Project Management 2.0

Preface ix Acknowledgment xi Foreword xiii Why This Story Makes Sense xiv Through The Looking Glass At A Chaotic Future 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 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 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 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