Effective project management 7e robert

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Effective Project Management

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Effective Project
Management
Traditional, Agile, Extreme
Seventh Edition

Robert K. Wysocki, PhD

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Effective Project Management: Traditional, Agile, Extreme, Seventh Edition

Published by
John Wiley & Sons, Inc.
10475 Crosspoint Boulevard
Indianapolis, IN 46256

www.wiley.com
Copyright © 2014 by John Wiley & Sons, Inc., Indianapolis, Indiana
Published simultaneously in Canada
ISBN: 978-1-118-72916-8
ISBN: 978-1-118-74210-5 (ebk)
ISBN: 978-1-118-72931-1 (ebk)
Manufactured in the United States of America
10 9 8 7 6 5 4 3 2 1
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About the Author

Robert K. Wysocki, PhD, has over 40 years’ experience as a project management
consultant and trainer, information systems manager, systems and management
consultant, author, training developer, and provider. He has written 20 books
on project management, business analysis, and information systems management. One of his books, Effective Project Management, 6th Edition, has been a
best seller and is recommended by the Project Management Institute for the
library of every project manager. He has over 30 publications and presentations
in professional and trade journals and has made more than 100 presentations
at professional and trade conferences and meetings. He has developed more
than 20 project management courses and trained over 10,000 project managers.
In 1990 he founded Enterprise Information Insights, Inc. (EII)—name changed
to EII Publications, LLC, in 2013—a project management consulting and
training practice specializing in project management methodology design
and integration, Project Support Office establishment, the development of
training curriculum, and the development of a portfolio of assessment tools

focused on organizations, project teams, and individuals. His clients include
AT&T, Aetna, Babbage Simmel, British Computer Society, Boston University
Corporate Education Center, Computerworld, Converse Shoes, the Czech
Republic government, Data General, Digital, Eli Lilly, Harvard Community
Health Plan, IBM, J. Walter Thompson, Novartis, Peoples Bank, Sapient, The
Limited, the State of Ohio, Travelers Insurance, Walmart, Wells Fargo, ZTE,
and several others.
In 2013 he accepted a position as CEO of pmGURU, Inc. It is a global provider
of online e-learning courses in project management, business analysis, and
related disciplines. His goal is to create online courses that align with EPM7e
and APF.

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About the Author

He is a member of asapm, the U.S. affiliate of IPMA, and the International
Institute of Business Analysts. He is past Association Vice President of AITP
(formerly DPMA). He earned a BA in mathematics from the University
of Dallas, and an MS and PhD in mathematical statistics from Southern
Methodist University.

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About the Technical Editor

Brenda K. Gillingham, MBA, PMP, CSM, is a principal program manager
and business analyst who specializes in enterprise-level business transformation projects within high-tech industry PMO structures. She also teaches a
wide range of project management and business strategy courses in university
and corporate professional learning environments. Brenda’s diverse program
management career includes three Fortune 100 companies and an Ivy-Plus
university. One of her many successful business process restructuring projects
was a front-page feature in various U.S.-based national technical publications.
An active member of the Project Management Institute since 1996, Brenda served
9 years on the Board of Directors of the 2,500+ member Mass Bay Chapter. She
has been a certified Project Management Professional (PMP) continuously since
1999 and a Certified ScrumMaster (CSM) since 2012. Brenda earned her MBA in
Management of Technology with high distinction from Bentley University and is
a member of the Beta Gamma Sigma Honor Society. She also holds certifications
in Organizational Change Management, Process Reengineering, Six Sigma, and
Prince2 Foundation level project management methodology.

