Project Management Theory and Practice

Updated to reflect the Project Management Institute’s (PMI’s) Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition, the new edition of this bestselling textbook continues to provide a practical and up-to-date overview of project management theory. Project Management Theory and Practice, Second Edition explains project management theory using language that is easy to understand. The book integrates the organizational environment that surrounds a project to supply the well-rounded knowledge of theories, organizational issues, and human behavior needed to manage real-world projects effectively. This edition includes a new chapter on Stakeholder Management, which is a new knowledge area covered in the new PMBOK® Guide. It also provides updated references and a new streamlined organization of chapters. There are several project-related model frameworks sponsored by PMI®, and many of these are covered in this text. Specifically, the book details: Work breakdown structures (WBS) Earned value management (EVM) Enterprise project management (EPMO) Portfolio management (PPM) Professional responsibility and ethics For many of the major sections, the PMI Global Accreditation curriculum learning objectives have been adapted with permission of PMI and used to guide the content. Filled with end-of-chapter questions, scheduling and budgeting problems, and scoping projects, this text is ideal for classroom use and essential reading for anyone seeking project management certification. The book also includes sample empirically oriented worksheets that demonstrate various management decision and analysis-oriented tools.

Table of Contents:
CONCEPTUAL OVERVIEW OF THE PROJECT ENVIRONMENT Introduction Project Management Role of the PM PM Skills Success Management Appendices References Evolution of Project Management Early History of Project Management Application of Analytical Science Frederick Taylor and Scientific Management Frank and Lillian Gilbreth Henry Gantt Mary Parker Follett Elton Mayo Phases of Project Management Evolution Project Management Challenges Project Management Benefits At the Macrolevel At the Microlevel References Project Management Body of Knowledge High-Level Overview History of PMBOK® Guide Development Structure of the PMBOK® Guide Project Domains Knowledge Areas Introductory Vocabulary Terms Ancillary Models Summary Reference Industry Trends in Project Management Standardizing Project Management Enterprise Project Management EPM in Operation Implementation and Advantages of EPM Other Trends Impacting Project Management Project Management Perspective Discussion Questions References Project Types Reference Project Organization Concepts PM’s Role Reporting Relationships Team Resources Team Productivity and Size Team’s Physical Location Issues Virtual Organizations Organizational Culture Summary References Project Life Cycle Models Overview of Project Methodologies Life Cycle Management Process Feasibility Review Project Plan Logical versus Physical Design Quality Control and Quality Assurance Monitor and Control Periodic Status Reviews Milestone or Stage Gate Reviews Project Close Project Communication Processes Life Cycle Models Templates Key Project Management Artifacts Initiating Planning Execution Monitoring and Control Baseline Project Methodology Models Summary Points References Quick Start Example Project Management Work Packages WP Dictionary Multiple WPS Psychology of Estimating Procrastination Developing the Whole Project View Project Scope Example: Pool Project Mechanics Quick Start Wrap-Up Discussion Questions Reference Concluding Remarks for Part 1 PROJECTS AS STATE CHANGE VEHICLES Role of Projects in the Organization Project Valuation Models Project Selection Strategies Conclusion References Project Initiation Introduction Environmental Factors to Consider User Involvement Executive Management Support Experienced PM Communications Clear Business Objectives Minimized Scope Other Success Factors Agile Development Approaches Existence of a Standard Process Infrastructure Use of a Standard Methodology Reliable Time Estimates Availability of Appropriate Skills Industry and Organizational Culture Project Success Trends Forecasting the Success of Technology Projects Conclusion References DEFINING THE TRIPLE CONSTRAINTS Project Plan Development Arguments for Planning Project Monitoring and Control Conflicting Expectations Overlooking the Real Solution Competing Solutions Misaligned Goals Quality Solutions Plan Process and Components Initial Planning View Plan Artifacts Real-World Planning Process Conclusion References Scope Management Defining Project Work Units WP Planning Variables Multiple WPs Developing the Project View Developing Project WBS WBS Mechanics WBS Numbering Scheme WBS Dictionary Other WBS Views Tracking Status of the WP WBS Construction Mechanics Requirements "ibilities" Moving Forward References Time Management Defining Project Work Activities Define Activities Activity Sequencing Estimating Activity Resources Estimate Activity Duration Tips for Accurate Estimating Types of Estimates Estimating Techniques Expert Judgment Analogous Estimating Heuristic Estimating Delphi Technique Parametric Estimating Phased Estimating Effort Distribution Estimating (Top-Down) Bottom-Up Estimating Monte Carlo Simulation Activity Sequencing Activity on Arrow Activity on Node Model Time Calculation Network Mechanics Establishing the Project Activity Sequence Sample Project Definition Forward Pass Calculation Backward Pass Calculation Defining Critical Path Manipulating the Schedule Automated Calculation Tools Formatting Activity Results Which Diagram Format Wins? Summary Estimating Checklist Problems References Cost Management Project Cost Planning Basics Cost Planning Cost Accuracy Organizational Overhead Scope, Time, and Cost Alignment Scope Replanning Fast Tracking Schedule Crashing Indirect Costs Resource Alignment Budget Reserves Plan Dynamics Risk Events Management Reserve Resources Have Different Colors Budget Expense Categories Assets versus Expenses Budget Cost Components Management Approval and Baselines Summary References Concluding Remarks for Part 3 PLANNING SUPPORT PROCESSES Human Resource Management HR Planning HR in Execution Acquire Project Team Project Organizations Dotted Lines People Issues Role Specifications Responsibility Assignment Matrix Resource Histograms Staffing Management Plan Motivation Theory Individual Motivation Theories Team Motivation Hygiene Dissatisfiers Employee Satisfaction Conflict Management Conflict Sources Negotiation Skills Techniques for Handling Conflict Conflict Management Scenario Case Leader versus Manager? Attributes of a Leader Training Programs Summary References Project Communications Introduction Engaging Employees: A Case Study Communications Management Processes Plan Communications Distribute Information Report Performance Human Communications Model Communication Channels Communicating Information Improving the Effectiveness of Communication Effective Listening Barriers to Effective Communication Communication Tension Communication Styles Communications: The Impossible Goal? Conclusion Discussion Questions References Stakeholder Management Introduction Identifying Stakeholders Communications Planning Stakeholder Composition Communication Steps Content Definition Delivery Media Communication Tension Stakeholder Classification Managing Stakeholder Expectations Project Operational Integration Final Thoughts References Procurement Management Introduction Procurement Management Make or Buy Decision Procurement Management Processes Planning for Procurement Planning Stage Outputs Procurement SOW Conduct Procurements Requests for Information Requests for Proposals Requests for Quotation Invitations for Bid Invitation to Negotiation Bidding Process Selecting Sellers Contract Negotiation Contracts Conduct Procurement Procurement Audits Contract Review and Reporting Record Keeping and Audits Close Procurements Procurement of Human Services Ranking Vendor Proposals Instructions Summary Discussion Questions Glossary of Procurement Terms Appendix: Contractual Legal Terms References Quality Management Introduction Evolution of Quality Definition of Quality Project Quality Management Quality Perspective Implications for Project-Planning Stage Quality Planning Quality Policy Quality Objectives Quality Management Components Quality Definition Quality Planning Quality Assurance Quality Control QA versus QC Operational Roles Quality Gurus Edwards Deming Joseph Juran Philip Crosby Kaoru Ishikawa Armand Feigenbaum Genichi Taguchi Six Sigma Other Gurus Quality Management Programs ISO 9000 Zero Defects Total Quality Management Sigma PMBOK Guide Quality Process Model Other Programs Evaluating Quality Benchmarking Continuous Improvement Failure Mode and Effects Analysis Quality Tools Other Quality Analysis Techniques Design of Experiments Quality Function Deployment Organizational Roles and Responsibilities Issues in Quality Management Toyota Quality Perspective Future of Quality Management Worksheet Exercise: Are You Meeting Quality Goals? Discussion Questions References Risk Management Introduction Risk Management Process Risk Management Planning Developing an RBS Risk Identification Qualitative and Quantitative Risk Analysis Risk Assessment Risk Contingency Budget Risk Response Planning Risk Control Risk Events versus Issues Project Risk Assessment Worksheet Risk Case Study Mishap Foils Latest Attempt at a 25-Mile Skydive Conclusion Discussion Questions References Integrating the KAs Reviewing Plan Components Plan Approval Process Review Major Planning Artifacts Project Management Plan Financial and Control Structures Scope Reserve Risk Reserve Level of Effort Overhead