Advanced Project Management

HAROLD KERZNER, PH.D., is Professor of Systems Management at Baldwin-Wallace College in Ohio and President of Project Management Associates, a consulting and training firm that conducts seminars for leading U.S. and international corporations.

Preface xv

1 The Growth of Project Management 1

1.0 Introduction 1

1.1 Understanding Project Management 1

1.2 Resistance to Change 4

1.3 Strategic Imperatives for Project Management 9

1.4 Project Management Life Cycle 13

1.5 Excellence in Project Management 16

1.6 Selection of Companies as Examples 18

Multiple Choice Questions 22

Discussion Questions 25

Crossword 27

2 Success, Maturity, And Excellence: Definitions 29

2.0 Introduction 29

2.1 Early Definitions of Success 29

2.2 Modern Definitions of Success 30

2.3 Project Management Maturity 34

2.4 Critical Success Factors in Project Management 42

2.5 Definition of Excellence 43

2.6 Best Practices in Project Management 46

2.7 A Structured Approach 46

2.8 Myths 56

Multiple Choice Questions 57

Discussion Questions 60

Crossword 61

3 The Driving Forces for Maturity 63

3.0 Introduction 63

3.1 Capital Projects 64

3.2 Customers’ Expectations 65

3.3 Competitiveness 73

3.4 Executive Managers’ Buy-In 75

3.5 New Product Development 79

3.6 Efficiency and Effectiveness 81

3.7 Company Survival 83

3.8 Other Driving Forces 88

Multiple Choice Questions 88

Discussion Questions 92

Crossword 93

4 Project Management Methodologies 95

4.0 Introduction 95

4.1 Examples of Methodology Development 96

4.2 Overcoming Development and Implementation Barriers 105

4.3 Critical Components 114

4.4 Benefits of a Standard Methodology 124

4.5 Implementing the Methodology 132

4.6 Project Management Tools 142

Multiple Choice Questions 147

Discussion Questions 150

Crossword 151

5 Strategic Planning for Excellence in Project Management 153

5.0 Introduction 153

5.1 Influence of Economic Conditions 153

5.2 What Is General Strategic Planning? 156

5.3 What Is Strategic Planning for Project Management? 157

5.4 Critical Success Factors for Strategic Planning 163

5.5 Identifying Strategic Resources 171

5.6 Strategic Selection of Projects 175

5.7 Horizontal Accounting 179

5.8 Continuous Improvement 181

5.9 Why Does Strategic Planning for Project Management Fail? 186

5.10 Strategic Planning in Action 188

5.11 Organizational Restructuring 191

5.12 Career Planning 192

5.13 The Project Management Maturity Model 193

5.14 How to Conduct a PM Maturity Assessment 197

Multiple Choice Questions 208

Discussion Questions 211

Crossword 213

6 The Maturity of Modern Project Management 215

6.0 Introduction 215

6.1 Classification of Changes 215

6.2 Classification of Companies 217

6.3 Recessionary Effects 219

6.4 Global Pressures 220

6.5 Concurrent Engineering 222

6.6 Project Objectives 224

6.7 Definition of Success 225

6.8 Velocity of Change 226

6.9 Management Style 227

6.10 Authority and Job Descriptions 228

6.11 Evaluation of Team Members 229

6.12 Accountability 230

6.13 Project Management Skills 231

6.14 Planning Hours/Dollars 234

6.15 Education and Training 235

6.16 Project Sponsorship 236

6.17 Project Failures 237

6.18 Maturity and Immaturity 238

Multiple Choice Questions 239

Discussion Questions 242

Crossword 243

7 Project Portfolio Management 245

7.0 Introduction 245

7.1 Involvement of Senior Management and Stakeholders 246

7.2 Project Selection Obstacles 248

7.3 Identification of Projects 249

7.4 Preliminary Evaluaiton 253

7.5 Strategic Selection of Projects 254

7.6 Strategic Timing 257

7.7 Analyzing the Portfolio 258

7.8 Problems with Meeting Expectations 259

Multiple Choice Questions 263

Discussion Questions 265

Crossword 267

8 The Project Office 269

8.0 Introduction 269

8.1 The Project Office: 1950–1990 269

8.2 The Project Office: 1990–2000 270

8.3 The Project Office: 2000–Present 272

8.4 Types of Project Offices 278

8.5 Project Management Information Systems 298

8.6 Dissemination of Information 306

8.7 Mentoring 306

8.8 Development of Standards and Templates 307

8.9 Project Management Benchmarking 308

8.10 Business Case Development 309

8.11 Customized Training (Related to Project Management) 310

8.12 Managing Stakeholders 313

8.13 Continuous Improvement 314

8.14 Capacity Planning 316

8.15 Risks of Using a Project Office 317

8.16 Project Office Excellence: A Case Study of Johnson Controls, Inc. (JCI) Automotive Systems Group (ASG) 318

8.17 Reporting and Structure 321

Multiple Choice Questions 322

Discussion Questions 324

Crossword 325

9 Integrated Processes 327

9.0 Introduction 327

9.1 Understanding Integrated Management Processes 327

