Project Management (eBook)

Dr Zwikael is an Associate Professor in the College of Business and Economics at the Australian National University. The recipient of the International Project Management Association's Research Award, Dr Zwikael is the author of three books and more than 200 scholarly peer-reviewed papers published in leading journals. In addition, he has been awarded multiple research awards by the Academy of Management, British Academy of Management, Emerald and the Australian Institute of Project Management. Dr Zwikael has experience in exercising major leadership roles such as Associate Dean, Head of School, Associate Editor of the top project management journal (International Journal of Project Management) and an Executive Board member of three Project Management Institute (PMI) international chapters.John Smyrk is a graduate of Monash University, holding an Honours degree in Economics (with a specialisation in Econometrics) and Masters in Economics (with a specialisation in Operations Research). He designed, developed and delivered post graduate courses in project management at a number of universities. He has spent years working in various industries, such as steel-making, infrastructure, heavy engineering, chemicals and industrial instrumentation. He has consulted to the public and private sectors, specialising in in project management, with clients in manufacturing, finance, transport and government. He is currently a private consultant in project management. With Dr Zwikael, he participates in an ongoing research program directed at the assembly of comprehensive, reliable and rigorous theoretical foundations for the discipline of project management.  

Foreword 6
Preface 8
Contents 9
About the Authors 16
Projects: A Conceptual Framework 17
1 What Roles Do Projects Serve in Business? 18
1.1 The Nature of Projects 18
1.1.1 The Strategic Triggers for Projects 18
1.1.2 Implementing Strategy Through Projects 19
1.2 Trends in Today’s Project Environments 21
1.3 Current Challenges for Business in Project Management 23
1.4 Issues with Current Project Management Methodologies 25
2 A Theoretical Framework for Projects 29
2.1 Projects as a Class of Process 29
2.2 The Input-Process-Output (IPO) Model 31
2.3 Project Outputs 33
2.3.1 Forms of Outputs 33
2.3.2 The Concept of an Operand 35
2.4 Project Outcomes 36
2.4.1 Outputs Versus Outcomes 36
2.4.2 Key Categories of Outcomes 37
2.4.3 Benefits and Outcomes 40
2.4.4 The 2NY Map for Target Outcome Definition 41
2.4.5 Baselining 46
2.4.6 Naming Target Outcomes 47
2.5 The Input-Transform-Outcome (ITO) Model 47
2.5.1 The Anatomy of the ITO Model 48
2.5.2 Accountability in the ITO Model 51
2.5.3 The Nature of Utilisation 52
2.5.4 The Impact of Projects on Operational Processes 54
3 The Structure of a Project 58
3.1 Project Global Phases 58
3.1.1 Project Initiation 59
3.1.2 Project Planning 61
3.1.3 Project Execution 61
3.1.4 Outcomes Realisation 62
3.1.5 Global Phases and Accountabilities 62
3.1.6 Staged Projects 63
3.2 The Elements of Project Management 65
3.3 The Layers of Work in a Project 67
3.3.1 Above- and Below-the-Line Work 67
3.3.2 A Project’s Baseline Documents 69
4 Project and Programme Governance 70
4.1 Project Governance 70
4.1.1 Overview of Project Governance 70
4.1.2 Principles of Project Governance 71
4.1.3 Project Governance and the Funder 75
4.1.4 The Involvement of Key Players in a Project 75
4.1.5 The Structure of the Project Governance Model 77
4.1.6 Designing a Project Governance Model 79
4.1.7 Project Governance in an Organisational Context 82
4.1.8 Project Governance Resourcing Issues 83
4.1.9 Projects and Contractors 85
4.1.10 Project Governance and Above-the-Line Resourcing 86
4.1.11 The Operation of the Project Governance Model 86
4.1.12 Managing the Project Governance Model 88
4.1.13 Project Governance and Professional Development 88
4.1.14 The Project Management Office (PMO) 89
4.2 Programme Governance 91
4.2.1 The Conditions Under Which Projects Should Be Coordinated 91
