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International Journal of Project Management Vol. 14, No. 4, pp.

189-199, 1996
Pergamon Copyright © 1996 Elsevier Science Ltd and IPMA
Printed in Great Britain. All rights reserved
0263-7863/96 $15.00 + 0.00

0263-7863(95)00091-7

Simultaneous management: the key


to excellence in capital projects

Alexander Laufer
Faculty of Civil Engineering, Technion-Israel Institute of Technology, Technion, Haifa 32000, Israel

Gordon R Denker
Global Product Supply Engineering, Proctor and Gamble, Cincinnati, OH 45224, USA

Aaron J Shenhar*
Center for the Development of Technological Leadership, University of Minnesota, Minneapolis,
MN 55455, USA

Managers of today's capital projects are under pressure to complete complex projects under
conditions of uncertainty in less time, without sacrifice to cost and quality and without leaving
customers and users dissatisfied. Studying particularly skillful managers who are able to meet
this challenge, the authors found a style of management that shifts away significantly from
accepted practices and routines. Master project managers move beyond classical scheduling,
teamwork and concurrent engineering. They develop a new style of simultaneous management
in which they constantly orchestrate contending demands. This paper presents the principles
employed by master project managers to: lead and navigate the project in a turbulent
environment; form multi-disciplinary teams; handle all functional plans simultaneously and
interdependently; overlap design and execution; develop and maintain intensive project
communication; and monitor simultaneously the utilization of means, the achievement of
objectives and their validity. Copyright © 1996 Elsevier Science Ltd and IPMA
Keywords: project management style, project success, management principles

The overwhelming advantage of being first in the market shortest time without losing control of other important
goes to those who can move a product from a concept to dimensions?
production in the shortest possible time. Whereas the initial Observing particularly skillful managers who are able to
innovative and the final manufacturing stages have been meet this challenge successfully we found, in our studies,
extensively dealt with, the literature offers little guidance in a style of management that shifts away quite significantly
support of the rapid deployment of the new product, to from accepted practices and routines. We present here the
those who must actually plan and execute the manufacturing principles related to this new style of management which
facility. One often assumes that this stage would be realized have been applied in recent years in industrial companies in
quickly and smoothly like manufacturing; in reality it is the USA (see Note on Research). We have made particular
plagued by numerous disturbances and surprises, much like efforts during the past few years to institutionalize these
the preceding uncertain stage of product development. principles ~.
Managers of today's capital projects are under pressure This article deals with the management of capital projects
to complete complex and uncertain projects in less time and does so from the owner's point of view, because most
without sacrificing cost and quality criteria or leaving cus- of our observations and experience have been obtained from
tomers and users dissatisfied. What advice can we give to that perspective. It should be noted, however, that the same
managers squeezed between the demands of high uncertainty principles have also shown their effectiveness with the ex-
and the pressure for a short, high-quality implementation ecution of capital projects by contractors, as well as in other
cycle? How can we plan and execute capital projects in the areas such as product development. Because of the rapid
advances made in many companies to manage more and
more tasks by the project method, we expect these principles
*Author for correspondence. to occupy an increasingly prominent place in organizations.

189
Simultaneous management: A Laufer et al.

A note on research Execution


Low HighFacility
Most of the research on which this article is based was conducted (How)
within the framework of the Construction Industry Institute (CII),
a research institute located at the University of Texas at Austin.
Established in 1983, CII brings together 50 large construction owners, ,e Old Paradigm
50 contractors and 30 universities, in an effort to improve the US

Y/
construction industry. Our research comprised extensive visits to
offices of project managers, in-depth interviews about specific projects
and interpretation of the data in dedicated task forces of the CII.
We have identified in our studies two types of uncertainty that
prevail in capital projects--end uncertainty--whathas to be done: what
are the performance requirements for the completed factory, its scope,
definition and design basis, and--means uncertainty--how it should be
accomplished: the detailed design engineering and the procurement
and construction planning2. The established paradigm assumes that
end uncertainty is resolved before work starts on means uncertainty
(see Figure 1) 7. Our findings show a different picture. Both types of
uncertainty are resolved gradually and simultaneously. In one of our
studies, in which 93 project managers were interviewed, we found
approximately 80% of capital projects still suffering from significant
end uncertainty as late as at the start of construction.
We also discovered a wide gap between the formal procedures
described in the company user's manuals and the implemented prac- Concept
tices. In the many years of consulting and training work we found very
few companies in which the formal project procedures were adhered
to. Whereas many experienced, standard managers are confounded, Figure 1 Certainty matrix
forever looking for ways to resolve unexpected and conflicting
situations, the skilled ones have adapted themselves to finding ways of approach o f project m a n a g e m e n t as a m e t h o d in its o w n
reducing uncertainty to manageable terms. From the intensive
interaction with the leaders in this field, specifically with project right, and dedicated substantial financial and professional
managers in seven companies (AT&T, Du Pont, Exxon, General resources to develop it further. The model concentrates on
Motors, IBM, Mobile and Procter and Gamble) grew the essential the coordination o f sequential and parallel activities and
basis of the new approach, which enabled us to formulate the nine control o f p e r f o r m a n c e , backed up by i n f o r m a t i o n tech-
principles of this article.
nology, just as w o u l d be the case with flight scheduling
p r o b l e m s in m a j o r airlines. It b e c a m e quite an effective tool
to m a n a g e simpler projects which were devoid of high
Evolution of project management styles
levels of uncertainty 5'6.
A better u n d e r s t a n d i n g o f the principles m a y be gained by A different approach evolved in the 1970s w h e n organiz-
retracing briefly the evolution o f the various styles that have ations realized the need to m a n a g e complex projects, projects
d o m i n a t e d project m a n a g e m e n t attitudes over the past consisting o f m a n y dissimilar, highly interdependent com-
decades. It seems one can establish four distinct generations ponents and mastered by different disciplines. The challenge
o f styles, each i n c o r p o r a t i n g the principles o f the preceding here was to ensure integration and teamwork b e t w e e n the
one: scheduling (control), t e a m w o r k (integration), reducing different participants and make the team p e r f o r m as a unified
uncertainty (flexibility), and simultaneous m a n a g e m e n t entity. In this style the m a n a g e r was seen as the p e r s o n who
( d y n a m i s m ) . Each later style has a greater ability to cope had to facilitate the process and define the roles o f parti-
with m o r e situations, from the simple and certain project to cipants accordingly. The m a n a g e r was expected to orches-
the c o m p l e x , uncertain and quick ones. W e use a four-stage trate the manifold, c o m p l e x operations as a s y m p h o n y 7'8.
model to describe these styles (see Table 1)4. The above two styles fit squarely into a world o f cer-
The first period noted as scheduling can be traced to the tainty. But what we discovered in o u r research was that the
birth o f the m o d e r n notion o f project m a n a g e m e n t d u r i n g decisive majority o f capital projects suffer until far into
the 1950s and early 1960s w h e n C P M and P E R T tech- their lives from rapidly c h a n g i n g goals, from perpetual
niques e m e r g e d in large defence and space contracts. The changes and unexpected constraints that are constantly at
construction industry was a m o n g the first to adopt the loggerheads with each other and impinge on the schedule.

