Managing Projects in Telecommunication Services

Effective project management tailored to the needs of the telecommunications industry "In our rapidly changing world, the information and communication technologies and services have an immense impact on virtually all aspects of our lives. . . . With his deep understanding of the telecommunication services, and his rich experiences in both standardization activities and teaching practice, [Dr. Sherif's] book provides a very clear analysis of development projects in telecommunication services. I believe the readers will find this book very useful and interesting." —Houlin Zhao, Director, Telecommunication Standardization Bureau,International Telecommunication Union "Dr. Sherif's book is an important contribution to the project management literature. With the domination of the service economy in recent years, the book addresses the unique features of telecommunication services, a critical pillar of the service sector. Development projects in telecommunications require combining good knowledge of the fundamentals of project management with clear understanding of the complexities arising from fast-changing technology, deregulations, standards, accountability, and supply chain management difficulties. This book addresses the much-needed integrative approach very well." —Tarek Khalil, President, International Association for Management of Technology (IAMOT) While there has been much written about project management, the vast majority of the literature focuses on industrial design and production. In Managing Projects in Telecommunication Services, Mostafa Hashem Sherif effectively demonstrates the unique requirements of projects in telecommunication services and, consequently, the benefits of an integrated approach to project management that is specifically tailored to the telecommunications industry. Managing Projects in Telecommunication Services draws from a wide range of disciplines, including organizational management, motivation, quality control, and software engineering. All the theory and practical guidance that an effective telecommunications project manager needs is provided. The text is divided into three main parts: Chapters 1 through 3 set forth the special characteristics of telecommunications projects, including technology life cycle, type of innovation, and project organization Chapters 4 through 10 cover the areas that the Project Management Institute has standardized in its publication A Guide to the Project Management Body of Knowledge (PMBOK® Guide), focusing on the issues specific to telecommunications. Chapters address scope, schedule and cost, information and communication, human resources, quality, vendor management, and risk Chapters 11 and 12 integrate and summarize all of the concepts for the planning and delivery of a project Chapters are loaded with examples and case studies, many from the author's personal experience, that demonstrate the benefits of good project management and the consequences of poor project management. Each chapter includes a summary of key points. References are also provided to facilitate further research and study. For project managers as well as students in telecommunications, this text is unsurpassed. It not only covers the theory and practice of effective project management, it also tailors its discussion specifically to the unique needs of the telecommunications industry. (PMBOK is a registered mark of the Project Management Institute, Inc.)

Table of Contents:
Foreword xiii Preface xv 1 Projects in Telecommunication Services 1 Introduction 1 Project Management Versus Product Management 1 Virtual Network Operators 3 Contribution of Project Management 4 The Two Facets of Telecommunication Services 5 Categories of Projects in Telecommunication Services 6 Upgrades of Public Networks 7 Establishment of Specialized Business Networks 8 Temporary Networks 10 Characteristics of Telecommunication Service Projects 11 Complex Interfaces 11 External Interfaces 11 Internal Interfaces 12 International Orientation 15 Multidisciplinarity 15 No Mass Production 16 Diverse Users 16 A Relatively Long Planning Stage 17 Summary of Distinctions Between the Development of 17 Telecommunication Services