Project Management 2.0

HAROLD KERZNER, MS, PHD, MBA, is Senior Executive Director for Project Management at the International Institute of Learning, Inc., a global learning solutions company offering professional training and consulting services. He has consulted for corporations worldwide, and is a recognized expert on project, program, and portfolio management; total quality management; and strategic planning.

• Preface ixAcknowledgment xiForeword xiiiWhy This Story Makes Sense xivThrough The Looking Glass At A Chaotic Future Is It Half Empty Or Half Full Or Just Plain Complicated? xviSo What Does All This Mean To You? xviiChapter 1 Project Management 2.0 11.0 Introduction: Changing Times 11.1 Characteristics of PM 1.0 11.2 Other Critical Issues with PM 1.0 21.3 Project Management 2.0 41.4 Criticism of PM 2.0 71.5 Project Management 2.0 : Technological Blessing or Curse? 71.6 Policing PM 2.0 121.7 Working with Stakeholders in PM 2.0 13Today’s View of Stakeholder Relations Management 14Need for Meaningful Information 15All That Glitters Is Not Gold 151.8 Finding the Information 161.9 Percent Complete Dilemma 171.10 Information Overload 181.11 Customer Satisfaction Headache 181.12 Determining Project Health 191.13 Dashboard Rules for Displaying Data 201.14 Reduction in Cost of Paperwork 211.15 Reduction in Executive Meddling 221.16 Project Management Skills 231.17 Contingency Planning 23Discussion Questions 24Chapter 2 A Peek into the Future of Project Management 252.0 Changing Times 252.1 Impact of Recessions 252.2 Executive View of Project Management 262.3 Engagement Project Management 282.4 Growth of More Complex Projects 302.5 Need for Additional Metrics 312.6 New Developments in Project Management 322.7 Project Manager’s Tool Box 332.8 Need for Continuous Improvement 342.9 Conclusions 34Discussion Questions 34Chapter 3 Understanding Success and Failure 373.0 Introduction 373.1 Project Management—Early Years: 1945–1960 383.2 Project Management Begins to Grow: 1970–1985 393.3 Growth in Competing Constraints 403.4 Rule of Inversion 423.5 Growth in Measurement Techniques 433.6 Trade-Offs 443.7 Putting Together Components of Success 453.8 New Definition of Success 463.9 Understanding Project Failure 473.10 Causes of Project Failure 50Discussion Questions 52Chapter 4 Value-Driven Project Management 534.0 Introduction 534.1 Understanding Today’s View of Value 544.2 Value Modeling 564.3 Value and Leadership Changes for PM 2.0 584.4 Value-Based Trade-Offs 624.5 Need for Value Metrics 644.6 Creating a Value Metric 644.7 Displaying Value Metrics in a Dashboard 714.8 Selecting Value Attributes 724.9 Additional Complexities with Value Metrics 73Discussion Questions 76Chapter 5 Growing Importance of Metrics with PM 2.0 775.0 Introduction 775.1 Enterprise Resource Planning 775.2 Need for Better Project Metrics 785.3 Causes for Lack of Support for Metrics Management 805.4 Characteristics of a Metric 815.5 Metrics Selection 825.6 Key Performance Indicators 83Need for KPIs 84Using KPIs 86Anatomy of a KPI 86KPI Characteristics 88KPI Failures 895.7 Dashboards and Scorecards 905.8 Business Intelligence 935.9 Growth in Dashboard Information Systems 935.10 Selecting an Infographics Designer 945.11 Project Health Check Metrics 955.12 Maintaining Project’s Direction 995.13 Metrics and Virtual Teams 995.14 Metric Mania 1005.15 Metric Training Sessions 1015.16 Metric Owners 1025.17 Answering Metric Questions 103Discussion Questions 103Chapter 6 Project Management Methodologies: 1.0 versus 2.0 1056.0 Introduction 1056.1 PM 2.0 Definition of Project Management Excellence 1056.2 Need for A Methodology 1066.3 Need for AN Enterprisewide Methodology 108Light Methodologies 109Heavy Methodologies 1106.4 Benefits of A Standardized Methodology 1126.5 Critical Components 1146.6 From Methodologies to Framework 1166.7 Life-Cycle Phases 1166.8 Drivers for PM 2.0 Client-Centered Flexibility 1176.9 Understanding Moving Targets 1186.10 