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NETWORK
MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.
JANUARY 2013 VOLUME 27, NUMBER 1

CORE PROCESSES AND SOFTWARE MAKEOVER:
2012 PMI PROJECT OF THE YEAR AWARD FINALIST
CASHLESS PROJECTS CHANGE
THE WAY PEOPLE PAY
DOES A PROJECT MANAGERS AGE MATTER?
BUILDING ON THE CHEAP
JOBS
GLOBAL
REPORT
2013
PMN0113 Cover.indd 1 12/4/12 2:05 PM
PMN0113 Cover.indd 2 12/4/12 11:52 AM
JANUARY 2013 | VOLUME 27, NUMBER 1
44
Is Cash No Longer King?
Projects to create a world
without currency are on
the rise, but users still need
some convincing.
By Meredith Landry
PHOTO BY NEIL BOYD
Lead
J.J. Eden,
AECOM,
Raleigh, North
Carolina, USA
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PMN 0113 1-19.indd 2 12/4/12 2:07 PM
36 50 56
26
Global Jobs Report:
5 Sectors to Watch
Even in an iffy economy, project employment
isnt hard to come byprovided professionals
know what to look for.
By Sarah Fister Gale
Behind the Scenes
One of the worlds biggest manufacturers
overhauls its IT systems and processeswith
few in the outside world ever noticing.
By Keith Jackson II
The Right Connections
Like any project, networking in the age of
social media demands a disciplined approach.
By Rachel Zupek Farrell
Meeting of the Minds
Avoiding tedious time-wasters requires plan-
ning, managing and assessing. Sound familiar?
By Heidi Hjerpe
The Blame Game
Finding whos at fault on a failed project
doesnt simply mean pinning it all on
the project manager.
By David Whitemyer
26
36
50
56
62
Features
PMN 0113 1-19.indd 3 12/4/12 2:08 PM
PMN 0113 1-19.indd 4 12/4/12 2:08 PM
DOWNLOAD THE PM NETWORK APP and read the magazine on your iPad,
iPhone or iPod Touch, or Android device.
MAKING PROJECT MANAGEMENT
INDISPENSABLE FOR BUSINESS RESULTS.
66
20
15
13
VOICES
20 Peer to Peer
More Than a Number?
David Espina, IBM Global
Business Services, Washington,
DC, USA, and Lisa
Hogben, London Underground,
London, England
23 Project Perspectives
Pique Performance
24 In the Trenches
Game On
By Robert Castel, PMP
25 From the Top
Loosening the Reins
Frederic Schwartz, Frederic
Schwartz Architects, New York,
New York, USA

COLUMNISTS
61 The Agile Project Manager
Daily Torture
By Jesse Fewell, CST, PMP,
Contributing Editor
66 The Business of Projects
The Sunk-Cost Dilemma
By Gary R. Heerkens, MBA,
CBM, PMP, Contributing Editor
ALSO IN THIS ISSUE

7 Feedback
How would you explain
to a 5-year-old what
a project manager does?
17 Metrics
Project-oriented
employment growth and
shortage of candidates
68 Marketplace
PMI Core Standards

71 Directory of Services
Project management
resources
72 Closing Credit
A city with sustainable
featuresbuilding from
the ground up
THE PULSE
8 Locking Down Data
Organizations are more
confident than they should be
about their data security

9 Parking Garage Projects
Ramp Up
Vertical structures save
precious urban space
10 Tunneling to Trade
Project teams carve new trade
routes out of solid rock

10 A Gassy Feeling
Liquefied natural gas efforts
stumble Down Under

12 Castles in the Sand
Dubai renews efforts to create
new tourism havens
13 Airports Try to Become
Final Destination
Terminals go beyond the basics
to boost bottom line
14 Estimating the Project
Management Practitioner
Skills Gap
Growing gulf emerges between
open jobs and available talent
15 Building Communities on a
Tight Budget
Architects innovate to keep
costs low on community
development projects
Also
PMN 0113 1-19.indd 5 12/4/12 2:08 PM
THE PROFESSI ONAL MAGAZI NE OF THE PROJ ECT MANAGEMENT I NSTI TUTE NETWORK
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CONTRIBUTING EDITORS
Jesse Fewell, CST, PMP, RippleRock India
Gary R. Heerkens, MBA, CBM, PMP,
Management Solutions Group Inc.
Sheilina Somani, PMP, Positively
Project Management
Roberto Toledo, MBA, PMP, Alpha PM
Consulting
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DIRECTORS
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JANUARY 2013 PM NETWORK 7
THE PROFESSI ONAL MAGAZI NE OF THE PROJ ECT MANAGEMENT I NSTI TUTE
PUBLICATION & MEMBERSHIP
PM Net work (ISSN 1040-8754) is pub lished month ly by the Proj ect Man age ment In sti tute. PM
Net work is printed in the USA by Quad Graphics, Sussex, Wisconsin. Pe ri od i cal post age paid
at Newtown Square, PA 19073-3299 and at ad di tion al mail ing of fic es. Canadian agreement
#40030957. Post mas ter: Send ad dress chang es to PM Net work, 14 Campus Boulevard, New-
town Square, PA 19073-3299 USA. Phone +1 610 356 4600, fax +1 610 482 9971.
The mission of PM Net work is to facilitate the exchange of information among professionals in
the field of project and program management, provide them with practical tools and techniques,
and serve as a forum for discussion of emerging trends and issues. All articles in PM Net work are
the views of the au thors and are not nec es sar i ly those of PMI.
Sub scrip tion rate for mem bers is US$42/year and is in clud ed in the an nu al dues. PMI is
a non prof it pro fes sion al or gan iza tion ded i cat ed to ad vanc ing the state of the art of proj ect
man age ment. Mem ber ship in PMI is open to all at an an nu al dues of US$119. For in for ma tion
on PMI pro grams and mem ber ship, or to re port change of ad dress or prob lems with your sub-
scrip tion, con tact:
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land, United Kingdom, Vatican City
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PUBLICATIONS MAIL AGREEMENT #40030957
Return Undeliverable Canadian Addresses to: Circulation Department /
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2013 Project Management Institute Inc. All rights reserved.
All rights reserved. PMI, the PMI logo, Making project management indispen sable for
business results, PMI Today, PM Network, Project Management Journal, PMBOK,
CAPM, Certified Associate in Project Management (CAPM), PMP, the PMP logo,
PgMP, Program Management Professional (PgMP), PMI-RMP, PMI Risk Management
Professional (PMI-RMP), PMI-SP, PMI Scheduling Professional (PMI-SP) and OPM3
are registered marks of Project Management Institute, Inc. Project Management Profes-
sional (PMP) is a service mark of Project Management Institute, Inc. in the United States
and/or other nations.
PM Network welcomes story ideas and/or suggestions about sources. Our stories are written by
professional journalists. Please contact Imagination editorial director Cyndee Miller or PMI editor
in chief Dan Goldfischer with your ideas and suggestions. If you are interested in submitting articles
for the PMI Knowledge Shelf, located at www.PMI.org/Knowledge-Center/Knowledge-Shelf.aspx,
please contact Dan Goldfischer. More information can be found at www.PMI.org/en/Knowledge-
Center/Publications-PM-Network.aspx . Published articles do not necessarily reflect the views of the
magazine or the Project Management Institute. PM Network is not responsible for loss, damage, or
any other injury to unsolicited manuscripts or other material.
DIGITAL EDITION
A digital edition of this issue is available to PMI members by logging on to www.PMI.org
and selecting Knowledge Center, then Back issues in the online library. The digital edition of
PM Network is also accessible on Android devices, iPad, iPhone and iPod Touch, via the PM
Network app.
READER SERVICES
For placing orders or for inquiries, please contact PMI Publishing Department at pmipub@pmi.org.
Permissions. Requests to reprint articles published in PM Network must be made in
writing to the publisher using the online form at www.PMI.org/Forms-Permissions.aspx.
No part of PM Network may be reproduced or transmitted in any form or by any means,
electronic or mechanical, includ ing photocopy, recording, or any information storage and
retrieval system, without written permission from the publisher.
Back Issues. Back issues may be purchased when available by contacting documentdelivery@pmi.org.
Pricing varies with number of copies, and members receive a discount.
PDF Files. Articles in PDF format are available for download from the Marketplace at
www.PMI.org at no cost to members. Non-member price for all articles is US$15 each.
Glossy Reprints. Requests for glossy reprints of articles in quantities of 100 or more can be sent
to pmipub@pmi.org.
Bulk Copies of Current Issue. Copies of the current PM Network can be obtained in quantities
of 25 or more. Orders must be placed 40 days prior to date of issue. The cost is US$5.50 per
copy plus shipping.
Change of Address. Members can edit their demographics, including their addresses, by logging
onto www.PMI.org and accessing My PMI. All readers can send change of address information
to customercare@pmi.org or call PMI customer service at +1 610 356 4600 option 8.
[LINKEDIN]
PMIS CAREER CENTRAL GROUP ON LINKEDIN
Childs Play
Marco Persichini asks: How would you explain to a 5-year-
old what a project manager does?

Carol Villegas responds: Explaining how we work with
budgets and project schedules wont work. (Picture his or her
eyes glazing over.) Relating the job to his or her teacher may
make it easier to understand: We plan like the teacher plans
for what will be taught during the year. We give assignments,
track progress and work with others for various specialties
like when the teacher relies on guest speakers when shes not
the expert, such as a reghter for re safety week.
[FACEBOOK]
Project managers measure success in a number of ways that
reach beyond the usual triple constraint. How do you mea-
sure success as a project manager?
Haleem Akar-Ahmed says: Customer satisfaction and effective
communication among the project team and project manager.
David Southgate responds: Economic impact resulting from
the projects successful on-time delivery.
Devesh Kumar adds: Predicting failures, risks or issues early
in the project life cycle, before projects are conceived, is the
success of a project manager.
[VOICES ON PROJECT MANAGEMENT BLOG]
A Risk Worth Taking
How does risk management planning make your proj-
ects successful? asks Saira Karim in a recent blog post.
Loren Padelford responds:
The importance of risk management in project management
cannot be overstated. Successful projects have effective risk
management as a core function.
In major projects, risk management is not only about
identifying and managing your potential downside; done
properly, risk management can signicantly improve oppor-
tunity identication and exploitation. Risk management is
a two-sided sword. On one side, you have value protection,
and on the other, you have value creation. Effective project
and portfolio risk management is as much about taking
risks as it is about managing them.
[LETTER TO THE EDITOR]
A Risky Register
It was good to see risk mentioned in several articles in the Novem-
ber 2012 issue of PM Network. This included the Divide and Con-
quer piece (pages 26-27), discussing risk priority and risk urgency,
as well as the special report on mega-events (pages 36-43).
But I was very concerned to see the article Dont Leave Home
Without It (pages 54-61), which presented two risk registers
as case studies for how risk management can prevent project
disaster.
In my view, this article contains some basic mistakes. For
example, hardly any of the risks in either case study are really
risks, in my opinion. This is most obvious in the second risk reg-
ister, where the Risk column includes Security, Location, Time,
Cost, Real Estate, etc. These are not risks; they are just categories
or types of risk. Theres a hint of what the risk might be in the
Action column, for example where Delays due
to security issues, suggests a risk that Un-
foreseen security issues may occur, leading to
delays. But what are these security issues?
In the rst risk register, where in this frame-
work is the risk recorded? Is it supposed to be in
the column headed Vulnerability? If so, then
the highlighted example (A) of Fixed scope, re-
sources and time is not a riskit is a constraint.
In fact nearly everything in this column is a
constraint or fact, not a risk apart from Risk
No. 6 which says Project does not deliver the
expected result. This is an effect, not a risk. The
content of the Trigger/Issue column is closer
to a risk, but even then its not clear.
Then weve got the bigger issue of not includ-
ing any opportunities or upside risks of course. And most of the
responses are just normal project management good practice.
Risk management is supposed to help us manage risks, but it
can only do that if the risk register describes the real risks clearly
and accurately.
David Hillson, PhD, PMP, PMI Fellow
Peterseld, England
BE HEARD
Want to share your thoughts on project man-
agement? Look for discussion topics posted
on PMIs Career Central LinkedIn Group by the editors of
Community Post, PMIs e-newsletter. Your response could be
published in the e-newsletter.
[VOICES BLOG POLL]
Seeking Advice
How often does your or-
ganization bring in project
management consultants?
70%
30%
On a project-to-project basis
Annually
PMN 0113 1-19.indd 7 12/4/12 2:08 PM
8 PM NETWORK JANUARY 2013 WWW.PMI.ORG
thePulse
25%
The portion of organizations
that involve information security
during a projects inception
45%
The portion of global
executives who plan to boost security
spending in the next 12 months
12%
The portion of organizations that wait until
implementation to involve information
security in a project
Source: The Global State of Information Security Survey 2013, PwC.
PMN 0113 1-19.indd 8 12/4/12 2:08 PM
Image courtesy of Turner
PARKING GARAGE
PROJECTS RAMP UP
Even as hackers get more sophisticated (and bolder), companies and government
agencies remain dangerously naive about the state of their information security
processes.
Project management can help prevent a data breachbut only if organizations
make the investment up-front. And that will require shaking executives out of their
mistaken belief that a hack attack wont happen to them, according to PwCs The
Global State of Information Security Survey 2013.
Forty-two percent of the executives interviewed saw their organizations as front-
runners in information security strategy and execution. And 68 percent expressed
confdence that information security behaviors were embedded in their organizational
culture.
But, when PwC analysts applied their defnition of a front-runner, only 8 percent
made the cut, says Mark Lobel, principal at PwC, New York, New York, USA, and co-
author of the report. He identifed four factors that correlate to fewer security breaches:
1. A defned strategy for information security
2. A chief security ofcer who reports to the executive suite
3. Regular testing and monitoring of security systems
4. Measurement and review of processes to understand why secu-
rity events occur
Te common element? Good project management is involved in
all of it, Mr. Lobel says.
The High Cost of Compromise
Organizations dont have to look far to see the risks of overlooking
data security. In September, cyber thieves cracked into the U.S. state
of South Carolinas tax-collection agency and stole 3.6 million Social
Security numbers and information from 387,000 credit and debit
card accounts. Te state Ofce of the Inspector General blamed the
incident on South Carolinas lack of a statewide information security
program.
South Carolina isnt alone. PwC respondents ranked absence of
an efective strategy as one of the greatest obstacles to improving
the organizations information security function.
Te top challenge remained insufcient expenditures, but help may
be on the way: Forty-fve percent of executives said they planned to
boost security spending in the 12 months after the survey.
Locking Down Data
thePulse
12%
The portion of organizations that wait until
implementation to involve information
security in a project
Its a perpetual problem that
often leaves city leaders in a tight
spot: How do you make room for
denizens cars in packed urban
centers where parking spaces are at
a premium?
In the United States, automated
parking garages are an ideal solu-
tion, often storing the same number
of cars in half the space needed by a
conventional parking garage.
These facilities are effective
because they eliminate the need for
ramps, which take up much of the
real estate in a typical garage.
Less than a handful of these
automated parking garages existed
in the United States before 2008,
but now post-recession, sponsors in
the country have hit the gas pedal
on new projects.
In Miami, Florida, a US$6.5 mil-
lion, 480-car system is currently
under construction, on the heels of
a similar garage that opened last
year. An in-progress project in West
Hollywood, California, aims to build
the countrys rst automated park-
ing garage west of the Mississippi
River. And West Hempstead, New
York-based Automotion Parking
Systems unveiled plans late last
year to open a fourth automated
garage in New York, New York.
Projects to build these structures
involve more than construction. A
laser system measures the height,
width and weight of vehicles enter-
ing the garage. Those specications
are then relayed to a computer,
which sends the automobiles to
appropriately sized spots via electri-
ed rail.
Its a fully automated garage
with nobody on sitewith cars
coming in and out very much like
a vending machine, Ari Milstein,
the North American executive
director of Automotion, told The
Atlantic Cities.
Automated parking garage in
New York, New York, USA.
Its much
cheaper and
easier to x
a security
problem in
a blueprint
than in
the nal
testing of an
application.