and Equipment Summary 17 2 Standards and Innovation in Telecommunication Services 19 The Two Dimensions of Telecommunication Projects 19 The Technological Dimension 19 The Marketing and Social Dimension 22 Classification of Innovations 23 Innovations and the Technology Life Cycle 25 Innovation in Telecommunication Services 26 Incremental Innovation 27 Architectural Innovation 28 Platform Innovation 30 Radical Innovation 30 Interaction of Innovations in Equipment and Services 30 Phasic Relation Between Equipment and Services 31 Standardization for Telecommunication Services 34 Timing of Standards 35 Marketing Perspective 35 Technological View of Standards 35 Anticipatory Standards 36 Enabling (Participatory) Standards 37 Responsive Standards 38 Lack of Standards 38 Standards Policy and Knowledge Management 39 Summary 40 3 The Project Management Context 43 Organization of the Project Team 43 Functional Organization 44 Examples 45 Advantages 47 Disadvantages 47 Matrix Organization 47 Examples 48 Advantages 50 Disadvantages 50 Projectized Organization 50 Examples 51 Advantages 51 Disadvantages 51 Comparison of Project Organizations 52 Project Organization and Innovation Type 52 Incremental Innovation 52 Architectural Innovation 53 Platform Innovation 54 Radical Innovation 54 The Role of the Project Sponsor 54 Phase Management and Portfolio Management 56 The Rolling Wave Method for Service Development 56 Phase 1: Concept Definition 57 Phase 2: Initiation and Preliminary Planning Phase 58 Phase 3: Implementation 58 Phase 4: Controlled Introduction 58 Phase 5: General Availability and Close-Out 59 Canceling Projects 59 Relation to the Build–Operate–Transfer Model 59 Summary 60 4 Scope Management 61 Scope Initiation 62 Scope Planning 62 Market Service Description (MSD) 62 Scope Definition 63 Work Breakdown Structure 63 Technical Plan 64 The Need for Scope Management 66 Salt Lake City Winter Olympics 66 E-Zpass Toll Collection System 66 Background 66 Gaps in the Definition ITS Scope 67 Scope Creep in New Jersey 68 Sources of Scope Change 68 Customer Profile 69 Vendor’s Effect 69 Basic Principles of Scope Management 69 Change Control Policy 71 Strictness of the Change Control Policy 71 Change Control Board 72 Scope Verification 72 Tracking and Issue Management 72 Project Termination 73 Case Studies 74 Telecommunications Alliances/Joint Ventures 74 Net 1000 76 Background 77 Timeline and Organization Evolution 78 Postmortem Analysis 80 Lessons Learned 84 Lessons Not Learned 84 Summary 85 5 Time and Cost Management 87 Scheduling 87 Delays in Telecommunication Projects 88 Compressing the Schedule 89 Cost Management 90 Project Tracking with Earned Value Analysis 91 Metrics for the Earned Value 92 Discrete Effort Method 92 Apportioned Effort Method 93 Level of Effort Method 93 Budget Types 93 Monitoring Project Progress 93 Measures of Efficiency 94 Prerequisites for Earned Value Analysis 95 Earned Value Analysis in Telecommunication Projects 95 Summary 97 6 Information and Communication Management 99 The Role of Communication Management 99 Dissemination of Information 100 Team Cohesion 100 Historical Database 101 Communication and Outsourcing 101 The Communication Plan 102 Audience 102 Circumstances 103 Nature of Information 103 Content of the Plan 104 Communication Channels 104 One-on-One Communication 105 Meetings 105 Telephony and Teleconferences 107 E-Mail 107 Intranets and Project Portals 107 Evaluation of the Communication Processes 108 Measure of Communication Effectiveness 108 Signs of Communication Problems 108 Barriers to Successful Communications 109 Summary 109 7 Resources Management 111 Formation of the Project Team 111 Team Building 116 Team Building and the Hierarchy of Human Needs 116 Signs of a Jelled Team 117 Enablers of Team Cohesiveness 117 Impediments to Team Consolidation 118 No Self-Actualization 118 No Self-Esteem 118 No Belongingness 119 No Security 119 Team Breakup (Adjourning) 119 Project Leadership 119 Transactional Versus Transformational Leadership 120 Project Manager’s Authority 120 Manipulative Behavior 120 MBTI Classification of Leadership Styles 121 Time-Dependent Leadership 123 Matching Leadership Style with the Project Phase 123 Matching Leadership Style