9.2 Evolution of Complementary Project Management Processes 329

9.3 Total Quality Management 333

9.4 Concurrent Engineering 335

9.5 Risk Management 336

9.6 Change Management 350

9.7 Other Management Processes 352

9.8 Integrated Processes at Work 352

Multiple Choice Questions 359

Discussion Questions 362

Crossword 364

10 Culture 365

10.0 Introduction 365

10.1 Creation of a Corporate Culture 366

10.2 Corporate Values 375

10.3 Types of Cultures 380

10.4 Shared Accountability and Multiple-Boss Reporting 381

10.5 Shared Rewards 382

10.6 Prioritization of Work 383

10.7 Corporate Cultures at Work 383

Multiple Choice Questions 396

Discussion Questions 400

Crossword 401

11 Management Support 403

11.0 Introduction 403

11.1 Visible Support from Senior Managers 403

11.2 Project Sponsorship 404

11.3 Excellence in Project Sponsorship 408

11.4 Empowerment of Project Managers 409

11.5 Management Support at Work 412

Multiple Choice Questions 414

Discussion Questions 417

Crossword 418

12 Training and Education 419

12.0 Introduction 419

12.1 Training for Modern Project Management 420

12.2 Identifying the Need for Training 426

12.3 Selecting the Students 427

12.4 Fundamentals of Project Management Education 427

12.5 Designing the Courses and Conducting the Training 428

12.6 Measuring the Return on Investment 432

12.7 Competency Models 434

12.8 Training and Education at Work 450

Multiple Choice Questions 456

Discussion Questions 459

Crossword 460

13 Informal Project Management 461

13.0 Introduction 461

13.1 Informal versus Formal Project Management 461

13.2 Trust 464

13.3 Communication 465

13.4 Cooperation 469

13.5 Teamwork 469

13.6 Color-Coded Status Reporting 470

13.7 Informal Project Management at Work 472

Multiple Choice Questions 474

Discussion Questions 476

Crossword 478

14 Behavioral Excellence 479

14.0 Introduction 479

14.1 Situational Leadership 479

14.2 Conflict Resolution 482

14.3 Staffing for Excellence 484

14.4 Integrated Product/Project Teams 486

14.5 Virtual Project Teams 494

14.6 Rewarding Project Teams 496

14.7 Keys to Behavioral Excellence 499

Multiple Choice Questions 502

Discussion Questions 505

Crossword 507

15 The Effect of Mergers and Acquisitions on Project Management 509

15.0 Introduction 509

15.1 Planning for Growth 509

15.2 The Project Management Value-Added Chain 510

15.3 Preacquisition Decision-Making 513

15.4 Landlords and Tenants 519

15.5 Best Practices: A Case Study on Johnson Controls, Inc. 520

15.6 Integration Results 524

15.7 Value Chain Strategies 526

15.8 Failure and Restructuring 528

Multiple Choice Questions 529

Discussion Questions 531

Crossword 533

16 Rising Stars and Future Directions 535

16.0 Introduction 535

16.1 Computer Associates 535

16.2 Lear 549

16.3 Texas Instruments 555

16.4 Sun Microsystems 560

16.5 Motorola System Solution Group 571

16.6 Nortel Networks 573

16.7 Battelle Memorial Institute 574

16.8 Johnson Controls 576

16.9 Metzeler Automotive Profile System 579

16.10 EDS 583

16.11 USAA 585

16.12 Changing Times 586

Appendixes 591

A: Quality Awards at Johnson Controls Automotive Systems Group 591

B: Project Management Maturity Questionnaire 595

C: Project Management Excellence Questionnaire 599

D: Software Development Methodology at Computer Associates 609

E: Best Practices Library Development at Computer Associates 617

F: Post Project Assessment Process at Computer Associates 631

Case Studies 637

Case 1: Clark Faucet Company 637

Case 2: Photolite Corporation (A) 640

Case 3: Photolite Corporation (B) 642

Case 4: Photolite Corporation (C) 645

Case 5: Photolite Corporation (D) 650

Case 6: Continental Computer Corporation 655

Case 7: Goshe Corporation 659

Case 8: Hyten Corporation 664

Case 9: Acorn Industries 674

Case 10: Mohawk National Bank 680

Case 11: First Security Bank of Cleveland 683

Case 12: Como Tool and Die (A) 686

Case 13: Como Tool and Die (B) 689

Case 14: Apache Metals, Inc. 691

Case 15: Cordova Research Group 693

Case 16: Cortez Plastics 694

Case 17: Haller Specialty Manufacturing 695

Case 18: Macon, Inc. 696

Case 19: Jones and Shephard Accountants 698

Case 20: The Trophy Project 701

Case 21: The Blue Spider Project 704

Case 22: Corwin Corporation 716

Case 23: Denver International Airport 725

Case 24: MIS Project Management at First National Bank 757

Case 25: Concrete Masonry Corporation 767

Case 26: Construction of a Gas Testing Laboratory in Iran 774

Case 27: The Space Shuttle Challenger Disaster 781

Case 28: Phillip Condit and the Boeing 777: From Design and Development to Production and Sales 819

Index 839