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Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success
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Mô tả chi tiết
Harold Kerzner
2.0
PROJECT
MANAGEMENT
LEVERAGING TOOLS,
DISTRIBUTED COLLABORATION,
AND METRICS FOR PROJECT SUCCESS
Cover images: Gold Guy Workgroup © Fotolia/Scott Maxwell; Brushed Metal Plate © iStock.com/Zeffss1
Cover design: C. Wallace
This book is printed on acid-free paper.
Copyright © 2015 by International Institute for Learning, Inc., New York, New York. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Library of Congress Cataloging-in-Publication Data:
ISBN 978-1-118-99125-1 (pbk); ISBN 978-1-118-99128-2 (epdf); ISBN 978-1-119-00028-0 (epub);
ISBN 978-1-119-02004-2 (WOL)
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
DEDICATION
To my wife, Jo Ellyn, for her encouragement to continue writing
project management books, her patience with my travel schedule,
and, most important, her everlasting love.
v
CONTENTS
PREFACE ix
ACKNOWLEDGMENT xi
FOREWORD xiii
WHY THIS STORY MAKES SENSE xiv
THROUGH THE LOOKING GLASS AT A CHAOTIC FUTURE xiv
IS IT HALF EMPTY OR HALF FULL OR JUST PLAIN
COMPLICATED? xvi
SO WHAT DOES ALL THIS MEAN TO YOU? xvii
CHAPTER 1
PROJECT MANAGEMENT 2.0 1
1.0 INTRODUCTION: CHANGING TIMES 1
1.1 CHARACTERISTICS OF PM 1.0 1
1.2 OTHER CRITICAL ISSUES WITH PM 1.0 2
1.3 PROJECT MANAGEMENT 2.0 4
1.4 CRITICISM OF PM 2.0 7
1.5 PROJECT MANAGEMENT 2.0 : TECHNOLOGICAL BLESSING
OR CURSE? 7
1.6 POLICING PM 2.0 12
1.7 WORKING WITH STAKEHOLDERS IN PM 2.0 13
Today’s View of Stakeholder Relations Management 14
Need for Meaningful Information 15
All That Glitters Is Not Gold 15
1.8 FINDING THE INFORMATION 16
1.9 PERCENT COMPLETE DILEMMA 17
1.10 INFORMATION OVERLOAD 18
1.11 CUSTOMER SATISFACTION HEADACHE 18
1.12 DETERMINING PROJECT HEALTH 19
1.13 DASHBOARD RULES FOR DISPLAYING DATA 20
1.14 REDUCTION IN COST OF PAPERWORK 21
1.15 REDUCTION IN EXECUTIVE MEDDLING 22
1.16 PROJECT MANAGEMENT SKILLS 23
1.17 CONTINGENCY PLANNING 23
DISCUSSION QUESTIONS 24
CHAPTER 2
A PEEK INTO THE FUTURE OF
PROJECT MANAGEMENT 25
2.0 CHANGING TIMES 25
2.1 IMPACT OF RECESSIONS 25
2.2 EXECUTIVE VIEW OF PROJECT MANAGEMENT 26
2.3 ENGAGEMENT PROJECT MANAGEMENT 28
2.4 GROWTH OF MORE COMPLEX PROJECTS 30
2.5 NEED FOR ADDITIONAL METRICS 31
2.6 NEW DEVELOPMENTS IN PROJECT MANAGEMENT 32
2.7 PROJECT MANAGER’S TOOL BOX 33
2.8 NEED FOR CONTINUOUS IMPROVEMENT 34
2.9 CONCLUSIONS 34
DISCUSSION QUESTIONS 34
CHAPTER 3
UNDERSTANDING SUCCESS
AND FAILURE 37
3.0 INTRODUCTION 37
3.1 PROJECT MANAGEMENT—EARLY YEARS: 1945–1960 38
3.2 PROJECT MANAGEMENT BEGINS TO GROW:
1970–1985 39
3.3 GROWTH IN COMPETING CONSTRAINTS 40
3.4 RULE OF INVERSION 42
3.5 GROWTH IN MEASUREMENT TECHNIQUES 43
3.6 TRADE-OFFS 44
3.7 PUTTING TOGETHER COMPONENTS OF SUCCESS 45
3.8 NEW DEFINITION OF SUCCESS 46
3.9 UNDERSTANDING PROJECT FAILURE 47
3.10 CAUSES OF PROJECT FAILURE 50
DISCUSSION QUESTIONS 52
CHAPTER 4
VALUE-DRIVEN
PROJECT MANAGEMENT 53
4.0 INTRODUCTION 53
4.1 UNDERSTANDING TODAY’S VIEW OF VALUE 54
4.2 VALUE MODELING 56
4.3 VALUE AND LEADERSHIP CHANGES FOR PM 2.0 58