Mark Lobel, PwC,
New York, New York,
USA
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Teir sense of timing may be of, however. Only 25 percent said they involve information security dur-
ing a projects inception, and 12 percent wait until implementation. For security to be efective, it must be
integrated into every project plan right from the outset. Even if its not a major factor of the project, its
always a consideration, Mr. Lobel says.
He suggests implementing checks at every stage of the project plan, with sign-off required from
security team members. They should also be consulted when-
ever theres a major change to ensure it doesnt compromise
the security of the data or the business.
Tough this up-front focus on security is expensive and
time-consuming, it can ofer big business benefts: Projects are
delivered more efciently and at a lower cost. Project teams
should not be in the position to retroft security solutions after
the application has been built, Mr. Lobel says. Its much cheaper
and easier to fx a security problem in a blueprint than in the fnal
testing of an application.
To make the case for incorporating information security into a
project from the start, project managers should lay out the risks with
cold, hard numbers.
Its the cost of not taking these steps thats the big issue, Mr.
Lobel says. You have to quantify what it means to the company if
your data is compromised. Sarah Fister Gale
TUNNELING TO TRADE
Mountains may make beautiful vistas, but they can be a huge barrier to business, forcing organizations to
map out convoluted trade routes. Now, engineers in several countries have decided theyre not going to
allow a few mountains to get in the way of global commerce.
Te Gotthard Base Tunnel, a CHF9.8 billion project to pass under the Swiss Alps, aims to link the
booming economic regions of southern Germany with Italys industrial north via Switzerland.
But such massive infrastructure projects are full of risks and often require yearseven decadesof
planning and work.
Te idea for the 57-kilometer (35-mile) Gotthard tunnel, for example, dates back to 1947, though con-
struction didnt begin until 1996.
To complete the project by 2016, project planners divided the megaproject into fve construction
A GASSY FEELING
Calling in Security
When do executives involve information security during a project?
Source: The Global State of Information Security Survey 2013, PwC. Results based on a
survey of more than 9,300 executives from around the world.
Project inception
Analysis and
design phases On an as-needed
basis
Do not know
Implementation
phase
25%
24%
21%
18%
12%
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Australia was primed to be a leader in liqueed natural gas (LNG) production, according to the Interna-
tional Energy Agency (IEA). The organization projected that by 2016, the country would be the second-
largest exporter of LNG, behind only current leader Qatar.
But in 2012, all seven major Australian LNG projects saw delays and cost increases, which has slowed
the once-promising industry, according to RigZone. Recent studies show that Australia is the most
expensive offshore exploration and production location in the world today, said David Knox, CEO and
managing director of Adelaide, Australia-based oil and gas company Santos. Those affected include:
Gorgon Chevron Australia AU$43 billion
Ichthys INPEX US$34 billion
PROJECT COMPANY INITIAL BUDGET
A U S T R A L I A
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phases, some of which are being carried out simultaneously. To create the two main tunnels and almost
180 cross-passages, teams built access and supply tunnels, as well as excavated enormous underground
caverns to serve as bases for the tunneling activities and blast operations, according to Herrenknecht AG,
the German tunnel-boring company working on the project.
Anyone who masters such a huge project is at the pinnacle of infrastructure development, Martin
Herrenknecht, chairman of the board of management at Herrenknecht AG, said when the team broke
through the western end of the tunnel in March 2011.
Te project also requires the coordination of more than 1,000 technical interfaces, according to Inter-
national Railway Journal.
As the project heads toward completion, the team has set up a test laboratory, with virtual trains
already racing through the new tunnel, the journal reported.
Gotthard Base Tunnel
under the Swiss Alps
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Wheatstone Chevron Australia, Apache, Kuwait Foreign Petroleum AU$29 billion
Exploration Company, Shell, Kyushu Electric Power
Company and PE Wheatstone Pty Ltd.
Queensland Curtis LNG QGC US$15 billion
Gladstone LNG Santos US$16 billion
Prelude Shell AU$11.8 billion
Australia Pacic LNG Origin, ConocoPhillips and Sinopec US$8.5 billion
PROJECT COMPANY INITIAL BUDGET
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CASTLES
IN THE
SAND

With an indoor ski
resort and the worlds
tallest hotel among
its attractions, Dubai,
United Arab Emirates
was well underway
to becoming a global
tourist attraction
three years ago.
But when state-
owned holding
company Dubai World
undertook a debt-
restructuring plan in
2009, Dubai shelved
several tourism
projects, including a
665 million replica of
the Taj Mahal.
Following a 10
percent increase in
foreign visitors in the
rst six months of
2012, the Taj Mahal
project has been
revived, and the
country also unveiled
another ambitious
project: Mohammed
bin Rashid City. The
complex will boast
a large park, an
entertainment center,
art galleries and up to
100 hotels, according
to The Telegraph.
As of press time,
it was unclear how
much the project
would cost or when
it would start, but
the announcement
is a sign that Dubais
hiatus from tourism
projects was just a
quick trip.
Full trials, with trains running at speeds up to 230 kilometers (143 miles) per hour, are sched-
uled to begin early this year.
Clearing the Bottleneck
Te Gotthard team isnt the only one with tunnel vision. Engineers in Chile and Argentina are
pitching a US$3.5 billion, 127-mile (205-kilometer) project to create the Aconcagua Bi-Oceanic
Corridor, a tunnel through the Andes aimed at boosting cross-border trade.
There is a gigantic network of infrastructure on both sides of the mountain range with a
bottleneck we must free up, says Nicolas Posse, project director at Corporacin Amrica (CA)
in Buenos Aires, Argentina, which is leading the project.
But frst the team must conquer a basic fnancing issue. Both the Chilean and Argentinean
governments have committed to the project as a matter of national interest and created a commis-
sion that will provide loan guarantees. However, neither country will put up any taxpayer money:
Te project will be paid for entirely by a private consortium led by CA, which will then receive the
usage fees.
Its the frst time a
project of this kind has
been presented as a private
efort, Mr. Posse says. We
are entering virgin territory.
Sponsors see strong
demand for the project,
arguing the tunnel could
save plenty of money on
transportation costs and
carve days of shipping
times.
Trucking company
owner Ivan Caccia told the
Associated Press that he
anticipates costs for mov-
ing wine and fruit between
Argentinas Mendoza
province and Chiles capital
of Santiago to drop from
US$1,400 to US$840 per truckload. Te time required to complete the trip would also be cut in
half, from two days to one.
Te project could also provide a global edge. Te tunnel is a huge opportunity to increase trade
in the Pacifc Basin, Mr. Posse says.
Currently, many of the goods transported between the east coast of South America and Asia
must sail around the tip of South America, adding nearly a week to the transport time. Shipping
by rail between Atlantic and Pacifc ports would unite the most productive regions of Chile and
Argentina, and develop more efcient trade links with China, Japan and Southeast Asia.
If all goes well with the fnal approval process, CA plans to break ground this year. Te corridor
will take an estimated 10 years to complete, and as with any long-term project, the team will have
to keep up with innovations along the way.
We know whats available today, but we dont know what will be around in fve to eight years,
Mr. Posse says. One of our primary challenges is creating a project plan and schedule today that
factors in new technologies and approaches. Sarah Fister Gale
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Argentina
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Airports
Try to Become
the Final
Destination
More than a decade after the 9/11 attacks, airlines still urge travelers to arrive several
hours before a fight to allow for baggage checks and long lines at security screenings.
But in that time between checking in and taking of, whats a weary traveler to
do? Realizing it pays to provide patrons with some options, airports around the globe
are launching projects that take terminals far beyond the basic newsstands.
At Incheon International Airport just outside of Seoul, South Korea, travelers can
stroll through a garden, check out a museum, ice-skate, see a movie or listen to live
music. Such amenities prompted one USA Today writer to lament, Why cant all
airports be like Incheon?
More are headed in that direction, as airports aggressively jockey for business
from airlines and their passengers.
Particularly at global hub airports, people have more time to spend, so competi-
tion to attract travelers is ferce, says William Jenkinson, senior associate at global
design frm Gensler, Chicago, Illinois, USA. Its all about getting to number one
in the world ratings for passenger experience and convenience. In the end, this afects [which airlines]
choose to use an airport, and therefore afects the bottom line.
Even the much-heralded Incheon airport is getting an upgrade courtesy of Gensler and collaborating
design architect HMGY (Heerim-Mooyoung-Gensler-Yungdo) Consortium. Slated for completion in time
for the 2018 Winter Olympics in Pyeongchang, South Korea, the 6.7-million-square-foot (622,000-square-
meter) Terminal 2 will ofer shopping, a new hotel and conference center, and lush gardens.
Managing Mini-Cities
Airport projects come with a dizzying list of requirements spanning retail and hospitality design, urban planning,
landscape design, people and baggage moving, environmental engineering, and product and brand design.
For example, the airport in Chennai, India, designed by Gensler, has two new terminal projects near-
ing completion, each built around the concept of a calm oasis. To create the vision, project planners are
building an enclosed glass bridge that leads to a tropical garden, flled with palm trees, orchids and other
indigenous plants.
Airports are truly cities in their own right, so there is a multitude of diferent kinds of buildings and
infrastructure that have distinct management needs, Mr. Jenkinson says.
Te addition to the international airport in Denver, Colorado, USA will include a hotel and conference
center with a rooftop pool and panoramic views of the Rocky Mountains, and an outdoor plaza for festi-
vals. But the project scope extends beyond the confnes of the facility, with a new rail line connecting the
airport with downtown Denver, 23 miles (37 kilometers) away.
Landing in the Black
As Incheons top status in customer satisfaction surveys shows, design innovation at airports makes people
happyand there are some signs it impacts the airports bottom line, too.
Te success of an airport is dependent on commercial viability, Mr. Jenkinson says. So whereas the
At global
hub airports,
people have
more time
to spend, so
competition
to attract
travelers is
erce.

William Jenkinson,
Gensler, Chicago,
Illinois, USA
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Incheon International Airport,
Seoul, South Korea
PMN 0113 1-19.indd 13 12/4/12 2:08 PM
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shops and restaurants used to be regarded as a convenience, theyre now critical to an airports fnancial
success. Everything revolves around the success of commercial oferings.
Te international airport in San Francisco, California, USA debuted its renovated Terminal 2 in April
2011 and is seeing the ROI. Te US$383 million revamp was designed to refect San Franciscos culture
and aesthetic through art installations and locally sourced and organic food.
With comfort and culture comes cash: Airport ofcials report that Terminal 2s sales per passenger are
22 percent higher than at the other two domestic terminals. Kristen Lund
ESTIMATING
THE PROJECT
MANAGEMENT
PRACTITIONER
SKILLS GAP
The future of project management looks ush with employment
opportunitiesespecially for those new to the profession.
Each year, until 2020, projectized industries in the United States
will average 234,883 openings for new project-oriented jobs, according to PMIs Project-
Oriented Employment Trends and Costs of a Skills Gap: 2010-2020 report, conducted by
the Anderson Economic Group.
Te number of project-oriented jobs in seven projectized industries among 11 coun-
tries will jump to 47.6 million by decades end, a 30 percent increase from 2010.
Tose industriesmanufacturing, management and professionals services, fnance
and insurance, oil and gas, information and publishing, construction, and utilitieshave
proven resilient, even during recessionary economic cycles.
For example, productivity, as measured by GDP per employee, increased signifcantly
in projectized industries in the United States during the most recent recession, rising
from US$153,496 in 2008 to US$176,111 in 2010.
So no matter what the future may hold for project management, the profession
looks strong.
In projectized industries, according to the report, there were 31.1 million project-
oriented workers in 2010 in 10 countries: Australia, Brazil, Canada, China, Germany,
India, Japan, Saudi Arabia, the United Arab Emirates and the United Kingdom.
Tat labor force is expected to grow 33.1 percent by 2020, and 13.4 million new proj-
ect professionals will be needed to fll the labor demand in these countries.
With so much opportunity, what could go wrong?
Filling the Skills Gap
A rapidly retiring baby boomer generation is a major component of the looming skills gap that puts in
question whether the project positions can even be filled. If there is a skills gap, organizations will be
hard-pressed to deliver projects and programs as effectively and efficiently, risking ROI and meeting
strategic goals.
When attrition is the reason behind the job openings, flling an employment gap poses diferent chal-
lenges for employers than when the gap is created by growth. Employers can incentivize project-oriented
workers to remain in the workforce for a longer period with increased compensation or fexible work
The number of project-
oriented jobs in seven
projectized industries
among 11 countries
will jump to
47.6 million
by this decades end, a
30 percent
increase from 2010.

