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Unformatted text preview: OceanofPDF.com Table of Contents Title Page Copyright Page Introduction Part 1 - Project Mangement Power Chapter 1 - Linking Projects to Strategy and Perf ormance Results Chapter 2 - What Does It Mean to Be a Project Manager? Chapter 3 - The Rules of the Project Game Chapter 4 - The Nine Knowledge Areas of Project Management Chapter 5 - Starting Off on the RightFoot Part 2 - The Project Definition Phase Chapter 6 - Identifying Stakeholders and Defining Their Roles Chapter 7 - Scoping Out Project Success Chapter 8 - Managing Risks and Constraints Part 3 - The Project Planning Phase Chapter 9 - The Breakdown of Tasks: What Really Needs to Be Done? Chapter 10 - The Network Diagram: A Map for Your Project Chapter 11 - Project Start to Finish: Establishing the Time to Get Things Done Chapter 12 - Determining the Critical Pathand Its Impact on the Schedule Chapter 13 - Budgeting and Cost Control Options for Your Project Chapter 14 - Building a Winning Project Team Chapter 15 - Getting What You Need: Supplies, Equipment, and Other Things Chapter 16 - Putting It All Together: Getting the Plan Approved Part 4 - The Execution Phase Chapter 17 - Getting Started on the Right Track Chapter 18 - Leadership:Taking the Bull bythe Horns Chapter 19 - What an Organization! Chapter 20 - Operating Guidelines: Setting Up to Get Things Done Chapter 21 - Making Your Communications Count Part 5 - The Controlling Processes Chapter 22 - Monitoring and Controlling Schedules and Expenses Chapter 23 - Preparing Operationsfor the Project Deliverables Chapter 24 - Changes, Changes, and More Changes Chapter 25 - Quality Management: Making It the Best It Can Be Chapter 26 - Common Project Problems: Get Them Before They Get You Part 6 - The Close-Out Phase Chapter 27 - Will the Last One Out Please Turn Off the Lights? Chapter 28 - The Final Evaluation: The Short and Long of It Part 7 - The Organization and Tools to Make Project Management Prosper Chapter 29 - The Project-Enabled Organization Chapter 30 - Softwarefor All Projects Great and Small Web Resourcesfor Project Managers Index OceanofPDF.com OceanofPDF.com ALPHA BOOKS Published by the Penguin Group Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, USA Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario M4P 2Y3, Canada (a division of Pearson Penguin Canada Inc.) Penguin Books Ltd., 80 Strand, London WC2R ORL, England Penguin Ireland, 25 St. Stephen’s Green, Dublin 2, Ireland (a division of Penguin Books Ltd.) Penguin Group (Australia), 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Aus- tralia Group Pty. Ltd.) Penguin Books India Pvt. Ltd., 11 Community Centre, Panchsheel Park, New Delhi—110 017, India Penguin Group (NZ), 67 Apollo Drive, Rosedale, North Shore, Auckland 1311, New Zealand (a division of Pearson New Zealand Ltd.) Penguin Books (South Africa) (Pty.) Ltd., 24 Sturdee Avenue, Rosebank, Johannesburg 2196, South Africa Penguin Books Ltd., Registered Offices: 80 Strand, London WC2R ORL, England Copyright © 2007by G. Michael Campbelland Sunny Baker All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the publisher. No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and authors assume no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of information contained herein. For information, address Alpha Books, 800 East 96th Street, Indianapolis, IN 46240. THE COMPLETE IDIOT’S GUIDE TO and Design are registered trademarks of Penguin Group (USA) Inc. eISBN : 978-1-101-46078-8 Library of Congress Catalog Card Number: 2006934449 Interpretation of the printing code: The rightmost number of the first series of numbers is the year of the book’s printing; the rightmost number of the second series of numbers is the number of the book’s printing. For example, a printing code of 07-1 shows that the first printing occurred in 2007. The authors and publisher specifically disclaim any responsibility for any liability, loss, or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book. Most Alpha books are available at special quantity discounts for bulk purchases for sales promotions, premiums, fund-raising, or educational use. Special books, or book excerpts, can also be created to fit specific needs. For details, write: Special Markets, Alpha Books, 375 Hudson Street, New York, NY 10014. OceanofPDF.com Introduction Many project managers guess as a way to estimate the level of effort for a project. However, there is a better way to manage projects, and you don’t need to be a genius or even have an MBA to understand how. It doesn’t take a special certification to manage a project, but it does take special skills to bring projects in on time and within budget. Yes, some planning and charting is involved in moving projects from start to finish, but this book takes a practical approach to the process and puts you in control. The following pages map the road to successful project management. The Complete Idiot’s Guide to Project Management, Fourth Edition, explains in easy-to-understand language how the power of time-proven project management methods can help your mission-critical projects come in on time, on budget, and on target. You’ll learn how to point project teams, in spite of politics and personalities, in the same direction; and how to manage changes, no matter how frequent, to keep projects on track. You’ll learn that it’s skill, not luck or fancy degrees, that makes the difference in making your project a success. How to Use This Book The book has seven parts, which we recommend you read from beginning to end. The parts work together to provide you with the steps and tools behind successful project management and offer practical advice you can adapt to the needs of today’s fast-moving, ever-changing organizations. Part 1, “Project Management Power,” explains how to balance all the different needs all project managers must satisfy. We’ll introduce you to steps you can use to bring any project to a successful conclusion on time and within budget and the three secrets to success behind any project: the project manager, the team, and the plan. Part 2, “The Project Definition Phase,” presents techniques to start a project off on the right foot with a clear scope and a motivated project team. This part is especially important because the way a project starts off usually defines the way it will end up. Part 3, “The Project Planning Phase,” explains the basic planning processes