with Innovation Type 124 Matching Leadership with Technology Maturity 125 Conflict Resolution 126 Conflicts Due to Contractual Structures 126 Conflicts Due to Connectual Structures 127 Types of Diversity 127 Examples of Social Diversity 128 Examples of Informational Diversity 128 Examples of Value Diversity 129 Conflicts and Diversity 130 Effects of Conflict on Project Performance 130 Dealing with Conflicts 132 Problem Solving 132 Coercion 132 Compromise 132 Accommodation 132 Withdrawal or Avoidance 132 Summary 133 8 Quality Management 135 Overview 135 Quality and Innovation 136 Service Release Management 137 Quality Plan 138 Categorization of the Defects: Urgency and Criticality 139 Appraisal 141 Schedule Compression 144 Evaluation of Testing Progress 145 When to Stop Testing? 145 Vendor Management During the Testing Program 148 Summary 150 Appendix 151 Poisson Model 151 The Basic Model 152 The Jelinski–Moranda Model 152 Deployability 153 Learning Effect with the Yamada Model 154 9 Vendor Management 157 The Importance of Vendor Management 157 Vendor Management Versus Procurement Management 157 Acquisition Process 158 Evaluation of the Formal Solicitation Process 160 Vendor Selection 160 Contract Type 161 Vendor Types in Telecommunications Services 161 Vendor Evaluation 162 Additional Criteria for Equipment Vendors 164 Additional Criteria for Connectivity Vendors 164 Communications with Technology Vendors 165 Statement of Work 165 Vendor Tracking 166 Partnerships and Virtual Organizations 166 Metrics for Vendor Tracking During Acceptance Testing 168 Vendor’s Handoff 169 Metrics for Vendor Tracking for Problems in the Field 169 Risks in the Management of Technology Vendors 170 The Technology Life Cycle 170 Vendor Type 170 Risk of Supply Disruption 171 Congruence of the Plans for the Vendor and the Service Provider 171 Lack of Standards 172 Intellectual Property and Knowledge Management 172 Inadequate Field Support 173 Risk Mitigation in the Management of Technology Vendor 173 Connectivity Vendors 174 Types of Agreements Among Network Operators 174 Risks Management for Interconnectivity Vendors 174 Summary 175 10 Risk Management 177 Risk Identification 178 Risk Evaluation 178 Risk Mitigation 180 Risk Avoidance 180 Risk Reduction 180 Combined Risk Avoidance and Reduction 181 Risk Deflection 181 Risk Financing 182 Risks Identification Telecommunications Services 183 Project Characteristics 184 Complexity 184 Schedule 184 Novelty 185 Geography 185 Internal Organization 185 Technology 186 Supplier 187 Customer 187 Risk Mitigation in Telecommunications Services 187 Risks Due to Project Characteristics 187 Technological Risks 188 Supplier’s Risks 189 Customer’s Risks 189 Standardization and Risk 189 Innovation and Risk 191 Incremental Innovation 191 Architectural Innovation 192 Platform Innovation 193 Radical Innovation 193 Risk Mitigation and Organizational Culture 193 Risk Mitigation and the Project Manager’s Tolerance for Risk 194 Summary 194 11 Service Development 197 Opportunity Analysis and Concept Definition 197 Product Definition and Project Setup 198 Design and Procurement 199 Architecture Design 199 Supplier Management 200 Technical Definition of the Service 202 Site Selection 202 Service Operations Technical Plan (SOTP) 202 Support Processes 203 Operations, Administration and Maintenance (OA&M) 205 Disaster Recovery 207 Customer Network Management 209 Development 209 Equipment Handoff 210 System and Integration Testing 210 Network Operations Center (NOC) 211 Human Resources 211 Return Maintenance Authorization (RMA) 211 Customer Care 211 Service Turn-Up 212 Installing the Equipment 212 In-Field Tests 212 Pilot Trials 213 Controlled Introduction 214 Management of the Controlled Introduction 214 Marketing and Sales Plans for General Availability 215 Commissioning and Life-Cycle Management 217 Lessons Learned and Closeout 217 Quality-of-Service Metrics 217 Customer Care Performance 219 Network Performance 219 OA&M Quality 219 Business and Network Evolution 219 Summary 221 Appendix 221 12 Some Final Thoughts 223 Continuity and Change 223 Project Success or Service Success? 224 Competition and Government Policies 225 Standardization 227 Outsourcing 228 References 229 Index 239