4.4 VALUE-BASED TRADE-OFFS 62
4.5 NEED FOR VALUE METRICS 64
4.6 CREATING A VALUE METRIC 64
4.7 DISPLAYING VALUE METRICS IN A DASHBOARD 71
4.8 SELECTING VALUE ATTRIBUTES 72
4.9 ADDITIONAL COMPLEXITIES WITH VALUE METRICS 73
DISCUSSION QUESTIONS 76
CHAPTER 5
GROWING IMPORTANCE OF METRICS
WITH PM 2.0 77
5.0 INTRODUCTION 77
5.1 ENTERPRISE RESOURCE PLANNING 77
5.2 NEED FOR BETTER PROJECT METRICS 78
5.3 CAUSES FOR LACK OF SUPPORT FOR METRICS
MANAGEMENT 80
vi | CONTENTS
5.4 CHARACTERISTICS OF A METRIC 81
5.5 METRICS SELECTION 82
5.6 KEY PERFORMANCE INDICATORS 83
Need for KPIs 84
Using KPIs 86
Anatomy of a KPI 86
KPI Characteristics 88
KPI Failures 89
5.7 DASHBOARDS AND SCORECARDS 90
5.8 BUSINESS INTELLIGENCE 93
5.9 GROWTH IN DASHBOARD INFORMATION SYSTEMS 93
5.10 SELECTING AN INFOGRAPHICS DESIGNER 94
5.11 PROJECT HEALTH CHECK METRICS 95
5.12 MAINTAINING PROJECT’S DIRECTION 99
5.13 METRICS AND VIRTUAL TEAMS 99
5.14 METRIC MANIA 100
5.15 METRIC TRAINING SESSIONS 101
5.16 METRIC OWNERS 102
5.17 ANSWERING METRIC QUESTIONS 103
DISCUSSION QUESTIONS 103
CHAPTER 6
PROJECT MANAGEMENT
METHODOLOGIES: 1.0 VERSUS 2.0 105
6.0 INTRODUCTION 105
6.1 PM 2.0 DEFINITION OF PROJECT MANAGEMENT
EXCELLENCE 105
6.2 NEED FOR A METHODOLOGY 106
6.3 NEED FOR AN ENTERPRISEWIDE METHODOLOGY 108
Light Methodologies 109
Heavy Methodologies 110
6.4 BENEFITS OF A STANDARDIZED METHODOLOGY 112
6.5 CRITICAL COMPONENTS 114
6.6 FROM METHODOLOGIES TO FRAMEWORK 116
6.7 LIFE-CYCLE PHASES 116
6.8 DRIVERS FOR PM 2.0 CLIENT-CENTERED
FLEXIBILITY 117
6.9 UNDERSTANDING MOVING TARGETS 118
6.10 NEED FOR CLIENT-SPECIFIC METRICS 119
6.11 BUSINESS CASE DEVELOPMENT 119
6.12 VALIDATING ASSUMPTIONS 120
Types of Assumptions 121
Documenting Assumptions 122
6.13 DESIGN FREEZES 123
6.14 CUSTOMER APPROVALS 124
6.15 AGILE PROJECT MANAGEMENT METHODOLOGY 125
6.16 IMPLEMENTING METHODOLOGY 127
6.17 IMPLEMENTATION BLUNDERS 128
6.18 OVERCOMING DEVELOPMENT AND IMPLEMENTATION
BARRIERS 128
6.19 USING CRISIS DASHBOARDS WITH
METHODOLOGIES 129
Understanding Targets 130
Defining a Crisis 131
Crisis Dashboard Images 134
Conclusions 138
6.20 SHUTTING DOWN THE PROJECT 138
DISCUSSION QUESTIONS 139
CHAPTER 7
PROJECT GOVERNANCE 141
7.0 INTRODUCTION 141
7.1 NEED FOR GOVERNANCE 141
7.2 DEFINING PROJECT GOVERNANCE 142
7.3 PROJECT VERSUS CORPORATE GOVERNANCE 143
7.4 ROLES, RESPONSIBILITIES, AND DECISION-MAKING
AUTHORITY 144
7.5 GOVERNANCE FRAMEWORKS 145
7.6 THREE PILLARS OF PROJECT GOVERNANCE 146
Core Project Governance Principles 147
7.7 MISINTERPRETATION OF INFORMATION 151
7.8 FILTERING THE INFORMATION 152
7.9 UNDERSTANDING POLITICS IN PROJECT
ENVIRONMENT 152
Political Risks 153
Reasons for Playing Politics 154
Situations Where Political Games Will Occur 154
Governance Committee 155
Friends and Foes 156
Attack or Retreat 156
Need for Effective Communications 158
Power and Influence 158
Managing Project Politics 159
7.10 MANAGING GLOBAL STAKEHOLDER RELATIONS 160
7.11 FAILURE OF PROJECT GOVERNANCE 161
7.12 SAVING DISTRESSED PROJECTS 162
DISCUSSION QUESTIONS 163
CHAPTER 8
ROLE OF PROJECT MANAGER IN
STRATEGIC PLANNING AND
PORTFOLIO MANAGEMENT 165
8.0 INTRODUCTION 165