Table I Evolution of models of project management


Central concept Era of model Dominant project Main thrust Metaphor Means
characteristics
Scheduling (control) 1960s Simple, certain Coordinating Scheduling regional Information technology,
flights in an airline planning specialists
Teamwork (integration) 1970s Complex, uncertain Cooperation between Conducting a Process facilitation,
participants symphony orchestra definition of roles
Reducing uncertainty 1980s Complex, uncertain Making stable Exploring an Search for information,
(flexibility) decisions unknown country selective redundancy
Simultaneity (dynamism) 1990s Complex, uncertain, Orchestrating Directing a three-ring Experience,
quick contending demands circus continuously responsiveness and
switching acts based on adaptability
the crowd's response

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Simultaneous management: A Laufer et al.

The third style for project management which emerged


during the 1980s has been adopted by resourceful managers. List of principles: a guide for action
It aims at reducing uncertainty to a manageable size. The
Planning
main challenge is to make stable decisions that will stand
the test of time. The main tools employed to achieve this 1. Systematic and integrative planning
Plan systematicallyand integratively. Start as early as possible, set
purpose are to search for as much relevant information as project objectives and employ a multi-stage process. At each stage
possible before and during the decision process and to build prepare all functional plans simultaneously and interdependently.
in some redundancy selectively to buffer the unforeseen. 2. Timely decisions adjusted to uncertainty
These steps infuse a flexibility that allows the project to stay Adjust the timing of decisions and their degree of completeness,
the planning horizon and the degree of detail of the plan to the
on a stable course and protect it against the vagaries of completeness and stability of the information. Selectively split
future uncertainties 9~°. decisions to enhance their stability. Acceleratetheir implementation
In the 1990s, however, as time-to-market became the to obtain fast feedback for further planning.
driving factor in many industrial companies, we found a 3. Isolation and absorption
new style dominating--simultaneity. The very effective Decouple interdependent tasks and isolate tasks plagued by very
high uncertainty. When decoupling is impossible, absorb the
project managers appear, superficially, to be working uncertainty by employing redundant resources selectively, or
disjointedly, in paradoxically opposite directions. In reality manage the interface between interdependent tasks.
they are integrating areas widely separated in space and
time, in hierarchy and methods, in orientation and philos- Leadership and integration
ophy. The simultaneous managers integrate tasks and 4. Inward and outward leadership
people but differentiate between them at the same time. The project manager should lead the project throughout. To do so,
he or she must assume both internal and external leadership roles.
They devise and use formal as well as informal procedures. 5. Multi-phase integration
Goals and means in situations like these are not resolved Involvethe leaderships of the next phases of the project in planning
sequentially and separately but rather simultaneously and as early as possible. When conditions permit proceed to execution
interactively. overlap.
6. Multi-disciplinary teams
What do we really mean by simultaneity? We can all Develop multi-disciplinary teams at the various levels. Involve all
agree that " y o u are no place at all when you try to be in concerned parties and foster cooperation and teamwork.
two places at o n c e " . All managers face extremes, e.g.,
short and long term horizons, large issues and small details. Systems
Mediocre managers get stuck in one extreme. Master 7. Intensive communication
project managers swing back and forth in response to rising Design and foster intensive, open and timely communicationwithin
and withoutthe teams. Employ multiple channels and mediums, in
needs. They constantly orchestrate rapidly changing con- particular modern information technology and extensive face-to-
tending demands. We call this act of orchestration 'simul- face interactions.
taneous management'. As we progress towards more 8. Simple procedures
complex, uncertain and quick projects the metaphor charac- Prepare systems that prescribe for most processes simple and brief
terizing management styles moves on to the more complex procedures. All flexibility of detail in 'how to'. Restrict optimiz-
ation to the essential.
concept, to a three-ring circus. 9. Systematic monitoring
In the field of general management (in contrast with the Systematically monitor project performanceof achieving objectives
field of project management) the management of contra- and utilization of means. Periodically scan the project environment
dictions has in recent years become a central theme ~Lt2. and monitor the changes in the critical planning assumptions.
In our work with masterful project managers we found
that the style of simultaneous management could be
summed up in nine principles (see Guide for Action). The It spells out the arguments for the business justification,
principles are not independent of each other; quite the con- identifies the project leadership and sponsorship, and estab-
trary. To understand them and use them correctly one has lishes objectives and success criteria for project execution.
to understand and activate all nine simultaneously. The nine The typical areas dealt with by project planning are:
principles divide into three groups, planning, leadership project definition (e.g. scope definition, design basis), budget,
and integration, and systems. schedule, organization and systems, human resources,
logistics and support, contracting and procurement, and
construction. The very successful project managers place
Planning the emphasis on perceiving and acting early on the overall
situation when they can effectively influence the course of
Principle 1: systematic and integrative planning events. They deal with the set of decisions as a system and
The need for speed should not be a reason to spare time achieve this by tackling all functional plans simultaneously
and effort on early, integrative, and systematic planning. and interdependently. Decisions made during design en-
Systematic planning is a multi-phase process that starts with gineering, for instance, are affected by and integrated with
setting the objectives, continues with developing the strategies those of other functions such as cost, scheduling, procure-
for implementation, then follows on with determining the ment, organization, and vice versa. This is a key element
means and resources for meeting the objectives, including to making their planning really effective. The planning work
the organizational requirements, and it finishes with design- is documented and articulated in plans which will be used
ing the control means and standards to measure how the as guidelines for execution, authorization, communication,
goals will be attained. coordination, and control. Suitable formal tools and pro-
Defining and documenting the project charter constitutes cedures are used for preparing and communicating the plans.
the first step o f project planning. A charter is a written The typical tools are work breakdown structure, network
contract between the project team and senior management. scheduling, cost estimating, and task responsibility matrixes.