4.2.2 Alternative Models for Coordinated Projects 93
5 Stakeholder Management 97
5.1 Project Stakeholders 97
5.1.1 The Nature of a Stakeholding 98
5.1.2 Spontaneous Versus Commissioned Stakeholders 100
5.1.3 Three Critical Characteristics of Spontaneous Stakeholders 103
5.2 The Stakeholder Management Process 104
5.2.1 Stakeholder Identification 105
5.2.2 Stakeholder Analysis 105
5.2.3 Stakeholder Engagement Programme Formulation 107
5.2.4 Deriving a Stakeholder Communications Strategy from the Stakeholder Register 109
5.2.5 Engagement Programme Implementation 109
5.2.6 Stakeholder Engagement Monitoring and Control 110
5.3 Stakeholder Management Tools 111
5.3.1 The Stakeholder Register 111
5.3.2 The Stakeholder Report 114
6 Risk and Issues Management 115
6.1 Risk Versus Issues 115
6.2 The Nature of Risk 116
6.2.1 Risk and Uncertainty 116
6.2.2 Downside Versus Upside Risk 117
6.2.3 The Event-Impact Model of Risk 118
6.3 The Risk Management Process 121
6.3.1 Managing Threats 122
6.3.2 The Risk Control Process 126
6.4 Risk Management Tools 127
6.4.1 The Risk Register 127
6.4.2 The Risk Report 129
6.5 Issues and Their Management 129
6.5.1 The Nature of Issues 129
6.5.2 Above-the-Line Versus Below-the-Line Issues 132
6.5.3 The Issues Management Process 132
6.5.4 Issues Management Tools 134
7 Project Attractiveness 137
7.1 Project Worth 137
7.1.1 The Analysis of Project-Related Costs 138
7.1.2 Project Worth: Incommensurate Units of Measurement 140
7.1.3 Accommodating Both Monetary and Non-monetary Worth Values 142
7.1.4 Evaluating a Project’s Worth and Return 144
7.2 Project Riskiness 148
7.2.1 The Statistical Distribution of a Threat’s Damage 148
7.2.2 The Uncertainty of Damage from a Project Threat 149
7.2.3 Calculating a Project’s Riskiness 151
7.3 The Project Attractiveness Map 154
7.3.1 The Dimensions of the Project Attractiveness Map 154
7.3.2 Calculating the Expected Return of a Project 156
7.3.3 The Effect of Risk Mitigation on Project Attractiveness 157
7.4 A Project Portfolio 161
7.4.1 The Project Portfolio Selection Problem 161
7.4.2 Strategy Implementation Through Project Portfolio Selection 162
8 Project Success 164
8.1 The Three-Layered Model of Project Success 164
8.2 Judging Success 166
8.2.1 The Nature of a Success Test 166
8.2.2 Absolute Versus Trade-Off Tests of Success 167
8.2.3 Assessment 168
8.2.4 The Project Investment Paradox 169
8.2.5 Regression Testing 170
8.2.6 Which Version of the Performance Evaluation Parameters Should Be Used in Regression Testing? 171
8.3 Project Management Success 171
8.3.1 The “Iron Triangle” 171
8.3.2 The “Steel Tetrahedron” 173
8.3.3 Judging Project Management Success 175
8.3.4 Project Management Success Rates in Practice 176
8.4 Project Ownership Success 178
8.4.1 Judging Project Ownership Success 179
8.4.2 Using the Project Attractiveness Map in the Test of Project Ownership Success 179
8.4.3 Project Ownership Success Rates in Practice 180
8.5 Project Investment Success 181
8.5.1 Judging Project Investment Success 181
8.5.2 Using the Project Attractiveness Map in the Test of Project Investment Success 182
8.5.3 Qualifying Judgements About Investment Success 185
8.6 Comparing the Three Tests of Success 185
8.6.1 Variables Used in the Different Tests 185
8.6.2 Valid Combinations of Judgements About Project Success 187
8.7 Critical Success Processes (CSP) 189
8.7.1 Critical Success Factors (CSF) 189
8.7.2 The Need for an Alternative Critical Approach 190
8.7.3 The Critical Success Processes (CSP) Model 191
8.8 Tests of Success as Special Case of the Three-Layered Model 194
Leading a Project 197
9 Initiating a Project 198
9.1 Overview of Initiation 198
9.1.1 Initiation in Outline 198
9.1.2 Key Players in Initiation 200
9.1.3 Key Issues in Initiation 200
9.1.4 The Relationship Between Initiation and Planning 201
9.2 Project Identification 203
9.3 Project Definition 205
9.3.1 A Project Is Scoped at Two Levels 206
9.3.2 Overview of the Definition Activity 206