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Credits

Executive Editor
Robert Elliott

Business Manager
Amy Knies

Senior Project Editor
Kevin Kent

Vice President and Executive
Group Publisher
Richard Swadley

Technical Editor
Brenda K. Gillingham
Production Editor
Daniel Scribner
Copy Editor
Kim Cofer
Editorial Manager
Mary Beth Wakefield
Freelancer Editorial Manager
Rosemarie Graham
Associate Director of Marketing

David Mayhew
Marketing Manager
Ashley Zurcher

Associate Publisher
Jim Minatel
Project Coordinator, Cover
Katie Crocker
Proofreader
Sarah Kaikini, Word One New York
Indexer
Ron Strauss
Cover Image
©iStockphoto.com/osa_wasp
Cover Designer
Ryan Sneed

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Acknowledgments

This acknowledgment is really my special thanks to the teaching faculty of at
least 300 universities and colleges all over the globe who have adopted previous editions and continue to communicate with me. Many of them have
offered feedback that I find most useful. Many of their suggestions have been
incorporated in this seventh edition. I also owe a debt of gratitude to the many
consultants and companies across the globe that have used APF and taken
the time to comment on their experiences. I am aware of APF being adopted
in several industries including banking, insurance, film production, retailing,
drug research, distribution, professional services, supply chain management,
and logistics. To them I offer my heartfelt thanks.

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Contents

Preface

xxix

Introduction

xxxi

Part I

Understanding the Project Management Landscape

1

Chapter 1

What Is a Project?

3

Chapter 2

What Is Project Management?

25

Chapter 3

What Are the Project Management Process Groups?

65

Part II

Traditional Project Management

101

Chapter 4

How to Scope a TPM Project

103

Chapter 5

How to Plan a TPM Project

141

Chapter 6

How to Launch a TPM Project

217

Chapter 7

How to Monitor & Control a TPM Project

267

Chapter 8

How to Close a TPM Project

299

Part III

Complex Project Management

309

Chapter 9

Complexity and Uncertainty in the
Project Management Landscape

311

Chapter 10

Agile Project Management

327

Chapter 11

Extreme Project Management

351

Chapter 12

Comparing Linear, Incremental, Iterative, Adaptive,
and Extreme PMLC Models

359

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Contents
Part IV

Managing the Realities of Projects

445

Chapter 13

Prevention and Intervention Strategies for
Distressed Projects

447

Chapter 14

Organizing Multiple Team Projects

477

Chapter 15

Establishing and Maturing a Project Support Office

509

Chapter 16

Establishing and Managing a Continuous
Process Improvement Program

555

End State: Maturing to an Enterprise-Level
Project Management Model

591

Chapter 17

Establishing a Project Portfolio Management Process

593

Chapter 18

A Practical Project-Based Model of the Enterprise

645

Part V

Appendix A Glossary of Acronyms

683

Appendix B What’s on the Website?

689

Appendix C Bibliography

691

Index

701

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Contents

Preface

xxix

Introduction

xxxi

Part I

Understanding the Project Management Landscape

1

Chapter 1

What Is a Project?
Defining a Project

3
4

Sequence of Activities
Unique Activities
Complex Activities
Connected Activities
One Goal
Specified Time
Within Budget
According to Specification
A Business-focused Definition of a Project

4
4
5
5
5
5
6
6
7

An Intuitive View of the Project Landscape
Defining a Program
Defining a Portfolio
The Enterprise Level
Understanding the Scope Triangle

7
9
9
10
11

Scope
Quality
Cost
Time
Resources
Risk
Envisioning the Scope Triangle as a System in Balance

11
12
12
13
13
13
14

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Prioritizing the Scope Triangle Variables for Improved
Change Management
Applying the Scope Triangle

The Importance of Classifying Projects
Establishing a Rule for Classifying Projects
Classification by Project Characteristics
Classification by Project Application

The Contemporary Project Environment
High Speed
High Change
Lower Cost
Increasing Levels of Complexity
More Uncertainty

Chapter 2

16
17
17
19

20
20
21
21
22
22

Putting It All Together
Discussion Questions

22
23

What Is Project Management?
Understanding the Fundamentals of Project Management

25
26

What Business Situation Is Being Addressed by This Project?
What Does the Business Need to Do?
What Will You Do?
How Will You Do It?
How Will You Know You Did It?
How Well Did You Do?