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Simultaneous management: A Laufer et ai.

The value of formal planning can be appreciated even in chosen by many different specifications, to establish the
small projects. From experience in small projects we validity of the modification scheme. Although development
learned that if one is tempted to minimize planning and engineers were inclined to pick the most complicated machine
engineering costs by cutting corners on planning time, the in order to accumulate the most diversified learning
costs rise way above the expected level. We found that most experience, the machine actually picked was the one that
projects do not reach the point of diminishing returns on yielded the fastest learning experience. The experiment on
resources spent on planning. Post-mortem examinations the one machine was even split into subsections in order to
tracing the cause of failures in project execution nearly minimize the crucial elements of uncertainty at the fastest
always point to deficiencies in adhering to the principle of possible rate.
systematic and integrative planning. The principle of simultaneous planning and execution is
Systematic planning constitutes the central pillar for primary in this concept of timely and stable decisions.
excellence in project management. However, to translate It stands in sharp opposition to the principles of the old
this principle effectively into reality under conditions of paradigm. Those who deny or ignore uncertainty find it
uncertainty it must be accompanied by the correct applica- difficult to accept, or even to comprehend the principle of
tion of the second principle, i.e., timely decision making. simultaneous planning and execution. In contrast, our master
project managers pursue a line of rational incrementalism.
Principle 2: timely decisions adjusted to uncertainty This would be analogous to making a few cuts on a hedge
Systematic and integrative planning consists of many inter- to see how the job shapes up to establish a good basis for
dependent decisions. Under conditions of uncertainty, the complete trimming plan. With the aid of a number of
managers do not attempt to make optimal decisions; they small scale trials the project manager strives to solidify his
settle for stable decisions. This they achieve by adjusting or her basis for the full scale plans as quickly as possible,
the timing of decisions and their degree of completeness, providing the basis is not conceived prematurely.
the time-horizon of the planning, and the extent of detail of The expert project manager, after breaking out from the
the plan to the stability and completeness of the information confines of separate and distinct decisions to the larger
on hand. They will therefore pay much attention to the plan, turns his or her attention simultaneously to multiple
quality and completeness of the information at an early time horizons:
stage. The accent is not on passively receiving mainly
internal information but on the early detection of missing • Along-term, low detail level, time horizon--to the
information, and on the proactive effort of gathering, verify- culmination of the project--as a forecasting and control
ing, generating or trading of information from whatever instrument to pilot along to the target.
source, internal or external. • A medium-term, moderate detail level, time horizon--
In the absence of complete and stable information, spanning a few months--to facilitate the study of specific
problems will at times be resolved by postponing a decision project items; also to consider tentative plans that
or parts of it. This can happen, for instance, when the require accord with various participants.
objectives and the guidelines are unclear or incomplete, and • A short-term, fully detailed, time horizon, designed as
there is reason to believe that with the passage of time an action plan for 1-4 weeks ahead.
management can fill in the missing information. Generally,
This approach of multi-time horizons is like employing
though, advancing planning requires accelerating decisions,
multi-focal lenses which enables planning in greater detail
not delaying them, even overlapping two planning stages,
that is, starting the next stage of planning before having at the applicable stage of the project. It does not advocate
finished the previous one. This overlapping also occurs, at delaying the start of planning. On the contrary, early plan-
times quite emphatically, with regard to objectives. The ning becomes meaningful only when partial solutions (i.e.
project manager often finds it difficult to define the objec- initial planning with a low degree of detail) are given their
appropriate place.
tives until he or she can visualize the means to be employed.
At the onset of project planning the frequency and impor-
In most cases selective overlapping between the planning
and its ensuing execution becomes necessary. tance of decision making is high. Master project managers
As an example we mention a case of adding a new facility do not see their roles so much in making the best decisions
to an existing plant that was to be connected by an under- as in assuring that the best decisions are made, in other
words they manage the decision-making process. The early
ground tunnel running across unmarked utility and com-
stages of the planning process in particular are seen by
munication lines. The solution was to split the tunnel away
master project managers as a production process for decisions
from the rest of the project starting at once with its
engineering design and beginning to dig the tunnel early. (a 'decision making factor'). In this capacity they ensure
This solution of concurrent design and execution enabled decisions are made at the right time with the appropriate
project management to obtain the required feedback to horizon and degree of detail.
complete the missing information about the tunnel and
other elements of the project. Principle 3: isolation and absorption
The preference for 'constant nibbling', up to certain This principle is also designed to produce as much as pos-
moments and relative to limited items of the project, over sible a stable and robust plan capable of weathering un-
a 'good bite' or a 'grand design' becomes even more foreseen changes. The focus here, however, is not directly
appropriate when dealing with technology development. on the missing information or guidelines, or on the unstable
Here we give the example of a modification project to information originating in the environmental conditions of
improve the production performance of certain large, the project. It is applied mainly to the problems arising
basically similar machines in a number of plants. It was from the internal complexity of the project such as those
necessary to conduct the relevant experiments on a machine, stemming from the interdependence of multiple, dissimilar

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Simultaneous management: A Laufer et al.