Source: Project-Oriented Employment Trends and
Costs of a Skills Gap: 2010-2020, PMI
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schedules, among other methods. Tese experienced workers can serve as mentors to incoming talent and
take the lead in training programs.
Opportunity to Prepare the Next Generation of Project Professionals
When top talent retires, the dearth of leadership will challenge organizations to balance their talent portfolio
to ensure the right people with the right skills are allocated to the right programs.
But organizations dont have to fll this talent gap on their own. Entry-level project professionals can
land these roles by frst knowing the job market for each industry.
For example, the U.S. healthcare industry is projected to experience the highest growth
in demand for project professionals. Under 2 percent of jobs in the US$2.3 trillion health-
care sector are currently project-oriented, but the project management job growth is esti-
mated at 29.6 percent through 2020, the study found.
Myriad opportunities exist for getting a foot in the door in other industries as well. For
those new to project management, there is an estimated annual global demand of 1.57 million jobs for
potential project professionals in those seven project-oriented industries. Louis La Plante
Building Communities
on a Tight Budget

As the social safety net unrav-
els, architects are trying to help
already vulnerable communities
with a more budget-friendly
approach to community devel-
opment projects.
More than 1 billion people
around the world live in sub-
standard housing, according to
the United Nations.
Looking to close that gap,
the Indonesian government has
launched a one-year program
to construct 12,000 new low-
cost houses in 200 underdevel-
oped regions, according to the
Jakarta Globe. Te government
also plans to build 200,000 low-
cost houses for low-income
civil servants, police ofcers
and soldiers.
It takes more than housing
to build a true community, of
course, so many projects also include parks, community centers and schools.
Te Olympic Village in London, England is currently being transformed into an afordable housing
complex alongside community centers and open squares.
Such projects often come with a high price tag; Indonesias program allotted IDR1.5 trillion for reno-
vating dilapidated houses, for example. And the lingering economic malaise has taken its toll on commu-
Cassia Co-op Training Centre, Sungai Penuh,
Kerinchi, Sumatra, Indonesia
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For a deeper look
at the data, see
Metrics on page 17.
PMN 0113 1-19.indd 15 12/4/12 2:08 PM
thePulse
nity development eforts as governments and NGOs
alike face serious budget cuts.
Andreas G. Gjertsen and Yashar Hanstad, co-
founders of TYIN tegnestue Architects in Trond-
heim, Norway, argue there are ways to rebuild
communities on the cheap. Te duos afordable
housing and community-center projects won the 2012 European Prize for Architecture,
awarded to architects whose projects have made a signifcant humanitarian impact. Many
TYIN projects are completed in just a few weeks or months on bare-bones budgetsoften
less than US$10,000.
Laying the Foundation
TYIN has learned to not get caught up in the bells and whistles. You have to think simple,
and all the choices should lead to results that are actually usable and necessary, Mr.
Gjertsen told online architecture magazine Floornature.
Going local can also build in efciencies. When the TYIN team built a training center for
farmers and workers in the cinnamon forests of Sumatra, Indonesia, it relied primarily on
two materials: locally crafted bricks and the trunks of cinnamon trees. A byproduct of cin-
namon production, the trunks have a low status among the locals. However, the team saw
potential in the sturdy material and incorporated it prominently in the design. Te resulting
building was constructed for around US$38,000and has already survived several earth-
quakes. Te team even sought out a local resource for hauling trees: Eight water bufaloes
got the job done with no training required.
Mr. Hanstad recommends getting to know the community through interviews, work-
shops and public forums.
Tere are so many decisions that can lead to solutions that might not beneft the community, and mak-
ing sure we do not make more harm than good is naturally a very important issue in these projects, he says.
When building dormitories for orphans in Noh Bo, Tailand, for example, the team frst used the wrong
bamboo construction method. Tat structure lasted two days before water seeped in and the structure fell
apart. To reduce the risk of a repeat failure, the architects turned to local residents, who taught them a tra-
ditional bamboo-weaving technique that they used for the side and back facades of the residences.
We see that the social fabric is always hard to decipher, and we need to have a strong local network of
stakeholders and professionals, says Mr. Hanstad.
Taking the time to immerse themselves in the community allowed team members to design and build
the community center in just three weeks for US$5,800. A lot of this efciency is founded on good and
thorough planning, says Mr. Hanstad.
To help other project planners, the frm released an online kit with advice on how to fnish a project
with limited resources. While working on projects, we saw that our experiences could have a more uni-
versal value, Mr. Hanstad says. Kristen Lund
Many TYIN projects are
completed in just a few weeks
or months on a bare-bones
budgetoften less than
US$10,000.
Buildings and residents, below, at Soe Ker Tie
House, Noh Bo, Tak, Thailand
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Major Economic Movers
These seven projectized sectors in the United States represented
36% of the countrys GDP in 2010.
Professional Services 10.7%
Finance/Insurance 8.5%
Manufacturing 4.3%
Information Services 3.9%
Construction 3.5%
Oil & Gas 2.3%
Utilities 1.8%
THE LATEST
STATISTICS, SURVEYS
AND STUDIES
CRUNCHING THE NUMBERS
Among 11 countries, project-oriented positions within seven projectized industries will grow from 36.6
million in 2010 to 47.6 million by 2020.
Money at Stake
US$322.48 billion
in global GDP is at risk by 2020 if the estimated project professional
skills shortage comes true.
Source: Project-Oriented Employment Trends and Costs of a Skills Gap: 2010
to 2020, PMI and Anderson Economic Group; Population and Household
Estimates for England and Wales, Ofce for National Statistics.
(Percentage)
0 5 10 15
Thats a 30 percent increase.
2010
2020
Millions of positions
Running on Empty
Reasons for the looming labor shortage
include not only normal economic
growth, but also a rapidly retiring baby
boomer generation.
For example, there are more 65-year-olds
in England and Wales now than at any
point in history, according to the United
Kingdoms Ofce for National Statistics.
1 in 6 people in U.K
are 65 and over.
Fresh Faces
Every year, the
skills shortage
will open an
estimated 1.57
million jobs
across the globe for workers new
to project management.
Many TYIN projects are
completed in just a few weeks
or months on a bare-bones
budgetoften less than
US$10,000.
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Does the age of a project professional matter?
Lisa Hogben: Unfortunately, the age of a project professional matters to many people. A lot
of older professionals tend to believe that age is an indicator of experience. Ive found that people
make assumptions about colleagues and managers based on their age. For example, younger project
professionals are considered keen and full of ideas, but lacking in knowledge and experience. On
the other hand, older professionals are perceived by younger professionals to be experienced and
knowledgeable, but unable or unwilling to grasp new ideas and ways of working.
More Than a Number?
Are age and competence mutually exclusive when
it comes to the abilities of a project professional?
David Espina, PMP, and Lisa Hogben weigh in.
PMN 0113 20-25.indd 20 12/4/12 2:11 PM
David Espina, PMP, is a service area
manager at IBM Global Business Ser-
vices, Washington, DC, USA.
Lisa Hogben is a project manager at
London Underground, a transporta-
tion company in London, England.
David Espina, PMP: Te age of a project professional is
irrelevant. Age indicates nothing more than the passage of
time. Tere is nothing about the passage of time that infuences
the mastery of skill and ability. Ones ability to perform a task
well requires maturation of ones knowledge of the task, skill
of performing the task and experience performing the task. All
three must advance if we are to see improvement in performance.
Experience requires time, during which the practitioner is getting
older, which is why many fnd it intuitive that age matters. But I
counter that notion with the argument that the time one needs to
capture experience is both relative and extremely variable.
Ms. Hogben: I agree that age should not be relevant and that
the passage of time afects us diferently. I wonder though
because age is considered relevant and important to many
people, is that why it renders it relevant to us? Tat doesnt mean
we have to believe it to be important, but perhaps we should
Are age and competence mutually exclusive when
it comes to the abilities of a project professional?
David Espina, PMP, and Lisa Hogben weigh in.
Age indicates nothing
more than the passage
of time. There is nothing
about the passage of
time that infuences
the mastery of skill
and ability.

David Espina, PMP, IBM Global Business Services, Washington, DC, USA
PMN 0113 20-25.indd 21 12/4/12 2:11 PM
at least be aware that if it matters to others, it might afect the
project managers interactions with us, such as their propensity
to trust and their willingness to delegate responsibility.
Is an older project manager more competent
than a younger project manager?
Mr. Espina: Age has nothing to do with competence. I
recently worked on a task within a very large project that had
approximately 60 resources and was worth near US$20 million in
contract cost value. It was led by a senior project manager who
had far more years behind him than in front of him. It was poor
management from the beginning: very disorganized, ill-defned
roles, sloppy scheduling and poor customer satisfaction.
Tis person was replaced by a far junior project manager,
who turned the task around in a few weeks. To be sure, there
were other interventions at play to encourage the tasks recov-
ery. However, it was quite clear that the new project manager
brought in a degree of performance not seen from the original
project manager, who happened to be older.
Ms. Hogben: Tere are many capable, competent young
project managers, and many older ones, too. Equally, there
are plenty of incompetent older and younger project managers.
Many people believe that with age comes experience and with
experience comes competence. Younger project managers have
worked for less time and therefore have not had the opportunity
to gain as many years of service, but this does not make them any
less competentperhaps just less knowledgeable about certain
things.
A manager of mine once told me, You can have 20 years
experience of doing the same thing over and over again, or fve
years doing a range of diferent things. I would argue that the
latter project manager would and should be considered more
competent than the former.
Are age and experience the same thing?
Mr. Espina: Te fact that many people believe age is an indi-
cator of experience is a bias. It is a source of ageism and results
in discrimination.
Ms. Hogben: I think the connotations that come with age
in the workplace are related to societal norms and values.
Te parent-child relationship, for example, sees the older parent
holding authority over the younger child. Tis could be consid-
ered a natural hierarchy easily translated into the workplace.
Mr. Espina: Age is measured on a ratio scaleit is equal for
all of us. One year for me is the same as one year for everyone
else. Experience, however, is not equal, and the results of get-
ting experience vary dramatically. One person can mature in
capability with experience gained over one year, where it would
take 10 for another. In the pilot community, for example, it is
understood that 100 hours of fight time are not equal from pi-
lot to pilot. Flying one hour in a clear blue sky around your base
airport 100 times is much diferent than 100 hours in severe
instrument meteorological conditions fying cross country, de-
spite the fact that both pilots aged equally over those 100 hours.
Ms. Hogben: Te question is whether lots of years of expe-
rience is equal to good experience, and this is not always
the case.
Age is a number. Experience is an intricate combination
of knowledge, memories, learning, thoughts, opinions and
encounters. Age implies life experience, but not necessarily
work experience. PM
Young project managers...have
not had the opportunity to gain as
many years of service, but this does
not make them less competent
perhaps just less knowledgeable
about certain things.

Lisa Hogben, London Underground, London, England
PMN 0113 20-25.indd 22 12/4/12 2:11 PM
VOICES Project Perspectives
Terri Buffolino, PMP
operations director,
American Express, Fort
Lauderdale, Florida, USA
You shouldnt have to
excite the project sponsor
if the right sponsor was
chosen in the rst place.
The sponsor should
be supportive and see
the value in the project.
If he or she doesnt, you
have to understand what
is valuable to the spon-
sor and leverage that to
get the sponsor more
engaged. For example, is
there a burning issue in
his or her shop that you
can link the project to?
If you can show that the
project will help solve
that issue, you should be
able to capture his or her
attention and interest.
Revaz Margania,
CAPM
project manager, Onyx
Consulting, London,
England
Sponsors dont always
realize the importance of
the project. To get them
excited, show how the proj-
ect is good for the com-
pany. Provide some hard
measurements, like the ROI
or sales increase the project
will achieve.
Also, show the progress
of the project. Clearly lay
out for the sponsor what
was planned, what was
achieved, when it will be
completed and so on.
If this doesnt help, your
sponsor could be the wrong
person for the job. Perhaps
he or she doesnt value the
work of others. In this case,
nothing can be done.
Sergio Luis Conte,
PhD, PMI-ACP, PMP
program manager, service
management, PepsiCo,
Buenos Aires, Argentina
I sell the project from the
very beginning to get the
stakeholder excited. The
sponsor must feel that he
or she will gain something
valuable as a result of the
project.
When I present the
project to the sponsor and
each stakeholder, I take
care to prepare for the
presentation. To do that,
the rst question I answer
for myself is the same one
that I imagine the sponsor
is thinking: Why should I
provide nancial resources
to this project?
I perform stakeholder
analysis to identify the
pain my project will allevi-
ate for each stakeholder,
especially the sponsor.
Pique Performance
How do you excite an indifferent project sponsor?
Flavia Nobre
system and business ana-
lyst, Lachmann Compa-
nies, Rio de Janeiro, Brazil
I show the relevancy of
the project and how it will
help the sponsor. People
normally think that a spon-
sor is motivated for him or
herself. Not always.
Sometimes, the sponsors
dont see the value in the
project. Each time my proj-
ect team receives a request,
we make the elicitation [of
the new requirement], write
the scope and the software
analysis, and then present
to [the sponsors], showing
and explaining all the points
as if they were already
deployed. Sponsors need
something to see, some-
thing they can touch to
know what will be delivered.
When they have that, they
become more motivated.
PMN 0113 20-25.indd 23 12/4/12 2:11 PM
VOICES In the Trenches
Robert Castel, MBA, PMP, is the founder of Infor-
mation Resource Technologies, an IT consulting
rm in Toronto, Ontario, Canada.
Game On
Sometimes seen as just a virtual fantasy
world, video games bring project
management lessons to life.
by Robert Castel, MBA, PMP
TO VIEW VIDEO GAMES AS POSSESSING only entertain-
ment value is short-sighted and without merit.
Todays massively multiplayer online role-playing
games (MMORPGs) impart social and innovative learning
techniques for individuals and groups on a global scale
and to project managements beneft.
Games, particularly MMORPGs, teach players a
plethora of emotional intelligence (EI) competencies, such
as self-confdence, empathy, trustworthiness and com-
munication.
Games are not about avoiding realitythey are about
experiencing reality in a way that is naturally exploitative
at many levels. A project team could very well engage
themselves in a game, thereby increasing the EI of the
entire team and its chances of project success. If EI is
important to project management, then games represent
an exciting and practical way for project teams to realize
their collective social skills.
For example, in World of Warcraft (WoW), the worlds largest
MMORPG, players around the world assume the roles of heroic fantasy char-
acters completing quests.
WoWs collaborative wikian environment of ideas, exploration, and
knowledge accumulation and sharingis second only to Wikipedia in size and
is completely user- or player-generated. WoWs wiki, like all wikis, is an online
learning post where iterative discussions evolve and knowledge management
elements materialize for the project team and organization.
For an avid gamer, WoWs wiki
can be a research tool and place to
reach out to others for extended col-
laborative engagement. For a project
professional, the benefts are equally
analogous. More important, a wiki
can provide the source to a projects
narrative during its life cycle.
Further parallels between WoW,
project management teams and EI can be found by focusing on a projects
need for collaborative engagement.
In project management, the more a project team collaborates, the greater
the likelihood of project success. Similarly, success in WoW requires a collec-
tive action and can involve groups of 10, 20 or more players, be they acquain-
tances or strangers. Tese raid parties form and function similarly to many
project teams. In some cases, project managers
work with colleagues, and other times, they engage
with new people or external organizations. In both
gaming teams and project teams, being truly col-
laborative is the only way to fnd the project teams
intrinsic rewards.
Finally, communication is among one of the
most important EI competencies. Within WoW,
success prior to and during a coordinated battle
with other players requires excellent communica-
tionnot unlike the planning and execution ses-
sions of a project. Not all onslaughts with monsters
or quests are successful, but players fnd the com-
bination of communication and adaptive tactical
approaches to be absorbing learning experiences.
In this regard, project management has a similar
experience in the implementation processes. PM
Games teach players a plethora
of emotional intelligence (EI)
competencies, such as self-
confdence, empathy,
trustworthiness and
communication.
F
PMN 0113 20-25.indd 24 12/4/12 2:11 PM
If project managers have so much
freedom, how do you make sure nothing
goes wrong?
I check in on every project at key milestones to be sure
they are on track. I also dont have my own private ofce;
I sit in the middle of the workspace with all of my team,
which means Im always aware of whats going on without
needing a formal sit-down.
If someone has a problem, they know they can
come to me so I can help them deal with it im-
mediately. Teres no culture of blame here. Our
philosophy is, if you make a mistake, lets solve it,
learn from it and move on.
For example, we had a young architect from
Switzerland working on a small project to
upgrade a bathroom to meet the requirements
of the Americans with Disabilities Act. He
wrote down some of the dimensions in meters
instead of feet, and as a result, the contractor
built one part with the wrong dimensions. It
was a big problem for that project, but it was
an understandable mistake. He didnt get fired,
and now on every project we always double-
check dimensions for staff with a metric-based
education. It was a good lesson for us all.
What can other organizations learn from
your approach?
I wasnt always like this. Ten years ago, my top senior
staf came to me and said, Te only way we are going
to get better is if you arent involved in everything we
do.
Tey needed me to trust them to take care of things,
and I agreed. It was the best decision of my life. Tey
gained confdence, and we were able to take on bigger
and better projects. PM
VOICES From the Top