8.1 WHY STRATEGIC PLANS OFTEN FAIL 166
8.2 PROJECT MANAGEMENT: EXECUTIVE
PERSPECTIVE 167
8.3 STRATEGIC PLANNING: PROJECT MANAGEMENT
PERSPECTIVE 167
8.4 GENERIC STRATEGIC PLANNING 169
8.5 BENEFITS OF PROJECT MANAGEMENT 172
8.6 DISPELLING MYTHS 173
8.7 WAYS THAT PROJECT MANAGEMENT HELPS STRATEGIC
PLANNING 176
8.8 TRANSFORMATIONAL PROJECT MANAGEMENT
LEADERSHIP 179
CONTENTS | vii
8.9 PROJECT MANAGER’S ROLE IN PORTFOLIO
MANAGEMENT 183
8.10 VALUE MANAGEMENT AND BENEFITS REALIZATION 184
Understanding the Terminology 185
Life-Cycle Phases 186
Understanding Value 192
8.11 BENEFITS REALIZATION METRICS 193
8.12 PORTFOLIO MANAGEMENT GOVERNANCE 195
DISCUSSION QUESTIONS 197
CHAPTER 9
R&D PROJECT MANAGEMENT 199
9.0 INTRODUCTION 199
9.1 ROLE OF R&D IN STRATEGIC PLANNING 200
9.2 PRODUCT PORTFOLIO ANALYSIS 202
9.3 MARKETING INVOLVEMENT WITH R&D PROJECT
MANAGERS 205
First to Market 205
Follow the Leader 206
Application Engineering 207
“Me Too” 207
9.4 PRODUCT LIFE CYCLES 208
9.5 R&D PROJECT PLANNING ACCORDING TO MARKET
SHARE 208
9.6 CLASSIFICATION OF R&D PROJECTS 209
9.7 RESEARCH VERSUS DEVELOPMENT 210
9.8 R&D RATIO 211
Manufacturing and Sales 211
Human Behavior 212
9.9 OFFENSIVE-VERSUS-DEFENSIVE R&D 212
9.10 MODELING R&D PLANNING FUNCTION 213
9.11 PRIORITY SETTING 216
Working with Marketing 216
9.12 CONTRACT R&D 218
9.13 NONDISCLOSURE AGREEMENTS, SECRECY
AGREEMENTS, AND CONFIDENTIALITY
AGREEMENTS 219
9.14 GOVERNMENT INFLUENCE 219
9.15 SOURCES OF IDEAS 220
9.16 ECONOMIC EVALUATION OF PROJECTS 223
9.17 R&D PROJECT READJUSTMENTS 225
9.18 PROJECT TERMINATION 227
9.19 TRACKING R&D PERFORMANCE 228
DISCUSSION QUESTIONS 228
CHAPTER 10
PROBLEM SOLVING AND
DECISION MAKING 229
10.0 INTRODUCTION 229
10.1 UNDERSTANDING CONCEPTS 230
Necessity for Problem Solving and Decision Making 230
Research Techniques in Basic Decision-Making
Process 230
Facts about Problem Solving and Decision Making 231
Information Overload 231
Getting Access to Right Information 232
Lack of Information 233
Project versus Business Problem Solving and Decision
Making 233
10.2 PROJECT ENVIRONMENT: ITS IMPACT ON PROBLEM
SOLVING AND DECISION MAKING 234
Impact of Constraints on Project Problem Solving and
Decision Making 234
Impact of Assumptions on Project Problem Solving and
Decision Making 235
Understanding Project Environment 235
Selecting Right Project Manager 236
10.3 CONCEPTUAL PROBLEM-SOLVING AND
DECISION-MAKING PROCESS 236
Determining the Steps 237
10.4 IDENTIFYING AND UNDERSTANDING A PROBLEM 238
Real Problems versus Personality Problems 238
Not All Problems Can Be Solved 239
Complexity of Problems 240
Technique for Problem Identification 240
Individual Problem Solving Conducted in Secret 241
Team Problem Solving Conducted in Secret 241
10.5 GATHERING PROBLEM-RELATED DATA 242
Reason for Data Gathering 242
Data-Gathering Techniques 242
Setting Limits on Problem Solving and Decision
Making 243
Identifying Boundary Conditions 243
Determining Who Should Attend Problem-Solving
Meeting 244
Determining Who Should Attend Decision-Making
Meeting 244
Creating Framework for Meeting 245
Understanding How People React in Meetings 245
Working with Participants during Meetings 246
