NE W ITI
NE
ED
command to professionally execute projects and manage programs. Thanks to the clear and pedagogic disposition of the book, no previous knowledge in project management is needed to take advantage of the content.
Project Management also focuses on organizational change, project management maturity and the project office, which will appeal to any business executive and decision maker who holds responsibility for the development of the organization and how resources are utilized.
Project Management is accompanied by a workbook and a website, with exercises, presentation material and templates supporting a general project model. www.sanomautbildning.se/project
Bo Tonnquist, ms ee, senior partner of Baseline Management consultant in project management, marketing and business development. He has extensive experience from assignments in international corporations such as Philips, Ericsson and ikea, as well as public organizations such as Government Offices of Sweden. Bo Tonnquist has published several books in project management and was involved in the implementation of ipma certifications in Sweden. He was previously a member of the local ipma Certification Board.
ISBN 978-91-523-1742-6
(523-1742-6)
9 789152 317426
ON
Project Management covers all areas a project manager should
ITI
educational purposes, and as a handbook when executing projects or during a certification process. The organization of the book follows the flow of a project. In addition, the sections on project methodology are mixed with chapters on leadership and personal development. The contents and terminology of this guide meet the standards of both the Project Management Institute (pmi) and international Project Management Association (ipma).
ED
Project Management is specifically designed for training and
W
ON
management, program management, or portfolio management.
Project Management
Project Management written for anyone who works with project
A Guide to the Theory and Practice of Project, Program and Portfolio Management, and Organizational Change
Bo Tonnquist
Sanoma Utbildning Mailing address: Box 3159, 103 63 Stockholm, Sweden Visiting address: Sveavägen 56, Stockholm, Sweden Website: www.sanomautbildning.se www.ekonomionline.se E-mail: info@sanomautbildning.se
Order/Information about educational materials Tel. +46 (0)8-6968600 Fax +46 (0)8-6968610 Editor/Project manager: Agnes Junker Graphics: Mobile Design – Jonas Olsson Translation: AAC Global
Project Management ISBN 978-91-523-1742-6
© 2012 Bo Tonnquist and Sanoma Utbildning AB, Stockholm
Second Edition First printing
Preface
N
owadays, you'd be hard pressed to find someone who doesn't know what a project is. But, I’d be willing to bet that the number of people with a true understanding of projects as a work form is surprisingly small. It becomes increasingly clear that the most important role in a project is the sponsor – or the project owner, which is what the role should really be called. If the individual laying the groundwork does not have the requisite insight and expertise, it is difficult for the project manager and team to succeed and produce good results. What are the fundamentals you need to know to be a professional project manager? Many question the traditional project methodology, often symbolized by the schedule or Gantt chart, because it is perceived as both cumbersome and difficult to apply. They therefore pounce with joy on flexible work methods that put the individual in focus and put less emphasis on planning and documentation. But even in the realm of creativity, you need structure. Imagine going to the theater to see a play that had no script or director. A general framework for how to conduct a project is necessary. All projects are part of a greater context and there is a client who is waiting for a delivery, often at a predetermined price.
Copyright This work is under copyright protection. Copying without a teacher's authorization to copy for educational purposes according to the Bonus-Presskopia agreement is prohibited. This type of agreement is signed between copyright organizations and representatives of educational providers, e.g., cities/universities. For information about this agreement, please refer to the educational provider representative or Bonus-Presskopia. Anyone who commits a copyright infringement may be prosecuted in a court of law and sentenced to a fine or imprisonment for up to two years, as well as be obliged to reimburse the author/copyright holder. Printed in Latvia by Livonia Print Riga 2012
In order to succeed with a project, you need both a map (a schedule) for the journey and the ability to act and react based on actual conditions (flexibility). I am convinced that the meeting between the traditional methodology and the new work methods will be extremely interesting. In this book – the second edition of my book Project Management – I show the differences and similarities between the methods. Also, when one way is more appropriate and how to apply both in the same project.
3
Sanoma Utbildning Mailing address: Box 3159, 103 63 Stockholm, Sweden Visiting address: Sveavägen 56, Stockholm, Sweden Website: www.sanomautbildning.se www.ekonomionline.se E-mail: info@sanomautbildning.se
Order/Information about educational materials Tel. +46 (0)8-6968600 Fax +46 (0)8-6968610 Editor/Project manager: Agnes Junker Graphics: Mobile Design – Jonas Olsson Translation: AAC Global
Project Management ISBN 978-91-523-1742-6
© 2012 Bo Tonnquist and Sanoma Utbildning AB, Stockholm
Second Edition First printing
Preface
N
owadays, you'd be hard pressed to find someone who doesn't know what a project is. But, I’d be willing to bet that the number of people with a true understanding of projects as a work form is surprisingly small. It becomes increasingly clear that the most important role in a project is the sponsor – or the project owner, which is what the role should really be called. If the individual laying the groundwork does not have the requisite insight and expertise, it is difficult for the project manager and team to succeed and produce good results. What are the fundamentals you need to know to be a professional project manager? Many question the traditional project methodology, often symbolized by the schedule or Gantt chart, because it is perceived as both cumbersome and difficult to apply. They therefore pounce with joy on flexible work methods that put the individual in focus and put less emphasis on planning and documentation. But even in the realm of creativity, you need structure. Imagine going to the theater to see a play that had no script or director. A general framework for how to conduct a project is necessary. All projects are part of a greater context and there is a client who is waiting for a delivery, often at a predetermined price.
Copyright This work is under copyright protection. Copying without a teacher's authorization to copy for educational purposes according to the Bonus-Presskopia agreement is prohibited. This type of agreement is signed between copyright organizations and representatives of educational providers, e.g., cities/universities. For information about this agreement, please refer to the educational provider representative or Bonus-Presskopia. Anyone who commits a copyright infringement may be prosecuted in a court of law and sentenced to a fine or imprisonment for up to two years, as well as be obliged to reimburse the author/copyright holder. Printed in Latvia by Livonia Print Riga 2012
In order to succeed with a project, you need both a map (a schedule) for the journey and the ability to act and react based on actual conditions (flexibility). I am convinced that the meeting between the traditional methodology and the new work methods will be extremely interesting. In this book – the second edition of my book Project Management – I show the differences and similarities between the methods. Also, when one way is more appropriate and how to apply both in the same project.
3
4
preface
Thanks to the clear and pedagogic disposition of the book, no previous knowledge in project management is needed to take advantage of
Project Management also deals with change management,
project maturity and the project office, which should appeal to any
to universities, other learning institutions and training providers that are using this book: www.sanomautbildning.se/project
Project Management can be used for training and educational
purposes, and as a handbook when executing projects or during a certification process. The disposition of the book follows a project’s flow. Sections on project methodology are mixed with chapters on leadership and personal development. Content and terminology are adapted to match PMI’s and IPMA’s view on project management.
Project Management covers all areas a project manager should command to professionally execute projects and manage programs. Thanks to the clear and pedagogic disposition of the book, no previous
Workbook ISBN 978-91-523-1265-0
Project Management also deals with change management, project maturity and the project office, which should appeal to any business executive and decision maker who holds responsibility for
the development of the organization and the utilization of resources.
Project Management has a homepage, with exercises, presentation material and templates supporting a general project model. It is available to universities, other learning institutions and training
The website www.sanomautbildning.se/project contains materials for anyone using the books as literature for courses and training. The majority of the illustrations, figures and document templates from the books are available free of charge for use as course materials. providers that are using this book: www.sanomautbildning.se/project
Bo Tonnquist, MS EE, senior partner of Baseline Management Scandinavia, is a consultant in project management, marketing and business development. He has extensive experience from assign-
ments in international corporations and public organizations. Bo Tonnquist has published several books in project management and was involved in the implementation of IPMA certifications in Sweden. He was previously a member of the local IPMA Certification Board.
Student Learning Guide and Workbook
knowledge in project management is needed to take advantage of the content.
Website
Bo Tonnquist, MS EE, senior partner of Baseline Management Scandinavia, is a consultant in project management, marketing and business development. He has extensive experience from assignments in international corporations and public organizations. Bo Tonnquist has published several books in project management and was involved in the implementation of IPMA certifications in Sweden. He was previously a member of the local IPMA Certification Board.
ISBN 978-91-523-1265-0
(523-1265-0)
Project model The general project model in this book, ProjectBase, is currently used as support in many projects. This is made possible by its availability on web-based portals, such as Projectplace International and Webforum Project.
Coaching E-coach is a web service offering guidance and support when applying the project methodology to a project. The project manager is guided through the pre-study and planning with the help of a coach. The result is a solid project plan that increases the chances of project success.
FJÄ E UP
R FJÄ
RD
DE
ett tydligt och begripligt sätt, vilket gör boken lätt att använda både som lärobok och som handbok vid praktiskt projektarbete eller certifiering.
tionella projektmetodiken och moderna agila arbetssätt, när den ena eller andra formen passar bäst och hur man kan tillämpa båda i samma projekt.
Projektledning behandlar även program- och portföljhantering,
förändringsledning och organisationers projektmognad, vilket borde vara intressant för varje företagsledare och beslutsfattare med ansvar för hur verksamheten utvecklas och resurser utnyttjas. Bokens innehåll och terminologi är anpassade till pmi:s och ipma:s syn på projektledning.
Projektledning har utsetts till ”Bästa läromedel på högskolenivå i
företagsekonomi” – en bekräftelse på bokens pedagogiska upplägg och höga nivå.
Projektledning har hunnit bli ett helt koncept. Som stöd till universitet, högskolor, utbildningsföretag och affärsskolor där boken används som kurslitteratur finns en övningsbok med tester och övningar, en generell projektmodell med mallar samt en hemsida med presentationsmaterial. Allt på svenska och engelska. www.sanomautbildning.se/projektledning Bo Tonnquist är föreläsare och konsult med lång operativ erfarenhet inom projektledning, verksamhetsutveckling och marknadsföring. Han hjälper företag och organisationer att utveckla och implementera projektorienterade arbetssätt med syfte att nå en lönsam och hållbar resursanvändning. Han var med och utvecklade certifiering av projektledare i Sverige och har varit medlem av ipma:s svenska certifieringsstyrelse.