FREDERIC SCHWARTZ, FREDERIC SCHWARTZ
ARCHITECTS, NEW YORK, NEW YORK, USA
rederic Schwartzs ofce once looked out at the
World Trade Center. But, the 9/11 attacks per-
manently altered his viewand his perspective.
Mr. Schwartz committed to rebuilding New
York with innovative ideas and plans, prompt-
ing Te New York Times to call him the man who dared
the city to think again.
Mr. Schwartzs architecture frm has since extended beyond
the city limits to include projects such as the US$400 million
international airport expansion project in Chennai, India.
Along the way, Mr. Schwartz learned to loosen the reins
on his project managers. Upper management can put all the
systems and methods in place, but in the end, if your people
dont feel like you trust them and they dont feel in control of
their own projects, they wont be as good at their job, he says.
Describe your project management
approach.
We have an overall practice philosophy. In architecture,
because of life-safety issues, risk and liability, its essen-
tial to document every single detail in the drawings and
specifications, but we dont over-specify every project
management step.
In that sense, our project management approach
isnt as formulaic as some firms. If were working on a
project thats under US$1 million and its something we
know how to do well, I encourage my project managers
to make their own decisions. They know they can come
to me if they have a problem or a question.
I continue to oversee every major project, but I dont
babysit. Tat frees me to focus on the important larger
projects and devote more time to them. On these proj-
ects, were much more hands-on and we implement more
project management controls. Were more focused on
scoping hours, budgets and schedules to make sure there
are no problems.
F
Our goal
with project
management is
to be resilient
and exible so
we can keep
evolving. And
part of how we
do that is by
empowering
our project
leaders.
Loosening
the Reins
PMN 0113 20-25.indd 25 12/4/12 2:11 PM
PMN 0113 26-44.indd 26 12/4/12 2:16 PM
EVEN IN AN IFFY ECONOMY, PROJECT EMPLOYMENT ISNT
HARD TO COME BYPROVIDED PROFESSIONALS
KNOW WHAT TO LOOK FOR.
PMN 0113 26-44.indd 27 12/4/12 2:16 PM
Its a chance to participate in the greatest economic recovery of our life-
time, says Valerie Frederickson, CEO of Valerie Frederickson and Company, a
human resources services frm in Menlo Park, California, USA.
As organizations struggle through what remains a tepid recovery, theyre
leaning heavily on their project management talent. Its not unusual for project
managers to be given a troubled project running over budget or facing unfore-
seen obstacles. In those situations, you need a project leader who can commu-
nicate with executives about what needs to be done to fx the problems, or one
who is willing to say the project should be canceled if it isnt meeting strategic
goals, says Everaldo S. Alves Jr., PMP, PgMP, manager of the program and proj-
ect management team at HP Enterprise Services in Santiago, Chile.
Not all industries are fush with job opportunities, however. Heres a look at
fve interesting sectorsand what it takes to succeed in them.
The global economy remains in fux, and with it,
the project job landscape.
But project professionals in the right geographic
areas, with the right skills, in the right sectors
have a distinct edge. India, for example, estimates
it needs 3 million more project managers by 2017,
according to The Economic Times. In the United
States, Wanted Analytics found that online job list-
ings that showed demand for project management
skills hit a four-year high in 2012even in a still-
sputtering economy.
There are not enough professionals [in Brazil] who have the technical
expertise and the communication, leadership and language skills necessary
to work in a global project environment.

Everaldo S. Alves Jr., PMP, PgMP, HP Enterprise Services, Santiago, Chile
PMN 0113 26-44.indd 28 12/4/12 2:16 PM
Tech Never Dies
Te tech sector has long placed a high premium on proj-
ect management skills, and that partnership is reaching
new heights in an increasingly digital-driven world.
Tis is the hottest job market Ive seen in 18 years,
says Ms. Frederickson. Wherever there are technology
hubs, there is a hot job market for IT project managers.
Emerging markets in particular are driving the tech
boom: Latin America, Africa and Asia ranked as the top
regions for tech growth in PwCs 15th Annual Global
CEO Survey. And research frm Gartner forecasts IT
spending in India will hit US$71.5 billion this year, a 7.7 percent jump over
2012.
In both rising and established tech hubs, supply is struggling to keep up with
demand. Te PwC survey found that nearly half of tech CEOs reported greater
recruiting difculty than in previous years. Te reason is simple: Years of aus-
terity have created an innovation backlogand a dearth of talent. Companies
have been hoarding cash for several years and now they have money to invest,
Ms. Frederickson says. Teir boards are pushing them to introduce new prod-
ucts and services so they can gain market share, and they dont have the people
on their team to deliver these goals.
More than 80 percent of global tech CEOs surveyed by PwC said they will
change their approach to research and development, innovation and technology
investments.
As in many regions, organizations across Brazil are struggling to fll leadership
roles on new tech projects, Mr. Alves says. Tere are not enough professionals
here who have the technical expertise and the communication, leadership and
language skills necessary to work in a global project environment.
Te candidates best poised to take advantage of the demand have both tech-
nical skills coupled with project management experience and credentials, Ms.
Frederickson says.
How to Land the Job
n
Be part of the in crowd.
Some of the hottest tech
companies do the bulk
of their hiring through
referrals, so leverage your
network to get to know
employees at the company
where you want to work.
n
Break out the passport.
Increasing globalization
across the tech sector is
putting a high premium on
strong cross-cultural and
language skills.
n
Reboot your skill set. The
tech world moves quickly,
so keep up with trends and
avoid job gaps, even if it
means taking contract or
part-time work.
This is the hottest job market Ive seen in 18 years. Wherever there are
technology hubs, there is a hot job market for IT project managers.
Valerie Frederickson, Valerie Frederickson and Company, Menlo Park, California, USA
GLOBAL JOBS REPORT / 5 SECTORS TO WATCH
PMN 0113 26-44.indd 29 12/4/12 2:16 PM
Healthcares
Positive Prognosis
When it comes to jobs, healthcare dominates. In the United
States, it is projected to outpace every other economic sec-
tor in employment opportunities until 2020, according to
the Health eCareers Network. Demand is highest for health
IT analysts, which account for 30 percent of job openings.
Shifting healthcare regulations, increased demand for elec-
tronic medical records and health information exchange
systems, and a boom in medical facility construction and
upgrades are fueling the demand.
For many healthcare organizations, hiring project manage-
ment talent is a solid way to ensure their projects not only stay
on time and on budget, but also gain a competitive edge. A majority of health-
care CEOs reported they want to capitalize on innovation to increase efciency,
according to the PwC CEO report.
Te United States, India and China are all expected to see growth in health-
care in 2013. Although Indeed.com reports healthcare job postings in the
United Kingdom dropped 8.5 percent over the past year, the sector still holds
clear promise. Nearly half of healthcare CEOs surveyed by PwC said hiring
people with the right skills has become harder. Tat indicates an open playing
feld for those with well-honed project management abilitieseven if they were
earned in a diferent sector.
Mike Haran, PMP, PgMP, spent 12 years running IT projects in the fnan-
cial services industry before attempting to transition into healthcare. When he
started looking for a healthcare job, he noticed an abundance of postings in the
feld, and most of them listed a preference for healthcare-related project man-
agement expertise. Even without that experience, he was hired as project direc-
tor at OptumRX, the pharmacy beneft management segment of UnitedHealth
Group in Irvine, California, USA.
During job interviews, Mr. Haran made a point to talk about his experience
in the fnance world and related those challenges to the healthcare industry,
including adapting to changing regulations and protecting confdential data.
Every job description says healthcare experience preferred, but there
just arent that many professionals in the field that have healthcare experi-
ence, he says. If you can clearly explain to the hiring manager how your
past experience has a logical connection to healthcare, you will be in good
shape to secure a position.
How to Land the Job
n
Make the link. If youre
new to the sector, high-
light your experience
in information security,
logistics and regulatory
managementall issues
relevant to the healthcare
environment.
n
Show your human side.
Healthcare is, after all,
ultimately about caring
for people.
n
Talk big picture. Go in
armed with talking points
on how IT can help drive
the broader strategic
goals of healthcare orga-
nizations.
If you can clearly explain to the hiring manager how your
past experience has a logical connection to healthcare,
you will be in good shape to secure a position.
Mike Haran, PMP, PgMP, UnitedHealth Group, Irvine, California, USA
PMN 0113 26-44.indd 30 12/4/12 2:16 PM
Building the Global
Infrastructure
Looking to improve quality of lifeand give a nice boost to their economiesgovern-
ments around the world are pouring money into infrastructure projects.
Particularly in emerging markets, governments are discovering that to maximize their
booming populations and rising GDPs, they need major infrastructure investments.
Every government thinks that infrastructure investment is the path to economic
growth, says James Stewart, chairman of KPMGs Global Infrastructure business,
London, England.
China is leading the way, accounting for nearly 40 percent of global infrastructure
demand, according to industry research frm CG/LA Infrastructure. Last September,
the Chinese government announced plans to support CNY1 trillion worth of infra-
structure projects, including highways, seaports and airports.
Fellow up-and-comers Brazil, India, Indonesia and Turkey are also poised to become hotspots in
the sector for years, even decades, to come.
Te Indian government is talking about spending US$1 trillion in infrastructure development over the
next fve years, Mr. Stewart says.
Te Middle East has also seen steady investment in road, port and energy projects even in the
midst of political upheaval, says Scott Hazelton, director of construction and industrial manufactur-
ing for IHS Global Insight in Boston, Massachusetts, USA.
Te projects mark an efort not only to improve the infrastructure, but also the economy. A
lot of the youth are underemployed, and the way to fx that is to create construction jobs, he says.
Although infrastructure investments have slowed in the United States and United Kingdom, the
sector remains strong. Indeed, there may be a talent shortage at the top.
Im mentoring a couple of young people who are naturally ambitious and want a job as a program
manager tomorrow. However, my sense is that there is an absence of experienced program managers or
the right caliber of candidates coming through with the necessary experience to lead major infrastructure
projects, says Mark Turston, program manager on Crossrail, Londons railway project.
Many professionals understand project management, but they may not have the leadership expe-
rience to rein in client expectations. Tat includes managing the broad economic and political risks
inherent to high-profle, publicly funded infrastructure initiatives.
Project managers who want to build their infrastructure expertise on a global scale must also have
strong language and cross-cultural skills, Mr. Hazelton says. You cant work in Brazil if you dont
speak Portuguese, and its tough enough to work in China even if you do speak Mandarin, he says.
Job seekers should also stay abreast of the global project pipeline and investment trends to iden-
tify potential opportunities. Getting projects from planning to procurement is the hardest part right
now, Mr. Stewart says. Like anything, you have to work your network to make sure youre in the
right place at the right time to land the job.
My sense is that there is an absence of experienced program managers
or the right caliber of candidates coming through with the necessary
experience to lead major infrastructure projects.
Mark Thurston, Crossrail, London, England
How to Land the Job
n
Look beyond the basics.
Promote your leader-
ship, risk-management
and financial-planning
abilities along with your
fundamental project
management skills.
n
Show off a little. The
sector may be facing a
leadership gap, so be sure
to emphasize your on-the-
job accomplishments.
n
Voc fala portugus?
Learn a second language
if youre interested in
working in another coun-
try, especially an emerg-
ing market.
PMN 0113 26-44.indd 31 12/4/12 2:16 PM
In the United States, healthcare is
projected to outpace every other
economic sector in employment
opportunities until 2020.
African mobile money transfers are
expected to exceed US$200 billion
by 2015.
of global nancial services CEOs
worry that skills shortages will
threaten their ability to grow.
48%
Source: Organisation for Economic Co-operation and Development Sources: India National Action Plan on Climate Change, Forbes, Reuters
Source: Health eCareers Network
Source: IBM
Source: PwC
Healthcare Finance Renewable Energy
The top nations in terms of healthcare spending as
a percentage of GDP:
Governments around the world are setting ambitious
goals for renewable energy production by 2020:
The global economic roller coaster hasnt stymied project job opportunities. Its just
a matter of being in the right industry, in the right place, at the right time.
United States
Netherlands
France
Germany
Canada
Switzerland
17.6%
12%
11.6%
11.6%
11.4%
11.4%
20%
European
Union
20%
China
15%
India
16%
Brazil
20%
Australia
Demand is highest for health IT
analysts, which account for 30
percent of job openings.
That would account for 18 percent of
the continents GDP.
A World of Opportunity
30%
18%
PMN 0113 26-44.indd 32 12/4/12 2:16 PM
of global nancial services CEOs
worry that skills shortages will
threaten their ability to grow.
48%
The top ve emerging markets by future growth in
infrastructure spending needs (through 2030):
Worldwide tech spending will surpass US$3.7 trillion
in 2013, a 3.8 percent increase over 2012, and will
surpass US$4 trillion by 2015.
With 268,110 jobs, solar has overtaken wind
power for the rst time as Europes second-
largest renewable energy employer.
China accounts for nearly 40
percent of global infrastructure
demand.
Source: EurObservER
Source: Gartner
Source: CG/LA Infastructure
Source: Royal Bank of Scotland Source: Gartner
Infrastructure Technology
IT spending in India will hit
US$71.5 billion in 2013.
Thats a 7.7 percent jump over IT
spending in 2012.
Last September, the Chinese
government announced plans to
support CNY1 trillion worth of
infrastructure projects, including
highways, seaports and airports.
In the European Union, renewable energy em-
ployment has risen 25 percent since 2009, with
more than 1 million people working in the sector.
25%
40%
7.7%
(
U
S
$