Leadership Techniques during Meetings 246
Handling Problem-Solving and Decision-Making
Conflicts 247
Continuous Solutions versus Enhancement Project
Solutions 247
Problem Solving versus Scope Creep 248
Problem Solving and Decision Making during Crisis
Projects 248
10.6 ANALYZING DATA 249
Questions to Ask 249
10.7 DEVELOPING ALTERNATIVE SOLUTIONS 249
Variables to Consider during Alternative Analyses 250
Understanding Features That Are Part of
Alternatives 251
Developing Hybrid Alternatives 251
viii | CONTENTS
Trade-Offs 251
Common Mistakes When Developing Alternatives 252
10.8 PROBLEM-SOLVING TOOLS AND TECHNIQUES 252
Root-Cause Analysis 252
General Principles of RCA 253
Corrective Actions Using RCA 254
RCA Techniques 254
Brainstorming 255
Rules for Brainstorming 255
Critical Steps in Brainstorming 256
Conducting Brainstorming Session: Process 257
Conducting Brainstorming Session: Evaluation 257
Brainstorming Sessions: Nominal Group Technique 257
Group-Passing Technique 258
Team Idea-Mapping Method 258
Electronic Brainstorming 258
Directed Brainstorming 259
Individual Brainstorming 259
Question Brainstorming 260
10.9 CREATIVITY AND INNOVATION 260
Creativity, Innovation, and Value 261
Negative Innovation 261
Types of Innovative Solutions 262
Problem-Solving and Decision-Making Attributes That Are
Difficult to Teach 262
Creative Roadblocks 263
10.10 DECISION MAKING: SELECTING BEST SOLUTION 263
Understanding How Decisions Are Made 263
Routine Decision Making 264
Adaptive Decision Making 264
Innovative Decision Making 265
Pressured Decision Making 265
Decision-Making Meetings 266
Decision-Making Stages 266
Decision-Making Steps 266
Advantages of Group Decision Making 267
Disadvantages of Group Decision Making 267
Rational versus Intuitive Thinking 268
Divergent versus Convergent Thinking 268
Polarity Management 269
Fear of Decision Making: Mental Roadblocks 269
Danger of Hasty Decisions 270
Decision-Making Styles 270
Autocratic Decision Maker 271
Fearful Decision Maker 271
Circular Decision Maker 272
Democratic Decision Maker 272
Self-Serving Decision Maker 273
10.11 DECISION MAKING: TOOLS AND METHODS 273
SWOT Analysis 274
Pareto Analysis 274
Multiple-Criteria Decision Analysis 275
Paired-Comparison Analysis 275
Influence Diagrams 276
Affinity Diagrams 276
Game Theory 277
Cost–Benefit Analysis 277
Nominal Work Groups 278
Delphi Techniques 278
Other Decision-Making Tools 279
10.12 EVALUATING DECISION AND TAKING CORRECTIVE
ACTION 279
Time to Implement Solution 281
DISCUSSION QUESTIONS 282
CHAPTER 11
NEED FOR PROJECT
MANAGEMENT 283
11.0 BACKGROUND TO PROJECT MANAGEMENT MATURITY
MODELS 283
11.1 SOME BENEFITS OF USING A MATURITY MODEL 284
11.2 DETERMINING AMOUNT OF MATURITY NEEDED 284
11.3 GETTING STARTED 285
11.4 THINGS CAN GO WRONG 285
11.5 CHOOSING RIGHT MATURITY MODEL 285
11.6 ESTIMATING TIME TO REACH MATURITY 286
11.7 STRATEGIC PLANNING FOR PROJECT MANAGEMENT
MATURITY 286
11.8 PROJECT MANAGEMENT MATURITY MODEL 287
11.9 PM 2.0 INPUT INTO PMMM 291
DISCUSSION QUESTIONS 292
CHAPTER 12
USING THE PMO TO SPEARHEAD
PM 2.0 295
12.0 INTRODUCTION 295
12.1 TRADITIONAL PROJECT OFFICE 295
