, 8, 9 department managers, 58 raw material, 128 design reviews, 119 see also PCTS targets development costs, 121 cost variance, 145, 146 deviations CPM, see Critical Path Method corrective actions for, 141, 142, Creating an Environment for Success 145, 152 ful Projects (Robert Graham and data on, 116, 117 Randall L. Englund), 184 in process review reports, 124 creativity, scheduling, 33 see also variances critical activities, 87, 98, 99 diagrams critical path arrow, 82, 87–92, 102–103 and change, 136 network, 84–85, 95–102 definition of, 6–7, 87, 93, 99 directive leadership style, 163, 170 and running out of float, 101 discipline, 136 tasks on, 123, 183 dissent, culture of, 173 in Work Breakdown Structure, Dressler, Fritz R. S., on predicting the 72 future, 35 Critical Path Method (CPM), 83, Drucker, Peter, 25, 26 85–87, 101, see also arrow Dudley, Bob, 3 diagrams Du Pont, 83 cultural diversity, 171, 178 duration cumulative spending, 146, 148 of activities, 94 customers task, see task duration changes requested by, 127, 129 intended value to, 119 early dates, 93 interaction between employees Early Finish (EF) times, 95–97, 99 and, 28 Early Start (ES) times, 95, 96, 98, 99 project status information for, 122 earned value, see BCWP (budgeted cost of work performed) data earned value analysis, 145–155 on change control form, 131, 133 acceptable variances in, 153 deviation, 116, 117 development of, 145 for earned value analysis, 146 percentage complete in, 153–154 historical, 75 responding to variances in, response to, 117 152–153 databases, centralized project, 38 variance analysis using hours only deadlines, 85, 158 in, 150–151 decisionmaking authority, 113 variance analysis using spending definition phase, 11–12 curves in, 146–150 delegative leadership style, 165 efficiency, 102, 170 delivery date, 128 EF (Early Finish) times, 95–97, 99 American Management Association • www.amanet.org192 Index electronic files, 38 failure of projects, 2–4, 8–10, 18 embarrassment, 122 feedback employees for estimation, 78–79 availability of, 109–110 failure to solicit, 160 contract, 107 importance of, 121 interaction between customers lags in, 117 and, 28 on progress, 115 enablers, project managers as, 5, 29 finish times, 95–98 enditem specifications, 39 flight syndrome, 176 engineering problems, 128 float, 93, 99–101, 103, 106 Englund, Randall L., 184 forcing (conflict resolution approach), estimation 176 in computations, 99 forming stage (team development), of costs, 74–79, 133 162 definition of, 68 forwardpass computations, 95–97 as guess, 108, 143 functional managers, 126, 168 padding estimates in, 152–153 in planning, 157 Gantt, Henry, 82 of progress, 143 Gantt charts, see bar charts of resources, 74–79 garbagein, garbageout results, 91, 93 task duration, 43, 69, 78, 79, general management 101–102 effectiveness of, 4 of time, 74–79 project management vs., 1–2 ES times, see Early Start times goal(s) evaluation, project, 119–124 celebrating accomplishment of, as basis for management decisions, 174 119 defining problem as, 46, 48 process reviews for, 119–124 personal, 159–160 purposes of, 120–122 of project team, 158–160, 166 events (scheduling), 84, 87 quantification of, 50 execution questioning of, 163 in execution and control phase, government, 117, 145 13–14 Graham, Robert, 184 as project process, 18–19 as step in project management, 16 headlesschicken projects, 12 exit criteria, 38 Hewlett, Bill, 174 expenditures “HewlettPackardstyle” management, cumulative, 146, 148 174 weekly, 146 hidden agendas, 159 HighMediumLow (HML) scale, facilitation of projects, 5 58–59, 65 factory workers, 109 historical data, 75 American Management Association • www.amanet.orgIndex 193 hours, variance analysis using, in establishing positive culture of 150–151 dissent, 173 human resources management, 21 informal, 163 and motivation, 173–174 ideal conditions, 94–95 by project managers, 5, 29–30 impact assessment, 129–130 styles of, 163–165, 170–171 implementation planning and team environment, 174–179 function of, 37 learning, 122 as project phase, 13 legal departments, 126 increments, for scheduling, 91 lessonslearned reviews inexperienced people, 78 purposes of, 120 influence leadership style, 164 reluctance to perform, 14 informal