elements. While under conditions of certainty high inter- Leadership and integration
dependence of processes or tasks might be a sign of the
optimal utilization of resources, under conditions of uncer- Principle 4: inward and outward leadership
tainty a few uncertain tasks can quickly proliferate into Successful projects are those managed by project managers
uncertainties of all components of the plan. Analysing and who are involved from the earliest stages of a project's
documenting the interdependence of tasks (as recommended inception until it is taken over by the operating team.
in the traditional approach of network scheduling) is never Project managers exercise influence and a high degree of
quite sufficient; a more aggressive approach is needed. One involvement in the areas of cost, scheduling, staffing, and
should decouple interdependent tasks and isolate them from technical scope. The main management thrust, however,
those plagued by high uncertainty. This prevents one bad lies in the integration of information, decisions, plans and
apple from spoiling the whole basket. If some high un- tasks, and particularly in the integration of all the partici-
certainty tasks cannot be decoupled from the rest of the pating organizations and people in the project.
project, we may have to absorb the uncertainty by selec- To accomplish this integration the skilled project manager
tively employing redundant resources. must possess a quality of leadership capable of navigating
In the example of piling and foundation design engineering, the project in a turbulent environment and of aligning the
progress was stalled because of a lack of information many factors connected with the project to work towards its
regarding the location and the type of equipment to be objectives. To lead the project successfully the master
furnished. The design engineering group was convened and project manager turns his or her attention inward as well as
agreed to provide for a larger maximum load and spatial outward. The internal leader must have the ability to com-
envelop for the equipment. The foundation design and municate the project vision, its objectives and strategy of
construction work could thus proceed well before the execution to the project team, to facilitate team building
equipment uncertainty could be resolved. This required activities, to motivate and inspire the team members to
the use of some redundant resources with little effect sustain their commitment and enthusiasm, to manage the
on the overall project costs. The interdependence was thus decision-making process which also entails monitoring and
decoupled and the work schedule could be maintained expediting missing information, and to monitor performance.
without undue hitches. When the decoupling or absorption Because project boundaries in turbulent environments are
of uncertainty are not feasible, the solution provided by permeable, the project manager must also focus outwardly.
our expert managers is a mechanism for managing the To obtain the required resources (e.g. for engineering
interface between the uncertain component and the rest of design), the project manager must, first of all, negotiate
the project, i.e. a special liaison function to manage the with senior and functional managers the objectives and
interdependencies. resources needed to accomplish them. In addition, successful
Technological innovations and developments should be project managers will establish an early rapport with the
limited only to those essential to achieve project objectives. customers and users, for instance, to ensure alignment
Even then, they increase uncertainty. The probability of regarding the project charter. This may include a number
objectives being reached diminishes dramatically when of visits to manufacturing plants for talks and deliberations
several interdependent elements suffer from uncertainty. at various levels of management there. Occasionally, during
Concentrating uncertainties to a limited number of tasks the lifetime of the project, he or she must secure the
instead of spreading them over most of the tasks can be management's and/or the customer's agreement to signi-
helpful. It helps reduce the volume of information that has ficant changes concerning the realization or even the
to be processed through the system, it allows project direction of the project. Our master project managers are
management to place a limited number of well-qualified proactively engaged in scanning, coordinating and lobbying.
people on tasks they can handle competently, and--as They take pains to maintain constant communication to
statistics show--it improves the chances of achieving the secure the support of their top management and the customer
overall target. Where highly uncertain and crucial technical throughout the life of the project.
innovations are being introduced, it may be advisable to Outward attention also includes factors outside the com-
consider some measure of duplication, such as using two pany which have an impact on the project. These might be
parallel alternatives for development. regulatory bodies, local communities and various potential
The principle of isolation and absorption is occasionally suppliers. In recent years it has become quite common to
practised by most managers. The expert manager, however, pursue various licenses and permits during the stage of
handles it explicitly and continually by deliberate and conceptual planning so as to adjust the scope of the project
focused emphasis and consideration. Already at the early and the design to the constraints imposed by regulatory
stages of the project schematic maps of tasks and relation- bodies. At these early stages, adjustments of this kind are
ships are prepared. This helps identify boundaries and easily absorbed. To save precious time taken up by various
interdependencies among the core parties and the external (often bureaucratic) authorities, for instance, one suc-
stakeholders. Such maps facilitate communication among cessful project manager took it upon himself to design the,
project members when scope definition has not yet crystal- as yet unapproved, approach road to a plant in a new
lized. It also enables project management, already at a very district, to have it ready for implementation immediately on
early stage, to focus attention on clusters of highly inter- receipt of the approval. In problematical areas, during quite
dependent tasks. At this stage in the project it is relatively early stages of the design engineering, local unions are
easy to decouple interdependencies. solicited to obtain favorable labor agreements.
Therefore, by employing essential redundancies the Successful managers give unobtrusively inward and out-
manager is able to formulate an integrative project plan ward attention to provide for, or steer clear of, unexpected
with maximum reliability and adaptability; a plan that will contingencies. Moreover, as integrator of disparate parties
absorb unforeseen future changes. with different orientation and focus, the project manager

