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Project Management
by Joan Knudson and Ira Bitz
AMACOM Books
ISBN: 0814450431 Pub Date: 01/01/91

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Acknowledgments

Chapter 1”Introduction to Project Management
Title
A Science and an Art
Characteristics of Work Using Project Management
Overview
-----------


Chapter 2”Initiating a Project
Criteria for Initiating a Project
The Project Client
What Are Your Overall Objectives?
Defining Project Requirements
Conducting Focused Interviews With the Project Client
Preparing the Project Initiation Documentation


Chapter 3”Building the Project Team
Assembling the Project Team
Defining and Documenting Team Member Commitment
Building a Strong Project Team
Managing the Team During the Project


Chapter 4”A Model for Project Planninig
The Integrated Project Plan
The Five-Step Planning Model
Strategic Planning
Saving Time and Funds With Historical Files
Facilitating the Project Planning Process
Effective Planning


Chapter 5”Project Planning Techniques: Schedule, Cost, and Resource
Utilization
Work Breakdown Structure
Project Network
Estimating Techniques
Critical Path Analysis
Scheduling
Resource Loading
Key Business Applications


Chapter 6”Managing Project Change
Scope Changes
Baseline Changes


Chapter 7”A Model for Project Control
Transition From Planning to Controlling
Formal and Informal Control
A Five-Step Model for Project Control
Project Team Members™ Role in the Controlling Process


Chapter 8”Project Control Techniques: Status Reports and Reviews
Designing and Producing Status Report Documents
Preparing and Conducting Status Review Meetings


Chapter 9”A Model for Earned Value: Achievement-Accomplishment
Monitoring
The Role of Milestones
Achievement Monitoring
Analysis of Accomplishment Data
Calculations Using Accomplishment Data


Chapter 10”Supporting Project Management: Software, Training, and
Administration
Software Support
Training Support
Political Aspects of Support
Index



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Project Management
by Joan Knudson and Ira Bitz
AMACOM Books
ISBN: 0814450431 Pub Date: 01/01/91

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Title
Acknowledgments
First and foremost, the authors would like to thank Dr. Linda Henderson for taking the thoughts of two crusty
old project managers and turning them into communicable project management English. Also, we want to
----------- thank Muriel Rogers for the computer graphics support. Last but not least, we want to acknowledge the
AMACOM staff, Myles Thompson for his role as Project Client, Jackie Laks Gorman for her developmental
assistance, and Richard Gatjens and Beverly H. Miller (through Beehive Production Services) for the copy
editing. We couldn't have completed this work without all of you.


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Project Management
by Joan Knudson and Ira Bitz
AMACOM Books
ISBN: 0814450431 Pub Date: 01/01/91

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Title
Chapter 1
Introduction to Project Management
If you were asked to define the term project, what words would come to mind? Time? Resources (or lack of)?
-----------
One-of-a-kind effort? Deliverables or products? Complex? No authority over other groups? Budget?
A project is a unique effort to introduce or produce a new product or service conforming to certain
specifications and applicable standards. This effort is completed within the project parameters including fixed
time, cost, human resources, and asset limits. Projects are said to be similar to the mating of two elephants:
They start at a very high level with lots of noise and activity, but it takes forever for anything to materialize!
A more serious definition is that a project is a well-organized development of an end product that had a
discrete beginning, a discrete end, and a discrete deliverable. Our goal is to help you become more organized
as you work toward this objective.
Project management is the discipline that relates all of those words that you thought of that apply to project.
This discipline cultivates the expertise to plan, monitor, track, and manage the people, the time, the budget,
and the quality of the work on projects. Project management fulfills two purposes: (1) It provides the
technical and business documentation to communicate the plan and, subsequently, the status that facilitates
comparison of the plan against actual performance, and (2) it supports the development of the managerial
skills to facilitate better management of the people and their project(s). Project management is a proactive
style of management. Negotiation techniques and good communication and analytical skills are integral parts
of this approach. Another key ingredient is the evaluation of performance against those objectives. Central to
this management style is the application of high standards of quality to the project work.
Project management is a means by which to fit the many complex pieces of the project puzzle together. This
is accomplished by dealing with both human and technical elements of the discipline of project management.
Here is our definition of project management:
Definition of Project Management
Project management is a set of principles, methods, tools, and techniques for the effective management of
objective-oriented work in the context of a specific and unique organizational environment.
The project management process encompasses these tasks:
• Assembling a project team with the expertise necessary to execute the project
• Establishing the technical objectives
• Planning the project
• Managing changes to the scope
• Controlling the undertaking so that it is completed on schedule and within budget
Project management is an evolving discipline that integrates the processes of producing the end product with
the processes of planning, change management, control, and initiating preventive and corrective action. It
begins when a decision is made to devote resources to an effort and ends when the desired result has been
accomplished.
Project management is not designed for the management and control of nonproject, day-to-day activities
within the organization. Responsibility for the day-to-day planning, operations, and control of the staff
remains with the functional managers and is accomplished with existing tools and techniques. Responsibility
for the technical direction of the work also remains with the functional managers. Functional management
supports the project management approach rather than being a part of it. The manual and computer-based
techniques used to plan and control work within functional areas can and should be used in conjunction with
project management techniques. Necessarily, planning and control efforts associated with functional work
will have to encompass the portions of projects to which the function must contribute and should be done in a
manner that supports the project management information requirements.