Challenges to Effective Project Management
Flexibility and Adaptability
Deep Understanding of the Business and Its Systems
Take Charge of the Project and Its Management
Project Management Is Organized Common Sense

Managing the Creeps
Scope Creep
Hope Creep
Effort Creep
Feature Creep

What Are Requirements—Really?
Introducing Project Management Life Cycles
Traditional Project Management Approaches
Agile Project Management Approaches
Extreme Project Management Approach
Emertxe Project Management Approach
Recap of PMLC Models

Choosing the Best-Fit PMLC Model
Total Cost
Duration
Market Stability
Technology
Business Climate

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27
28
28
28
28

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30
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33

33

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34
34
34

35
39
42
47
52
56
58

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61
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Contents
Number of Departments Affected
Organizational Environment
Team Skills and Competencies

Chapter 3

62
62

63

Putting It All Together
Discussion Questions

63
64

What Are the Project Management Process Groups?
Defining the Five Process Groups

65
66

The Scoping Process Group
The Planning Process Group
The Launching Process Group
The Monitoring and Controlling Process Group
The Closing Process Group

66
67
68
68
69

Defining the Ten Knowledge Areas

69

Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management
Project Stakeholder Management

70
70
70
70
71
72
73
74
84
98

Mapping Knowledge Areas to Process Groups
What the Mapping Means
How to Use the Mapping
Using Process Groups to Define PMLCs
A Look Ahead: Mapping Process Groups to Form
Complex PMLCs

98

99
99
99
100

Putting It All Together
Discussion Questions

100
100

Part II

Traditional Project Management

101

Chapter 4

How to Scope a TPM Project
Using Tools, Templates, and Processes to Scope a Project
Managing Client Expectations

103
104
105

Wants versus Needs
Project Scoping Process
The Project Scoping Meeting

Project Scoping Meeting Deliverables

Chapter 5

105
106
109
111

Putting It All Together
Discussion Questions

139
140

How to Plan a TPM Project
Using Tools, Templates, and Processes to Plan a Project
The Importance of Planning
Using Application Software Packages to Plan a Project

141
142
144
145

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Determining the Need for a Software Package
Project Planning Tools
How Much Time Should Planning Take?

Planning and Conducting Joint Project Planning Sessions
Planning the JPPS
Running the Planning Session

Building the WBS
Using the RBS to Build the WBS
Uses for the WBS
Generating the WBS
Six Criteria to Test for Completeness in the WBS
Approaches to Building the WBS
Representing the WBS

Estimating

150
156

157
158

160
161
164
168
172

175
176
177
178
179
183
184
187
188

Constructing the Project Network Diagram

191
191
192
193
195
197
201
201
206
206
209

Writing an Effective Project Proposal

210

Contents of the Project Proposal
Format of the Project Proposal

210
212

Gaining Approval to Launch the Project
Putting It All Together
Discussion Questions

212
213
213

How to Launch a TPM Project
Using Tools, Templates, and Processes to
Launch a Project
Recruiting the Project Team

217

Core Team Members
Client Team

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Estimating Duration
Resource Loading versus Task Duration
Variation in Task Duration
Six Methods for Estimating Task Duration
Estimation Life Cycles
Estimating Resource Requirements
Resource Planning
Estimating Cost
Envisioning a Complex Project Network Diagram
Benefits to Network-Based Scheduling
Building the Network Diagram Using the
Precedence Diagramming Method
Dependencies
Constraints
Using the Lag Variable
Creating an Initial Project Network Schedule
Analyzing the Initial Project Network Diagram
Compressing the Schedule
Management Reserve

Chapter 6

146
146
148

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219
219
223


Contents
Contract Team Members
Developing a Team Deployment Strategy
Developing a Team Development Plan

223
225
226

Conducting the Project Kick-Off Meeting

226

Purpose of the Project Kick-Off Meeting
Sponsor-Led Part
Project Manager–Led Part