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must be able to translate and bridge the gap between the now understand better the objectives and constraints that
customer, the engineers, and the constructors. The customer the upstream teams have faced. The supplier of the equip-
is most interested in the final production facility; the ment, for instance, obtains a wider view of the designers'
engineers care more about the design documents and process problems and will more readily go along with them. The
elegance; whereas the constructors as implementors see manufacturing teams are also likely to become supporters
their chief function executing the project and less in what rather than adversaries over new ideas concerning production
the project is destined to manufacture. The master project processes.
manager integrates these different orientations into a single Third, the communication with the upstream teams will
unit working for a common mission. improve and the downstream planning speed will accelerate
markedly. Being bi-directional, continuous and transparent,
Principle 5: multi-phase integration communication will become a more fertile interchange that
The multi-phase integration principle consists of important will assist in the earlier detection of faults, and will effec-
organizational and time-related aspects to achieve speed tively reduce the need for changes, with the end result
and quality of decisions. Its implementation results in being a much better level of decision-making productivity.
vertical organizational integration and parallel (concurrent) The final result of gaining the desired speed, is the
execution of project phases. Typically, capital projects can readiness of the later phases to start an execution overlap
be broken down into six phases: feasibility studies, con- with the preceding phase. The warm up experienced by the
ceptual planning, project definition, engineering design, leadership of that phase as a partner in the decisions of the
procurement/construction, and commissioning/start up. preceding phase, prepares it well to make a genuine effort
The first three phases are normally the concern of the to accomplish the execution of its own stage speedily. A
owner of the industrial company. The next three phases are word of caution: overlapping execution between two stages
implemented by contractors, vendors and suppliers under which has not been carefully planned and reviewed with
the supervision of the owner's representatives. regard to uncertainty may cause a heavy overrun of expen-
According to this principle the leaders of the next phases diture, by far outweighing the gain obtained from the
of the project are involved in planning from the earliest overlap. Generally, it leads either to an attempt to absorb
possible moment and in all subsequent phases. The project uncertainty with excessive redundancies and waste or to a
manager is best brought in at the feasibility study stage or need for the reworking of a substantial portion of the
at the latest, at the beginning of the conceptual planning project. This will damage the morale of workers, break
stage. The leadership of the engineering design contractor the momentum, disrupt the orderly process of planning,
associates with the planning team during, or at the latest at and throw the work into disarray. For the overlapping of
the closing stage, of the conceptual planning phase. This execution to be correct and to work well, the above principles
would be joined by leading representatives of the owner in of reducing and isolating uncertainty must be observed.
the areas of procurement and contracts as well as by That is, overlapping engineering and construction can be
representatives from the manufacturing plant. During the successful when the concepts of timely and stable decisions
project definition phase the leadership of the construction and isolation and absorption are adhered to. Overlap should
contractor and of the important equipment vendors will join occur between parts of the project that were decoupled
in. Later, in the course of the project, while maintaining from the rest and are shielded in relative certainty.
essential conditions that will be spelled out further on, the When adhering to these concepts, good project managers
multi-phase planning integration becomes the multi-phase succeed by virtue of better quality decisions through multi-
execution overlap. In the execution overlap the design phase integration and accelerated speed through judiciously
engineering contractor mobilizes forces to start work selected overlaps.
before the project definition team has completed its part;
the construction contractor and the important suppliers Principle 6: multi-disciplinary teams
begin the construction and fabrication before all engineering Projects are not delivered by project managers but by
design for the whole project has been completed, and the teams. A team composed of all the necessary specialists and
start-up phase begins before all the construction and instal- experts is able to make integrative decisions based on
lation at the site have been finished. Multi-phase integration seeing the picture as a whole, and executes them later on
is facilitated when the contracts are long-term commitments with greater speed. Invariably, behind each successful
of the partnering or alliance contracting type. project we find an excellent team. The excellent team is
The multi-phase integration affects capital projects in committed to a common mission and specific objectives.
four important respects: the first concerns the quality of the The members of the team adopt an interdisciplinary orien-
upstream decisions taken in the early phases which will tation so they can reconcile the objectives of their own
improve thanks to the feedback received from the down- discipline with those of the project. The individuals on the
stream phases. The leadership of the latter challenges the team depend one upon another, at least in important
assumptions and examines the constraints that guided the subjects, which cements the team together. This mutual
former. Take the case of the construction contractor who is trust among key members of the high performance team
around in the design engineering stage, or maybe even helps to avoid the withholding of information between
earlier, in the project definition stage, and obtain the members. A good team also maintains a high level of
important result of getting a design adapted to construct- energy, enthusiasm, inspiration, and commitment which is
ability like more use of pre-assemblies and prefabricated not upset because of difficulties encountered with the
items. Unnecessary constraints that would have made con- project.
struction more difficult and costly are thus avoided. With all these collaborative attributes, the really suc-
Second, the downstream teams also gain new insights cessful team instills in its individual members a sense of
from the interaction with the upstream teams because they belonging and of pride in the specialization in which they

194
Simultaneous management: A Laufer et al.

excel, which leads to creative and innovative solutions. from four different contractors. A variety of factors com-
High performance teams, however, recognize that team bined to make the team cohesive, but the single most
and individual success are inseparable. They therefore obvious factor in its development was the bi-weekly 'big'
foster cohesiveness and strengthen the bond between them team meeting where each sub-area reviewed its progress
that transcends their differences. They go out and dine for the past 2 weeks and its plans for the coming weeks. At
together, they develop their own group humor and all kinds the beginning, these meetings seemed artificial, because the
of peculiar rituals with which they celebrate their little subjects addressed ranged from one end of the plant to the
victories. It all acts as an effective 'lightning rod' to release other end, and covered every technology area. The focus
tensions. was particularly on issues where these areas came into
Team activities undergo changes in the course of a contact with each other, often a point of dissension between
project and therefore change their game styles. In the team members. There were usually 25 people in the room
closing stage of the project, for instance, when approaching and, although each session cost more than $2500 and
start up, it becomes like a game of football with a strong produced no engineering drawings, the meetings produced
central leadership which places the players in fixed positions, a cadre of people who understood the magnitude and
with emphasis on scheduling and control. In contrast, complexity of the project.
during the early stages of hatching the project and during Although the leadership and accountability for the success
the conceptual planning stage, the game plan resembles of the technical team clearly rested with the project manager,
more a game of basketball. The leadership wants to faci- his role at these meetings was primarily as facilitator. The
litate the process in a small team tied by quite loose intent was not to reshape individual views into consensus
definitions of functions to promote creative interaction and but rather to maintain the team diversity while promoting
high adaptability. As the project progresses, a gradual a higher level of understanding between the various mem-
transition from uncertainty to certainty, from creative dis- bers. This way team members were able to see their parts
covery to programmed activity takes place. But unpredicted in the big picture. They acted more and more cohesively,
situations do occur somewhere in between, even in the responding when and where problems needed to be solved
advanced stages, and switching back to basketball in the --at the interface, not in response to some boss up the line.
middle of the field becomes necessary. The dynamics of The interaction and involvement of the team members im-
team integration is particularly noticeable during phases proved progressively over the 18 months of engineering.
when game plans change perceptibly. As the facilitator of The results achieved on this project were outstanding.
the process the project manager must have a well-developed The interwoven priorities of technical change and social
sense of timing for the right moment of switching. system change were effectively addressed. All capacity
It is vital to realize that teams are developed, not drawn objectives were met, capital costs were on target and the
on organizational charts. The following is an example systems started production ahead of schedule. Many factors
describing the development of two excellent teams in a contributed to these excellent results, but none was more
complex project with multiple objectives. The project's significant than the value contributed by the steering and
primary objective was to increase the capacity of the manu- technical teams. By the close of the job, the contractor by
facturing plant by 50%, whereas its social system objective whom each person was employed was indistinguishable
entailed fundamental organizational changes throughout the from the rest. They had all become card-carrying members
plant. The project was led and coordinated by a steering of the project team.
team composed of the project manager, plant operations
manager, plant cultural change manager, and plant tech-
nical systems manager. No one team member had total
Systems
responsibility--it was shared.
From its formation, the steering team was faced with a Principle 7: intensive communication
mountain of challenges, and could easily have spent its time Intensive communication is a central factor in leading and
and energy addressing tasks as they surfaced and demanded integrating people and taking decisions to produce a suc-
attention. Instead, the team members realized their initial cessful project. True as this is in general, it is particularly
focus needed to be on forming a working team from a group so in modern projects. The best remedy to reduce uncer-
of individuals. Team-building energy focused on foundation tainty in a world of ambiguous, clouded, changing and
work. The team documented how it would function, com- volatile information is to collect, create and circulate infor-
municate with the organizations it managed, make decisions mation. When a project advances quickly the information
and interact with senior management. These documents must also flow fast. During the overlap between planning
became firm bases for planning, working, and making and implementation, decisions to execute will naturally
changes as they arose. undergo changes. Consequently, significant information
The other foundation for this team was a weekly half-day must flow throughout the life of the project. Furthermore,
meeting where the team reviewed progress and key issues, the decision makers who are also responsible for the imple-
made plans for the coming weeks, and defined what sys- mentation suffer from a chronic shortage of time to handle
tematic responses were needed to present and future the information--receiving, processing and imparting. The
barriers. These weekly meetings built the teamwork that challenge and strain of fueling the moving vehicle at the
established the team's 'single-voice', an aligned position on right time becomes enormous. When taking into account
all key project issues from training to equipment decisions the need to synchronize the multiple internal and external
to production schedules. This single voice was critical to factors impacting the project at all levels of organizational
the project's success. hierarchy and professional specialization, we begin to
The technical team of the project consisted of a few understand the enormity and the manifold dimensions,
owner's representatives and a large number of engineers variety and facets of the communication.