leadership, 163 routine, 119 information systems, 114 Lewis, James P., 8, 157 initiating (project process), 18 LF times, see Late Finish times In Search of Excellence (Tom Peters linear responsibility charts, 39 Robert H. Waterman), 158 lists, for risk plan, 57–58 integration management, 20 logistics in implementation planning, 13 Junda, Susan, 176 of planning, 37–38 Juran, J. M. LS times, see Late Start times on projects as problems, 2, 81 on setting goals, 50 macro level, of control, 114 management Kayser, Tom, 42 definitions of, 25–30 KISS principle, 118 general, 1–2, 4 knowledge areas (PMBOK), 20–22 knowledge areas in, 20–22 knowledge workers, 109 project, see project management known risks, 62–63 by walking around, 174, 182 management information systems, labor hours, 150 114 late dates, 93 management reserves, 63 Late Finish (LF) times, 95, 98, 99 managers Late Start (LS) times, 95, 98, 99 department, 58 latitude, 87, 99 functional, 126, 168 lawsuits, 145 project, see project managers leadership, 168–179 senior, 181, 182 characteristics of, 169 March, James, 166 and creating project constituents, market conditions, 128 171–173 master schedules, 44 definition of, 29 MBWA (management by walking to encourage risk taking, 172–173 around), 174, 182 American Management Association • www.amanet.org194 Index meetings network analysis, 103 planning, 41–42 network diagrams, 84–85 positive culture of dissent for, 173 computations for, 95–101 project status, 176–178 in managing projects, 101–102 review, 40, 118–119, see also rules for, 95 status reviews see also arrow diagrams signoff, 40 network rules, 95 metrics, 59 networks, 87 micro level, of control, 114 norming stage (team development), micromanaging, 114, 116 163–165 Microsoft, 6 norms, 163 middle ground, finding, 176 milestones objective(s) celebration of, 174 development of, 49–51 conducting process reviews at, 121 effects of adverse events on, 22 definition of, 87 as factor in assessing change, 129 in scheduling, 85 nature of, 52 Mining Group Gold (Tom Kayser), 42 as part of project plan, 38 mission of project team, 158–160 and defining a problem, 47, 48 purpose of, 115 project manager’s understanding quantification of, 50 of, 26 satisfying customers as, 49 of project team, 158–160 objective statements, 52 satisfying customers as, 49 oneperson projects, 6–7 team members’ understanding of, openness, 122 159 opportunity cost, 152 mission statements organizational culture, 129, 130 development of, 43, 73, 159 Organizations (James March and and objectives, 49 Herbert Simon), 166 as part of project plans, 38 organization structure, of project, 44 mistakes, 172–173 Overcoming Organizational Defenses monitoring (Chris Argyris), 32, 122 as project process, 19 overtime work, 99, 100, 110, 158 as step in project management, 16 motivation Packard, Dave, 174 and authority, 113 Packard, Vance, on leadership, 5 and leadership, 173–174 pain curves, 33, 34 multiple projects, working on, parallel tasks, 105 86–87 Pareto principle, 182 multiproject risks, 63–66 Parkinson’s Law, 75 Murphy’s law, 10 participative leadership style, 165 American Management Association • www.amanet.orgIndex 195 past performance, 51 and revising plans, 142 PCTS targets signoff on, 39–40, 44 definition of, 2 as step in project management, 16 as project requirement, 4 steps in, 43–44 relationship among, 8–10 strategy for, 36–37 for software projects, 2–3 suggestions for effective, 41–43 people skills, 26–27, 30, 156, 169 Plautus, on mice, 43 ® percentage complete, 153–154 PMBOK Guide, see Project Manage performance ment Body of Knowledge ® comparing plan to, 141, 148 PMI , see Project Management measurement of, 144–145 Institute ® past, 51 PMP (Project Management Profes as PCTS target, 8 sional) designation, 1 planned, 148 portfolio risk plan, 63, 64 reducing, 106, 107 power, 113, 114 reviews of, 118–119 preventive measures, 60–61 see also PCTS targets priorities, 86 performing stage (team development), proactive behavior, 56, 128, 182 163, 165 problem(s) permission, getting, 113, see also defining, 16, 45–47 signoffs engineering, 128 personality conflicts, 161, 162, identification of, 121 175–176 projects as, 2 personal plans, 114, 115 problem statements persuasion, 164 development of, 43, 73 