t
r
i
l
l
i
o
n
s
)
12
3
3.5
4
4.5
13 14 15
US$3.7
trillion
US$4
trillion
Nigeria
Angola
Kenya
China
India
506%
347%
328%
259%
187%
1
2
3
4
5
PMN 0113 26-44.indd 33 12/4/12 2:16 PM
If Energy Is Your
Game, Think Green
Traditional energy sectors remain strong, but renewable power
is still the goal for nations around the worldand theyre not shy
about investing in projects to get there.
China aims to reach 15 gigawatts of installed solar energy
capacity by 2015, a 50 percent increase over its previous fve-
year goal, according to its National Energy Administration. In
the European Union, renewable energy employment has risen 25
percent since 2009, with more than 1 million people working in
the sector, according to renewable energy analysts EurObservER.
Looking to reduce its dependency on nuclear power, Japan has issued a mandate requir-
ing utilities buy power from renewable sourcesincluding solar, wind and geothermalat
above-market rates.
Within the renewable energy sphere, there has been a steady shift to solar. Boasting
268,110 jobs, solar has overtaken wind power for the frst time as Europes second-largest
renewable energy employer, behind biomass, according to EurObservER. India, the
United States, Japan and South Africa are also seeing growth in solar projects.
Te long-term trend suggests that the number of solar power projects will double
every year for the next few years, says Seth Masia, spokesman for the American Solar
Energy Society, a not-for-proft advocacy group in Boulder, Colorado, USA. Owners will
be looking for specialists with project management skills to run these projects.
Prospects should think big, as in the115-megawatt Toul-Rosires solar power project near
Nancy, France and the 1.5-gigawatt Atlantic Array Ofshore Wind Farm project of the coast of
Wales. Tose kinds of projects will need project and program management talent at every level.
Te smaller, 5-10 kilowatt projects often dont have trained project managers assigned
to them; that work is often done by an experienced technical person, says Peter Beadle,
CEO of Greenjobs.com, Fairfeld, California, USA. Te real demand for project manage-
ment skills is on the larger projects where there is no substitute for trained, experienced
project managers.
Job seekers should follow industry news and reach out to companies long before con-
struction begins. Tese jobs often dont show up on job boards, Mr. Beadle says. You
want to make sure these companies know about your skills and accomplishments well in
advance of the project launchbecause a known quality is more likely to be on a list of
potential hires.
Even for project managers without sector experience, its a good time to get a foot
in the door, he says. Renewable projects, especially wind and solar, are essentially big
civil construction projects, so if you have construction expertise, companies may well
be interested.
How to Land the Job
n
Make the link. Sustain-
able energy is still fairly
new, so if you dont have
sector experience, you can
still break in by playing
up accomplishments and
qualications that transfer
across industries.
n
Plug into the renewable
energy network. Track
industry news so you know
which projects are moving
forward.
n
Get to know the indus-
try players. Reach out to
companies before theyre
ready to hire so youre on
their radar when they start
building project teams.
The real demand for project management skills is on the larger projects
where there is no substitute for trained, experienced project managers.
Peter Beadle, Greenjobs.com, Faireld, California, USA
PMN 0113 26-44.indd 34 12/4/12 2:16 PM
In Finance, the Rewards of
Managing Risk
Te fnancial crisis and resulting regulatory frestorm has cracked open mega-
opportunities for experienced project managers. Te furry of mergers and
acquisitions requires hundreds of complex IT transformation projects, and new
fnancial regulations are forcing frms to focus more time and money on compli-
ance projects.
As a result, the industry is facing some serious talent issues: 48 percent of
global fnancial services CEOs worried that skills shortages will threaten their
ability to grow, according to the PwC survey. Forty percent said its also getting
harder to hire good people in the industry, and fewer than 20 percent believe it
will get easier.
Te repercussions are already rippling across the industry. One in four CEOs said talent
shortages forced them to delay or cancel a key strategic initiative over the past 12 months.
Even in the European Union, where the economic cycle is so bad, weve seen an increase
in opportunities for project managers in fnance, says Tim Hird, executive director of global
stafng frm Robert Half Management Resources in Menlo Park. Changes in the global
fnancial marketplace are volatile, and its driving demand for expertise in the feld.
In particular, fnancial frms want project professionals with a proven record of creating
efciencies through better information management. Te challenge these organizations face
is how to provide more accurate information and in a more value-added format so executives
can make strategic decisions faster, Mr. Hird says.
In-demand skills include risk management, enterprise resource planning systems, fnancial
remediation and reporting, business intelligence, governance and regulatory compliance, he says.
Adding project management experience and credentials to that skill set is a tremendous
asset. You have to have project management skills to carry through these implementations,
and thats the big challenge, he says. Te talent pool of technical subject-matter experts who
also have project management skills is very small.
Mr. Hird advises project managers involved on the IT side to beef up their technical expe-
rience by taking on assignments that allow them to learn new systems. Te only way to stay
competitive is to get on projects that involve cutting-edge technology, he says.
By taking on forward-looking initiatives, project professionals are better positioned so that
when one job ends, another one isnt far behind, even in a tumultuous sector. Te fnancial
world always has booms and buststhey typically hire more people in the good times, then
they reduce staf sizes when business gets bad, Mr. Hird says.
To land that next opportunity, job-seekers should talk about how past projects helped the
organization meet its strategic business goals, Mr. Hird suggests. Process efciencies, better
cost control and greater fnancial risk management are all top concerns for CFOs.
Its not enough to rest on your accreditations, he adds. To get the job, you have to show
actual experience and how your eforts helped deliver real results. PM
How to Land the Job
n
Stay current. In a rapidly
changing sector like nance,
you need to be up on the
latest regulations.
n
Know the bottom line. In
a sector that lives and dies
by staying in the black, be
ready to showcase how
you can deliver true busi-
ness benets.
n
Live on the edge. Finance
is known for booms and
busts, so be prepared by
working on projects tied to
the very latest in cutting-
edge systems.
Even in the European Union, where the economic cycle is so bad, weve
seen an increase in opportunities for project managers in fnance.

Tim Hird, Robert Half Management Resources, Menlo Park, California, USA
PMN 0113 26-44.indd 35 12/4/12 2:16 PM
BEHIND
ONE OF THE WORLDS BIGGEST MANUFACTURERS OVERHAULS ITS SYSTEMS
AND PROCESSESWITH FEW IN THE OUTSIDE WORLD EVER NOTICING.
THE
SCENES
PMN 0113 26-44.indd 36 12/4/12 2:16 PM
BEHIND
ONE OF THE WORLDS BIGGEST MANUFACTURERS OVERHAULS ITS SYSTEMS
AND PROCESSESWITH FEW IN THE OUTSIDE WORLD EVER NOTICING.
THE
SCENES
BY KEITH JACKSON II
PMN 0113 26-44.indd 37 12/4/12 2:16 PM
That was the challenge facing Procter & Gamble (P&G), the global con-
sumer products company, when it needed to enhance its nearly 20-year-old
ordering, shipping and billing software and work processes.
Tis was no simple IT patch, however: Te system served the very heart of
P&Gs US$84 billion business. Te company knew it had to identify, mitigate and
manage any and all risks to the new system.
Tis was the equivalent of heart transplant surgery, says Bruno Pont, P&G
associate director of global business services, Geneva, Switzerland.
Large systems at the
core of even the biggest,
and most successful,
businesses sometimes
need upgrade projects
fraught with risk.
Bruno Pont, left, and
Francisco Fraga, P&G
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Covering North America, Europe and 150-plus export markets, the
project would directly impact a diverse portfolio of 250,000 products
that includes everything from laundry detergent to pharmaceuticals to
snacks. In a single day, the IT system typically juggles 18,000 orders
shipped to 150,000 retailers on 8,000 trucksaccounting for US$200
million in revenue.
Any glitch would generate unwanted attention and potentially mean a
hit to the bottom line.
In a single day, the IT system
typically juggles 18,000 orders
shipped to 150,000 retailers on
8,000 trucksaccounting for
US$200 million in revenue. P
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THE START OF SOMETHING NEW
The original plan called for a simple IT upgrade project, but that changed
as P&G leaders recognized the projects potential to produce more benefits.
Implementing a new, more sophisticated system could also help the com-
pany minimize lost sales, create efficiencies in the supply chain and drive
down costs across the enterprise.
Tese were all incredibly important issues that the company needed to
address, says Mr. Pont. Tis project provided an excellent opportunity to not
only fx an outdated system, but also to move the company forward.
Te P&G project was launched in 2009 with two driving goals: to collect and
respond to feedback in real time and thereby create more compelling promo-
tions and increase sales, and to identify the best ordering, billing and shipping
processes for shipping products to target locations.
To ensure the revamp would align with those business goals, P&Gs global
business services group created a project charter that included a business case,
project assets, enterprise environmental factors, and a summary milestone
schedule and budget.
We knew it would be a project that would take several years, says Patrick
Arlequeeuw, P&Gs vice president of global business services, Antwerp, Bel-
gium. We spent some time on making the business case: What did we want
to get out of it? What were the business capabilities we wanted to have? What
is the investment and return needed as such? Te interesting part is that the
preparation time was almost half the project.
Go to Market
Strategy
Operating
Strategy
Organization
Structure
Work
Processes
Information
Systems
250,000+ products
PAYMENT US$200 million/day
SHIPMENT 8,000 trucks/day
ORDER 18,000 orders/day
CUSTOMER
150,000+
OPEN
P&GS DAILY ORDERING, SHIPPING AND BILLING PROCESS
PMN 0113 26-44.indd 40 12/4/12 2:16 PM
1 July 2010: Western
Europe pilot: France
Te team also created a project statement of work that outlined the busi-
ness needs and scope description. Te overriding message was clear: Te sys-
tem would protect business continuity, deliver computer cost reduction and
improve governance.
WORK THIS OUT
Te project was one of the largest in the companys history, and carried great
risk along with the potential for big benefts. Te team took a good, long look at
what could go rightand wrong.
We looked at three sources to identify our risks, explains Francisco Fraga,
director of IT, P&G, Cincinnati, Ohio. First, we really looked at what has gone
well or not-so-well in other previous implementations in other companies. So,
we really looked externally to learn from those.
At the point wed started this project, wed already done 70 smaller success-
ful implementations of the software in the order, shipping and billing area of
P&G, so we had a wealth of knowledge internally.
Finally, we reached out to our retailers, and I personally met with many of
our top retailers in North America to understand their own experiences with
other vendors that had gone through similar transformations.
The interesting
part is that the
preparation time
was almost half
the project.

Patrick Arlequeeuw, P&G,
Antwerp, Belgium
2010
2011
1
1
2
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4
4
5
5
6
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Sight Unseen
The P&G team rolled out the transformation of the work process, organization and systems in waves
for a given set of geographies (in Western Europe) or customers (in North America).
1 January 2011: U.S. wave 1
1 April 2011: U.S. wave 2;
Germany, Austria, Switzer-
land, Belgium and Holland
1 May 2011: United King-
dom and Ireland
1 July 2011: U.S. wave 3:
all customer exports and
interplant systems
1 October 2011: Denmark,
Finland, Norway, Poland,
Portugal, Spain and Sweden
1 November 2011: Italy
PMN 0113 26-44.indd 41 12/4/12 2:16 PM
From these discussions, the team identifed three major risks:
n
Loss of business due to an inability to process orders in a timely way
n
Loss of credibility because of a lack of quality in the shipping process
n
Loss of sales as competitors took advantage of the transition
To mitigate and manage those risks, P&G introduced a board that
included three of P&Gs fve regional presidents, along with all 14 of
P&Gs business unit presidents.
Te move proved vital. Amidst one major acquisition deal, for
example, the board identifed potential human resourcing issues
that could have thrown of the project. To minimize disruptions
to the schedule, P&G reallocated staf from other areas of the
company.
Given the complexity of the project, P&G also implemented a
central technical and project management ofce team in each region.
Local market teams mostly gathered in country head ofces, but col-
location of big parts of the teams was required for critical weeks such
as training and integrated testing.
To build esprit de corps among the team members in more than 50 countries,
leaders implemented networking events when central and local resources were
mixed for specifc project periods. Tey also encouraged management visits that
featured inspirational speeches, milestone recognition and celebrations for the
completion of particular phases.
NOW OR NEVER
With the project encompassing thousands of customers, products and retailers
Watch a video case
study of the Procter
& Gamble project
on the PMI YouTube
channel.
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P&G world
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Cincinnati,
Ohio, USA
PMN 0113 26-44.indd 42 12/4/12 2:16 PM
from small shops to one of its
largest global retail partners, the
team kept a keen eye out for fea-
tures being added. With a proj-
ect like this, it is so easy to add
scope, says Mr. Arlequeeuw.
Looking to keep the project
on track, the team established
a set of global workshops to
refine the scope as the project
progressed.
Headed by a business leader,
a subject-matter expert and an
IT leader, the workshops used
techniques such as brainstorm-
ing and mind mapping to docu-
ment potential gaps in scope.
The results allowed for plan-
ning, tracking and reporting of
any given requirement through-
out the project life cycle.
Te board also discussed pos-
sible project enhancementsand
dug deep to see if the potential
benefts were actually worth it.
As implementation drew closer, P&G conducted vigorous testing to simu-
late the daily order cycle. Once the system was ready, the team executed the
rollout in three waves.
To keep things running smoothly, so-called war rooms let team members
stay on top of what was going on inside the project and react to anything out
of the ordinary, says Mr. Pont. Te goal was to communicate everything that
happened on the frst day of implementation to other teams across the world.
Tis project was all about changing everything with the external world not
noticing at all, says Mr. Pont.
It worked.
One of the things I feel very proud of was how we were able to mitigate
the risks successfully and really be able to have a zero impact on the day-to-day
operations of our business and our retailers, says Mr. Fraga.
Shipping times and customer satisfaction improved with the new system
though to the outside world, it just seemed like business as usual. PM
At the point wed started this project, wed already done 70 smaller
successful implementations of the software in the order, shipping and
billing area of P&G, so we had a wealth of knowledge internally.