Need for Client-Specific Metrics 1196.11 Business Case Development 1196.12 Validating Assumptions 120Types of Assumptions 121Documenting Assumptions 1226.13 Design Freezes 1236.14 Customer Approvals 1246.15 Agile Project Management Methodology 1256.16 Implementing Methodology 1276.17 Implementation Blunders 1286.18 Overcoming Development and Implementation Barriers 1286.19 Using Crisis Dashboards with Methodologies 129Understanding Targets 130Defining a Crisis 131Crisis Dashboard Images 134Conclusions 1386.20 Shutting Down the Project 138Discussion Questions 139Chapter 7 Project Governance 1417.0 Introduction 1417.1 Need for Governance 1417.2 Defining Project Governance 1427.3 Project versus Corporate Governance 1437.4 Roles, Responsibilities, and Decision-Making Authority 1447.5 Governance Frameworks 1457.6 Three Pillars of Project Governance 146Core Project Governance Principles 1477.7 Misinterpretation of Information 1517.8 Filtering the Information 1527.9 Understanding Politics in Project Environment 152Political Risks 153Reasons for Playing Politics 154Situations Where Political Games Will Occur 154Governance Committee 155Friends and Foes 156Attack or Retreat 156Need for Effective Communications 158Power and Influence 158Managing Project Politics 1597.10 Managing Global Stakeholder Relations 1607.11 Failure of Project Governance 1617.12 Saving Distressed Projects 162Discussion Questions 163Chapter 8 Role of Project Manager in Strategic Planning and Portfolio Management 1658.0 Introduction 1658.1 Why Strategic Plans Often Fail 1668.2 Project Management: Executive Perspective 1678.3 Strategic Planning: Project Management Perspective 1678.4 Generic Strategic Planning 1698.5 Benefits of Project Management 1728.6 Dispelling Myths 1738.7 Ways That Project Management Helps Strategic Planning 1768.8 Transformational Project Management Leadership 1798.9 Project Manager’s Role in Portfolio Management 1838.10 Value Management and Benefits Realization 184Understanding the Terminology 185Life-Cycle Phases 186Understanding Value 1928.11 Benefits Realization Metrics 1938.12 Portfolio Management Governance 195Discussion Questions 197Chapter 9 R&D Project Management 1999.0 Introduction 1999.1 Role of R&D in Strategic Planning 2009.2 Product Portfolio Analysis 2029.3 Marketing Involvement with R&D Project Managers 205First to Market 205Follow the Leader 206Application Engineering 207“Me Too” 2079.4 Product Life Cycles 2089.5 R&D Project Planning According to Market Share 2089.6 Classification of R&D Projects 2099.7 Research versus Development 2109.8 R&D Ratio 211Manufacturing and Sales 211Human Behavior 2129.9 Offensive-versus-Defensive R&D 2129.10 Modeling R&D Planning Function 2139.11 Priority Setting 216Working with Marketing 2169.12 Contract R&D 2189.13 Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements 2199.14 Government Influence 2199.15 Sources of Ideas 2209.16 Economic Evaluation of Projects 2239.17 R&D Project Readjustments 2259.18 Project Termination 2279.19 Tracking R&D Performance 228Discussion Questions 228Chapter 10 Problem Solving and Decision Making 22910.0 Introduction 22910.1 Understanding Concepts 230Necessity for Problem Solving and Decision Making 230Research Techniques in Basic Decision-Making Process 230Facts about Problem Solving and Decision Making 231Information Overload 231Getting Access to Right Information 232Lack of Information 233Project versus Business Problem Solving and Decision Making 23310.2 Project Environment: Its Impact on Problem Solving and Decision Making 234Impact of Constraints on Project Problem Solving and Decision Making 234Impact of Assumptions on Project Problem Solving and Decision Making 235Understanding Project Environment 235Selecting Right Project Manager 23610.3 Conceptual Problem-Solving and Decision-Making Process 236Determining the Steps 23710.4 Identifying and Understanding a Problem 238Real Problems versus Personality Problems 238Not All