ISBN 978-91-523-1265-0
(523-1265-0)
9 789152 312650
N
bransch och typ av projekt.
Projektledning behandlar både projektmetodiken och ledarskapet på
GA PLA UP
AN
Projektledning
PLAG
Projektledning riktar sig till alla som arbetar med projekt, oavsett
Bo Tonnquist
European adaptation The Project Management book and its workbook are translations of the Swedish book Projektledning. The book has been adapted to European conditions. The Swedish version was named the best project management book for 2009 by Swedish project management association Svenskt Projektforum.
(523-1265-0)
9 789152 312650
N ITIO
material and templates supporting a general project model. It is available
management, program management, or portfolio management.
ED
In addition to the Project Management textbook, a workbook is available with study questions, exercises and tests.
W
Project Management
business executive and decision maker who holds responsibility for the development of the organization and the utilization of resources.
Project Management has a homepage, with exercises, presentation
Project Management is aimed at everyone who works with project
A Guide to the Theory and Practice of Project, Program and Portfolio Management, and Business Change
NE
Project Management – Workbook
the content.
N ITIO
command to professionally execute projects and manage programs.
ED
match PMI’s and IPMA’s view on project management.
W
and personal development. Content and terminology are adapted to
Projektledning beskriver skillnaderna och likheterna mellan den tradi-
Bo Tonnquist
purposes, and as a handbook when executing projects or during a
certification process. The disposition of the book follows a project’s flow. Sections on project methodology are mixed with chapters on leadership
Projects may appear different in different industries, but at their core they are all the same. What may set them apart is the terminology used and the names of the project phases and roles. I therefore dare claim that what can be found in this book is universally applicable. As an example, I will show what projects may look like within different fields.
Stockholm, Sweden, July 2012
project management, program management, or portfolio management.
Project Management can be used for training and educational
Project Management covers all areas a project manager should
Nowadays, project management is a key competency in most companies and organizations. However, you can't implement a project-oriented work method without first understanding how it affects the entire organization. Quite often, it is the same coworkers who are involved in the projects that perform the regular line work. Projects and lines compete for the same resources. In this book, I describe how you can use portfolio management and program management to maintain order and prioritize correctly based on the organization’s overarching goals and strategies.
Project manager certification is here to stay. At present, there are just as many project managers certified by pmi as by ipma. Both certification organizations are continually refining and developing their products. That is yet another reason I felt it was necessary to update my book.
Project Management is aimed at everyone who works with
NE
A complete concept
Project Management
Project management is both a social work form and a craft, where you must be able to handle the right tools the right way in the right situation. Finding the optimal way to steer and run a project is a constant challenge. The Internet and other mobile solutions make it possible for practically anyone to be involved and contribute. New and spontaneous forms of organization or emergent structures, grow around common goals and tasks.
5
preface
Bo Tonnquist
Bo Tonnquist
4
preface
Thanks to the clear and pedagogic disposition of the book, no previous knowledge in project management is needed to take advantage of
Project Management also deals with change management,
project maturity and the project office, which should appeal to any
to universities, other learning institutions and training providers that are using this book: www.sanomautbildning.se/project
Project Management can be used for training and educational
purposes, and as a handbook when executing projects or during a certification process. The disposition of the book follows a project’s flow. Sections on project methodology are mixed with chapters on leadership and personal development. Content and terminology are adapted to match PMI’s and IPMA’s view on project management.
Project Management covers all areas a project manager should command to professionally execute projects and manage programs. Thanks to the clear and pedagogic disposition of the book, no previous
Workbook ISBN 978-91-523-1265-0
Project Management also deals with change management, project maturity and the project office, which should appeal to any business executive and decision maker who holds responsibility for
the development of the organization and the utilization of resources.
Project Management has a homepage, with exercises, presentation material and templates supporting a general project model. It is available to universities, other learning institutions and training
The website www.sanomautbildning.se/project contains materials for anyone using the books as literature for courses and training. The majority of the illustrations, figures and document templates from the books are available free of charge for use as course materials. providers that are using this book: www.sanomautbildning.se/project
Bo Tonnquist, MS EE, senior partner of Baseline Management Scandinavia, is a consultant in project management, marketing and business development. He has extensive experience from assign-
ments in international corporations and public organizations. Bo Tonnquist has published several books in project management and was involved in the implementation of IPMA certifications in Sweden. He was previously a member of the local IPMA Certification Board.
Student Learning Guide and Workbook
knowledge in project management is needed to take advantage of the content.
Website
Bo Tonnquist, MS EE, senior partner of Baseline Management Scandinavia, is a consultant in project management, marketing and business development. He has extensive experience from assignments in international corporations and public organizations. Bo Tonnquist has published several books in project management and was involved in the implementation of IPMA certifications in Sweden. He was previously a member of the local IPMA Certification Board.
ISBN 978-91-523-1265-0
(523-1265-0)
Project model The general project model in this book, ProjectBase, is currently used as support in many projects. This is made possible by its availability on web-based portals, such as Projectplace International and Webforum Project.
Coaching E-coach is a web service offering guidance and support when applying the project methodology to a project. The project manager is guided through the pre-study and planning with the help of a coach. The result is a solid project plan that increases the chances of project success.
FJÄ E UP
R FJÄ
RD
DE
ett tydligt och begripligt sätt, vilket gör boken lätt att använda både som lärobok och som handbok vid praktiskt projektarbete eller certifiering.
tionella projektmetodiken och moderna agila arbetssätt, när den ena eller andra formen passar bäst och hur man kan tillämpa båda i samma projekt.
Projektledning behandlar även program- och portföljhantering,
förändringsledning och organisationers projektmognad, vilket borde vara intressant för varje företagsledare och beslutsfattare med ansvar för hur verksamheten utvecklas och resurser utnyttjas. Bokens innehåll och terminologi är anpassade till pmi:s och ipma:s syn på projektledning.
Projektledning har utsetts till ”Bästa läromedel på högskolenivå i
företagsekonomi” – en bekräftelse på bokens pedagogiska upplägg och höga nivå.
Projektledning har hunnit bli ett helt koncept. Som stöd till universitet, högskolor, utbildningsföretag och affärsskolor där boken används som kurslitteratur finns en övningsbok med tester och övningar, en generell projektmodell med mallar samt en hemsida med presentationsmaterial. Allt på svenska och engelska. www.sanomautbildning.se/projektledning Bo Tonnquist är föreläsare och konsult med lång operativ erfarenhet inom projektledning, verksamhetsutveckling och marknadsföring. Han hjälper företag och organisationer att utveckla och implementera projektorienterade arbetssätt med syfte att nå en lönsam och hållbar resursanvändning. Han var med och utvecklade certifiering av projektledare i Sverige och har varit medlem av ipma:s svenska certifieringsstyrelse.
ISBN 978-91-523-1265-0
(523-1265-0)
9 789152 312650
N
bransch och typ av projekt.
Projektledning behandlar både projektmetodiken och ledarskapet på
GA PLA UP
AN
Projektledning
PLAG
Projektledning riktar sig till alla som arbetar med projekt, oavsett
Bo Tonnquist
European adaptation The Project Management book and its workbook are translations of the Swedish book Projektledning. The book has been adapted to European conditions. The Swedish version was named the best project management book for 2009 by Swedish project management association Svenskt Projektforum.
(523-1265-0)
9 789152 312650
N ITIO
material and templates supporting a general project model. It is available
management, program management, or portfolio management.
ED
In addition to the Project Management textbook, a workbook is available with study questions, exercises and tests.
W
Project Management
business executive and decision maker who holds responsibility for the development of the organization and the utilization of resources.
Project Management has a homepage, with exercises, presentation
Project Management is aimed at everyone who works with project
A Guide to the Theory and Practice of Project, Program and Portfolio Management, and Business Change
NE
Project Management – Workbook
the content.
N ITIO
command to professionally execute projects and manage programs.
ED
match PMI’s and IPMA’s view on project management.
W
and personal development. Content and terminology are adapted to
Projektledning beskriver skillnaderna och likheterna mellan den tradi-
Bo Tonnquist
purposes, and as a handbook when executing projects or during a
certification process. The disposition of the book follows a project’s flow. Sections on project methodology are mixed with chapters on leadership
Projects may appear different in different industries, but at their core they are all the same. What may set them apart is the terminology used and the names of the project phases and roles. I therefore dare claim that what can be found in this book is universally applicable. As an example, I will show what projects may look like within different fields.
Stockholm, Sweden, July 2012
project management, program management, or portfolio management.
Project Management can be used for training and educational
Project Management covers all areas a project manager should
Nowadays, project management is a key competency in most companies and organizations. However, you can't implement a project-oriented work method without first understanding how it affects the entire organization. Quite often, it is the same coworkers who are involved in the projects that perform the regular line work. Projects and lines compete for the same resources. In this book, I describe how you can use portfolio management and program management to maintain order and prioritize correctly based on the organization’s overarching goals and strategies.
Project manager certification is here to stay. At present, there are just as many project managers certified by pmi as by ipma. Both certification organizations are continually refining and developing their products. That is yet another reason I felt it was necessary to update my book.
Project Management is aimed at everyone who works with
NE
A complete concept
Project Management
Project management is both a social work form and a craft, where you must be able to handle the right tools the right way in the right situation. Finding the optimal way to steer and run a project is a constant challenge. The Internet and other mobile solutions make it possible for practically anyone to be involved and contribute. New and spontaneous forms of organization or emergent structures, grow around common goals and tasks.