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Project Management
by Joan Knudson and Ira Bitz
AMACOM Books
ISBN: 0814450431 Pub Date: 01/01/91

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A Science and an Art
Title

Project management is both a science and an art. It is perceived as a science because it is supported by charts,
graphs, mathematical calculations, and other technical tools. Producing these charts requires the hard skills to
manage a project. But project management is also driven by political, interpersonal, and organizational
-----------
factors”thus the “art” of project management. Communication, negotiation, and conflict resolution are only a
few of the soft skills used in the art of project management.
Each topic explored in this book provides you with both the hard and the soft skills you will need to manage
your projects efficiently and effectively. This book provides you with the technical tools of project
management to address the scientific side of the discipline, as well as the human behavioral techniques.

Characteristics of Work Using Project Management
The word project is a buzzword. The tendency is to use it very loosely.
People refer to the jobs they have been assigned to perform as projects. The secretary refers to cleaning out a
file cabinet and disposing of old, outdated material as a project. The youth refers to cleaning up his or her
room as a project. A spouse refers to wallpapering the bedroom as a project. These assignments,
however”and others like them”lack the characteristics that lend themselves to the application of the
discipline of project management. Project management can be used with work that has three major
characteristics: desired technical objectives, a deadline, and a budget (see Figure 1-1).
1. A discrete technical objective: If knowledge of the end product or service does not exist, it is
extremely difficult to produce a plan. In this circumstance, some type of planning may be possible, but
project planning it is not! If the definition of the technical objective is part of the project, the effective
application of project management requires that the project be broken into several smaller projects, the
first of which will have the technical objective as its end product. In addition, the end product should be
capable of being examined in some objective manner to determine whether it possesses the attributes
and quality desired by the individual(s) for whom the project is being accomplished. If the product will
be assessed on the basis of subjective criteria, it is much more difficult to plan and to manage the effort.
Figure 1-1 Characteristics of project management.
2. A deadline: The deadline can be established prior to the development of the project plan, or it can be
the result of negotiation between the project manager and the client after the plan has been conceived.
In either case, the project team ultimately works toward a designated end date, with some consequence
associated with any delay in completion of the effort.
3. A budget: The budget can be in the form of dollars and/or staffing required; it can be established
prior to the development of the project plan, or it can be the result of negotiations between the project
manager and the client based on the plan.
In addition, the project manager and the other personnel with the requisite subject matter expertise must be
able to divide or partition the work into small, discrete segments whose completion can be measured. This
partitioning or decomposition of the work results in the development of a task (or to-do) list. If the task list is
hierarchical and has a logical structure, it is called a work breakdown structure (WBS).
There should be an established sequence in which to perform the segments of the project. If the segments are
to be performed in a random sequence, the effort still may be planned, but much of the discipline of project
management does not apply. There should be a method for estimating the effort required to accomplish each
component of the assignment. If significant phases of the effort cannot be estimated, the methodology of
project management will not yield the desired results.
Project work obviously involves a client”the person for whom the project is being undertaken. This person
or persons can be referred to as the client, the customer, the user, or the project sponsor. The client is the
person who must be satisfied if the project is to be a success. In most instances, the client controls the purse
strings and approves change requests made during the course of the project.

Overview
In this book, we focus on several key project management processes and models. Chapter 2 thoroughly
discusses the key questions that project managers must answer in order to initiate and define a project. A
critical part of initiating and defining a project is building the project team. Chapter 3 describes the typical
process used for assembling a project team and explores in detail the ways to build a strong and successful
team.
The foundation of all projects is the plan. Chapters 4 and 5 provide extensive coverage of project planning.
Chapter 4 addresses in depth the process for planning a project, which encompasses a five-step integrated
planning model. The specific techniques of project planning are covered in Chapter 5, which describes in
detail how to work through the five-step model through the use of charts, graphs, mathematical calculations,
and validation techniques.
The project management environment is dynamic and constantly in flux. Chapter 6 analyzes the typical
changes that take place in project baseline schedules, resource allocations, and budgets. Our analysis also
includes a close look at the various sources of change to the technical objectives of the project&146;s end
product.
The effective and successful management of change requires the efficient use of project control methods.
Chapter 7 thus describes a five-step model for controlling a project: updating the status, analyzing the impact,
acting on variances, publishing the revisions, and informing management. Chapter 8 addresses the role of
reports and reviews for controlling and reporting project status.
Determining the value of work completed on a project is the subject of Chapter 9, which addresses the major
component for measuring the completion of work: assessments of the state of the project based on milestone
completions. Finally, in Chapter 10, we look at ways to use software, training, and administrative support to
increase the effectiveness of project management.