central to successful project management. You’ll observe how to define, schedule, and budget tasks using powerful charting and analysis tools that can help you scope out projects of all shapes and sizes. This is the most technical part of the book, so you might want to read it twice. Mastering the information in this part is important because no project is ever better than the plan used to manage the effort. Part 4, “The Execution Phase,” presents proven techniques to transform the plan into action focused toward meeting the project requirements. This is key to successful project management. The end result of a project is always related to the way the plan is translated into actual work in the real world. Part 5, “The Controlling Processes,” talks about ways to monitor, track, and adjust each project so that you can keep everything on schedule, within budget, and with the right quality. You’ll also find easy-to-follow guidelines for dealing with the most common project problems and for minimizing the impact of the changes and conflicts that are part of almost every project. Part 6, “The Close-Out Phase,” shows you how to finish your project and reap the rewards of a job well done. This is often the most ignored part of project management, but you’ll see why it is so important. Part 7, “The Organization and Tools to Make Project Management Prosper,” introduces some software packages that can help you find out how to put the discipline of project management to work throughout your organization. Extras To add to the material in the main text, a series of sidebars throughout the book highlight specific items that can help you understand and implement the material in each chapter: Time Is Money Use the suggestions in these boxes to keep your schedule up-todate and your budget under control. Hopefully the advice will spare you the embarrassment of running out of money before the project is completed. You’ll also pick up on a variety of tips used by veteran project managers to run projects of all sizes and kinds. def•i•ni•tion These boxes define the most important concepts in project management. Use these words in meetings to impress your boss and your co-workers because it will demonstrate that you know what you are talking about. Along the Critical Path Stories or information related to project management appear in these boxes as examples from experienced project managers. Words from the Wise These quotes and tips include observations from our experience and other experts that may help inspire you to greater achievements or simply help keep you motivated to do your best, even when the project seems impossible. Risk Management Sometimes things just go wrong, no matter how well you plan your project. Luckily, there are usually warnings before things get too bad if you know how to recognize them. In these boxes, you’ll learn how to read the danger signs before you get swamped with problems. Acknowledgments All of the people at Alpha Books—especially Michele Wells and Lynn Northrup for their professionalism, skill, and good ideas—deserve our thanks. We’ve appreciated the opportunity to work with them. Just as important, we want to thank you, the reader, for purchasing this book. We understand how important your projects are to your personal and professional success, and we feel a deep sense of gratitude that you believe we can teach you something about becoming a better project manager. In addition, Mike Campbell would like to thank Stephen Schwarz and Dave Feineman at BP, and Greg Ranft and Cliff Halverson at TXDOT for providing great examples of project managers in action. And any acknowledgement would be incomplete without recognizing Michael’s wife, Molly, and her undying patience as he worked to complete this book. Her support, and the love of his children, is the rock upon which everything else is built. Trademarks All terms mentioned in this book that are known to be or are suspected of being trademarks or service marks have been appropriately capitalized. Alpha Books and Penguin Group (USA) Inc. cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark. OceanofPDF.com Part 1 Project Mangement Power Each year, organizations launch mission-critical projects involving millions of dollars in capital investment plus significant requirements for project-savvy human capital. The processes and methods of project management provide the structure, focus, flexibility, and control to help guide these significant investments to outstanding results, on time and within budget. In this part, you’ll be introduced to the processes and life-cycle phases of the project management discipline and the successful techniques of experienced project managers. You’ll also learn the nine key knowledge areas of project management, the first step in consistently bringing your projects in on time and within budget. If you can do this, you’ll be a rising star within your organization. That’s the power of project management. OceanofPDF.com Chapter 1 Linking Projects to Strategy and Perf ormance Results In This Chapter • Ways projects meet business needs • A different approach to managing change • Balancing time, resources, results, and perceptions • What makes a great project manager • Defining project success • All projects great and small The twenty-first century is here along with tighter budgets, less time to get things done, and fewer resources. Sure, building warp drives that allow fasterthan-light travel are still Star Trek fantasies, but rapid change, expanding technologies, and global marketing are real today. To compete, you need to do more with less. Generally, you undertake projects because they are a part of the plan to take your organization to a new level of performance. However, to captain your business in the future, you’ll need to build things faster, cheaper, and better. And you’ll need to get things done right the first time. Projects are becoming the way of the working world. Computers and automation have eliminated many types of repetitive work, freeing people to focus on building new products and services and improved organizations. And where things need to be created, collected ideas are organized as projects. Projects Meet a Business Need Projects are usually begun to address one or more demands from inside or outside the company. The drivers might be: def•i•ni•tion A project is defined by the Project Management Institute as a temporary endeavor undertaken to create a unique product, service, or