5
preface
Bo Tonnquist
Bo Tonnquist
6
Table of contents
5. Project planning
Process chart – an overview
1. Introduction 1. Project management structure
The purpose of the organization . . . . . . . . . . . . . . . . . . . . . Project organization .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Projects have to reach results . . . . . . . . . . . . . . . . . . . . . . . . . Project flow .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14 19 24 29
2. Project preparations 2. Project initiation
Defining a project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background, purpose and goal . . . . . . . . . . . . . . . . . . . . . . . . Project owner’s request .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The contractor’s proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Agreement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Pre-study
Project or not? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pre-study as a project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The project’s scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The project’s pros and cons . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stakeholders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business impact value .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Solution selection – a strategic decision .. . . . . . . . . . . Choosing a method – a strategic decision . . . . . . . . . Requirement specification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements on the project owner .. . . . . . . . . . . . . . . . Outline of the milestone plan . . . . . . . . . . . . . . . . . . . . . . . . .
4. Establishing the project group
36
36 41 47 51 52
54
54 58 59 64 68 72 77 82 83 92 93
100
The project’s organization .. . . . . . . . . . . . . . . . . . . . . . . . . . . 100 The group’s composition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Group development phases.. . . . . . . . . . . . . . . . . . . . . . . . . . 116 Norms and rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Values and attitudes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Team rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Kick-Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Expectations and demands .. . . . . . . . . . . . . . . . . . . . . . . . . . . 131
133
10. Managing & working in projects
Organize the planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 The project management plan .. . . . . . . . . . . . . . . . . . . . . . 135 Planning methods.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Planning in a changing world. . . . . . . . . . . . . . . . . . . . . . . . . . 140 Network diagramming .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Activity planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Estimating resources and time . . . . . . . . . . . . . . . . . . . . . . 150 The schedule .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Project tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Self-awareness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-leadership .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leadership management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Situational leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Motivation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflicts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflict resolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Budgeting, risks & quality
Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . Handover .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Project budgeting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project risk management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . Quality management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
171
171 181 187 193
3. Execution 7. Communication
198
11. Project results
260
260 264 269 272 277 281 285 290
293
293 297 301 305
4. Closure & impact realization
Communication strategy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Communication plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Meetings .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Project office .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Visual leadership .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Project portal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
12. Project closure
8. Initiating the execution
Results follow-up .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Evaluate the business impact goal .. . . . . . . . . . . . . . . . 325 Measuring the impact .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 New projects – an impact! . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
217
Guiding the project tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Reviewing project plans .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Project assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Resource procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Negotiation techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 Initiating the execution phase . . . . . . . . . . . . . . . . . . . . . . . 237
9. Project on track
239
Continuous project review .. . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Earned value management method .. . . . . . . . . . . . . . 246 Cash flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Risk response .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Quality review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Implementing changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
310
Closure – the work is complete . . . . . . . . . . . . . . . . . . . . . . Evaluating the project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final report .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Closure management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Premature project termination . . . . . . . . . . . . . . . . . . . . . .
13. Evaluating business impact
14. Organizational change
A need for change .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change management leader .. . . . . . . . . . . . . . . . . . . . . . . . Evaluating the success rate . . . . . . . . . . . . . . . . . . . . . . . . . . Mobilization .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Securing the result .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
310 311 316 319 322
324
330 330 333 337 340 343
*Words in the text which have been italicized will be
7
5. Projectized organization 15. Organizational project maturity
348
Collective memory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Knowledge management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 Tacit and explicit knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 The learning organization . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 Maturity analysis.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Balanced scorecard .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 Learn from others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368
16. Program and portfolio
370
17. Project management offices & models
392
18. Certification
412
Enterprise Project Management .. . . . . . . . . . . . . . . . . . . Project, program and portfolio . . . . . . . . . . . . . . . . . . . . . . Resource management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Selection and prioritization .. . . . . . . . . . . . . . . . . . . . . . . . . . Portfolio review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implement IT-support .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business systems .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administering portfolio tools . . . . . . . . . . . . . . . . . . . . . . . .
Project management office.. . . . . . . . . . . . . . . . . . . . . . . . . Project models .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Development models. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project anatomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
370 373 377 380 383 385 390 391
392 395 404 408
Project manager certification . . . . . . . . . . . . . . . . . . . . . . . . 412 PMI .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 IPMA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 My own experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Career ladder for project managers .. . . . . . . . . . . . . . 425 Attachment A – Project model .. . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Attachment B – Assignment model .. . . . . . . . . . . . . . . . . . . . 442 Glossary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448 Index .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Bibliography .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470 Photographic credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
explained in the glossary on page 448.
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6
Table of contents
5. Project planning
Process chart – an overview
1. Introduction 1. Project management structure
The purpose of the organization . . . . . . . . . . . . . . . . . . . . . Project organization .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Projects have to reach results . . . . . . . . . . . . . . . . . . . . . . . . . Project flow .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14 19 24 29
2. Project preparations 2. Project initiation
Defining a project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background, purpose and goal . . . . . . . . . . . . . . . . . . . . . . . . Project owner’s request .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The contractor’s proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Agreement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Pre-study
Project or not? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pre-study as a project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The project’s scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The project’s pros and cons . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stakeholders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business impact value .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Solution selection – a strategic decision .. . . . . . . . . . . Choosing a method – a strategic decision . . . . . . . . . Requirement specification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements on the project owner .. . . . . . . . . . . . . . . . Outline of the milestone plan . . . . . . . . . . . . . . . . . . . . . . . . .
4. Establishing the project group
36
36 41 47 51 52
54
54 58 59 64 68 72 77 82 83 92 93
100
The project’s organization .. . . . . . . . . . . . . . . . . . . . . . . . . . . 100 The group’s composition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Group development phases.. . . . . . . . . . . . . . . . . . . . . . . . . . 116 Norms and rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Values and attitudes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Team rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Kick-Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Expectations and demands .. . . . . . . . . . . . . . . . . . . . . . . . . . . 131
133
10. Managing & working in projects
Organize the planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 The project management plan .. . . . . . . . . . . . . . . . . . . . . . 135 Planning methods.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Planning in a changing world. . . . . . . . . . . . . . . . . . . . . . . . . . 140 Network diagramming .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Activity planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Estimating resources and time . . . . . . . . . . . . . . . . . . . . . . 150 The schedule .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Project tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Self-awareness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-leadership .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leadership management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Situational leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Motivation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflicts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflict resolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Budgeting, risks & quality
Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implementation planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . Handover .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Project budgeting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project risk management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . Quality management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
171
171 181 187 193
3. Execution 7. Communication
198
11. Project results
260
260 264 269 272 277 281 285 290
293
293 297 301 305
4. Closure & impact realization
Communication strategy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Communication plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 Meetings .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Project office .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Visual leadership .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Project portal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
12. Project closure
8. Initiating the execution
Results follow-up .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 Evaluate the business impact goal .. . . . . . . . . . . . . . . . 325 Measuring the impact .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 New projects – an impact! . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
217
Guiding the project tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Reviewing project plans .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Project assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Resource procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Negotiation techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 Initiating the execution phase . . . . . . . . . . . . . . . . . . . . . . . 237
9. Project on track
239
Continuous project review .. . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Earned value management method .. . . . . . . . . . . . . . 246 Cash flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Risk response .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Quality review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 Implementing changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
310
Closure – the work is complete . . . . . . . . . . . . . . . . . . . . . . Evaluating the project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final report .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Closure management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Premature project termination . . . . . . . . . . . . . . . . . . . . . .
13. Evaluating business impact
14. Organizational change
A need for change .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change management leader .. . . . . . . . . . . . . . . . . . . . . . . . Evaluating the success rate . . . . . . . . . . . . . . . . . . . . . . . . . . Mobilization .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Securing the result .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
310 311 316 319 322
324
330 330 333 337 340 343
*Words in the text which have been italicized will be
7
5. Projectized organization 15. Organizational project maturity
348
Collective memory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 Knowledge management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 Tacit and explicit knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . 351 Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 The learning organization . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 Maturity analysis.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Balanced scorecard .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 Learn from others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368
16. Program and portfolio
370
17. Project management offices & models
392
18. Certification
412
Enterprise Project Management .. . . . . . . . . . . . . . . . . . . Project, program and portfolio . . . . . . . . . . . . . . . . . . . . . . Resource management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Selection and prioritization .. . . . . . . . . . . . . . . . . . . . . . . . . . Portfolio review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implement IT-support .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business systems .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administering portfolio tools . . . . . . . . . . . . . . . . . . . . . . . .
Project management office.. . . . . . . . . . . . . . . . . . . . . . . . . Project models .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Development models. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project anatomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
370 373 377 380 383 385 390 391
392 395 404 408
Project manager certification . . . . . . . . . . . . . . . . . . . . . . . . 412 PMI .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 IPMA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 My own experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 Career ladder for project managers .. . . . . . . . . . . . . . 425 Attachment A – Project model .. . . . . . . . . . . . . . . . . . . . . . . . . . . 428 Attachment B – Assignment model .. . . . . . . . . . . . . . . . . . . . 442 Glossary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448 Index .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Bibliography .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470 Photographic credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
explained in the glossary on page 448.
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136
pProject plan process –The
left part of the figure shows milestones for a project that is to be executed with a schedule, while the right part shows milestones for a project that is to be executed with agile work methods, in stages. A large number of milestones are shared, regardless of the project method that is used.
project preparations
5 – project planning
PROJECT WITH SCHEDULE
Sequential development
Defined activities
Created a schedule
Estimated duration and resources
Reso ource pool
Created an accrual-basis budget Quality assurance plan
Communication plan
project preparations
There is a constant quest for the best method. Some claim that a project must have detailed schedules, where all activities are present, while others claim that it is unrealistic to know from the beginning how the entire project will be executed. It is possible that the solution lies somewhere in between these views.