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The requisite variety concept of Ashby (a pioneer of and accelerate the pace of understanding and are the reason
cybernetics) states that only variety can absorb variety. why successful project teams are co-located. Thus, in the
Indeed, in the champion projects we see the materialization conceptual stage the representatives of the design engineer
of this idea. The communication is prolific in content, move in with the owner at his home office, in the design
format and medium; it is open, transparent and free flowing stage the representatives of the owner, the constructors,
across all levels and functions; it deals with a huge diversity and the suppliers stay with the design engineers, and when
of technical and administrative, business and commercial construction starts representatives of all parties come to the
matters. But most of all, the information flows in gigantic project site.
volume, speed and frequency and in many directions. Intensive communication is led by effective project
The flow of communication in the successful project managers themselves who, although acting as the chief
resembles traffic in a metropolitan city, heavy with noisy communicators, are mainly the social architects and managers
movement of all types of conveyances: bicycles, motorbikes, of the system. Herein lies the secret of why excellent teams
cars, cabs, trucks, buses, streetcars and trains, going in all show an ability to handle many outstanding achievements
directions at a breakneck speed without stopping. It is as simultaneously: to develop original ideas, to prepare in-
though we watch the traffic at the Place Charles de Gaulle tegrated, stable, and flexible plans, to coordinate group
(Etoile) in Paris at rush hour at three times the normal work and align it with the surrounding system, bringing all
speed, seemingly chaotic, but in fact flowing without a together as a cohesive unit.
hitch, with resolute purposefulness and direction. The
effective manager does not act in this tangle as a good traffic Principle 8: simple procedures
officer but more like the top person in the traffic control Great project managers excel because of their pronounced
center of the city responsible for the design, planning, orientation to bottom-line products, to results. Oddly enough
adjustment and maintenance of the flow in lanes, highways they achieve first-rate results by actually paying attention to
and byways, and monitoring the city's heart-beat operating processes and by relying on formal, standard procedures.
in concert. This function grows from a highly developed Excellent managers, although relating to each project as an
culture of communication developed over many years, individual creation, are nevertheless able to perceive the
which understands the intricacies of its mechanism, and common threads of processes in all projects. Companies
knows to avoid the indiscriminate use of communication, to which have craved to abolish bureaucracy and have made
avoid overloading channels and clogging the traffic. The efforts to erase formal systems for capital projects have
performance is all the more astonishing as the manager will soon found out that it was impossible to function without
often encourage redundancy of information in the form of them. On the other hand, it should be stressed that com-
repeated descriptions over the other media, a duplication panies 'loaded to the rafters' with many detailed procedures
designed to ensure relaying the message reliably. Redun- cannot be held up as shining examples of success. Looking
dancy is important to prevent vagueness and uncertainty by behind the curtain sadly we find that the procedures are not
reinforcing understanding through additional transmissions, all in use. In successful companies the formal systems and
especially in connection with new, largely abstract ideas procedures are something quite different.
between highly specialized groups of people who occasion- In successful companies procedures differ in a number of
ally use an exclusive jargon. respects. In the first place procedures are designed mainly
Modern communications employ reliable, diversified to serve the horizontal needs, that is to say, to strengthen
media, from letters and memos by ordinary and electronic more the lateral ties between the implementors and less the
mail to 3D CAD drawings and photos, integrated database vertical direction of to-down control. When the procedures
systems and more, that tie together all the participants, are designed, great emphasis is laid on the fact that they
including suppliers and vendors at remote locations, into reflect the continuously changing reality as closely as pos-
one vast, interacting field under the direction of the project sible, and that adherence to the procedures provides a
management leadership. distinct value to the business unit. Therefore, the corporate
However, modern electronic communication devices are and the business unit staff develop the procedures in close
no substitute for human contact. Communication is well cooperation with the field people. The design of the pro-
designed not only to transmit and coordinate but also to cedures takes into account that different projects require
interpret and eliminate equivocation, as well as to generate different actions that cannot be spelled out in one standard
new ideas. There is no substitute for face-to-face meetings. procedure. The procedures are therefore designed to allow
It provides the riches of all media of communication. The flexibility with an emphasis on 'what', describing mainly
feedback is instantaneous and enables the immediate cor- the product (i.e. documents) of the procedures. On the
rection of interpretations. It uses all the means a person has 'how' side there is only a general outline of the process.
to put a point across by explanation, emphasis, repetition, For specific detail, the interested user is referred to the
intonation, body language, in addition to modem presen- books of 'best practices' or 'success stories'.
tation aids. Meetings, as a means of communication, carry The final result of implementing this principle is that the
on into the last stages of the project. For example, there are procedures are simple, brief, omit detailed rules and require
more than five different types of meetings at a typical only a minimum of paperwork and approvals. Nevertheless,
construction site, each occurring at a frequency of between there are occasions which call for complex procedures and
1 week and 1 month. analytical tools that require much time for the collection of
During the first stages of the project many unscheduled data, generally of a quantitative nature, for its processing,
meetings take place. These important meetings are mostly evaluation, presentation and implementation. In the pre-
ad hoc, on a one-to-one basis outside the office, in the definition stage of the project, for instance, there are
corridor, at the copy machine, in the cafeteria, etc., to clear procedures for various feasibility studies, risk analysis, and
up ideas or reconcile differences. They remove obstacles cost estimating. These occasions are infrequent, because