PERT (Program Evaluation and Review as part of project plans, 38 Technique), 83, 85 and your mission, 48 Peters, Tom, 158, 180 procedures, for project teams, 160, planned performance, 148 161 planning, 32–44 process reviews, 119–124, 182 absolute imperative of, 33–35 procurement management, 22 definition of, 36 product development facilitation of, 5 competitive advantage in, 120–121 implementation, 37 failure rates in, 3 ingredients for, 38–39 productivity level of detail in, 89 impact of overtime work on, 110 logistics of, 37–38 and working on multiple projects, making changes in, 40–41, 130 86–87 and personal plans, 114, 115 program as project process, 18 risk plan for, 63–64 by project team, 156–166 as WBS level, 70 American Management Association • www.amanet.org196 Index Program Evaluation and Review membership in, 184 Technique (PERT), 83, 85 website of, 17 progress Project Management Professional ® comparing plan to, 114 (PMP ) designation, 1 feedback on, 115 project managers, 24–32 measurement of, 142–144, 153–154 attributes of, 30 monitoring and controlling, 16 authority of, 27–29, 112–113, 174 review of, 102 leadership by, 5, 29–30, see also spending curves for tracking, leadership 148–150 people skills of, 26–27, 30 tracking of, 79 roles of, 5, 24, 25 project administrators, 183 working, 7–8, 27 project champions, 126, 128, 168, 184 project phase(s), 10–14 project constituents, 171–173 closeout as, 14 project management definition as, 11–12 and determination of variables by execution and control as, 13–14 sponsor, 8–10 implementation planning as, 13 general management vs., 1–2 strategy as, 13 managing oneperson projects vs., project processes (PMBOK), 17–19, 6–7 see also process reviews PMBOK definition of, 4–5 project(s) principles of, 180–184 definition of, 2 and project failures, 2–4 failure of, 2–4, 8–10, 18 scheduling as only one part of, 6 “headlesschicken,” 12 steps in, 14–17 phases of, 10–14 when also working on project, 7–8 programs vs., 70 see also specific headings project spinoffs, 137–138 Project Management Body of Knowl project status meetings, 176–178 ® edge (PMBOK Guide), 17–22 project support person, 183 change control process in, 125 Project Team Leadership (Susan definition of project in, 2 Junda), 176 definition of project management in, project team(s), 156–167 4–5, 25 and change control process, 126 conflict resolution approach for, knowledge areas in, 20–22 online exam based on, 1 175–176 project processes in, 17–19 developing commitment to, 165–166 risk management in, 56–57 development of Work Breakdown ® Project Management Institute (PMI ) Structure with, 72 definition of project by, 2 identifying and developing roles on, 175 definition of project management by, 25 intellectual capital of, 57 growth of, 1 and leadership, 174–179 American Management Association • www.amanet.orgIndex 197 mission, goals, and objectives of, availability of, 109–110 158–160, 166 estimating, 74–79 models of effective, 166–167 exercising control over, 33 open communication of, 160–161 necessary level of, 115 organizing, 158 as part of project plan, 39 planning by, 156–166 and scheduling, 86 procedures for, 160, 161 sharing of, 138 project status meetings for, 176–178 shortening task by adding, recruiting, 158 102 relationships in, 160, 162 warnings about limited, 102 selfcontrol of members of, 114–115 responsibility size of, 7 assigning, 73 stages in development of, 162–165 of project managers, 113 team building for, 157 of project teams, 160 turning project group into, 156 responsibility charts, 73–74 virtual, 166, 178–179 review meetings purpose, stated, 114 signing of plans in, 40 used for control, 118–119 quality see also status reviews as factor in assessing change, 129 reviews measurement of, 144–145 design, 119 monitoring performance for ensur lessonslearned, 14, 119, 120 ing, 116 at milestones, 87 process reviews for ensuring, 121 process, 119–124, 182 quality management, 21 rework, 3 risk, 123, 172–173 raw material costs, 128 risk analysis reactive behavior, 56, 182 benefits of, 52–53 readyfireaim mentality, 3, 11 preparing for obstacles with, 42 realtime status data, 117 in process review report, 123 recruiting, 158 risk management, 21–22, 56–57, reengineering, 161 see also risk