AGILE PROJECT
Decision to start planning
Clearly defined dependencies
5 – project planning
Gradually executing one activity at a time is a fairly risk-free way of working. The method is called the waterfall model since each activity must be finished and approved before the project is allowed to "flow" into the next activity. However, there are not that many projects that are executed in this way, since it takes a lot of time.
Created product log
Distributed over stages
Planned stage
Defined and assessed risks
Produced routines for changes
Project plan
planning methods How do you create a plan that guarantees that the project reaches its goal within the allocated time frame and available budget? There are as many answers as there are projects; each project requires its own unique plan, which ensures that resources are optimally used within the allocated frames.
The name "waterfall method" is often used synonymously with using schedules. This is a misunderstanding that has given traditional project methodology an undeserved bad reputation. The project methodology does not prevent planning of concurrent activities.
Concurrent engineering There is a lot of time to be saved by advancing diferent parts of a project concurrently. This is not an unusual process in product development. Mechanic devices are designed and constructed alongside electronics and software. Everything is then brought together in a prototype, which is tested before the project continues; this method is also called concurrent engineering. The major advantage of concurrent engineering is that the project duration is limited. The more parts that are done simultaneously, the more time can be saved. One disadvantage is the pronounced risks taken. Problems might arise if the diferent parts do not fit together, or if the electronics engineers’ suddenly realize they need to add components which do not fit in the mechanism. This is a risk which needs to be considered when planning the project. These risks can be minimized from the onset of the project by scheduling frequent meetings, where progress is reviewed and proposed changes are discussed.
137
136
pProject plan process –The
left part of the figure shows milestones for a project that is to be executed with a schedule, while the right part shows milestones for a project that is to be executed with agile work methods, in stages. A large number of milestones are shared, regardless of the project method that is used.
project preparations
5 – project planning
PROJECT WITH SCHEDULE
Sequential development
Defined activities
Created a schedule
Estimated duration and resources
Reso ource pool
Created an accrual-basis budget Quality assurance plan
Communication plan
project preparations
There is a constant quest for the best method. Some claim that a project must have detailed schedules, where all activities are present, while others claim that it is unrealistic to know from the beginning how the entire project will be executed. It is possible that the solution lies somewhere in between these views.
AGILE PROJECT
Decision to start planning
Clearly defined dependencies
5 – project planning
Gradually executing one activity at a time is a fairly risk-free way of working. The method is called the waterfall model since each activity must be finished and approved before the project is allowed to "flow" into the next activity. However, there are not that many projects that are executed in this way, since it takes a lot of time.
Created product log
Distributed over stages
Planned stage
Defined and assessed risks
Produced routines for changes
Project plan
planning methods How do you create a plan that guarantees that the project reaches its goal within the allocated time frame and available budget? There are as many answers as there are projects; each project requires its own unique plan, which ensures that resources are optimally used within the allocated frames.
The name "waterfall method" is often used synonymously with using schedules. This is a misunderstanding that has given traditional project methodology an undeserved bad reputation. The project methodology does not prevent planning of concurrent activities.
Concurrent engineering There is a lot of time to be saved by advancing diferent parts of a project concurrently. This is not an unusual process in product development. Mechanic devices are designed and constructed alongside electronics and software. Everything is then brought together in a prototype, which is tested before the project continues; this method is also called concurrent engineering. The major advantage of concurrent engineering is that the project duration is limited. The more parts that are done simultaneously, the more time can be saved. One disadvantage is the pronounced risks taken. Problems might arise if the diferent parts do not fit together, or if the electronics engineers’ suddenly realize they need to add components which do not fit in the mechanism. This is a risk which needs to be considered when planning the project. These risks can be minimized from the onset of the project by scheduling frequent meetings, where progress is reviewed and proposed changes are discussed.
137
138
project preparations
5 – project planning
5 – project planning
Balanced plan
project preparations
The waterfall method and concurrent engineering are two extremes. Both have advantages and disadvantages – control at the expense of time, and fast delivery at the expense of larger risks, respectively. Plans are usually much more balanced. Parts of the project follow a serial flow, alternated with periods where many things happen concurrently.
Rolling wave planning is a tested method that focuses on the nearest upcoming period in a project. What needs to be done early is planned in detail, while later parts of the project are only planned on a comprehensive level. Detail planning will take place as the project progresses. This way any changes due to unforeseen events, can be incorporated into the plan. The advantage being that unnecessary planning is avoided.
Rolling wave planning
Agile work methods
A project schedule can easily become complex with a large number of activities in several concurrent flows. It is difficult to get a good overview of the project then. The question is how appropriate it is to plan the whole project right away. It might even be inappropriate, since most projects exist in an environment that is constantly changing. To plan in detail all activities which are not to be executed until after six months or later does not make sense. If the project is of schedule early on, it might lower the motivation and faith in the planning. Sid and 106 to get past this problem. But there are ways means
Rolling wave planning can very well be likened to the work method applied to agile projects, which are divided into timed stages. Usually, one or two stages are planned at a time. The method is particularly suitable for projects which have been started without a clearly defined solution. The solution emerges gradually as the result of the work becomes visible. It might be difficult to produce a requirement specification for such a project. The freedom this methodology yields, to choose an approach before a solution is defined, places great demands on follow-up procedures and management, and that the results can be traced back to functional demands or use cases and the purpose. Here are a few examples where it might be preferable to execute a project in stages: q A major investigation or a research project. q When you know that requirements and prerequisites will change during the course of the project. q When you have several possible courses of action and do not know which one is best.
Sequential Development "The waterfall model" Concurrent engineering Parallell utveckling Seriell utveckling ”Vattenfallsmodellen”
q A promising idea or a new possibility is being tested.
Rolling wave planning
Rullande närzonsplanering
Dynamic development is a diferent name of this work method; other methods that belong here are Incremental development, the Spiral model, Dynamic Systems Development, Time Boxing, Self guided project and Scrum. They are all based on an execution which takes place interactively in steps, so-called increments, in a cyclic process, which usually consists of requirements, analysis, design, implementation and testing.
"Agile" stages
”Agila” etapper
4
139
138
project preparations
5 – project planning
5 – project planning
Balanced plan
project preparations
The waterfall method and concurrent engineering are two extremes. Both have advantages and disadvantages – control at the expense of time, and fast delivery at the expense of larger risks, respectively. Plans are usually much more balanced. Parts of the project follow a serial flow, alternated with periods where many things happen concurrently.
Rolling wave planning is a tested method that focuses on the nearest upcoming period in a project. What needs to be done early is planned in detail, while later parts of the project are only planned on a comprehensive level. Detail planning will take place as the project progresses. This way any changes due to unforeseen events, can be incorporated into the plan. The advantage being that unnecessary planning is avoided.
Rolling wave planning
Agile work methods
A project schedule can easily become complex with a large number of activities in several concurrent flows. It is difficult to get a good overview of the project then. The question is how appropriate it is to plan the whole project right away. It might even be inappropriate, since most projects exist in an environment that is constantly changing. To plan in detail all activities which are not to be executed until after six months or later does not make sense. If the project is of schedule early on, it might lower the motivation and faith in the planning. Sid and 106 to get past this problem. But there are ways means
Rolling wave planning can very well be likened to the work method applied to agile projects, which are divided into timed stages. Usually, one or two stages are planned at a time. The method is particularly suitable for projects which have been started without a clearly defined solution. The solution emerges gradually as the result of the work becomes visible. It might be difficult to produce a requirement specification for such a project. The freedom this methodology yields, to choose an approach before a solution is defined, places great demands on follow-up procedures and management, and that the results can be traced back to functional demands or use cases and the purpose. Here are a few examples where it might be preferable to execute a project in stages: q A major investigation or a research project. q When you know that requirements and prerequisites will change during the course of the project. q When you have several possible courses of action and do not know which one is best.
Sequential Development "The waterfall model" Concurrent engineering Parallell utveckling Seriell utveckling ”Vattenfallsmodellen”
q A promising idea or a new possibility is being tested.
Rolling wave planning
Rullande närzonsplanering
Dynamic development is a diferent name of this work method; other methods that belong here are Incremental development, the Spiral model, Dynamic Systems Development, Time Boxing, Self guided project and Scrum. They are all based on an execution which takes place interactively in steps, so-called increments, in a cyclic process, which usually consists of requirements, analysis, design, implementation and testing.
"Agile" stages
”Agila” etapper
4
139
148
project preparations
5 – project planning
Scrum Scrum is an agile work method mainly used within software and system development projects. However, there is nothing preventing this method from being used in other types of projects. The stages in Scrum are called sprints, and usually last from two to four weeks. In Scrum, requirements are broken down into sub-goals and short activities, which are collected in a so-called product log. The method resembles the work done to create a wbs. The log is then divided into several smaller stage logs, one for each sprint. The prioritizing of what is to be done first in each sprint is done jointly by the project owner, who is referred to as the product owner, and the team. The idea is that each sprint will deliver a useful result. The team is managed by a scrum master, whose main task is to act as a coach. Scrum works best in small teams; five to seven participants who work close to each other, preferably in the same room. A larger project group should therefore be divided into smaller teams.
2 - 4 weeks
Stage log
Sprint
project preparations
This flexible way of working makes Scrum more difficult to apply to a project with a lot of external dependencies, which demand that predetermined results are delivered at set times. The success factor in an agile work method is based on involving the client into the project and making frequent verifications and deliveries.