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Project Management
by Joan Knudson and Ira Bitz
AMACOM Books
ISBN: 0814450431 Pub Date: 01/01/91

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Title
Chapter 2
Initiating a Project
A story about Gertrude Stein underscores the need for 1effectively initiating a project. As Stein was lying on
-----------
her deathbed, surrounded by friends and followers, she was approached by a good friend, who whispered in
her ear, “Gertrude, what is the ANSWER?” There was a long pause. Then Stein slowly sat upright, looked her
questioner in the eye, and replied, “What is the QUESTION?”
“What is the question?” provides the overall direction for this chapter. If you don™t understand the question,
you cannot possibly be expected to find the solution. Nor can you plan or manage the project. Therefore, in
this chapter we discuss how to initiate a project.

Criteria for Initiating a Project
There are four criteria for initiating a project:
B-A-N-C Criteria
Budget
Authority
Need
Cycle

These criteria highlight the key questions that should be asked and, ultimately, answered in any project. You
may interpret these questions differently depending on your industry, its prevailing economic trends, or your
organization™s competitive position within the marketplace. Regardless of how strong you think your
company or division is in the external/internal marketplace, misjudging business opportunities or submitting a
less than high-quality proposal can lose business that is needed to grow or survive.
Let™s take a close look at the key questions that need to be addressed in each of the B-A-N-C areas. First, does
the client have the budget (funding) to pay for the job? If not, when will the funding be available? If the
answer is “not in the near future,” this still might be a good future project opportunity. In this case, don™t put a
lot of time and effort into writing a lengthy proposal, but don™t lose touch with the prospect.
Second, does your contact have the authority to approve the project? If not, has he or she been delegated the
authority? If not, how far up the line does your prospect have to go to obtain approval? If your contact is not a
decision maker and does not have formal or informal power to fund the project or direct access to a decision
maker, this project opportunity may not be worthy of a lot of effort now (although maybe it will later).
Third, is there an identified need that everyone agrees on? If not, can you help define the need? Will you
and/or your client contact be able to sell the need once it is substantiated? And then, can your organization
satisfy the need with your current expertise or products? If not, how much risk is there in acquiring the skills
or products to fulfill the assignment without exceeding the schedule and budget? If the answers to these
questions are no”indicating an unfavorable risk and reward on this venture”pass up this opportunity, but
keep track of it. Once the need is truly defined and once the risk is acceptable, you want to be there to offer
your services.
Fourth, regarding the cycle, when will the client act? Is there money left in the budget for your project? Is the
money allocated for your type of project, or will it be next quarter or maybe next year until monies are made
available? The further away the cycle is, the less time you want to spend now; however, when that cycle
draws near, be ready to ride the wave.

The Project Client
Do you remember the television game show “To Tell the Truth”? There were three contestants, each making
the same claim (to have the same job or to have achieved the same goal, for example). A panel of celebrities
posed a series of questions to the contestants and then identified the contestant they believed was telling the
truth. The dramatic moment in the show came when the moderator asked the person who was telling the truth
to stand up. Usually there were several false moves on the part of the contestants before the genuine one stood
up, to thunderous applause.
We are often reminded of this show when we ask project managers, “Who is your client?” There are several
scenarios that may occur in a project management environment when asking, “Will the real client please stand
up?” Here are three of them and some advice on how to handle each one.

Scenario 1: An Entire Department Is the Client
Our favorite example of this scenario came from a project manager who told us that the manufacturing
division of his organization was his client. Even in the face of repeated probing, he refused to alter his answer.
It was definitely the manufacturing division. The manufacturing division of his company employs
approximately 600 people, including three who work the graveyard shift cleaning up the tool crib.
Would it be necessary to interview each of the 600 people in order to determine the project requirements?
Who would approve the project plan and be an integral part of the project™s day-to-day management? Who
would evaluate changes of project scope? Who would be held accountable for the success or failure of the
project?
Obviously a department cannot be the client of a project. Our recommendation is to have one person or a
small group be the client, accountable for the project.

Scenario 2: There Are Multiple Clients
Sometimes several people stand up and declare themselves all as the project client. This scenario has good
news and bad news. The good news is that there is interest and enthusiasm for the project since more than one
person considers it advantageous to be seen as the client. The bad news is the problems posed. Who will be
the arbitrator or the mediator if there is disagreement among the clients? More important, who will ultimately
be accountable for the success or failure of the project? Our recommendation is to have one person or a small
group led by one person be the project client, accountable for the project.


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Project Management
by Joan Knudson and Ira Bitz
AMACOM Books
ISBN: 0814450431 Pub Date: 01/01/91

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