plan relationships, 160, 162 risk matrix, 64–65 replanning, 42 risk plan, 55–66 reports defining risks in, 56–57 process review, 123–124 establishing reserves in, 62–63 simplicity of, 118 managing multiproject risks with, weekly time, 117, 118 63–66 resourcecritical leveling, 107 purpose of, 55 resources SixStep process for developing, allocation of, 94, 95 57–62 assigning, to tasks, 103–110 risk register, 65–66 American Management Association • www.amanet.org198 Index San Concordio, Bartolommno de, on scope management, 20, 126 change in plans, 41 scope statements, 20, 43 satellite projects, 138 selfassessment tools, 173–174 “saving face,” 122 selfcontrol, 114–115 Scandinavian Airlines, 28 selling leadership style, 164 schedules senior managers, 181, 182 changes in, 127, 128 signoffs master, 44 and authority of project managers, as part of project plan, 39 113 schedule variance, 145, 146, 150 on changes, 131 scheduling, 81–110 on planning, 39–40, 44 arrow diagrams for, 82, 87–92, Simon, Herbert, 166 102–103 simplicity, 118, 124 assigning resources to tasks in, SixStep process (risk plan), 57–62 103–110 skills, 115, 158 bar charts for, 82–83, 102–103 SMART objectives, 50 computations for, 93–102 SMEs (subject matter experts), 58, 168 of creativity, 33 social activities, 164 history of, 82–83 software network diagrams for, 84–85, scheduling, 6, 72, 81–82, 86, 95–102 103–105 as only one part of project manage warning about resources by, 102 ment, 6, 81 software projects, 2–3 by project support person, 183 solution(s) reason for, 85–87 bestcase, 94 software for, 6, 72, 81–82, 86, defining problems in terms of, 45 103–105 developing, 16 time management in, 20 spending curves, 146–150 in Work Breakdown Structure, spinoffs, project, 137–138 6, 70–72 sponsors scope determination of variables by, 8–10 changes in, 41, 127–128, 137 missions given by, 48 as PCTS target, 8, 9 staffing requirements, 158 reducing, 102, 106, 107 stakeholders and scheduling, 86 avoiding misalignment with, 169 Work Breakdown Schedule as por and change control, 126, 130 trayal of, 39, 73 and creating constituency, 172 see also PCTS targets and project success, 168 scope creep signoffs by, 39, 44 change control for managing, 126 Stand and Deliver (film), 167 effects of, 41 Standish Group, 2–3 scheduling for reducing, 86 start times, 95–97 American Management Association • www.amanet.orgIndex 199 status reviews, 119, 141, 176–178 time storming stage (team development), changes in, 127, 128 163, 164, 173 estimating, 74–79, 91–92 strategy as PCTS target, 8 development of, 43 in scheduling, 95 for planning, 36–37 see also PCTS targets as project phase, 13 timecritical resource leveling, 107 subject matter experts (SMEs), 58, 168 timeline critical path schedules, 83, subprojects, 138 see also bar charts subtasks, 69, 70, 89 timeliness, of response, 117–118 SuperProject Expert™, 72 time management, 20 support personnel, 126 time reports, 117, 118 synergy, 175 timetables, 158 system integration, 70 training for developing interpersonal skills, tactics 162 in implementation planning, 13 in project management, 181 for planning, 36–38 for scheduling software, 82 task duration trigger point, 61–62 estimates of, 43, 69, 78, 79, triple constraints triangle, 126–127 101–102 rule of thumb for, 89 unknown risks, 63 in scheduling computations, 95 U.S. Navy, 83 in Work Breakdown Structure, 71 team, see project team(s) variables TeamBased Project Management associated with change, 133 (Jim Lewis), 157 sponsors’ determination of, 8–10 team members variance analysis, see earned value authority of, 115 analysis competition among, 166 variances selfcontrol of, 114–115 acceptable, 153 understanding of mission by, 159 exercising control with, 141 see also project team(s) responding to, 152–153 technical issues, 24, 26 thresholds for, 146 technical risk, 123 variation, 75–76 teleconferencing, 166 vendors, 126 theory espoused, 32 videoconferencing, 166, 178 theory in practice, 32 virtual teams, 166, 178–179 thresholds vision in change control, 134–135 and defining a problem, 47, 48 variance, 146 project manager’s understanding of, Thriving Chaos (Tom Peters), 180 26 American Management Association • www.amanet.org200 Index Waterman, Robert H., Jr., 158 as part of