Time Boxing Time Boxing is a diferent name for agile work methods where a project is divided into defined blocks of time, each with its own fixed deadline. If something is not finished in one box, it is moved to the next one, or removed. New goals are gradually introduced in the following boxes based on the experience that is successively accumulated during the execution of the project, and then formulated into new requirements. The strength in the agile work method is its strong focus on process management and the ability to adapt to changes in and around the project. Incremental deliveries also make it possible to start using sub-results early in a project. Interactive and incremental development can be traced all the way back to the 1950s. But, it was first in the late 1970s and early 1980s that it took off as a result of the need to be able to manage complex systems and organize large development teams within the software development industry. At the time it was thought that a large software project could be managed like a car production, where one piece at a time is added to a predefined process. The introduction of agile work methods in the 1990s changed this view radically.
24 h
Product log
5 – project planning
Sub-delivery
Frequent deliveries create involvement and enable the product owner to see how the project is progressing. Time is more important than how much is accomplished during a sprint. The value of the executed work, and how much is left to do, is assessed daily, and collected in a burn-down chart. Planning is adjusted after each sprint.
New variations of the agile work method are constantly being developed. The 50-year-old Japanese production system Kanban was recently introduced as a novelty in the it- industry.
149
148
project preparations
5 – project planning
Scrum Scrum is an agile work method mainly used within software and system development projects. However, there is nothing preventing this method from being used in other types of projects. The stages in Scrum are called sprints, and usually last from two to four weeks. In Scrum, requirements are broken down into sub-goals and short activities, which are collected in a so-called product log. The method resembles the work done to create a wbs. The log is then divided into several smaller stage logs, one for each sprint. The prioritizing of what is to be done first in each sprint is done jointly by the project owner, who is referred to as the product owner, and the team. The idea is that each sprint will deliver a useful result. The team is managed by a scrum master, whose main task is to act as a coach. Scrum works best in small teams; five to seven participants who work close to each other, preferably in the same room. A larger project group should therefore be divided into smaller teams.
2 - 4 weeks
Stage log
Sprint
project preparations
This flexible way of working makes Scrum more difficult to apply to a project with a lot of external dependencies, which demand that predetermined results are delivered at set times. The success factor in an agile work method is based on involving the client into the project and making frequent verifications and deliveries.
Time Boxing Time Boxing is a diferent name for agile work methods where a project is divided into defined blocks of time, each with its own fixed deadline. If something is not finished in one box, it is moved to the next one, or removed. New goals are gradually introduced in the following boxes based on the experience that is successively accumulated during the execution of the project, and then formulated into new requirements. The strength in the agile work method is its strong focus on process management and the ability to adapt to changes in and around the project. Incremental deliveries also make it possible to start using sub-results early in a project. Interactive and incremental development can be traced all the way back to the 1950s. But, it was first in the late 1970s and early 1980s that it took off as a result of the need to be able to manage complex systems and organize large development teams within the software development industry. At the time it was thought that a large software project could be managed like a car production, where one piece at a time is added to a predefined process. The introduction of agile work methods in the 1990s changed this view radically.
24 h
Product log
5 – project planning
Sub-delivery
Frequent deliveries create involvement and enable the product owner to see how the project is progressing. Time is more important than how much is accomplished during a sprint. The value of the executed work, and how much is left to do, is assessed daily, and collected in a burn-down chart. Planning is adjusted after each sprint.
New variations of the agile work method are constantly being developed. The 50-year-old Japanese production system Kanban was recently introduced as a novelty in the it- industry.
149
156
project preparations
5 – project planning
The planning of a project is an iterative process with several phases which are to be executed in a pre-defined order to secure the quality in the planning. The first thing to do in the planning process is to establish purpose and goal, then chart the scope through a wbs to assure that everything needed to reach the project goal is included. The wbs is the foundation for the network diagramming where the project flow is described through activities and milestones. The activity list is produced from the activity plan where duration, dependencies, resource needs and responsible owners for all activities and milestones are determined. When this has been completed there are good prerequisites for producing a realistic schedule to be used during the project’s execution. Even agile projects can use a schedule, either on a general macro level, which shows the entire flow with sub-deliveries, or on a micro level, which describes the work within one stage.
Objective Goal
WBS scope
pProject plan flow.
ID ACTIVITY
Network diagram with activities and milestones
1
...
2
...
3
...
4
...
DUR
DEP
Activity list
project preparations
5 – project planning ID Activity name
Dur Dep Res
1
Project initiation
0
2
Secure financing
5
1
2 2
3
Set up contract
4
2
4
Financing & contract settled
0
3
5
Recruit staff
7
4
1
2
3
4
5
6
7
8
9
157
10
11
12
13
14
15
16
17
10
11
12
13
14
15
16
17
4
pA Gantt chart with two milestones and three activities Continue with the schedule by adding activities and milestones according to the pre-defined dependencies in the activity list. Activities which are dependent on the same predecessor activity or milestone being completed may have the same start date in the schedule. In other words, they are drawn up as parallel bars. If an activity is dependent on several predecessor activities or milestones, it is always the activity or milestone which has the latest finish date which determines when the next immediately following can start. It is identified by two or more id numbers listed in the column where dependencies are verified.
RES
ID Activity name
Gantt chart
Create a calendar which shows days, weeks or months, depending on how detailed the planning has been done, based on the activity list or activity plan. Start by adding the first milestone in the first column. Since a milestone has duration of zero and requires no effort to reach, it is only a checkpoint in the plan. Plot the first activity to start immediately after the milestone. The duration of an activity is shown through allocating the correct number of columns. An activity which is set to take three days will therefore stretch over three columns in the plan. Dependencies are shown using arrows.
Dur Dep Res
1
Project initiation
2
Secure financing
5
1
2
3
Set up contract
4
2
2
4
Financing & contract settled
0
3
1
2
3
4
5
6
7
8
0
5
Recruit staff
7
4
4
6
Cash register purchase
4
4
2
7
Start training
0
5;6
8
Train staff
2
7
1
9
Select computers
5
4
3
10 Order computers
4
9
1
pA Gantt chart where three activities, which can all start simultaneously, are marked by red circles and a milestone, which is dependent on two predecessor activities being completed, marked with a green circle.
9
156
project preparations
5 – project planning
The planning of a project is an iterative process with several phases which are to be executed in a pre-defined order to secure the quality in the planning. The first thing to do in the planning process is to establish purpose and goal, then chart the scope through a wbs to assure that everything needed to reach the project goal is included. The wbs is the foundation for the network diagramming where the project flow is described through activities and milestones. The activity list is produced from the activity plan where duration, dependencies, resource needs and responsible owners for all activities and milestones are determined. When this has been completed there are good prerequisites for producing a realistic schedule to be used during the project’s execution. Even agile projects can use a schedule, either on a general macro level, which shows the entire flow with sub-deliveries, or on a micro level, which describes the work within one stage.
Objective Goal
WBS scope
pProject plan flow.
ID ACTIVITY
Network diagram with activities and milestones
1
...
2
...
3
...
4
...
DUR
DEP
Activity list
project preparations
5 – project planning ID Activity name
Dur Dep Res
1
Project initiation
0
2
Secure financing
5
1
2 2
3
Set up contract
4
2
4
Financing & contract settled
0
3
5
Recruit staff
7
4
1
2
3
4
5
6
7
8
9
157
10
11
12
13
14
15
16
17
10
11
12
13
14
15
16
17
4
pA Gantt chart with two milestones and three activities Continue with the schedule by adding activities and milestones according to the pre-defined dependencies in the activity list. Activities which are dependent on the same predecessor activity or milestone being completed may have the same start date in the schedule. In other words, they are drawn up as parallel bars. If an activity is dependent on several predecessor activities or milestones, it is always the activity or milestone which has the latest finish date which determines when the next immediately following can start. It is identified by two or more id numbers listed in the column where dependencies are verified.
RES
ID Activity name
Gantt chart
Create a calendar which shows days, weeks or months, depending on how detailed the planning has been done, based on the activity list or activity plan. Start by adding the first milestone in the first column. Since a milestone has duration of zero and requires no effort to reach, it is only a checkpoint in the plan. Plot the first activity to start immediately after the milestone. The duration of an activity is shown through allocating the correct number of columns. An activity which is set to take three days will therefore stretch over three columns in the plan. Dependencies are shown using arrows.
Dur Dep Res
1
Project initiation
2
Secure financing
5
1
2
3
Set up contract
4
2
2
4
Financing & contract settled
0
3
1
2
3
4
5
6
7
8
0
5
Recruit staff
7
4
4
6
Cash register purchase
4
4
2
7
Start training
0
5;6
8
Train staff
2
7
1
9
Select computers
5
4
3
10 Order computers
4
9
1
pA Gantt chart where three activities, which can all start simultaneously, are marked by red circles and a milestone, which is dependent on two predecessor activities being completed, marked with a green circle.
9
158
project preparations
5 – project planning
Logical relationships The dependencies between activities can vary. The American organization Project Management Institute’s (pmi) “A Guide to the Project Management Body of Knowledge” describes four diferent varieties of dependencies between activities.
project preparations
5 – project planning
other parallel paths have a certain amount of time that they can be delayed without afecting the next activity and/or the project’s finish date, a so-called slack, float, free float or total float.
The critical path (CPM – Critical Path Method)
a)
b)
c)
d)
B
C
G I
D
b) Finish-to-Finish. The predecessor activity has to be completed before the successor activity can be finished. (All the runners have to make it across the goal line before it can be dismantled).
c) Start-to-Start. Start of predecessor activity before successor activity can start. (Ignition key must be turned before engine can start).
d) Start-to-Finish. Start of the predecessor activity before the successor activity is allowed to finish. (Don’t empty the champagne until all has been tested and approved.)
pLogical dependencies. The first of the logical relationships, Finish-to-Start, is the most widely used, while the last one is considered theoretical possible, but is more of a rarity.