12.2 TRADITIONAL PMO 296
12.3 IMPLEMENTATION RISKS 297
12.4 SPECIALIZED PMO 298
12.5 STRATEGIC PMO 299
12.6 NETWORKING PMOS 300
12.7 TRUST OF PROJECT GOVERNANCE 300
12.8 WAYS A PMO CAN FAIL 301
Unclear Mission Statement 301
Failing to Focus on Impact to Business 302
Failing to Gain Implementation Support 302
DISCUSSION QUESTIONS 309
INDEX 311
ix
PREFACE
The world is in a state of constant fl ux. We see the changes happening every day on
television, in the newspapers, and on the Internet. But how many people actually recognize the changes that are taking place in project management? For those individuals
who live, eat, and breathe project management, they often are not able to recognize the
changes even though they are part of the change.
When project management (PM) fi rst was introduced, senior management was
somewhat apprehensive about accepting this new technique. Even though project management had existed as long as mankind and used the principles of PM 1.0, executives
viewed project management as a special form of management that was more temporary
than permanent. Clients were forcing corporations to use project management for the life
of the projects so that the clients would have single-person contact concerning the performance of the projects. Reluctantly, senior management for the contractors accepted
the challenge, but there was some fear that project managers might usurp the authority
of the position and begin making decisions that were reserved for C-level personnel.
In order to maintain some degree of control, senior management created the position of project sponsor. Whatever decisions project managers were allowed to make
would be under the watchful eyes of the project sponsors. In many instances, the project managers came from the engineering ranks of the company and were allowed to
make mainly technical decisions. Virtually all business-related decisions were made
by the executive sponsor. Furthermore, many sponsors maintained the single-person
executive–client contact link with the customer rather than allowing the project manager to have free access to the customers.
Today, all of that has changed thanks to PM 2.0. We now live in a world of PM 2.0.
The survival of many companies is now based upon how well they meet the challenges
in the marketplace. Many of the challenges include greater business risks, having to
accept more complex projects, and working closer with a multitude of stakeholders.
Project management processes must be in place to meet these challenges.
For the past three decades, companies have embarked upon continuous improvement efforts in all areas of project management. Although some changes were large,
most of the changes were small, even just cosmetic, and usually involved the forms,
guidelines, templates, and checklists we use for project management execution. The
projects in most companies were regarded as operational rather than strategic projects.
Today, much of this has changed.
PM 2.0 has now spread to the seniormost levels of management and even to the
corporate boardroom. Projects are now being aligned with strategic planning objectives.