Management Reserve Profit Budget Structure and Format Control Structure Documentation Plan Packaging External Communication Process Planning Stage Close Discussion Questions ADVANCED PLANNING MODELS Analyzing Variable Time Estimates History of Variable Time Estimates Modifying PERT for Commercial Projects Defining Variable Time Estimates Central Limit Theorem Triangular Distributions Calculating Probability of Completion Summary References Project Simulation Traditional Time Modeling Tools Near-Critical Path Activities Task Existence Risk Modeling Conditional Activity Branching Correlation between Task Durations Simulation in Risk Management Pertmaster Modeling Other Pertmaster Metrics Summary References Critical Chain Management Model Introduction CC Concepts CC Mechanics CCM Model Principles of the CC Model Buffer Management Buffer Types Building the CC Schedule Resource Allocation Implementation Challenges Organizational Barriers Leadership Challenges Skill Requirements Buffer Management Organizational Challenges of the CC CC Implementation Strategies Conclusion References PROJECT EXECUTION: WORKING THE PLAN Project Execution Management Introduction Magic Twelve Success Indicators Status View Status-Tracking Processes Turning the Management Control Knobs Human Relations and Communications Issues Team Acquisition Manage Project Team Meetings as Information Sources Project Team Member Dissatisfiers Project Team Member Motivators Conclusion Discussion Questions References MONITORING AND CONTROLLING TECHNIQUES Change Management Introduction Integrated Change Control Change Control System Configuration Management Change Management Workflow External Communication Issues Change Request Checklist Summary References Project and Enterprise Metrics Introduction Fundamentals Alignment with Organization Goals Alignment with Organizational Maturity Drivers of Performance and Change KPI Categories Metrics Evaluation Criteria Establishing a Baseline and Setting Targets Beware of the Metrics Pitfalls Mechanics Miscellaneous Issues Industry Standard Metrics for Monitoring and Control Conclusion References Earned Value Management Basic Principles Calculating EV Parameters Interpreting EV Parameters EVM Criteria EVM Simplified EVM for Commercial Applications Emerging Applications of EVM Earned Schedule ES Mathematical Formulation ES Formulae ES Indicators EVM Pros and Cons Conclusions Appendix A. Summary Review of EV Metrics and Performance Parameters B. EV Formulae and Interpretation C. Using a Summary Project Plan Spreadsheet to Calculate EV Parameters D. EV Earning Rules Problems References Tracking Project Progress Introduction Status Tracking Tracking Metrics Information Distribution Control Project Plan Issue Management Process Configuration Management Integrated Change Control KA Controls Scope Control Schedule Control Cost Control Quality Control Project Status Tracking Case Study Conclusion References Enterprise Reporting Using the Balanced Scorecard Introduction Scorecard Implementation Communicating Strategic Objectives Communicating Strategy Assigning Responsibility Aligning Strategy Process Integration BSC Implementation Principles Best Practices Barriers to Success BSC Model Financial Perspective Internal Business Process Perspective Learning and Growth Perspective Customer Perspective BSC as a Strategic Management System Overcoming the Vision Barrier Overcoming the People Barrier Overcoming the Resource Barrier Overcoming the Management Barrier BSC as a Communication Tool Balancing the BSC Components Advantages and Disadvantages of BSC Advantages Disadvantages Future of the BSC Conclusion References CLOSING THE PROJECT The Closing Process Project Implementation Review Normal Project Termination Abnormal Termination Termination Model Project Termination Checklist Project Team and Client Relationship Creating Lessons Learned Documentation Lessons Learned Report Project Team Celebration Conclusion References CONTEMPORARY TOPICS Organizational Maturity Introduction Capability Maturity Model SEI’s Capability Maturity Model CMM Structure CMM Maturity Levels Initial Level (Level 1) Repeatability Level (Level 2) Defined Level (Level 3) Managed Level (Level 4) Optimizing Level (Level 5) Capability Maturity Model Integration Value of Organizational Maturity Organizational Project Management Overview of OPM3 OPM3 Components Knowledge Assessment Evaluation Process Best Practices Improvement Planning Directory OPM3 Processes Applying OPM3 in an Organization OPM3 Benefits and Case Studies Conclusion References Project Portfolio Management Introduction Role of PPM Improving Project Selection Decisions Improving Visibility of Project Performance Better Understanding of Project Value Conducting "What If" Analysis Project Investment Management Who Needs a PPM? PPM Goal Structure Subgoal 1: Strategic Goal Alignment Subgoal 2: Resource Investment Focus