The Critical Path Critical path is the sequence of activities which determines the earliest finish-by-date for a project. The critical path will on and of vary depending on whether the activities are completed before or after what has been planned. Even if the critical path usually is calculated for the entire project, it can also be calculated up to a milestone or a subproject. If the activity plan holds several parallel flows the total duration of the project will be calculated by adding up the duration of every activity. The longest path from start to finish is the critical path. Since certain activities are inter-connected it is vital to identify these activities. If an activity on the critical path is delayed, it will affect the entire project. Activities on
E
To estimate the duration of a project you need to identify all the work flows in a network plan, and calculate the duration of each flow.
Activity
A
a) Finish-to-Start. The predecessor activity has to be completed before the successor activity can start. (The primer has to dry before applying color to the wall).
159
H
F
A + B + C + G + I = 3 + 5 + 4 + 10 + 2 = 24 days
Duration
A
3 days
B
5 days
C
4 days
D
7 days
E
14 days
F
6 days
G
10 days
H
8 days
I
2 days
A + D + C + G + I = 3 + 7 + 4 + 10 + 2 = 26 days A + D + E + H + I = 3 + 7 + 14 + 8 + 2 = 34 days = longest time, that is, the critical path A + D + F + H + I = 3 + 7 + 6 + 8 + 2 = 26 days
You always need to keep an extra eye on the critical path, but you even need to focus on the second most critical path in the plan. The project’s total duration estimation is accomplished by adding the estimated Texpected for every activity that is on the critical path.
Tproject = k Texpected The standard deviation, which is a measurement of the uncertainty in the assessment, is calculated for the entire project through this formula:
Sproject = √ k Sexpected2
Total slack – The time an activity can be delayed by without impacting the finishing time of the project. Free slack – The time an activity can be delayed by without delaying the start of the next activity.
158
project preparations
5 – project planning
Logical relationships The dependencies between activities can vary. The American organization Project Management Institute’s (pmi) “A Guide to the Project Management Body of Knowledge” describes four diferent varieties of dependencies between activities.
project preparations
5 – project planning
other parallel paths have a certain amount of time that they can be delayed without afecting the next activity and/or the project’s finish date, a so-called slack, float, free float or total float.
The critical path (CPM – Critical Path Method)
a)
b)
c)
d)
B
C
G I
D
b) Finish-to-Finish. The predecessor activity has to be completed before the successor activity can be finished. (All the runners have to make it across the goal line before it can be dismantled).
c) Start-to-Start. Start of predecessor activity before successor activity can start. (Ignition key must be turned before engine can start).
d) Start-to-Finish. Start of the predecessor activity before the successor activity is allowed to finish. (Don’t empty the champagne until all has been tested and approved.)
pLogical dependencies. The first of the logical relationships, Finish-to-Start, is the most widely used, while the last one is considered theoretical possible, but is more of a rarity.
The Critical Path Critical path is the sequence of activities which determines the earliest finish-by-date for a project. The critical path will on and of vary depending on whether the activities are completed before or after what has been planned. Even if the critical path usually is calculated for the entire project, it can also be calculated up to a milestone or a subproject. If the activity plan holds several parallel flows the total duration of the project will be calculated by adding up the duration of every activity. The longest path from start to finish is the critical path. Since certain activities are inter-connected it is vital to identify these activities. If an activity on the critical path is delayed, it will affect the entire project. Activities on
E
To estimate the duration of a project you need to identify all the work flows in a network plan, and calculate the duration of each flow.
Activity
A
a) Finish-to-Start. The predecessor activity has to be completed before the successor activity can start. (The primer has to dry before applying color to the wall).
159
H
F
A + B + C + G + I = 3 + 5 + 4 + 10 + 2 = 24 days
Duration
A
3 days
B
5 days
C
4 days
D
7 days
E
14 days
F
6 days
G
10 days
H
8 days
I
2 days
A + D + C + G + I = 3 + 7 + 4 + 10 + 2 = 26 days A + D + E + H + I = 3 + 7 + 14 + 8 + 2 = 34 days = longest time, that is, the critical path A + D + F + H + I = 3 + 7 + 6 + 8 + 2 = 26 days
You always need to keep an extra eye on the critical path, but you even need to focus on the second most critical path in the plan. The project’s total duration estimation is accomplished by adding the estimated Texpected for every activity that is on the critical path.
Tproject = k Texpected The standard deviation, which is a measurement of the uncertainty in the assessment, is calculated for the entire project through this formula:
Sproject = √ k Sexpected2
Total slack – The time an activity can be delayed by without impacting the finishing time of the project. Free slack – The time an activity can be delayed by without delaying the start of the next activity.
160
project preparations
5 – project planning
Slack
5 – project planning
project preparations
161
Slack Slack
1.
2.
3.
4.
5.
6.
Total duration estimation of the project
pAn alternative way of
showing a network diagram that derives from the critical path. Floats that are not on the critical path are clearly recognized.
The critical path is usually defined by the activities with a slack less than or equal to a certain value, usually zero.
Resource conflicts It is not uncommon that a specific resource, e.g., a person with a unique competence, is needed simultaneously in several places in the project. Verify that a resource is not assigned to more than one task at a time. It is the project managers responsibility to plan the limited resources so that they are utilized in an optimal way but at the same time not over-exploiting them.
The planned duration may not exceed the available time, which is one of the project management triangle parameters.
Time
pPlan the project according to available resources. The activities "log the timber" and "transport timber" have been postponed to avoid resource conflicts. The project will therefore take longer to complete.
160
project preparations
5 – project planning
Slack
5 – project planning
project preparations
161
Slack Slack
1.
2.
3.
4.
5.
6.
Total duration estimation of the project
pAn alternative way of
showing a network diagram that derives from the critical path. Floats that are not on the critical path are clearly recognized.
The critical path is usually defined by the activities with a slack less than or equal to a certain value, usually zero.
Resource conflicts It is not uncommon that a specific resource, e.g., a person with a unique competence, is needed simultaneously in several places in the project. Verify that a resource is not assigned to more than one task at a time. It is the project managers responsibility to plan the limited resources so that they are utilized in an optimal way but at the same time not over-exploiting them.
The planned duration may not exceed the available time, which is one of the project management triangle parameters.
Time
pPlan the project according to available resources. The activities "log the timber" and "transport timber" have been postponed to avoid resource conflicts. The project will therefore take longer to complete.
274
execution
10 – managing & working in projects
The importance of being a positive role model It is so easy to know what good leadership should be. Saying wise words about trust, openness and honesty. Attending a course and learning more. Emphasize the importance of commitment, involvement and accountability. But, it is so easy to make mistakes. We see it time after time. Managers and leaders in both large and small companies that are “exposed”. What happened to openness and honesty? I am sure you can name a few names. There may even be people around you who say one thing but do another. It is not always clear to know whether this is intentional. The classic saying still rings true for many people: Do as I say, not as I do! It is every leader's best interest to be curious about himself and how he affects others. Becoming aware instead of oblivious. Waking up to the reality instead of sleepwalking through the day. As a manager and leader, you are a role model – whether you like it or not. People look up to you and depend on you to varying degrees. You decide whether you want to serve as a terrible warning or a positive role model for the people, friends, workers and others in your own little world. source: Article by motivational speaker and coach Kenth Åkerman in a magazine on sustainable leadership
We people are social beings and we want to be noticed for what we are and what we do. The importance of being noticed cannot be underestimated. We probably have the same need for attention and recognition of our accomplishments regardless of national and cultural affiliation. However, each individual’s cultural and national affiliation does affect the way in which the attention should be delivered. The positive feeling of receiving attention can easily be spoiled and the effect might even be the opposite if a person feels controlled. If the project manager needs to verify what the employee is doing, it shows a lack of confidence. Being monitored and controlled is often associated with a lack of trust and confidence. Reviews and follow-ups are words with positive connotations. An individual cannot be reviewed and followed up, but can be monitored and controlled and that does not at all bring about a positive feeling.
10 – managing & working in projects
execution
275
Expectations influence employees In the beginning of the 1960s, the American management professor Douglas McGregor studied what happens in a team with a manager who has either negative or positive expectations of the employees. The result was called Theory X and Theory Y. According to Theory X, most people have a dislike for work and responsibility. They must therefore be guided and controlled. If management does not intervene, these individuals will be passive or even counterproductive in reaching the project’s goal and the company’s needs. Threats of penalties and promises of rewards are considered effective methods to get the work done.
“It is easy to be brave when you aren't scared.” The Moomin Troll, Tove Jansson
The manager assumes employees do not want to work Employees only do as told with little motivation. Low productivity
The employees do not thrive. They have no interest in their work.
The manager adapts an authoritarian management style.
...and makes all decisions by himself. Direct Management
According to Theory Y, it is a natural trait in people to strive higher and to want responsibility and recognition. Management is responsible for supplying and organizing the resources needed to achieve the financial goals. According to Theory Y, individuals are an asset and the management should work to align the company’s and the individual’s goals. McGregor emphasizes that a leader often gets the employees he/she deserves. If he/she does not delegate responsibilities or powers, he/she will not accomplish anything without micromanaging. It is obvious that a project manager cannot control the ins and outs since that would take too much time from managing the entirety of the project.
pMcGregor’s Theory X.
274
execution
10 – managing & working in projects
The importance of being a positive role model It is so easy to know what good leadership should be. Saying wise words about trust, openness and honesty. Attending a course and learning more. Emphasize the importance of commitment, involvement and accountability. But, it is so easy to make mistakes. We see it time after time. Managers and leaders in both large and small companies that are “exposed”. What happened to openness and honesty? I am sure you can name a few names. There may even be people around you who say one thing but do another. It is not always clear to know whether this is intentional. The classic saying still rings true for many people: Do as I say, not as I do! It is every leader's best interest to be curious about himself and how he affects others. Becoming aware instead of oblivious. Waking up to the reality instead of sleepwalking through the day. As a manager and leader, you are a role model – whether you like it or not. People look up to you and depend on you to varying degrees. You decide whether you want to serve as a terrible warning or a positive role model for the people, friends, workers and others in your own little world. source: Article by motivational speaker and coach Kenth Åkerman in a magazine on sustainable leadership
We people are social beings and we want to be noticed for what we are and what we do. The importance of being noticed cannot be underestimated. We probably have the same need for attention and recognition of our accomplishments regardless of national and cultural affiliation. However, each individual’s cultural and national affiliation does affect the way in which the attention should be delivered. The positive feeling of receiving attention can easily be spoiled and the effect might even be the opposite if a person feels controlled. If the project manager needs to verify what the employee is doing, it shows a lack of confidence. Being monitored and controlled is often associated with a lack of trust and confidence. Reviews and follow-ups are words with positive connotations. An individual cannot be reviewed and followed up, but can be monitored and controlled and that does not at all bring about a positive feeling.