Francisco Fraga, P&G, Cincinnati, Ohio, USA
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Bruno Pont,
left, and
Francisco
Fraga, P&G
PMN 0113 26-44.indd 43 12/4/12 2:17 PM
PROJECTS TO CREATE A WORLD WITHOUT CURRENCY ARE ON THE RISE, BUT USERS STILL NEED SOME CONVINCING.
PMN0113 44-65.indd 44 12/4/12 2:20 PM
PROJECTS TO CREATE A WORLD WITHOUT CURRENCY ARE ON THE RISE, BUT USERS STILL NEED SOME CONVINCING.
BY MEREDITH LANDRY
PMN0113 44-65.indd 45 12/4/12 2:21 PM
he cash you have in your
wallet may already be
obsolete.
In a digital world, paper
money is inconvenient to
carry, costly to produce
and increases transaction
times. Te question isnt if
cash will become obsolete,
but when.
Around the world,
cash is already on the way out. In Sweden, for
example, bills and coins represent only 3 percent
of the national economy; that number is 9 per-
cent in the eurozone and 7 percent in the United
States, according to the Bank for International
Settlements. Worldwide, debit cards are the pre-
ferred method of payment for millennialsthose
between the ages of 18 and 28according to a July
2012 survey conducted by fnance frm Visa.
Te trend away from cash is accompanied by
changes to the economic and commercial infra-
structure, with project teams across the globe work-
ing to keep pace.
n
In many Swedish cities, public buses no longer accept
cashriders use their mobile phones to purchase
prepaid tickets.
n
In March 2012, Canada killed its penny because
of production costs and introduced the Mint-
Chip, an electronic payment system allowing
users to make small transactions with digital
currency via their mobile devices.
n
Last July, the South African Social Security
Agency issued 2.5 million MasterCard debit
cards to social grant recipients across the coun-
try. Te cards feature a special biometric func-
tionality that identifes the recipients using
fngerprints and other personal information to
ensure that only the approved benefciary of the
card can collect grant money.
Tis conversion is being driven by a new gen-
eration of technology users that care more about
convenience and less about privacy, says J.J. Eden,
vice president and director of tolling at professional
technical and management support frm AECOM
in Raleigh, North Carolina, USA. Time-saving is
a major factor with todays emerging generations.
Waiting in line to pay is not acceptable.
Mr. Eden, a member of the group that cre-
ated the cashless toll-collection system E-ZPass,
is spearheading partnerships with various North
American toll agencies to allow customers to use
their transponders to pay for services other than
tolls, including parking, fast food and car washes.
As governments and consumers grow more anx-
ious to get rid of bills and coins, he says, a cashless
world will become a reality.
BARRIERS TO ENTRY
Tough cash may inevitably go extinct, the evo-
lution wont happen overnight, particularly in
emerging markets, says Douglas Borges Oliveira,
PMP, So Paulo, Brazil-based IT director at ePay
Brazil, a provider and distribution network of pre-
paid products.
It will be several decades before the world
becomes completely cashless, he says. Barriers
include a populations resistance to adopt new
technology and infrastructure limitations, such as
a low bandwidth for connectivity and a lack of reli-
able data centers.
Even in economic powers such as China, India
and Brazil, the tech lagespecially among the older
generationsis hindering the cashless transition.
Te older portion of the population shows high
difculty when using passwords and swiping cards,
and a low percentage of the population has contact
with computers, though thats quickly changing,
says Mr. Oliveira.
Jon Davis, head of business systems at Ches-
ter Race Company Ltd., a horse racing course in
Chester, England, asks a simple question to better
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This conversion is
being driven by a
new generation of
technology users
that care more about
convenience and less
about privacy.
J.J. Eden, AECOM, Raleigh,
North Carolina, USA
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PMN0113 44-65.indd 47 12/4/12 2:21 PM
determine the timetable for cashs demise.
When talking about new technology, I always
think, Would my mum use it? and at present she
would not, says Mr. Davis, whos currently work-
ing with English bank Barclays on projects to create
cashless horse racing facilities. It would be too far
removed from what she has come to know over the
course of her life.
But as the generation raised on smartphones and
broadband comes of age, more and more people will
see this type of transaction as part of their everyday
lives, he says.
Your Money Is No
Good Here
Cashless projects arent limited to the retail and
government sectors. Jon Davis, head of business
systems at Chester Race Company Ltd. in Ches-
ter, England, shares three other areas in which
hes witnessed the successful shift to cash-free
functionality.
Professional Campuses: From very
early on, college campuses saw the ben-
et in creating cashless environments
for students, from purchasing books
to eating lunch. Today, more and more work
campuses have followed suit, with companies of-
fering cashless options for staff meals.
Sports: Sporting venues will be the
next area to really take the technol-
ogy to the next level, offering cashless
options for the whole customer journey,
including traveling to and from events, and
purchasing merchandise and food. With so many
people in an area for a short period of time, ven-
dors can speed service up to serve more people.
Military: Army defense bases that feed
thousands of people daily have been
adopters of the technology, and this
will continue to be the case.
Te looming cashless world seemed closer for
Mr. Eden at a recent conference of engineering
students when one asked, When are you old guys
going to get it? Our generation doesnt carry cash.
Before digital wallets and paying via smart-
phones become the norm, project teams need to
overcome several hurdles, from buy-in to security.
THINKING OUTSIDE THE WALLET
Te frst obstacle is deceptively difcult: educating
stakeholders on the true defnition of cashless.
For project professionals, cashless means no paper
money or coins whatsoever.
Te term cashless means exactly that: no
cash, Mr. Davis says. Yet Ive seen it used to
describe cards that people can add to using cash,
adding another step to the process. Cashless has to
make the process easier, not harder.
Project professionals also need to communicate
the benefts of a cashless project to those who will
be using it. Te majority of people still think cash
is king, Mr. Davis says. So if a cashless project is
going ahead, theyll need to be convinced there is a
suitable beneft to them to use it.
Tat means making sure that the benefts out-
weigh the risks.
Of primary concern is security. In April 2012, a
Pew Research Center study found that one-third of
the 1,000 U.S. respondents wouldnt trust technol-
ogy in the next decade to go cash-free.
Skeptics cite the increased potential for issues
already plaguing the worlds electronic fnances,
including identity theft, hacking and credit card theft.
Knowing that companies can track your every
purchase is another cause for concern, Mr. Eden
says. According to a February 2012 article in Te
New York Times, major retailers around the globe
gather and analyze consumer dataincluding digi-
tal purchasesto maximize marketing eforts. In
one instance, the retailer Target began sending a
teenager coupons for cribs and diapers before she
told her father she was pregnantan awkward situ-
ation, to say the least.
Privacy concerns must be addressed in the
technology, and businesses will need to enforce
rules in order to avoid abuse, Mr. Eden says.
On the plus side, the myriad potential benefts
include improved transaction speed and conve-
PMN0113 44-65.indd 48 12/4/12 2:21 PM
nience, and more targeted customer loyalty pro-
grams, since purchases can be stored digitally.
Communicating those benefts starts with efec-
tive marketing. For example, at the 2012 Sum-
mer Olympics in London, England, the speed and
convenience of cashless transactions were heavily
promoted through Visa-sponsored advertising cam-
paigns throughout the Olympic Village. While the
so-called cashless Olympics werent error-free
the terminals with touchless technology briefy froze
during a soccer match at 90,000-seat Wembley Sta-
diumthe concept of going cashless still got through
to consumers, Mr. Davis says. All told, 150,000 trans-
actions were made using the technology.
FROM TOP TO BOTTOM
A one-off global event such as the Olympics may
move to a cashless model, but the long-term
financial costs of cashless technology projects,
and the personal costs of transitioning workers
from cash-based transactions, are daunting for
smaller enterprises.
It is all well and good if the larger businesses
adopt these technologies, Mr. Davis says, but if the
localbusinessescannot aford to do the same, then
the customer will sufer, as cash will still need to be
When talking about new
technology, I always think,
Would my mum use it? and
at present she would not.

Jon Davis, Chester Race Company Ltd., Chester, England
carried for day-to-day transactions.
Workers whose jobs are currently specific
to cash collectionsuch as tollbooth opera-
torswill need to be retrained to work in other
departments such as back-office operations once
their existing positions become obsolete, Mr.
Eden adds.
Teres still time to make that transition, as proj-
ect teams work to not only implement the frame-
work for a cashless economy, but also help users get
more comfortable jettisoning their currency.
Ultimately, Mr. Oliveiros says people must frst
know and trust the technology. Normally we dont
use what we dont understand. PM
PMN0113 44-65.indd 49 12/4/12 2:21 PM
THE
RIGHT
CONNECTIONS
LIKE ANY PROJECT,
NETWORKING IN THE
AGE OF SOCIAL MEDIA
DEMANDS A DISCIPLINED
APPROACH.
BY RACHEL
ZUPEK FARRELL
PMN0113 44-65.indd 50 12/4/12 2:21 PM
CONNECTIONS
PMN0113 44-65.indd 51 12/4/12 2:21 PM
you could advance your project management careeror kill it.
Tats why knowing the etiquette of social networks such as Facebook,
LinkedIn and Twitter is key to leveraging these potentially powerful assets.
Relationships built through social networking can be the thing that diferen-
tiates you from dozens of other candidates, says Pam Stanton, associate direc-
tor, global supply chain at biopharmaceutical company Bristol-Myers Squibb,
New Brunswick, New Jersey, USA. But its possible to damage your reputation
through thoughtless or rude behavior.
Hiring managers know the value of social media when it comes to vetting
potential job candidates: 37 percent of U.S. human resources professionals said
they screen potential employees on social networks and 11 percent said they
plan to start, according to a January 2012 survey by CareerBuilder. Te results
arent always pretty: Of those that vet via social media, 34 percent said theyve
found information that caused them to not hire the person.
When done correctly, though, tapping into the social network can open job
seekers to virtually limitless opportunities. A whopping 92 percent of respon-
dents to Jobvites 2012 Social Recruiting Survey use or plan to use social media
for recruiting, with 73 percent having made a successful hire through those
channels.
Social media can also be a valuable knowledge-sharing tool.
Te resources that are available at our fngertips via social networking are
amazing, says Robert Kelly, PMP, managing partner of Kelly Project Solutions,
a project management consultancy in Raleigh, North Carolina, USA. Te sim-
ple fact that I can hear about project management approaches from profession-
als in Australia, Saudi Arabia and Italy, and across verticals such as technology,
healthcare, or oil and gas is awesome.
For those just getting started, social media can accelerate professional knowl-
edge. Four years into the profession, Maria Aguado, PMP, civil engineer, acquisi-
tions at construction company Peyber Hispania, Madrid, Spain, uses LinkedIn to
learn more about project management to gain ground as a practitioner.
As a junior project manager, its important to learn from others who have
more experience. Social networks allow me to ask questions or express doubts
and always get an answer, she says.
In 140
characters
or less,
Networking is based on
mutual beneftswhat
you get out of it is
generally proportional
to what you give.
Networking in the
cybersphere doesnt
change that rule.

Pam Stanton, Bristol-Myers
Squibb, New Brunswick, New Jersey, USA
PMN0113 44-65.indd 52 12/4/12 2:21 PM
2
Dont over-share
Remember: A prospective employer can
easily fnd everything you put online. Social
networking environments are shared environments. Our profles
refect part of who we are as professionals. Be careful with radical,
unethical and aggressive positions, says Gustavo Teixeira, PMP, teacher,
consultant and project manager at Algar Technology, Belo Horizonte, Brazil.
Te quantity of what youre sharing on social networks matters, but your posts,
tweets and blogs also must have quality. For example, in an attempt to grow his social presence,
Mr. Kelly reposted a link on Twitter from a respected project professional without read-
ing it. Unfortunately, the users account had been hacked, and Mr. Kelly unknowingly
spammed his followers with an ad for a male enhancement drug. Since that
day, Im not so concerned with growing my numbers, and I read
every post, link or tweet before sharing it, he says.