Problems Can Be Solved 239Complexity of Problems 240Technique for Problem Identification 240Individual Problem Solving Conducted in Secret 241Team Problem Solving Conducted in Secret 24110.5 Gathering Problem-Related Data 242Reason for Data Gathering 242Data-Gathering Techniques 242Setting Limits on Problem Solving and Decision Making 243Identifying Boundary Conditions 243Determining Who Should Attend Problem-Solving Meeting 244Determining Who Should Attend Decision-Making Meeting 244Creating Framework for Meeting 245Understanding How People React in Meetings 245Working with Participants during Meetings 246Leadership Techniques during Meetings 246Handling Problem-Solving and Decision-Making Conflicts 247Continuous Solutions versus Enhancement Project Solutions 247Problem Solving versus Scope Creep 248Problem Solving and Decision Making during Crisis Projects 24810.6 Analyzing Data 249Questions to Ask 24910.7 Developing Alternative Solutions 249Variables to Consider during Alternative Analyses 250Understanding Features That Are Part of Alternatives 251Developing Hybrid Alternatives 251Trade-Offs 251Common Mistakes When Developing Alternatives 25210.8 Problem-Solving Tools and Techniques 252Root-Cause Analysis 252General Principles of RCA 253Corrective Actions Using RCA 254RCA Techniques 254Brainstorming 255Rules for Brainstorming 255Critical Steps in Brainstorming 256Conducting Brainstorming Session: Process 257Conducting Brainstorming Session: Evaluation 257Brainstorming Sessions: Nominal Group Technique 257Group-Passing Technique 258Team Idea-Mapping Method 258Electronic Brainstorming 258Directed Brainstorming 259Individual Brainstorming 259Question Brainstorming 26010.9 Creativity and Innovation 260Creativity, Innovation, and Value 261Negative Innovation 261Types of Innovative Solutions 262Problem-Solving and Decision-Making Attributes That Are Difficult to Teach 262Creative Roadblocks 26310.10 Decision Making: Selecting Best Solution 263Understanding How Decisions Are Made 263Routine Decision Making 264Adaptive Decision Making 264Innovative Decision Making 265Pressured Decision Making 265Decision-Making Meetings 266Decision-Making Stages 266Decision-Making Steps 266Advantages of Group Decision Making 267Disadvantages of Group Decision Making 267Rational versus Intuitive Thinking 268Divergent versus Convergent Thinking 268Polarity Management 269Fear of Decision Making: Mental Roadblocks 269Danger of Hasty Decisions 270Decision-Making Styles 270Autocratic Decision Maker 271Fearful Decision Maker 271Circular Decision Maker 272Democratic Decision Maker 272Self-Serving Decision Maker 27310.11 Decision Making: Tools and Methods 273SWOT Analysis 274Pareto Analysis 274Multiple-Criteria Decision Analysis 275Paired-Comparison Analysis 275Influence Diagrams 276Affinity Diagrams 276Game Theory 277Cost–Benefit Analysis 277Nominal Work Groups 278Delphi Techniques 278Other Decision-Making Tools 27910.12 Evaluating Decision and Taking Corrective Action 279Time to Implement Solution 281Discussion Questions 282Chapter 11 Need for Project Management 28311.0 Background to Project Management Maturity Models 28311.1 Some Benefits of Using a Maturity Model 28411.2 Determining Amount of Maturity Needed 28411.3 Getting Started 28511.4 Things Can Go Wrong 28511.5 Choosing Right Maturity Model 28511.6 Estimating Time to Reach Maturity 28611.7 Strategic Planning for Project Management Maturity 28611.8 Project Management Maturity Model 28711.9 PM 2.0 Input into PMMM 291Discussion Questions 292Chapter 12 Using the PMO to Spearhead PM 2.0 29512.0 Introduction 29512.1 Traditional Project Office 29512.2 Traditional PMO 29612.3 Implementation Risks 29712.4 Specialized PMO 29812.5 Strategic PMO 29912.6 Networking PMOs 30012.7 Trust of Project Governance 30012.8 Ways a PMO Can Fail 301Unclear Mission Statement 301Failing to Focus on Impact to Business 302Failing to Gain Implementation Support 302Discussion Questions 309Index 311