Project management is being used to execute strategic projects rather than just operational projects. Project managers are expected to make both project-related and business-related decisions whereas in the past it was only a project-based decision. Today’s
project managers are viewed as managing part of a business instead of merely a project.
The marriage of project management with business analyst activities has elevated
project management to the corporate level. Project management is now seen as a strategic competency and necessary for the survival of the fi rm. Project managers no longer
x | PREFACE
report to just a project sponsor. Instead, they report to a senior governance committee,
an oversight committee, or the seniormost levels of management. Project sponsorship is
now committee governance rather than oversight by a single individual. This is because
of the risks and complexities of today’s projects.
This book is designed to be forward looking. Project management has undergone
numerous changes in the last few years and many of the changes appear in this book.
Change is inevitable. It will happen, and it will continue to happen. Whether you accept
the changes now or in the future is up to you. But change is a way of life.
Harold Kerzner
The International Institute for Learning
2014
xi
ACKNOWLEDGMENTS
The vision of the future is held in the hands of many rather than just a few. The idea for
a book on PM 2.0 came from Seppo Halminen, who continuously challenges me with
new ideas surrounding the future of project management. The author is indebted to
Greg Balestrero, John Winter, and Carl Belack for their invaluable contributions to this
book. The author is also indebted to all of the employees of the International Institute
for Learning who have provided me with 25 years of support for my books.
FOREWORD
Knowledge is an unending adventure at the edge of uncertainty.
Jacob Bronowski
Story telling is one of the greatest ways of imparting knowledge and sharing traditions
and culture. So let me start by sharing a personal story about my youthful obsession
with reading. Science fi ction writing has intrigued me since I was a very young boy. I
read every sci-fi writer I could get my hands on and I could understand. To me, these
writers allowed me to look through their eyes into the future. These writers were my
fi rst exposure to “futurists,” showing me a future that might, and could, someday be
played out. It made me dream big.
They were great dreamers, like Ray Bradbury, Isaac Asimov, and Arthur C. Clarke.
Even before the industrial age got into full swing, Jules Verne, in 1865, cast a wonderful
story about our fi rst journey to the moon, a dream that would come true 100 years later.
They were a small group of writers who were instrumental in my fi rst big dream about
the future: I wanted to become an astronaut. From when I was 8 years old I had no other
dream for a future except that I would ultimately be in a space suit, walking on another
planet. Sadly, destiny intervened when, at age 20, a U.S. Air Force optometrist informed
me that I would wear corrective lenses for the rest of my life! Well, pilots at that time
had to have perfect vision, so my dream of becoming an astronaut was gone. And, the
rest is, as they say, history.
To me, this seemed like a shock. For the next 2 years, I wandered through the
Georgia Institute of Technology taking a variety of courses in literature, philosophy, and
science, before landing on a major in industrial engineering. As I look back, I learned
a lesson that it is like many things in life—it is about balancing our vision, personal
expectations, and looming reality or we will be knocked back on our heels by the outcome. I should have known the outcome would be unlikely. In fact, if you saw an early
picture of my family together, including parents, uncles, aunts, and some cousins, you
would make an interesting observation. It was easy to see that everyone was wearing
glasses, except for an 8-year-old, named Greg. Hmm, there was a “trend” going on that
I ignored because of my deep-rooted, passionate belief about being an astronaut. Someone might even say I was ignoring the “inside” facts.
However, there was another “outside” trend that was happening, especially as I sat
in college wondering what would happen to my interest in being in space and mapping
it against a future career. It was a period just prior to the U.S. Apollo mission landing two
astronauts on the moon. The war in Viet Nam was raging, the United States was embroiled
in its own cultural revolution, and the U.S. congress was feverishly debating the funding
for both swords and plowshares. Projections about the following 10 years were beginning
to predict the end of the Space Race, an end to the war, and a looming recession. As a
20-year- old, I didn’t see those “outside” trends resulting in the demise of the aerospace
industry of the time. Within 5 years, employment in the aerospace industry collapsed
from nearly 1 million professionals to fewer than 200,000. The war ended and the need
for new military pilots collapsed. And the recession dried up opportunities in many career
xiii