227
228
228

Establishing Team Operating Rules

231

Situations that Require Team Operating Rules
Team War Room

Managing Scope Changes

241

The Scope Change Management Process
Management Reserve
Scope Bank

242
244
246

Managing Team Communications

246

Establishing a Communications Model
Managing Communication Beyond the Team

Assigning Resources

246
250

252

Leveling Resources
Acceptably Leveled Schedule

252
255

Resource-Leveling Strategies

255

Utilizing Available Slack
Shifting the Project Finish Date
Smoothing
Alternative Methods of Scheduling Tasks
Cost Impact of Resource Leveling

Chapter 7

231
240

256
256
257
257
259

Finalizing the Project Schedule

Writing Work Packages

259
261

Purpose of a Work Package
Format of a Work Package

262
262

Putting It All Together
Discussion Questions

264
266

How to Monitor & Control a TPM Project
Using Tools, Templates, and Processes to Monitor
and Control a Project
Establishing Your Progress Reporting System

267

Types of Project Status Reports
How and What Information to Update
Frequency of Gathering and Reporting
Project Progress
Variances

268
269
269
273
275
275

Applying Graphical Reporting Tools

276

Gantt Charts
Stoplight Reports
Burn Charts
Milestone Trend Charts

277
277
277
279

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Contents
Earned Value Analysis
Integrating Milestone Trend Charts and
Earned Value Analysis

282

Managing the Scope Bank
Building and Maintaining the Issues Log
Managing Project Status Meetings

290
291
291

Who Should Attend Status Meetings?
When Are Status Meetings Held?
What Is the Purpose of a Status Meeting?
What Is the Status Meeting Format?
The 15-Minute Daily Status Meeting
Problem Management Meetings

Chapter 8

291
292
292
292

293
294

Defining a Problem Escalation Strategy

294

Project Manager–Based Strategies
Resource Manager–Based Strategies
Client-Based Strategies
The Escalation Strategy Hierarchy

295
295
296
296

Gaining Approval to Close the Project
Putting It All Together
Discussion Questions

297
297
298

How to Close a TPM Project
Using Tools, Templates, and Processes to Close a Project
Writing and Maintaining Client Acceptance Procedures
Closing a Project
Getting Client Acceptance

299
300
300
300
301

Ceremonial Acceptance
Formal Acceptance

Installing Project Deliverables
Phased Approach
Cut-Over Approach
Parallel Approach
By-Business-Unit Approach

Documenting the Project
Reference for Future Changes in Deliverables
Historical Record for Estimating Duration and Cost on Future
Projects, Activities, and Tasks
Training Resource for New Project Managers
Input for Further Training and
Development of the Project Team
Input for Performance Evaluation by the Functional
Managers of the Project Team Members

Conducting the Post-Implementation Audit
Writing the Final Report
Celebrating Success

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301

302
302
302
302
302

303
303
303
303
303
304

305
307
307


Contents

Putting It All Together
Discussion Questions

308
308

Part III

Complex Project Management

309

Chapter 9

Complexity and Uncertainty in the Project Management
Landscape
Understanding the Complexity/Uncertainty
Domain of Projects

311
312

Requirements
314
Flexibility
315
Adaptability
316
Risk versus the Complexity/Uncertainty Domain
316

Team Cohesiveness versus the Complexity/Uncertainty Domain 317
Communications versus the Complexity/Uncertainty Domain 318
Client Involvement versus the Complexity/Uncertainty Domain 319
Specification versus the Complexity/Uncertainty Domain
322
Change versus the Complexity/Uncertainty Domain
323
Business Value versus the Complexity/Uncertainty Domain
325

Chapter 10

Putting It All Together
Discussion Questions

326
326

Agile Project Management
What Is Agile Project Management?