10 – managing & working in projects
execution
275
Expectations influence employees In the beginning of the 1960s, the American management professor Douglas McGregor studied what happens in a team with a manager who has either negative or positive expectations of the employees. The result was called Theory X and Theory Y. According to Theory X, most people have a dislike for work and responsibility. They must therefore be guided and controlled. If management does not intervene, these individuals will be passive or even counterproductive in reaching the project’s goal and the company’s needs. Threats of penalties and promises of rewards are considered effective methods to get the work done.
“It is easy to be brave when you aren't scared.” The Moomin Troll, Tove Jansson
The manager assumes employees do not want to work Employees only do as told with little motivation. Low productivity
The employees do not thrive. They have no interest in their work.
The manager adapts an authoritarian management style.
...and makes all decisions by himself. Direct Management
According to Theory Y, it is a natural trait in people to strive higher and to want responsibility and recognition. Management is responsible for supplying and organizing the resources needed to achieve the financial goals. According to Theory Y, individuals are an asset and the management should work to align the company’s and the individual’s goals. McGregor emphasizes that a leader often gets the employees he/she deserves. If he/she does not delegate responsibilities or powers, he/she will not accomplish anything without micromanaging. It is obvious that a project manager cannot control the ins and outs since that would take too much time from managing the entirety of the project.
pMcGregor’s Theory X.
276
execution
10 – managing & working in projects
If a manager instead shows confidence in the team members’ capabilities, they will strive to not disappoint him/her. The manager has confidence in the employees.
Employees are selfmotivated. High productivity.
The employees thrive. They take an interest in their work.
pMcGregor’s Theory Y.
The management informs and delegates work.
...and decisions are made together with the employees. Goalmotivated.
Pygmalion effect Most people are familiar with the unforgettable story about Eliza Doolittle, the Cockney flower girl from London, and Henry Higgins, a professor of phonetics. He was convinced she could become a society lady by teaching her how to speak with an upper-class accent and training her in etiquette. Another example of this, which has come to be known as the Pygmalion effect, or more commonly known as the “teacher-expectancy effect”, played out in an American high school when a class was given a new teacher in the middle of the school year. The story may be an urban myth, but the point is still valid. In a book, the previous teacher had very meticulously noted all the students’ test results and other assignments in the various subjects. This was of great help to the new teacher. With the support of the book she could quite easily form an opinion on the students’ abilities. The book was simple to follow, every subject had a column. There was just one column she did not quite get. There were just numbers in it. The column read 85, 90, 105, 88, 108 and so forth. After having thought about this for some time, she reached the conclusion that it had to be the iq scores of the students. Good, she thought, now I know who needs more encouragement and support and whom to give more difficult assignments.
10 – managing & working in projects
execution
Her conclusion was confirmed over time. The bright students managed increasingly difficult assignments. The average students followed the curriculum while those with lower iq scores needed a good deal of support. When the teacher inspected the student lockers by the end of the term she realized that the numbering of the lockers coincided with the column of iq scores. Those with a low iq had a locker with a low number and those with a high iq had a locker with a high number. Was this a coincidence? Of course not. The teacher had influenced the students’ performances through her actions. By exhibiting confidence in certain students’ capabilities, she strengthened their self-confidence, which in turn affected the results in a positive way. Likewise, she influenced other students into doubting their own abilities by not placing tough demands on them, and by being too generous with support. The average students who were treated neutrally performed on average too.
situational leadership The project manager needs to adapt her leadership style according to the situations she finds herself in and the people she has to manage. The leadership style should also be adapted to the kind of project and which phase it is in.
Leadership styles Paul Hersey and Ken Blanchard developed a concept for situational leadership. According to their theory, there are four different leadership styles: directing/telling, coaching/selling, supporting/participating and delegating. The situational leadership theory can be related to the group process model. An immature group that is in the inclusion dimension needs supervision, while a group in the control dimension needs lots of support. A mature group in the affection dimension, on the other hand, should be neither supervised nor supported, but guided through delegation of assignments.
277
276
execution
10 – managing & working in projects
If a manager instead shows confidence in the team members’ capabilities, they will strive to not disappoint him/her. The manager has confidence in the employees.
Employees are selfmotivated. High productivity.
The employees thrive. They take an interest in their work.
pMcGregor’s Theory Y.
The management informs and delegates work.
...and decisions are made together with the employees. Goalmotivated.
Pygmalion effect Most people are familiar with the unforgettable story about Eliza Doolittle, the Cockney flower girl from London, and Henry Higgins, a professor of phonetics. He was convinced she could become a society lady by teaching her how to speak with an upper-class accent and training her in etiquette. Another example of this, which has come to be known as the Pygmalion effect, or more commonly known as the “teacher-expectancy effect”, played out in an American high school when a class was given a new teacher in the middle of the school year. The story may be an urban myth, but the point is still valid. In a book, the previous teacher had very meticulously noted all the students’ test results and other assignments in the various subjects. This was of great help to the new teacher. With the support of the book she could quite easily form an opinion on the students’ abilities. The book was simple to follow, every subject had a column. There was just one column she did not quite get. There were just numbers in it. The column read 85, 90, 105, 88, 108 and so forth. After having thought about this for some time, she reached the conclusion that it had to be the iq scores of the students. Good, she thought, now I know who needs more encouragement and support and whom to give more difficult assignments.
10 – managing & working in projects
execution
Her conclusion was confirmed over time. The bright students managed increasingly difficult assignments. The average students followed the curriculum while those with lower iq scores needed a good deal of support. When the teacher inspected the student lockers by the end of the term she realized that the numbering of the lockers coincided with the column of iq scores. Those with a low iq had a locker with a low number and those with a high iq had a locker with a high number. Was this a coincidence? Of course not. The teacher had influenced the students’ performances through her actions. By exhibiting confidence in certain students’ capabilities, she strengthened their self-confidence, which in turn affected the results in a positive way. Likewise, she influenced other students into doubting their own abilities by not placing tough demands on them, and by being too generous with support. The average students who were treated neutrally performed on average too.
situational leadership The project manager needs to adapt her leadership style according to the situations she finds herself in and the people she has to manage. The leadership style should also be adapted to the kind of project and which phase it is in.
Leadership styles Paul Hersey and Ken Blanchard developed a concept for situational leadership. According to their theory, there are four different leadership styles: directing/telling, coaching/selling, supporting/participating and delegating. The situational leadership theory can be related to the group process model. An immature group that is in the inclusion dimension needs supervision, while a group in the control dimension needs lots of support. A mature group in the affection dimension, on the other hand, should be neither supervised nor supported, but guided through delegation of assignments.
277
5
Projectized organization There are several factors that contribute to the ability of an organization or company to run projects successfully – everything from the professional skills of the employees to how the organization is structured and run. With program and portfolio management, projects are selected and prioritized with a focus on using collective resources optimally. Establishing a project management office and applying a common project methodology increases the quality of projects, while certification ensures that the project manager and project team members have the necessary skills.
15. Organizational project maturity
17. Project management office and models
16. Program and portfolio 18. Certification
5
Projectized organization There are several factors that contribute to the ability of an organization or company to run projects successfully – everything from the professional skills of the employees to how the organization is structured and run. With program and portfolio management, projects are selected and prioritized with a focus on using collective resources optimally. Establishing a project management office and applying a common project methodology increases the quality of projects, while certification ensures that the project manager and project team members have the necessary skills.
15. Organizational project maturity
17. Project management office and models
16. Program and portfolio 18. Certification
15 – organizational project maturity projectized organization
Pre-studyy
15
Planning Establish group
Execution Manage group
Closure
Evaluation
Initiation
PROJECT MANAGEMENT
Terminate group
Organizational project maturity The responsibility for competence development lies with the senior management, but it always takes place on an individual level. Knowledge management is one way of evaluating the individual as well as the group and placing reasonable demands on them. In order for this to succeed and the wanted benefit to ensue, the process must be controlled and feedback must be given. To keep or strengthen competitiveness in the business world, project maturity within the organization needs to be increased. This is a long-term process that takes time, but is a profitable and overall beneficial investment. Project processes can be developed through goal setting. Using balanced scorecards makes it is possible to align the organization’s long-term goals with the short-term project goals and individual competence development goals.
collective memory
T
here are many reasons why it is important to have many age groups represented in a company or an organization. One is the mentor/mentee relationship, also called master/ apprentice. An organization can be said to have a “collective memory”. This refers to the collective experience within each organization and occupational group that must be conveyed from one generation to the next. To achieve this, there must be a balance between different age groups. Most of the knowledge is passed on through informal networking, from more
349
experienced colleagues, who are also stimulated by their roles as mentors, to younger and less experienced colleagues. Recent brain research has shown that there is a genetic explanation to the term “the wisdom of age”. In middle age, a new balance develops between the left half of the brain, which is dominated by logic, and the right half of the brain, which is dominated by emotions. Basically, maturity in thought and behavior evolves, which is a step towards what the American professor Gene Cohen calls “higher-level reasoning” in his book “The Mature Mind: The Positive Power of the Aging Brain”. By having only younger people employed in a company or organization, vital inherent knowledge is lost like knowhow, expertise and an in-depth understanding of the processes. What is happening in today’s work place is not a positive development. The older workforce is bought or forced out, while the younger generation and immigrants are having a hard time getting a foot in the door. The average age when entering the workforce is now as high as 27 in many countries in Europe, while at the same time 40 is considered “old”. This creates a weak and much too homogenous workforce, where it is difficult to apply the collective learning process. On top of this, most people in that generation are establishing families and are having children, which does not improve the situation. It is also costly to let employees go. The severance packages paid out to those enticed to leave voluntarily is money that could be put to better use within the organization. It could be utilized to finance the development of new products, thereby securing long-term survival and generate new jobs.
knowledge management Competence development consists of two parts – the knowledge that is already found and the knowledge that is missing and needs development. There is a difference between knowledge and competency. Knowledge is something an individual can acquire, while competence arises when knowledge is applied. In the early phases, you manage the knowledge required to execute
“What a good idea. You gather all wisdom in a single location. It doesn't matter what kind of problem you have. You go to the same place for advice.” Spontaneous statement from an an elder in Kenya when he heard about the European concept of a nursing home.