9.3.3 Setting the Scope of a Project 209
9.3.4 Defining Target Outcomes 213
9.3.5 The Project Scoping Toolset 214
9.3.6 Defining Committed Outputs 218
9.3.7 Setting Boundaries for Project Scope 220
9.3.8 Target Outcome Baselining 220
9.4 Project Analysis 221
9.4.1 Overview of Analysis 221
9.4.2 Estimating the Duration of Project Execution 222
9.4.3 Estimating the Cost of Project Execution 224
9.4.4 The Project Budget and Cashflow Planning 225
9.4.5 Assembling and Maintaining the Registers During Initiation 227
9.4.6 Assembling a Project Communications Strategy 227
9.4.7 Assembling a Project Governance Model 229
9.5 Assembling the Business Case 230
9.5.1 Overview 230
9.5.2 Packaging the Business Case 230
9.5.3 A Template for a Business Case 230
9.5.4 The Structure of the Business Case 232
9.5.5 The Impact of Planning on the Business Case 236
9.5.6 Appraising the Business Case 237
10 Planning a Project 239
10.1 Overview of Planning 239
10.1.1 Planning in Outline 240
10.1.2 The Role of the Project Plan 242
10.1.3 Key Players in Planning 242
10.1.4 Key Issues in Planning 242
10.2 Analysing the Work Involved in Execution 243
10.2.1 The Work Breakdown Structure (WBS) 243
10.2.2 Hierarchical Decomposition 244
10.2.3 Developing a WBS for the Homestead Restoration Project 246
10.3 Developing a Schedule 247
10.3.1 The Gantt Chart 247
10.3.2 Deriving Estimates for Durations 249
10.3.3 The Schedule of Milestones 250
10.3.4 Identifying and Managing Time Infeasibility 251
10.4 Resource Planning 252
10.4.1 Overview 252
10.4.2 The Pattern of Planned Expenditure During Project Execution 253
10.4.3 The Relationship Between a Project’s Cost and Its Duration 254
10.5 Project Resourcing 256
10.5.1 Internal Resource Deployment Plan 257
10.5.2 External Resource Acquisition Plan 258
10.5.3 Costing and Budgeting for the Project 258
10.5.4 Identifying and Managing Cost Infeasibility 259
10.6 Packaging and Approving the Project Plan 261
10.6.1 A Template for a Project Plan 261
10.6.2 Gauging the Quality of the Project Plan 265
11 Executing a Project 267
11.1 Overview of Execution 267
11.2 The Project Execution Management Cycle 269
11.2.1 Project Environment Surveillance (PES) 269
11.2.2 Project Execution Control (PEC) 271
11.2.3 Project Baseline Revision 273
11.3 The Project Governance Model 274
11.3.1 The Project Manager 274
11.3.2 The Project Owner 275
11.3.3 The Steering Committee 275
11.3.4 Reference Groups, Advisers and Counsellors 277
11.4 The Forums for Project Execution Management 277
11.4.1 A Stylised Reporting Package 277
11.4.2 A Stylised Agenda 279
11.5 Outputs Closeout 280
12 Realising Outcomes from Projects 282
12.1 The Context for Outcomes Realisation 282
12.1.1 An Overview of Outcomes Realisation 282
12.1.2 The Duration of Outcomes Realisation 283
12.1.3 Roles and Responsibilities During Outcomes Realisation 284
12.2 Facilitating Outcomes Realisation 284
12.2.1 The Downstream Process Improvement Cycle 284
12.2.2 The Role of IUMs in the Process Improvement Cycle 285
12.2.3 Closing the Project 285
12.3 Outcomes Closeout 285
12.3.1 The Closeout Process 286
12.3.2 Project Performance Areas 286
12.3.3 Preparing for a Closeout Workshop 287
12.3.4 The Closeout Report 288
Appendix A An Integrated Glossary of Project Management Terms and Definitions 291
Appendix B Project Governance: Role Definitions 314
B.1 Steering Committee 314
B.2 Project Owner 316
B.3 Project Manager 318
B.4 Project Administrator 319
B.5 Project Control Group 320
B.6 Project Team 322
B.7 Reference Groups and Advisers 323
B.8 Project Assurance Counsellors 325
B.9 Probity Counsellor 326
Appendix C Questions for Future Research 328
C.1 Research Questions on Project Success 328
C.2 Research Questions on Project Outcomes 329
C.3 Research Questions on Operations Management 330
C.4 Research Questions on Project Governance 330
C.5 Research Questions on Project Scoping 331
C.6 Research Questions on Project Planning 331
C.7 Research Questions on Risk 332
Appendix D Reference List 333
Index 337