result. This means that a project produces something that has never existed before; has a deadline or target date for when the project must be done; and has a budget that limits the amount of people, supplies, and money that can be used to complete the project. • A market demand to expand production of products • An organizational need to train people with new skills • A specific request from a key customer • A legal requirement from the government or regulatory body Projects may take many different forms. For example, they may be projects around: • Technology implementations, such as automation equipment • Information technology or systems that will change computers • Business development initiatives • Human resource performance, such as training projects • Strategy initiatives, such as introducing a whole new product line Any and all of these projects usually start with a decision about what the customers will require from the company in the future and focus on meeting or exceeding these customer requirements or needs. These requirements are then put into a strategic plan that will be carried out over a period of anywhere from a few months to as many as five years. In addition, to execute these requirements, various projects are created. These projects may have a variety of outcomes in the forecast, but one constant is the same—the need to improve performance in the future. The project manager—the person who takes overall responsibility for coordinating a project regardless of size and for making sure the desired end result comes in on time and within budget—must understand this link. The project manager must also make sure that each member of the project team understands the link to the future of the organization and the performance results the business is trying to achieve. Why, you may ask? The answer is relatively simple as a concept, but much harder to execute. As the project proceeds, the project manager and the project team will be making numerous decisions as they work to overcome a wide variety of technical and business problems that were unforeseen at the start of the project. If these people do not have an understanding of the strategy and how their project helps fulfill the desired performance results, the team could make decisions that would not allow the project deliverables to maximize the business value intended at the beginning of the project. Viewing Change from a Different Perspective When project managers think of change management, they probably relate it to something an individual goes through during the course of a change. Such theories are very popular, and you may even think of change in this way. Many theories equate change with the death of something familiar and suggest that organizations and people in them will experience a similar process when going through a significant change. This meshes well with theories that organizations are “living organisms” that take on a life of their own. The major problem for project managers in these theories is “how do I and my projects fit in?” Good question! I would like to propose a different approach. In today’s fast-paced world, project managers need to be good at handling change. The best way to control coming changes is to use a disciplined approach—plan the project and then execute against that plan. def•i•ni•tion When a project causes organizational changes, a project manager should view those changes as an engineering problem that requires the alteration of concrete parts of the organization. Change management is getting the organization prepared for those alterations effectively and efficiently. The basic problem with the project approach most companies use is that less than 30 percent of the projects companies employ to change their businesses are successful. Less than 30 percent! That is clearly unacceptable. Those projects include mergers and acquisitions, major technology initiatives, or reengineering, to name a few. According to research by the Gartner Group, over 30 percent of IT projects are cancelled. Over 50 percent of projects will experience cost overruns. And only about 16 percent will be completed within the desired time frame and budget and achieve the desired results. Amazing! The dual perspective is needed for simultaneously running the business today and changing the business to meet future needs. Adapted from Change Is the Rule by W.E. “Dutch” Holland, Ph.D. (Dearborn Press, 2000) The good news for you is that if you master the techniques in this book, your company will see you as a rising star. Why? Because you will be successful in completing a project, and the contrast of the completed project with so many other failed projects will be striking. That’s why many people see the advantage to becoming a project manager. The Project Management Institute (PMI), an international organization dedicated to the advancement of project management, has nearly 100,000 members at the time we are writing this book and will probably exceed that number by the time you read it. This institute has established standards and certificates to raise the knowledge and professionalism of project managers worldwide. A Balance Among Time, Resources, Results, and Perceptions One of the hardest tasks any project manager will face is balancing a project’s time, cost, and quality. By looking at the three elements in the accompanying pyramid, you can clearly see that if the time begins to slip (meaning you may miss your deadline), this impacts the other two elements. For example, you can get the project back on track by getting more people involved (and increasing your costs), by reducing the quality that was originally designed into the project, or by asking for more time! A good project manager will make sure that he or she understands which of these three elements is paramount. In other words, what is most important— the deadline, the budget, or the quality? Once you establish this, you can work to keep the other elements in balance as the project progresses. This pyramid demonstrates the balance between time, resources, results, and customer satisfaction that is required to bring a project to a successful conclusion. If you change one of the elements in the pyramid, you automatically change the scope of the project. This brings us to the factors essential to the success of all projects: • Agreement among the project team and the stakeholders (which include internal ...
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