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Simultaneous management: A Laufer et al.

the least available commodity in the manager's kitbag is They monitor simultaneously the utilization of the means
time. If one adds to their chronic lack of time the lack of (efficiency), the achievement of objectives (effectiveness),
stable information and the need for expeditious action, and the validity of the objectives (due to changes in the
one realizes that perfection on all fronts is a dangerous project's environment).
luxury. Therefore, optimized solutions are sought but only Therefore, monitoring starts early with the initial plan-
selectively. ning and focuses on the environment. This is based on the
In the successful companies which proceed by the prag- realization that, as an open system, the project's environ-
matic method outlined above and which develop simple ment has an incisive effect on its success. A simple tool, the
procedures, more and more project managers find the critical assumptions matrix (see Table 2), can be used to
procedures are applicable to any specific project, with only monitor the project environment. The assumptions in the
minimal adaptations. The way these procedures are used matrix are those that are critical to the project's success and
depends mainly on the experience of the users. For young are most prone to fluctuation. The matrix separates assump-
and new project managers, who have become quite numerous tions in two ways. First, division into three environmental
in recent years because of the many company acquisitions areas according to origins: business and economics, tech-
and the accelerated pace of globalization, these procedures nical and physical, and political, organizational and human
and tools function as road maps that improve their effici- resources. The second division is by three levels of
ency and reliability. For project managers with a rich back- environment according to the ability of the project team to
ground of experience these procedures are only milestones exert an influence over them: controlled by the project
to verify their course. For them they are mainly checklists team, influenceable, and controlled externally.
to ensure that no process is overlooked as a result of the The person responsible for monitoring the assumptions,
pressure of time. The expert managers do not need them for among whom are members of senior management and
themselves because they know the score by heart. But they the customer, is indicated in the matrix adjacent to each
do need them as an instrument with which to improve the assumption. Scanning the environment and monitoring the
quality and reliability of communication, to help them in changes in the critical assumptions allow timely revisions
creating a common vocabulary. In the world of project of the plan and occasionally also of objectives. The periodic
management there are many concepts for which there are review of the matrix invariably draws the attention of
no hard and fast definitions, and in the environment of the everyone to the current uncertainties. Problems previously
multitude of disciplines, specialization and trade or slang ignored and neglected, intentionally or unintentionally, are
terms, one easily gets lost like in the Tower of Babel. The now brought up for review in an atmosphere of extraordinary
simple procedures will also be useful for training and on- receptiveness and relevance. The skillful project manager
the-job coaching. is able to minimize surprises by using the anticipatory
We found that complementary to Ashby's requisite monitoring device.
variety concept, a central component of the successful The classical monitoring of achieving objectives and
project in the battle with outside disorder, is its internal utilization of resources is now handled by a highly developed
order and stability. As project managers enrich their ex- system of reports and measures adapted to the various levels
perience in the course of time with the conditions in the of management, senior, project and construction manage-
outside world, of their desire to strengthen the internal ment. To keep to the concept of simple procedures, the
order through simple procedures increases. number of measures for each level of management is limited.
Senior management involvement is primarily through its
Principle 9: systematic monitoring participation in the periodic or phase reviews. This allows
The need to monitor execution systematically is based on management to be appropriately visible and influential
the home truth that identifying a small problem is difficult while the project manager retains sufficient autonomy.
- correcting it is easy; identifying a big problem is easy - In successful companies there is also systematic monitoring
correcting it is difficult. In the classical approach of the old of the methodology and processes of project management.
paradigm in which uncertainty receives only marginal One of the most effective ways is learning from the experi-
attention, the perceived purpose of monitoring, termed ence group, a group of field people that meets periodically
'control', is to 'seek to compel events to conform to plan'. to review, analyse and interpret the effectiveness of the
Good project managers have far greater aims than that. processes, actions and tools which they use in the current

Table 2 An example of a critical assumptions matrix

Environment Business and economic Technical and physical Political, organizational and human
resources
Controlled by We can identify acceptable infrastructure We can finish the technical feasibility We will be able to recruit an experienced
project team options which cost no more than the study concerning auxiliary equipment control engineer before the beginning of
allowance in the March estimate. (BRS)* by 10.15.92. (FDR) the preparation of design criteria,
approximately by 12.1.92. (HCD)
lnfluenceable We will receive capital in quantities and We will be able to obtain not We can maintain strong support/visibility
on schedule as laid out in March. (HCD) prohibitively expensive environmental of category management and plant
and building permits. (MHW, CEG) management throughout the life of the
project. (HCD)
Externally Sales growth will match the forecast No major technological breakthrough There will be adequate skilled construction
controlled laid out in March. (HCD) will be needed. (RDR) labor during summer 1993. (BCL)

*Person responsible for monitoring the assumption.