327
329

Implementing APM Projects
Co-Located APM Project Teams

330
332

What Is Lean Agile Project Management?
Iterative Project Management Life Cycle

334
335

Definition of the Iterative PMLC Model

335

Adaptive Project Management Life Cycle

340

Definition

341

Adapting and Integrating the APM Toolkit

345

Scoping the Next Iteration/Cycle
Planning the Next Iteration/Cycle
Launching the Next Iteration/Cycle
Monitoring and Controlling the Next Iteration/Cycle
Closing the Next Iteration/Cycle
Deciding to Conduct the Next Iteration/Cycle
Closing the Project

Chapter 11

345
346
347
347
348
348
348

Putting It All Together
Discussion Questions

349
349

Extreme Project Management
What Is Extreme Project Management?
Extreme Project Management Life Cycle

351
352
352

Definition

353

What Is Emertxe Project Management?

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Contents
The Emertxe Project Management Life Cycle
When to Use an Emertxe PMLC Model

353
354

Using the Tools, Templates, and Processes for
Maximum xPM Effectiveness

355

Scoping the Next Phase
Planning the Next Phase
Launching the Next Phase
Monitoring and Controlling the Next Phase
Closing the Phase

Deciding to Conduct the Next Phase
Closing the Project

Chapter 12

Putting It All Together
Discussion Questions

358
358

Comparing Linear, Incremental, Iterative, Adaptive,
and Extreme PMLC Models
Linear PMLC Model

359
360

Characteristics
Strengths
Weaknesses
When to Use a Linear PMLC Model
Specific Linear PMLC Models

Incremental PMLC Model
Characteristics
Strengths
Weaknesses
When to Use an Incremental PMLC Model
Incremental PMLC Models

Iterative PMLC Model
Characteristics
Strengths
Weaknesses
When to Use an Iterative PMLC Model
Specific Iterative PMLC Models

Adaptive PMLC Model
Characteristics
Strengths
Weaknesses of the Adaptive PMLC Model
When to Use an Adaptive PMLC Model
Adaptive Project Framework

Extreme PMLC Model
Characteristics
Strengths
Weaknesses
Specific Extreme PMLC Models
INSPIRE Extreme PMLC Model

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357
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364
366
367
368

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371
371
373
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377

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381
383
384
386
386

399
400
401
402

403
403

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423
424
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Contents
Challenges to Project Setup and Execution

438

Sponsors Have a Hard Time Accepting Variable Scope
Achieving and Sustaining Meaningful Client Involvement
Through the Phases of the Chosen PMLC Model
Adapting the Chosen PMLC Model to Changing Conditions
Delivering Business Value in a Complex Project Landscape

438
438
439
439

Putting It All Together
Discussion Questions

441
442

Part IV

Managing the Realities of Projects

445

Chapter 13

Prevention and Intervention Strategies for Distressed Projects 447
What Is a Distressed Project?
448
Why Projects Become Distressed or Fail

449

Managing Distressed Projects

452

Prevention Management Strategies
Using Tools, Templates, and Processes to Prevent
Distressed Projects
Intervention Management Strategies
An Intervention Process Template

452
453

459
471

Roles and Responsibilities of the PSO with Respect to Distressed
Projects
472
Analyzing the Current Situation
Revising the Desired Goal
Evaluating the Options
Generating the Revised Plan

Chapter 14

474
474
475
475

Putting It All Together
Discussion Questions

475
475

Organizing Multiple Team Projects
What Is a Multiple Team Project?
Challenges to Managing a Multiple Team Project

477
478

479

Working with Teams from Different Companies
Working with Fiercely Independent Team Cultures
Working with Different Team Processes
Accommodating Competing Priorities
Communicating Within the Team Structure
Establishing a Project Management Structure
Establishing One Project Management Life Cycle
Building an Integrated Project Plan and Schedule
Defining a Requirements Gathering Approach
Establishing a Scope Change Management Process
Defining the Team Meeting Structure
Establishing Manageable Reporting Levels
Sharing Resources Across Teams
Staffing Across the PMLC
Searching Out Your Second

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