Subgoal 3: Better Project Control/Governance Subgoal 4: Efficiency Subgoal 5: Balance Subgoal 6: Value Optimization Models of PPM Hybrid Model Efficient Frontier Project Assessment Keys to Implementing PPM PPM Principles Finding the Approach that Fits Executive Support Governance Framework Value-Measurement Framework Institute Effective Processes PPM Implementation Roadmap External Expertise Implementation Goals Key PPM Interfaces PPM Implementation Challenges Advantages of Implementing PPM Summary References Enterprise Project Management Office Introduction PMO Functions Enterprise Project Management OFFICE (EPMO) Communication Performance Metrics Status Reporting EPMO Communication Linkages EPMO Organizational Models Weather Station Model Control Tower model Resource Pool Model Which Model Is the Right One? EPMO Maturation Stages EPMO Tools and Technology Evaluating and Prioritizing New Projects Weighted Criteria Example Summary References HR Outsourcing Introduction Management Drivers First Wave Outsourcing Offshoring Wave Issues with Outsourcing Relationships Outsourcing Success and Failures Best Outsourcing Practices Outsourcing Vendor Evaluation Worksheet Conclusion References High-Productivity Teams Background and Overview Introduction to TSP Concepts PP Concepts PP Example Introducing PP to the Team TP Process TP Work Objects and Principles TP Launch Structure TP Launch Details Teamwork Process Quality Management Experience Examples and Evaluation TSP Qualitative Feedback Results Future Trends Large, Multidisciplined Projects Summary References Project Governance Introduction Need for Project Governance Project Governance Definition Organizational Level Project Governance Principles Tactical Level Project Governance Operational Governance Model Defining Responsibilities Populating the Project Governance Framework Governance Life-Cycle Maturity Model Governance Value Process Corporate Governance and Project Teamwork (Halas) Commentary Conclusion References PROFESSIONAL ETHICS AND RESPONSIBILITY Ethical Project Management Practices Learning Objectives Introduction PMI’s Code of Professional Conduct Review Questions Reference Appendix A: Financial Metrics Appendix B: Templates Appendix C: Project Repository Architecture Index

About the Author :
Gary Richardson is the PMI endowed professor of project management at the University of Houston College of Technology graduate project management program. This program serves both the internal and external professional community in regard to the theory and practice of project management. He comes from a broad professional background including industry, consulting, government, and academia. During the early phase of his career he was an officer in the U.S. Air Force, followed by industry stints at Texas Instruments as a manufacturing engineer, and then by consulting assignments at the Defense Communications Agency, Department of Labor, and the U.S. Air Force (Pentagon) in Washington, D.C. The latter half of his career was spent with Texaco, Star Enterprise (Texaco Aramco joint venture), and Service Corporation International in various IT and CIO-level management positions. Interspersed through these periods he was a professor at Texas A&M, the University of South Florida, and the University of Houston, and also did other adjunct professor stints at three other universities. Gary has previously published four computer-related textbooks and numerous technical articles. Through his experiences in over 100 significant sized projects of various types, he has observed frequently encountered management issues and has been an active participant in the evolution of management techniques that have occurred over this time. Gary received a BS in mechanical engineering from Louisiana Tech, an AFIT postgraduate program in meteorology at the University of Texas, an MS in engineering management from the University of Alaska, and a PhD in business administration from the University of North Texas. He currently teaches the PMP Prep course and other graduate-level project management courses at the University of Houston, plus various continuing education courses.

Review :
Praise for the Bestselling First Edition: This book is founded upon PMI's work, but provides broader coverage of contemporary topics of current interest in project management. ... With 37 chapters spread over ten parts, this work is comprehensive ... . This book expands on PMI's PMBOK® Guide, providing readers with a balanced knowledge of theory, organizational issues, and the associated human behavior needed to manage real-world projects effectively. It is an ideal choice for graduate management students, as well as those seeking project management certification. The later chapters, starting with Part 5, `Planning Support Processes,’ will particularly interest practicing project managers. —C.S. Arora, in Computing Reviews, September 2011