project plan, 39 WBS, see Work Breakdown Structure for project teams, 158 weekly expenditures, 146 scheduling in, 6, 70–72 weekly time reports, 117, 118 uses of, 68, 73–74 Work Breakdown Structure (WBS), working hours, 109 68–79 working project managers, 7–8, 27 development of, 43, 88 work requirements, 38 for dividing work up, 43 The WorldClass Project Manager estimating time, costs, and re (Robert K. Wysocki and James P. sources with, 74–79 Lewis), 8 example of using, 69–71 World War II, 13, 37 guidelines for developing, 71–73 Wysocki, Robert K, 8 American Management Association • www.amanet.orgAbout the Authors Joseph Heagney has been President of QMA International, LLC, since 2001, providing a wide range of management learning solutions world wide. He specializes in delivering seminars to Fortune 500 companies and speaking at selected conferences and conventions. His clients have included PepsiCo, Federal Express, Verizon, Merck, Harvard Business School, the U.S. Armed Forces, and SAP Americas. Mr. Heagney joined the American Management Association Inter national (AMA) in 1996 as a Program Manager overseeing manufac turing, quality, and purchasing public seminar product lines. Following a transition to the project management product line, he was named Group Program Manager for the Center for Management Development in New York City and managed program managers in the areas of proj ect management, training and development, communication, purchas ing, and general management. Promoted to Global Practice Leader, Project Management Best Practices, he led an international team re sponsible for identifying and then incorporating best practices into AMA learning solutions content worldwide. He is also an adjunct instructor at the City University of New York and the Dowling Institute/Dowling College, New York, on both the graduate and the undergraduate levels. He currently teaches multiple onsite courses in Dowling’s Executive MBA Program. Courses taught 201 American Management Association • www.amanet.org202 About the Authors include Project Management, Production and Operations Manage ment, Operations Research, Leadership, General Management, Human Management Systems, Total Quality Management, Statistical Quality/ Statistical Process Control, and Executive Development. He began his career with Grumman Aerospace (Northrop Gru m man), where he advanced through the Material Management and Cor porate Procurement Divisions. He completed his career at Northrop Grumman leading a project team to create and implement a corpo ratewide supplier performance rating system. Mr. Heagney holds a Bachelor of Science degree in Education from C.W. Post College and a Master of Science degree in Industrial Man agement from SUNY Stony Brook. His professional affiliations have in cluded the Project Management Institute, the International Project Management Association, and the American Society for Quality. Fundamentals of Project Management would not be the best selling title it has been without James P. Lewis, PhD, the author of the first three editions. Dr. Lewis is president of The Lewis Institute, Inc., a training and consulting company specializing in project manage ment, which he founded in 1981. An experienced project manager, he teaches seminars on the subject throughout the United States, England, and the Far East. Since 1980, Dr. Lewis has trained more than thirty thousand super visors and managers in Argentina, Canada, England, Germany, India, In donesia, Malaysia, Mexico, Singapore, Sweden, Thailand, and the United States. He has written articles for Training and Development Journal, Apparel Industry Magazine, and Transportation and Distribution Mag azine. He is the author of Project Planning, Scheduling and Control, Mastering Project Management, The Project Manager’s Desk Refer ence, and Working Together: The 12 Principles Employed by Boeing Commercial Aircraft to Manage Projects, Teams, and the Organization, published by McGrawHill, and, in addition to this book, How to Build and Manage a Winning Project Team and TeamBased Project Man agement, published by AMACOM Books. He is also coauthor, with Bob Wysocki, of The WorldClass Project Manager, published by Perseus. 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