197
Simultaneous management: A Laufer et al.

projects. A suitable atmosphere of openness and a culture the capabilities of their project managers, by giving them
of continuous learning, and sometimes the recognition of full backing to let them deploy their talent for simultaneous
the need to unlearn, are central for the constant striving to management, do accomplish synergetic achievements.
improve the methodology of the management of projects. Unique and complex projects are thus executed at a great
speed without penalty to quality and costs, with much
gratification to the customer.
Achieving synergy with simultaneous management To the outside inexperienced observers, particularly
The nine principles of simultaneous management form a those unfamiliar with simultaneous management, there
gestalt--an integrated whole. Simultaneous management appear to be many contradictions, paradoxes and tensions
can be summed up in one breath: by planning systematically, --short vs long-term horizon, harmonious and unified
making early (but not premature) adequate decisions, teamwork on the one hand, encouraging the creativity of
involving all parties concerned early, leading them as a the individual on the other, demand for face-to-face com-
team, operating first-rate communications, using simple munication and also mastery of high-tech information tech-
procedures, executing the project's phases early and in nology. We did not detect any tensions in the master
parallel (after appropriately splitting the project), monitoring managers riding astride these opposites. In fact, they seem
project performance and the environment, and judiciously to thrive on them. Their capability to domesticate these
adapting the project's execution to arising contingencies-- paradoxes gives them a personal satisfaction enabling them
one can execute challenging projects with excellence and to perform well. The master project manager consciously
speed. plans the apparent imperfections simultaneously, the long-
The interdependence between the principles and their term horizon with its inherent shortcomings (decreasing the
complementary nature to each other is an important charac- stability of the decisions) and the short-term horizon with
teristic of this new style of management. It is, for instance, its constraint (straining consistency of the plan) in the
impossible to prepare integrative plans without teamwork; knowledge that they complement each other. What appeared
it is equally impossible to use a team effectively without in the old paradigm as irrational is in the new paradigm
specific objectives and plans. Also, for good planning you the only way to manage rationally and to accomplish the
need a highly developed information and communication mission with excellence.
system. On the other hand, clear plans contribute a primary
medium for effective project communication. Conversely,
References
it is not possible to inspire teamwork without free-flowing
and open communication. But free-flowing and open 1 Laufer, A Simultaneous Management: Managing Projects in an Era
communication will be greatly facilitated if the barriers and of Uncertuinty and Accelerated Speed AMACOM, USA (to be
published in 1996)
obstacles in a team have been removed. 2 Turner, J R and Cochrane, R A 'Goals-and-methods matrix: coping
In our era, when we are trying to push for more with less, with projects with ill defined goals and/or methods of achieving them'
for excellent and fast projects, the race is after synergy in International Journal of Project Management (1993) 93-102
which the value of the whole is greater than the sum of 3 Howell, G, Laufer, A and Ballard G 'Uncertainty and project
its parts. These nine principles, taken together, form the objectives' Project Appraisal 8 (1993) 37-43
4 Gutsch, R W and Dworatschek, S 'INTERNET--history and future
foundation on which real synergy is achieved at the project strategy' INTERNET 9th World Congress, Glasgow 3 (1988) 3 2 - 4 0
level. 5 Miller, R W 'How to plan and control with PERT" Harvard Business
We have presented here the principles for achieving Review March-April (1962) 93
excellence learned from observing master project managers
at work. What can one say about the qualifications required
from such masters? Managing a temporary and amorphous
organization that must be aligned across boundaries to Alexander Laufer is Vice Dean at the
Faculty of Civil Engineering of the
make it highly responsive and capable of quick reactions, Technion--lsrael Institute of Tech-
maintaining consistency throughout the duration of the nology. He is also head of the Depart-
project, demands a high degree of managerial skill. The ment of Construction Management at
project manager must not only be a skilled leader of people the National Building Research Institute
of Israel. He received his PhD in Civil
with a sound knowledge of the applied technologies. Beyond Engineering at the University of Texas
his or her mastery of handling the tools of project manage- at Austin in 1980, after which he
ment, including its business aspects, he or she must also be taught at Texas A & M University and at
a diplomat to bridge conflicts of interest. A rich background North Carolina State University. Prior
of experience is essential for managing novel, complex and to teaching and research he was en-
gaged for 8 years as a project manager ~
fast-paced projects. This is the cutting edge with which the for major owners and for construction
project manager can make recurrent diagnoses to adjust the companies. He was later invited to teach at industry sponsored
project management methodology to a fluent situation. programs: the AGC Endowed Chair Program at the University of New
However, the outstanding characteristic of the successful Mexico, and the Alliance for Construction Excellence, Visiting
Eminent Scholar Program, at the Arizona State University. A. Laufer
project manager is his or her versatility and agility of is the author or co-author of more than 80 publications including two
perspective with which he or she can come to grips with the books, and has presented numerous lectures and seminars at univer-
necessity of responsiveness and adaptation to resolve the sities, research institutes and industrial establishments. His new book
densely packed problems which projects encounter. Simultaneous Management: Managing Projects in an Era of Uncertainty
Managers possessed of such qualifications are at present and Speed, will be published by AMACOM, American Management
Association in 1996. A. Laufer is a member of the International Project
not in abundance in any company. This compels top Management Association, Project Management Institute, and the
management to be selective in setting ambitious objectives American Society of Civil Engineers.
for prospective projects. Companies picking projects to fit

198
Simultaneous management: A Laufer et al.

Gordon R Denker joined Procter and Dr Aaron J. Shenhar, is the James J.


Gamble upon graduation in February Renier Visiting Professor in Tech-
1952 and remained there in various nological Leadership at the Center
technical and executive positions until for the Development of Technological
retirement as Manager of Central Leadership, University of Minnesota.
Engineering on October 1, 1993. He is Previously, he was at 7he Leon Recanati
now enjoying retirement with activities Graduate School of Business Admini-
including: physical fitness, fishing, stration, Tel-Aviv University. Dr
hunting, gardening, travel, arbitration Shenhar holds five academic degrees in
and reading. engineering, statistics, and economic
systems - acquired in Israel and at
Stanford University. Prior to academia,
Dr Shenhar accumulated extensive
engineering, scientific, and management
experience in a high-tech environment. Working for over 20 years in
the defence indust~ in Israel, he went through all phases of technical
management, from functional and project manager, to vice president
6 DOD and NASA Guide: PERT Cost Systems Design, Office of the of human resources, and finally, to manager of a large systems
Secretary of Defense and the National Aeronautics and Space development division. Dr Shenhar's current teaching and research
Administration, Washington, DC (1962) interests include management of technology and innovation, and
7 Aram, J D and Morgan, C P 'Role of project team collaboration in project and product development management. He is a recognized
R&D performance" Management Science June (1976) speaker and consultant to various leading high-technology organizations.
8 Lawrence, B 'The team approach to project management' Management
Review 61 (1972) 48--62
9 Christensen, K S 'Coping with uncertainty in planning' APA Journal 11 Quinn, R E Beyond Rational Management: Mastering the Paradoxes
Winter (1985) 63-73 and Competing Demands of High Performance Jossey-Bass, USA (1988)
10 Wilkin, L and Sutton, A The Management of Uncertainty: 12 Pascale, R T Managing on the Edge: How the Smartest Companies
Approaches, Methods and Applications Martinus Nijhoff, USA (1986) Use Conflict to Stay Ahead Simon and Shuster, USA (1991)

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