15 – organizational project maturity projectized organization
Pre-studyy
15
Planning Establish group
Execution Manage group
Closure
Evaluation
Initiation
PROJECT MANAGEMENT
Terminate group
Organizational project maturity The responsibility for competence development lies with the senior management, but it always takes place on an individual level. Knowledge management is one way of evaluating the individual as well as the group and placing reasonable demands on them. In order for this to succeed and the wanted benefit to ensue, the process must be controlled and feedback must be given. To keep or strengthen competitiveness in the business world, project maturity within the organization needs to be increased. This is a long-term process that takes time, but is a profitable and overall beneficial investment. Project processes can be developed through goal setting. Using balanced scorecards makes it is possible to align the organization’s long-term goals with the short-term project goals and individual competence development goals.
collective memory
T
here are many reasons why it is important to have many age groups represented in a company or an organization. One is the mentor/mentee relationship, also called master/ apprentice. An organization can be said to have a “collective memory”. This refers to the collective experience within each organization and occupational group that must be conveyed from one generation to the next. To achieve this, there must be a balance between different age groups. Most of the knowledge is passed on through informal networking, from more
349
experienced colleagues, who are also stimulated by their roles as mentors, to younger and less experienced colleagues. Recent brain research has shown that there is a genetic explanation to the term “the wisdom of age”. In middle age, a new balance develops between the left half of the brain, which is dominated by logic, and the right half of the brain, which is dominated by emotions. Basically, maturity in thought and behavior evolves, which is a step towards what the American professor Gene Cohen calls “higher-level reasoning” in his book “The Mature Mind: The Positive Power of the Aging Brain”. By having only younger people employed in a company or organization, vital inherent knowledge is lost like knowhow, expertise and an in-depth understanding of the processes. What is happening in today’s work place is not a positive development. The older workforce is bought or forced out, while the younger generation and immigrants are having a hard time getting a foot in the door. The average age when entering the workforce is now as high as 27 in many countries in Europe, while at the same time 40 is considered “old”. This creates a weak and much too homogenous workforce, where it is difficult to apply the collective learning process. On top of this, most people in that generation are establishing families and are having children, which does not improve the situation. It is also costly to let employees go. The severance packages paid out to those enticed to leave voluntarily is money that could be put to better use within the organization. It could be utilized to finance the development of new products, thereby securing long-term survival and generate new jobs.
knowledge management Competence development consists of two parts – the knowledge that is already found and the knowledge that is missing and needs development. There is a difference between knowledge and competency. Knowledge is something an individual can acquire, while competence arises when knowledge is applied. In the early phases, you manage the knowledge required to execute
“What a good idea. You gather all wisdom in a single location. It doesn't matter what kind of problem you have. You go to the same place for advice.” Spontaneous statement from an an elder in Kenya when he heard about the European concept of a nursing home.
350
projectized organization
15 – organizational project maturity
15 – organizational project maturity projectized organization
the project. In the later phases, you manage the competence that has been developed during the project. From a business perspective, it is desirable that the knowledge a project needs also matches the competence the organization wants to develop in a long-term perspective. This is something to be considered when choosing clients and new projects. The responsibility for competence development lies with the senior management, but it always takes place on an individual level. To formulate the right requirements in a broader perspective is an organizational competence management challenge. Training is often the fastest way of acquiring the missing knowledge. Every training endeavor should be preceded by a requirement analysis, where the knowledge gap between the skills the individual employee possesses and the organization’s tangible needs is identified. It is important to set up individually adapted goals within a foreseeable future to reach the overall goals of the organization. These goals should be followed up continuously. Goal fulfillment criteria are individual, but can be used to specify requirements for the individual in the organization. Training requirement analysis Goal analysis Knowledge gap Feedback
pThe knowledge
management loop.
source: karin weilow
Evaluation
Goal perception and requirements Training and knowledge procurement
It is important to document the needs and produce a plan for the competence development; whether it happens through training or recruiting. This plan should clearly show how to fill the knowledge gap. Knowledge management is one way of evaluating the individual as well as the group and placing reasonable demands on them.
LEADERSHIP
Line Managers Methods Tools
Process owners
Specialists
Methods Tools
Methods Tools
Project managers Methods Tools
pLine managers, process owners, specialists and project managers all need leadership skills, but they have different toolboxes adapted to their roles.
In order for this to succeed and the wanted benefit to ensue, the process must be controlled and feedback must be given.
Career paths Having a career these days does not necessarily mean being a manager. In today’s modern corporations, alternative career paths have appeared in order to secure the organization’s supply of specialists, process owners and, most of all, project managers. Project management is a discipline best learned by doing, but it also demands basic knowledge of project methodology.
tacit and explicit knowledge Working in projects is an excellent way of spreading knowledge between employees in different parts of the organization. Knowledge can be explicit or tacit. Explicit knowledge can be articulated and readily transmitted and visualized. It can be described with drawings, pictures, plans, manuals and other documents. It can be put into concrete words and images. Tacit knowledge cannot be described in words. Tacit knowledge must be seen and experienced for it to be trans-
351
350
projectized organization
15 – organizational project maturity
15 – organizational project maturity projectized organization
the project. In the later phases, you manage the competence that has been developed during the project. From a business perspective, it is desirable that the knowledge a project needs also matches the competence the organization wants to develop in a long-term perspective. This is something to be considered when choosing clients and new projects. The responsibility for competence development lies with the senior management, but it always takes place on an individual level. To formulate the right requirements in a broader perspective is an organizational competence management challenge. Training is often the fastest way of acquiring the missing knowledge. Every training endeavor should be preceded by a requirement analysis, where the knowledge gap between the skills the individual employee possesses and the organization’s tangible needs is identified. It is important to set up individually adapted goals within a foreseeable future to reach the overall goals of the organization. These goals should be followed up continuously. Goal fulfillment criteria are individual, but can be used to specify requirements for the individual in the organization. Training requirement analysis Goal analysis Knowledge gap Feedback
pThe knowledge
management loop.
source: karin weilow
Evaluation
Goal perception and requirements Training and knowledge procurement
It is important to document the needs and produce a plan for the competence development; whether it happens through training or recruiting. This plan should clearly show how to fill the knowledge gap. Knowledge management is one way of evaluating the individual as well as the group and placing reasonable demands on them.
LEADERSHIP
Line Managers Methods Tools
Process owners
Specialists
Methods Tools
Methods Tools
Project managers Methods Tools
pLine managers, process owners, specialists and project managers all need leadership skills, but they have different toolboxes adapted to their roles.
In order for this to succeed and the wanted benefit to ensue, the process must be controlled and feedback must be given.
Career paths Having a career these days does not necessarily mean being a manager. In today’s modern corporations, alternative career paths have appeared in order to secure the organization’s supply of specialists, process owners and, most of all, project managers. Project management is a discipline best learned by doing, but it also demands basic knowledge of project methodology.
tacit and explicit knowledge Working in projects is an excellent way of spreading knowledge between employees in different parts of the organization. Knowledge can be explicit or tacit. Explicit knowledge can be articulated and readily transmitted and visualized. It can be described with drawings, pictures, plans, manuals and other documents. It can be put into concrete words and images. Tacit knowledge cannot be described in words. Tacit knowledge must be seen and experienced for it to be trans-
351
NE W ITI
NE
ED
command to professionally execute projects and manage programs. Thanks to the clear and pedagogic disposition of the book, no previous knowledge in project management is needed to take advantage of the content.
Project Management also focuses on organizational change, project management maturity and the project office, which will appeal to any business executive and decision maker who holds responsibility for the development of the organization and how resources are utilized.
Project Management is accompanied by a workbook and a website, with exercises, presentation material and templates supporting a general project model. www.sanomautbildning.se/project
Bo Tonnquist, ms ee, senior partner of Baseline Management consultant in project management, marketing and business development. He has extensive experience from assignments in international corporations such as Philips, Ericsson and ikea, as well as public organizations such as Government Offices of Sweden. Bo Tonnquist has published several books in project management and was involved in the implementation of ipma certifications in Sweden. He was previously a member of the local ipma Certification Board.
ISBN 978-91-523-1742-6
(523-1742-6)
9 789152 317426
ON
Project Management covers all areas a project manager should
ITI
educational purposes, and as a handbook when executing projects or during a certification process. The organization of the book follows the flow of a project. In addition, the sections on project methodology are mixed with chapters on leadership and personal development. The contents and terminology of this guide meet the standards of both the Project Management Institute (pmi) and international Project Management Association (ipma).
ED
Project Management is specifically designed for training and
W
ON
management, program management, or portfolio management.
Project Management
Project Management written for anyone who works with project
A Guide to the Theory and Practice of Project, Program and Portfolio Management, and Organizational Change
Bo Tonnquist