Improving Your Project Management Skills

Bulk discounts available. For details visit:

www.amacombooks.org/go/specialsales

Or contact special sales:

Phone: 800-250-5308

E-mail: specialsls@amanet.org

View all the AMACOM titles at: www.amacombooks.org

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

PMI and the PMI logo are service and trademarks of the Project Management Institute, Inc., which are registered in the United States of America and other nations; PMP and the PMP logo are certification marks of the Project Management Institute, Inc., which are registered in the United States of America and other nations; PMBOK, PM Network, and PMI Today are trademarks of the Project Management Institute, Inc., which are registered in the United States of America and other nations; … building professionalism in project management … is a trade and service mark of the Project Management Institute, Inc., which is registered in the United States of America and other nations; and the Project Management Journal logo is a trademark of the Project Management Institute, Inc.

PMI did not participate in the development of this publication and has not reviewed the content for accuracy. PMI does not endorse or otherwise sponsor this publication and makes no warranty, guarantee, or representation, expressed or implied, as to its accuracy or content. PMI does not have any financial interest in this publication, and has not contributed any financial resources.

This book is based on the seminar Improving Your Project Management Skills: The Basics for Success, revised for the American Management Association by Gary Chin and Helen Gordon.

ISBN: 978-0-8144-1728-7 (eBook)

Library of Congress Cataloging-in-Publication Data

Richman, Larry L. (Larry Leon), 1955–

Improving your project management skills / Larry Richman.—2nd ed.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0-8144-1728-7 (alk. paper)

ISBN-10: 0-8144-1728-0 (alk. paper)

1. Project management. I. Title.

HD69.P75R526    2011

658.4’04—dc22

2011003247

© 2012 Larry Richman.

All rights reserved.

This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.

About AMA

American Management Association (www.amanet.org) is a world leader in talent development, advancing the skills of individuals to drive business success. Our mission is to support the goals of individuals and organizations through a complete range of products and services, including classroom and virtual seminars, webcasts, webinars, podcasts, conferences, corporate and government solutions, business books and research. AMA’s approach to improving performance combines experiential learning—learning through doing—with opportunities for ongoing professional growth at every step of one’s career journey.

Printing number

10   9   8   7   6   5   4   3   2   1

Information about External Hyperlinks in this ebook

Please note that footnotes in this ebook may contain hyperlinks to external websites as part of bibliographic citations. These hyperlinks have not been activated by the publisher, who cannot verify the accuracy of these links beyond the date of publication.

Contents

Introduction to the Second Edition

PART 1: PROJECT MANAGEMENT FOUNDATIONS

Chapter 1. The Core Concepts

Project Management Vocabulary

Why Project Management?