1
Traditional
networking
rules apply
Networking is based on mutual beneftswhat you get out
of it generally is proportional to what you give. Networking in
the cybersphere doesnt change that rule, says Ms. Stanton.
People get wrapped up in the technology aspect. Te heart of it hasnt
changed since the old days of business-card exchange parties, networking socials, commu-
nities of practice and the like, she says.
Give people reason to connect to you by adding value to your network, says Mr.
Kelly. Set a quarterly reminder on your calendar to connect with your network.
Send them a note or share an article that is interesting to their industry.
People will be grateful, and in turn check out your profle
and look to connect with you.
1 2 3 4 5 6 7
1 2 3 4 5 6 7
Building a useful social network without making the poor decisions that can
cost project professionals their reputations, opportunities for advancement and
even their jobs requires walking a fne line. Here are seven ways to strike the
perfect social networking balance.
PMN0113 44-65.indd 53 12/4/12 2:21 PM
7
Focus on the
relationship,
not the numbers
Its not about the volume of connections you have
its about the quality of those connections. Tat comes
down to how you got them in the frst place, says Mr. West-
land, who vets those requesting to connect. I accept anyone who
tries to connect with me, as long as they are genuine.
Ms. Aguado, on the other hand, limits her connections to profession-
als in her feld, human resources managers and other project management
professionals. I try not to connect with people that are actively seeking
jobs, because I dont know if I can help them much, she says. I
dont like to connect with people whom I dont have
any kind of relationship.
4
Engage
Te currency of social
networking is reciprocity, says Ms.
Stanton. A common mistake is not approaching social
networking with a genuine intention to build relationships
and share knowledge.
Be active on the networks. Too many project managers will
post a few times on Twitter or like an article on LinkedIn, and then
you dont hear from them for a few weeks, says Mr. Kelly. You should do at least
one thing on one of your social networks each day.
Mr. Teixeira engages his network by writing recommendations on
LinkedIn for his colleagues. Te recommendation generates
credibility and adds to the reputation of the pro-
fession, he says.
How to Start Your Social Network
New to the social networking world? Connect with like-minded professionals
with these tips:
n
Follow #pmot on Twitter. This popular hashtag stands for project managers on
Twitter, so the content is focused on the profession. Spend a few days reading
posts and start following users you nd interesting.
n
Join PMIs Career Central on LinkedIn. With nearly 50,000 members, you can
get career advice on everything from study tips for the Project Management Pro-
fessional (PMP) exam to suggestions for handling tough stakeholders.
n
Like Project Management Institute on Facebook. PMIs Facebook page con-
nects more than 85,000 project professionals from around the world. Join the
discussion on the latest project management news and knowledge.
3
Damage
control matters
Social networking faux pas happen, and when
they do, an apology goes a long way. Be open and dont try to cover it
up. True honesty in an open forum is hard to fnd these days, so when you do
it, people love you for it, says Jason Westland, CEO of ProjectManager.com, an
online project management software organization in Auckland, New Zealand.
When Ms. Stanton joined Twitter, for example, she innocently used some hashtags,
which signify keywords or specifc communities. She soon found that some users perceived that
as a transgression.
Some online communities feel a deep sense of ownership of their hashtags. If you crash
into their worlds without a proper introduction, they will not be shy about rebuking
some intrusions, she says. Just as you would study cultural customs and norms
before traveling to a new place, you should also learn the customs and
norms of the virtual community you join.

1 2 3 4 5 6 7
1 2 3 4 5 6 7
PMN0113 44-65.indd 54 12/4/12 2:23 PM
7
Focus on the
relationship,
not the numbers
Its not about the volume of connections you have
its about the quality of those connections. Tat comes
down to how you got them in the frst place, says Mr. West-
land, who vets those requesting to connect. I accept anyone who
tries to connect with me, as long as they are genuine.
Ms. Aguado, on the other hand, limits her connections to profession-
als in her feld, human resources managers and other project management
professionals. I try not to connect with people that are actively seeking
jobs, because I dont know if I can help them much, she says. I
dont like to connect with people whom I dont have
any kind of relationship.
6
Use your manners
Approach social networking with a genuine
intention to build relationships and share knowl-
edge, rather than with blatant self-promotion, says Ms. Stanton.
I see behavior online that would be extremely rude in person. Few of
us would run into a room of strangers and start yelling about our new prod-
uct, or our business or book, yet it happens all the time in the virtual world, she
says. Tere are rules and a currency of good intent that are expressed in specifc ways.
For example, if someone follows you on Twitter, follow them back, she says. If someone
likes something on Facebook, reciprocate by sharing a piece of his or her content.
Te worst thing you can do on a social network is rub people the wrong
way. You come across as arrogant, and it negatively afects your
personal brand, says Mr. Westland.
5
Choose your
network wisely
Not all social networks are created
equal. While Twitter is great to quickly tap into a trending topic, cre-
ating a Facebook page is a better way to establish your own community
and invite more useful conversations. LinkedIn, meanwhile, is a great plat-
form on which to build professional connections.
For Mr. Kelly, Twitter is the impetus for all his connections. Once I have devel-
oped a relationship on Twitter, I usually invite folks to connect on LinkedIn, he
says. Twitter is my live news feed, and LinkedIn is my version of the Rolodex.
Choose one platform and start slowly, advises Ms. Stanton. Learn
through observation and focus on building real relationships and
adding value.
1 2 3 4 5 6 7
1 2 3 4 5 6 7
1 2 3 4 5 6 7
Ultimately, social networking can
be either an asset or a drawback,
depending on the amount of time and
efort project professionals are willing
to invest.
Social networking is the most
powerful networking tool in our gen-
eration. Twenty years ago, it was about
joining local business communities; 10
years ago, it was about attending con-
ferences; and now its about network-
ing online, notes Mr. Westland. Set
goals, be focused and targeted, and
measure your progress. Ten youll get
the ROI you deserve. PM
PMN0113 44-65.indd 55 12/4/12 2:21 PM
AVOIDING TEDIOUS
TIME-WASTERS
REQUIRES PLANNING,
MANAGING AND ASSESSING.
SOUND FAMILIAR?
BY HEIDI HJERPE
n
PHOTOS BY JORGE ALCAIDE
Meeting
Minds
of the
PMN0113 44-65.indd 56 12/4/12 2:21 PM
Luis Alejandro Flores, PMP,
Blue Label Telecoms,
Mexico City, Mexico
Meeting
PMN0113 44-65.indd 57 12/4/12 2:21 PM
ith only so many hours in the workday,
dropping everything for another meet-
ing is a painful, all-too-common occur-
rence. In fact, 47 percent of employees
said having to attend too many meetings is
their biggest-time waster, according to Salary.coms
global Wasting Time at Work 2012 survey.
Te sheer quantity of meetings can destroy productivity, and their lack of
quality doesnt help either: 37 percent of respondents to an August TrackVia
survey said at least half the time they spent in meetings was wasted. Less than 7
percent said meetings were totally productive.
Treating each meeting as a mini-projectincluding proper planning, execu-
tion and lessons learnedcan transform it into the constructive and collabora-
tive endeavor it ought to be.
Here are fve ways project leaders can maximize the value of any meeting.
Plan Ahead
Tere is a tendency on project teams to call meetings for almost any reason
and without forethoughtan approach that doesnt beneft anyone, says Luis
Alejandro Flores, PMP, project manager ofcer in the project management
ofce at Blue Label Telecoms in Mexico City, Mexico. Te outcome for many
of those meetings is nothing, just meeting minutes that will end up consuming
space in the mailbox, or simply an agreement that another meeting has to be
scheduled, he says.
Planning a meeting in advance enables project managers to determine the
outcomes they hope to achieve and decide who needs to be at the table to
achieve them. Once confrmed, consider the most appropriate way to bring
people together, whether its video conferencing or face-to-face.
Te details matter. Michael Old, PMP, project manager at medical supply
manufacturer Smith & Nephew, Memphis, Tennessee, USA, is in charge of a
virtual team with members across the United States. For his weekly conference
call with his team, he creates a thorough plan. I dont think its possible for me
to be over-prepared for my weekly call, he says. I think through all of the tan-
gents that could come up, and I think about how to deal with them.
PMN0113 44-65.indd 58 12/4/12 2:21 PM
You need to
be familiar
with your
team, know the
people who are
likely to take
your meeting
off track and be
prepared to deal
with them.

Michael Old, PMP, Smith
& Nephew, Memphis,
Tennessee, USA
Establish an Agenda
No matter the type of meetingin-person,
teleconference or weball of the stakehold-
ers need to know the discussion topics before-
hand so they can prepare their contributions,
Mr. Flores says.
Lay out these topics in a thoughtful and
detailed agenda distributed well before the
meeting. An agenda should tell its own story:
where you start, where you go and where you
end, says Julia Goodman, senior coach and founder of Personal Presentation
Ltd., a personal communications coaching organization in London, England.
An agenda drives the discussion and keeps attendees focused. A successful
meeting means I know what the purpose of the meeting was, I was aware of the
importance of each agenda item and a great number of the agenda items are
relevant to me or my team, Mr. Flores says.
Allowing participants to contribute to the agenda prior to meeting will make
them feel more invested, and can head of last-minute topics that pop up and
bloat the meeting.
Te agenda is also essential to staying on course. Treat the meeting as a
mini-project and assign time estimations to each topic, suggests Mr. Flores.
Set the timeframes for agenda items and stick to them. If necessary, take non-
agenda items of-line to be discussed at the end if theres time or at a later date.
Stick to the Program
Tough it may sound basic, punctuality can pay dividends. When meetings
dont start on scheduledue to late arrivals, for exampleit becomes that
much harder to keep everyone focused.
To arrive on time shows cooperation and respect for the other project col-
laborators time, says Akira Bloise, PMP, coordinator for project planning and
control at GeoHidra Consultores, C.A. in Caracas, Venezuela.
Meeting governance keeps things on track, Mr. Flores says. Tat means not
only starting and ending on time, but also sticking to each topics assigned dura-
tion and scheduling another working session if the discussion is running long.
Sometimes it makes sense to address an item on the spot, even if its not on
the agenda, but there should be parameters around this as well. New topics
can be brought to the table by the consent of all stakeholders and not be post-
poned if everyone is able to contribute, Mr. Flores says. Otherwise, it should
be treated as a separate meeting.
Finally, adhering to the set schedule will earn the thanks of attendees, who
will be appreciative that their time wasnt wasted.
PMN0113 44-65.indd 59 12/4/12 2:21 PM
Manage Participants
Be selective when deciding whom to invitehaving too many people or potential
productivity blockers are typical problems, Ms. Goodman says. If critical stakehold-
ers cant attend, reschedule; dont go through with it just because its already on the
calendar.
When Mr. Old holds his weekly project call, he makes sure that critical team
members can attend. Facilities managers, campus security teams, the facilities proj-
ect manager and IT analysts are on the call, he says. I want my team to have a sense
of cohesiveness, and for every person to understand what everyone else is doing.
An assortment of stakeholders brings a smorgasbord of personalities to man-
age in one meeting room. Sometimes, one or two people can dominate a meeting,
which makes others feel they dont have a voice, Ms. Goodman says. Te person
facilitating the meeting has to be confdent enough to help other team members
speak up.
Efective meeting leaders cant be afraid to gently but frmly halt disruptive
behaviorssuch as side conversations or use of technology during meetingsthat
threaten the timetable and agenda.
You need to be familiar with your team, know the people who are likely to take
your meeting of track and be prepared to deal with them, Mr. Old says.
Evaluate
When evaluations take place via informal conversations in the hallway or at the
water cooler, bad meetings never improve. Instead, a formal and confdential feed-
back process enables real changes to be made, says Mr. Flores.
Even building time into the agenda to evaluate the meeting can help. After the
meeting is over, take some time to debrief and determine what went well and what
could have been done better, Ms. Bloise suggests. Allowing attendees to speak their
minds and give feedback will help them feel that their opinion is being heard.
Tat, in turn, can transform meetings from time-wasters into success drivers.
A project manager needs to persuade not only the sponsors, Mr. Flores says,
but all of the stakeholders, that having efective meetings will have a positive impact
on the project, on morale and on the company as a whole in the end. PM
A successful
meeting means
I know what the
purpose of the
meeting was, I
was aware of
the importance
of each agenda
item and a great
number of the
agenda items
are relevant to
me or my team.

Luis Alejandro Flores, PMP
O
PMN0113 44-65.indd 60 12/4/12 2:21 PM
Jesse Fewell, CST, PMP, is a founder of the PMI Agile Community of Practice and is
participating in the development of a software extension to A Guide to the Project
Management Body of Knowledge (PMBOK Guide). He can be reached at jesse.
fewell@vcleader.pmi.org.
O
If your agile meetings run late,
stand up for the right solution.
BY JESSE FEWELL, CST, PMP, CONTRIBUTING EDITOR
DAILY
TORTURE
THE AGILE Project Manager
Of all the techniques promoted by agile
approaches, none is more abused than the daily
stand-up meeting. From latecomers to over-talkers
to non-talkers, Ive seen more frustration and
confusion caused by poorly run meetings than
by anything else. In theory, a 10-minute check-in
every day should be more expedient than a weekly
one-hour status meeting. But in practice, it can be
easily derailed by a variety of reasons, from long-
winded team members to agenda-less formats.
Here are some facilitation tips to help you
get the value a stand-up meeting is designed
to produce.
USE AN AGENDA. Te most efective format
of agile stand-up meetings is to have each team
member answer three questions: What did you get
done yesterday? What will you do today? What is
preventing you from making progress? If you didnt
fnish what you said you would, then you have to
identify what issue prevented you from doing so.
Sticking to this format fosters both accountabil-
ity and collaboration.
DONT PROBLEM SOLVE. A daily check-in is
designed explicitly to identify issues, not to solve
them. When someone brings up an issue, dont
derail the agenda by trying to get to the bottom of
it. Finish the meeting, and then decide to follow-up
with one team member so that everyone else can
get back to work.
ESTABLISH GROUND RULES. For a stand-up meeting to be efective, the
team must establish and enforce some ground rules. For example, everyone
must show up on time. If people are late, then they dont get a say in the
issues raised. If early morning meetings dont work for some people, perhaps
late afternoon is better. Have the team agree to a code of conduct, and then
dont be afraid to have the team hold itself accountable to it.
GET TO THE POINT. Every team has at least a few people who are either
too dismissive of or too obsessed with details, and who can drive any meet-
ing into a ditch. To avoid this, tell team members to come to the meeting
prepared to give their 60-second updatechallenge them to be both precise
and concise. Otherwise, people will get bored and will mentally check out.
FOCUS ON THE BOTTOM LINE. I have heard teams give a proper sta-
tus every day, report no problemsand miss the iteration deadline. Tis
misses the whole point of the meeting. A daily stand-up is not a status
check. It is a risk-identifcation meeting. I coach teams to use the secret
fourth question for a daily meeting: Are we going to fail our current iteration?
Te bottom line for any project is to deliver. Dont be the team that achieves
compliance at the expense of results. PM
PMN0113 44-65.indd 61 12/4/12 2:21 PM
FINDING WHOS AT FAULT ON A FAILED
PROJECT DOESNT SIMPLY MEAN PINNING
IT ALL ON THE PROJECT MANAGER.
The number of factors that can push a project toward failure is almost limitless.
An unrealistic schedule, budget shortfalls, scope creep, even internal politics can
wreak havoc onor ultimately dooma project. Sorting out the root cause of
the problem amid the wreckage of a failed project isnt always easy, though, and
oftentimes the fnger of blame gets pointed at the most convenient scapegoat:
the project manager.
While it may be easy to saddle the project manager with the blame for fail-
urethe job title alone implies ultimate responsibilitythe true reasons for an
undesirable outcome usually run deeper than just one person.
Project management analyst frm Mosaic Project Services Pty Ltd identifed
29 commonly cited reasons for project failure and found that only seven fell
exclusively in the realm of project management. Te other 76 percent came
under the purview of the organizations general and executive management.
Te line between success and failureand, in turn, proft and lossis razor
thin, and identifying the correct problematic project leaders makes a diference
on the bottom line. Conversely, fnding the true source of failure can prevent
organizations from unwittingly pinning the blame on valuable talent.
BY DAVID WHITEMYER
PMN0113 44-65.indd 62 12/4/12 2:21 PM
PMN0113 44-65.indd 63 12/4/12 2:21 PM
POINTING FINGERS
Legendary statistician and management consultant
William Deming famously said systems or pro-
cesses cause 95 percent of problems in business, and
people cause just 5 percent.
If the processes leading up to a projects launch are
fawed, then theres only so much a
project manager can do, says Tush-
ara Wijewardena, chief project of-
cer at software developer Exilesoft
Ltd, Colombo, Sri Lanka. Project
managers are not gods, and none of
the estimation methods I know of
are 100-percent accurate enough to
defne budgets or timelines accurately
at project initiation, she says.
In some situations, such as in
matrix organizations where team
members report to functional man-
agers rather than to project man-
agers, the latter has considerable
responsibility but little authority.
While the project manager is
responsible for the teams day-to-day
execution, executive management and
the project sponsor are responsible
for ensuring that the project manager
has the necessary resources, tools and
policies to do the job, says Simon
Harris, PMP, director of consultancy Logical Model
Limited in Edinburgh, Scotland.
He argues that the project manager is responsible
for many things, including leadership, but the spon-
sor is always ultimately accountable for the success
of the project. Its the sponsor who must have the
authority, skill, will and ability to enforce the project
managers direction, reallocate resources and resolve
conficts above the project managers level of infuence
if projects are to succeed. If a project fails because of
a shortage of human resources or a drop in funding
from the organization, for example, pinning the fault
on the project manager is a mistake.
When a mistake or failure occurs, two steps
must be taken: fnding out who was responsible and
asking what can be changed to prevent a repeat.
Toughtful organizations perform project postmor-
tems to discuss and document the process after the
fact, and develop ways to improve the next project.
Tese postmortems must include everyone
involved on the failed project. One common prob-
lem is that retrospectives are done in isolation, says
Ms. Wijewardena. She recommends post-project
discussions that embrace the customer, manage-
ment and the project team; she also suggests shar-
ing the lessons learned openly with other teams.
In the aftermath of failure, organizations should
focus on the project details: resource allocation,
phase schedules and budget items. Pin down who
If a project fails
because of a shortage
of human resources or
a drop in funding from
the organization, for
example, pinning the
fault on the project
manager is a mistake.

Simon Harris, PMP, Logical Model Ltd,
Edinburgh, Scotland
PMN0113 44-65.indd 64 12/4/12 2:21 PM
was responsible for the action items that went
awry. Te fnal report should consist of the project
overview, original objectives, fnal schedule and
budget, what went right and wrong, and a list of
action items.
THE BUCK STOPS HERE
Te project manager can still make poor decisions
or exhibit behaviors that inevitably lead to project
breakdowneven when executive leadership does
exactly what it should. Several clear signals on a
troubled project indicate that the project manager
may be letting things slip and necessitate inter-
vention on the part of senior management or the
sponsor:
n
Lack of Leadership Skills: Some project manag-
ers lack the maturity, thoughtfulness and lead-
ership skills necessary for their position, says
Naomi Caietti, PMP, enterprise architect, State
of California, Sacramento, California, USA. Not
listening to all the information being given and
not delegating tasks are just two indicators that
leadership is lacking, she says. When that starts
afecting day-to-day project execution, its time
for a change.
n
Poor Ongoing Planning: Tough the project
manager may not be involved in the initial plan-
ning, he or she is responsible for keeping the
project on track. Setting unrealistic expectations
and showing a lack of foresight can steer a project
toward trouble.
n
Tunnel Vision: Similar to falling into the plan-
ning trap, some project managers focus too
much on one facet of the project, losing sight
of the big picture and end goals. Tat makes it
almost impossible to respond appropriately to
changing factors or new ideas.
n
Incompetence: Tis may be the most obvious
one to detectand the clearest example of when
failure should be placed on the project manager.
If a project manager is defcient in basic manage-
ment capabilities, he or she has no business being
in that position.
If the project manager is indeed at fault, the next
step is determining a course of corrective action.
Obviously, if the project manager has been lying or
suppressing information that led to an unsuccessful
project, then disciplinary actioneven termina-
tionis warranted, says Mr. Harris.
In less extreme cases, Ms. Caietti suggests men-
toring and coaching. Executive management needs
to show support to the project manager, she says.
Tere has to be a conversation, and then the proj-
ect manager needs to get some training.
Companies invest a lot of time and money in
their project managers, so its in their best interest
to look at failure as a learning opportunity, rather
than a reason to terminate. Failure is one of the
hardest things that a project manager will face, says
Ms. Caietti. Executive management needs to be
supportive of project managers when this happens.
One positive sign for a project managers future
performance is if he or she voluntarily takes the
blame for project failure, says Sergey Saltykov, PMP,
chief project ofcer at clothing sup-
plier Savage, Moscow, Russia. Ive
worked on projects in diferent
roles, and every time an issue came
up, the project manager took all of
the responsibility, he notes.
Its easier for project managers
to do that when organizational
leaders create a culture of respon-
sibility and own up to their own
mistakes, too, says Ms. Wijewar-
dena. When executive manage-
ment steps forward to take some
blame for project errors, it cre-
ates an environment where it is
accepted that no one is perfect,
and that anyone can make mis-
takes. I havent met any experi-
enced project managers who have
never had a project failure in their
careers, she says.
Whether by running another
project or shadowing a more
senior project leader for a while,
the project manager needs to know that he or she
still has the organizations confdence. You need
to get the project manager back in the seat again,
advises Ms. Caietti. Organizations that understand
the concept of failing fast and failing forward
within reasonwill grow more mature project
managers.
Ultimately, it may not really matter whose fault
project failure is as long as lessons are learned and
mistakes are not repeated, says Mr. Saltykov. In
Russia, we say, One caned person is worth two that
are not, meaning failure teaches success. A bad
experience is still an experience. PM
Failure is one of the
hardest things that
a project manager
will face. Executive
management needs
to be supportive of
project managers
when this happens.
Naomi Caietti, PMP, State of California, Sacramento,
California, USA
PMN0113 44-65.indd 65 12/4/12 2:21 PM
Y
You might think that sunk-cost dilemma
is a term that I dreamt up to draw you in. In
fact, it is an actual term and concept that has
huge implications to the business of projects.
Te sunk-cost dilemma means choosing
between continuing a project that already
has considerable sunk costs, or discontinuing
the project altogether. Sunk costs are monies
that have already been spent or are irrevoca-
bly committed to be spent. Gone. Unrecov-
erable. Cant get those costs back.
I purposely overemphasize the term be-
cause in order to make appropriate decisions
when sunk costs are involved, you must
fully appreciate that nothing can be done to
change the past.
WRONGFUL TERMINATION
Sunk costs lie at the heart of one of the biggest issues in todays project busi-
ness environment: the improper termination of projects.
In the current business environment, it has become somewhat fashionable,
if not noble, to terminate certain projects. Tis is particularly true of projects
that arent performing well from a cost perspective. Te phrase I often hear is,
We dont want to throw good money after bad.
No one wants his or her project to sufer cost overruns, but the notion of
throwing good money after bad is fawed thinkingsometimes to the point
of being fscally irresponsible. Tats when sunk costs dont come into play.
For example, imagine that you are the sponsor for a project that has
overrun its original budget, for whatever reason.
When deciding whether to terminate a project,
the cause really doesnt matterthats the beauty
of sunk costs.
As a project sponsor making the decision,
remember what I said: Nothing can be done to
change the past. Tat simple fact can help you
avoid some of the reasons projects may be termi-
natedlike anger, dissatisfaction, perhaps even
embarrassment. Shutting down a project for those
THE BUSINESS of Projects
THE
SUNK-COST
DILEMMA
Forget the past. The decision to kill a
project should be based on the future.
BY GARY R. HEERKENS, MBA, CBM, PMP, CONTRIBUTING EDITOR
PMN0113 66-72.indd 66 12/4/12 2:25 PM
Gary R. Heerkens, MBA, CBM, PMP, president of
Management Solutions Group, Inc., is a consul-
tant, trainer, speaker and author with 25 years
of project management experience. His latest
book is The Business-Savvy Project Manager.
reasons, rather than through the application
of a proper fnancial analysis, is likely to be
wasteful in many cases.
From a fnancial perspectivewhich should
be a sponsors primary motivethe proper way
to treat sunk costs is easy: Ignore them. Focus
all of your attention on the future.
FORWARD THINKING
An analysis of a projects proftability (net
present value), efective yield (internal rate of
return) or any other measurement of fnancial
strength can be performed at any time during
the projects life cycle. No matter when the
analysis is done, the general approach is the
same. It consists of weighing the projects future
costs against its anticipated future benefts.
Given that this is the proper treatment
of sunk costs, an important rule of thumb
emerges. For most projects that are more than
60 or 70 percent along in their life cycle, an
unimaginably bad set of circumstancesor
a sudden and profound shift in the project
environmentwould be needed to make ter-
mination the most appropriate choice.
When considering the benefts in the analysis
described above, dont use the value that was
estimated at the beginning of the project. Te
estimated fnancial benefts that a project
can yield may be quite dynamic, and benefts
should be re-estimated as often as project costs.
Although sunk costs should be temporarily
ignored for the purpose of calculating a proj-
ects fnancial strength, the reasons behind cost
overruns should always be analyzed. Tis will
likely yield lessons to help you avoid the same
problems in the future. PM
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Edited by Dave Garrett
Project Pain Reliever: A Just-
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Overall, this collection is essentially a
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Program manage-
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Cynthia Stackpole Snyder, PMP,
EVP, MBA
Manage to Lead: Flexing Your
Leadership Style
Leadership is a
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tency, a concrete
set of knowledge,
skills and behav-
iors that can be
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team efectiveness. Tis handbook
includes actionable content drawn from
the authors experience managing proj-
ects for such organizations as JPL and
HP, as well as the latest in cutting-edge
research from top universities. Topics
include how to develop a foundational
understanding of personal strengths
and weaknesses; practical strategies on
how to build, motivate, manage and
communicate with a team, whether
its members are across the room or
around the world; efective ways to
manage confict and more.
Project Management Institute, 2012, ISBN:
9781935589594, paperback, 103 pages,
$23.95 Member, $29.95 Nonmember
Franois Chiocchio, PhD, PMP, CHRP; Paule Lebel, MD, MSc, CRMCC; Pierre-Yves Therriault, PhD,
OT(C), CCCPE; Andre Boucher, MD, FRCPC; Carolyn Hass, MSc, PhD (candidate); Franois-Xavier
Rabbat, PhD (candidate); Jean-Franois Bouchard
Stress and Performance in Health Care Project Teams
Tis action-research report is specifcally intended to transfer gained knowledge to potential users
in the trenches. It begins by describing a series of paradoxes that defne the problem. It pro-
poses interprofessional collaboration as the solution. Study results are described in three distinct
chapters: dealing with training healthcare workers in interprofessional collaboration; examining
the efect that workload, stress and coping have on other performances, such as collaboration and
social support; and examining the retrospective accounts of the people trained to better under-
stand their behaviors as team members.
Project Management Institute, 2012, ISBN: 9781935589648, paperback, 225 pages, $23.95 Member, $29.95 Nonmember
PMN0113 66-72.indd 68 12/6/12 10:58 AM
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PMI standards are frameworks for project management practitioners, and these latest editions include updates to key knowledge
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ISBN: 9781935589679, $49.50 Member,
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agementTird Edition
Portfolio management is an integral
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Strategic Management,
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munication Management.
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ISBN: 9781935589693, $48.75 Member,
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PMN0113 66-72.indd 70 12/4/12 2:25 PM
SERVICES DIRECTORY
To receive free information about products or services advertised or listed in this
issue, please contact advertisers via their web address below.
ADVERTISER DIRECTORY
PAGE ADVERTISER URL
67 Nanyang Technological University www.ntu.edu.sg
71 American Graduate University www.agu.edu
71 PM Educate www.pmeducate.com
4, 18, 19, 70 Project Management Institute www.PMI.org
C3 PM Study www.PMstudy.com
71 PM Survival Kit pmSurvivalKit.com
C4 Project Management Academy http://projectmanagementacademy.net
2 Project Management Training Institute www.4PMTI.com
C2 RMC Project Management www.rmcproject.com
71 University of Management and Technology www.umtweb.edu
PMN0113 66-72.indd 71 12/4/12 2:25 PM
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Credit
PROJECT: Sustainable city
LOCATION: Chengdu, China
SPECIFICATIONS: 1.3 square kilometers
(.5 square miles)
PROJECTED POPULATION: 80,000
Given the strain cramped metropolises put on infrastructure and resources,
projects to add sustainable elements to existing structures abound.
But outside Chengdu, China, a megalopolis of 14 million people, a project
is underway to build a city with sustainable featuresfrom the ground up.
The Chengdu Tianfu District Great City will house 80,000 people on
800 acres (323.75 hectares). By building vertically to minimize horizontal
density, Adrian Smith + Gordon Gill (AS+GG) Architecture, Chicago, Illinois,
USA, designed the city so that every amenity is within 15 minutes walking
distance.
The eight-year project, which launched late last year, is projected to use
48 percent less energy and produce 89 percent less landll waste.
The sustainability framework follows an integrated approach [to
meet] the objectives of environmental, economic and social sustainability,
said Peter J. Kindel, AS+GGs director of urban design.
Great City will incorporate innovative technologies
and infrastructure systems to achieve 48 percent energy
savings of a conventional urban development.
Peter J. Kindel, director of urban design, Adrian Smith + Gordon Gill, Chicago, Illinois, USA
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