Classic Functions of Project Management

Processes in the Life of a Project

Knowledge Areas

PART 2: INITIATING

Chapter 2. Defining and Authorizing the Project

The Role of Stakeholders in the Authorization Process

The Business Case for Undertaking the Project

The Goal Breakdown Structure

Project Charter

PART 3: PLANNING

Chapter 3. Collecting Requirements and Defining Scope

The Five Processes of Project Scope Management

Collecting Requirements

Creating a Scope Statement

Example Scope Document

Chapter 4. Creating a Work Breakdown Structure

The Work Breakdown Structure Is an Outline

Considerations in Creating Work Breakdown Structures

The Work Breakdown Structure Is a Validation Tool

Work Breakdown Structures Are Flexible

Techniques in Creating Work Breakdown Structures

Verifying Scope

Controlling Scope

Chapter 5. Defining and Sequencing Activities

Defining Activities

Sequencing Activities Using Network Diagrams

Identifying Dependencies Between Activities

Defining Activity Relationships

Sample Network Diagram

Chapter 6. Estimating Activities

Using the Work Breakdown Structure

Steps in Estimating Activities

Estimating Methods

Guidelines for Estimating

Considering Risk in Estimating: Using Three-Point Estimates

Precision of Estimates

Duration-Based vs. Resource-Based Estimates

Building Contingency in Estimates

Improving Estimates over Time

Chapter 7. Scheduling Activities

Scheduling Activity Dates

Project Float

Accelerating Project Schedules

Chapter 8. Identifying Resources and Budgets

Identifying Resources

Balancing Resources

Creating a Project Budget

Chapter 9. Compiling the Major Components of a Project Plan

Project Charter

Project Scope Statement

Schedule Plan

Resource Utilization Plan

Budget Plan

Milestone Plan

Organization Plan

Risk Management Plan

Communication Plan

PART 4: EXECUTING, MONITORING, AND CONTROLLING

Chapter 10. Executing Projects

Project Kick-Off Meeting

Project Control

Project Meetings

Project Control Process

Monitoring Project Work

Collecting Project Information

Schedule Importance

Labor Hours

Data Analysis

Change Control

Sources of Change

Chapter 11. Monitoring and Controlling Projects

Establishing a Project Baseline as a Control Point

Measuring Performance: Earned Value Analysis

Chapter 12. Leading and Directing Project Teams

Leading Others

Directing Others

Managing Others

Conducting Meetings

Interviewing Others

Chapter 13. Managing Risk

Identifying Risk

Assessing and Prioritizing Risk

Responding to Risk

Acting on the Response Plan

PART 5: CLOSING

Chapter 14. Closing a Project

Project Closure: The Final Process

Ensuring Project Requirements Are Met

How Projects Can End

Administrative Closure

Contractual Closure

Initiating Project Closure

Lessons Learned

Finance and Administration Records

Performance Reporting

Staff Release

Appendix A: Learning Resources

Appendix B: Glossary

Index

Introduction to the Second Edition

PROJECT MANAGEMENT KNOWLEDGE and skills can help you complete projects on schedule, within budget, and in full accordance with project specifications. At the same time, they help achieve the other goals of the organization, such as productivity, quality, and cost-effectiveness. By definition, every project is unique—a specific set of tasks aligned to meet stated requirements. But a skilled project manager consistently applies universal processes and skills to bring consistency and results to one project after another. Learning project management skills can help you implement these proven strategies for clarifying project objectives, avoiding serious errors of omission, and eliminating costly mistakes.

This book guides you step-by-step through all the processes in the life of a project, beginning with defining project scope and requirements. It explains how to create a work breakdown structure and diagram the activities into a logical sequence using simple network diagrams. It then describes techniques for estimating work on these activities, including trade-offs in time, cost, and resource allocation. You then learn how to compile your schedules, budgets, and resource plans into a comprehensive project plan.

Chapters will teach you how to monitor and control project activities using your project plan as a baseline. In addition to hard project management skills, you will learn the people skills needed to lead and direct project teams to get the job done. The book also includes chapters on identifying and managing risk and how to properly close the project and document lessons learned.

This book is based on the best-selling American Management seminar Improving Your Project Management Skills, attended by thousands of project professionals every year. This second edition has been updated for consistency with A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fourth Edition, published by the Project Management Institute. It reflects the latest professional standards in project management and provides current project management practices and examples.

Your organization demands and deserves superior project execution and consistent results. These powerful project tools, based on a world-class learning program and proven, universal project management tenets, will help you streamline processes, reduce costs, and improve productivity in your project environment.

PART 1

Project Management Foundations

CHAPTER 1

The Core Concepts

PROJECTS ARE AN ESSENTIAL PART of human history. Some projects arise in myth, some in wartime, some from faith, and others from science and commerce. Some projects are monumental, and others are more modest. Ancient Egypt created the Great Pyramids, the Sphinx, the Library, and the Lighthouse of Alexandria. China’s Great Wall, which still stands today, took over 1,000 years to build. Peru’s Incan culture left us the lingering splendor of Machu Picchu. In our own time, we have placed men on the moon and returned them safely. We have developed drugs that target specific diseases. We have responded to environmental incidents, managed failures at nuclear sites, and responded to natural disasters. We have linked individuals and organizations through the miracle of the Internet. We have fulfilled the promise of integrated business systems that embrace enterprise resource planning, inventory management, production and control, human resources, and financial systems. This history of accomplishment will not end.

Some projects are ambitious and far-reaching in their social, economic, and political impacts. Others are less grand and more self-contained. Some require advances in basic science, and others deploy proven technology or best practices. Some projects challenge deeply held beliefs, and others uphold traditional values. And some projects fail.

The goal is always to achieve some beneficial change. Every project is an endeavor. Every project is an investment. Every project will end. Some will end when the goal is achieved, and others when the time or cost is disproportionate to the value. Some projects will be cancelled. In all cases, the project manager serves as the focal point of responsibility for the project’s time, cost, and scope.

Project Management Vocabulary

Success requires that the project manager serve as the focal point of effective, timely, and accurate communication. To do this well, the project manager must master a new vocabulary and must use it consistently to communicate successfully. The definitions introduced in this chapter are the project manager’s methods of art—words and terms used in the context of planning, scheduling, and controlling projects.

A project is a temporary endeavor undertaken to create a unique product, service, or result. * Projects are temporary because they have a definite beginning and a definite end. They are unique because the product, service, or result is different in some distinguishing way from similar products, services, or results. The construction of a headquarters building for ABC Industries is an example of a project. The unique work is defined by the building plans and has a specific beginning and end.

Project management is "the application of knowledge, skills, tools, and techniques to project activities to meet