Field Guide to Project Management Field Guide to Project Management, Second Edition. Edited by David I. Cleland Copyright © 2004 John Wiley & Sons, Inc. Field Guide to Project Management Second Edition DAVID I. CLELAND JOHN WILEY & SONS, INC. Thisbookisprintedonacid-freepaper.(cid:1)(cid:1) Copyright(cid:2)2004byJohnWiley&Sons,Inc.Allrightsreserved. PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey. PublishedsimultaneouslyinCanada. 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Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsin printmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts, visitourwebsiteatwww.wiley.com. LibraryofCongressCataloging-in-PublicationData: Fieldguidetoprojectmanagement/[editedby]DavidI.Cleland.—2nded. p.cm. Includesbibliographicalreferencesandindex. ISBN0-471-46212-8(Cloth) 1. Projectmanagement. I. Cleland,DavidI. HD69.P75F54 2004 658.4(cid:1)04—dc22 2003026495 PrintedintheUnitedStatesofAmerica 10987654321 Contents Acknowledgments ix Preface xi SECTION I Project Management 1 Chapter 1 Strategic Planning 3 David I. Cleland Chapter 2 The Elements of Project Success 14 Jeffrey K. Pinto Chapter 3 Why Project Management? 28 Carl L. Pritchard Chapter 4 Implementing the Project-Management 42 Process Lewis R. Ireland SECTION II Project Planning Techniques 55 Chapter 5 Practical Tools for Project Selection 57 Christopher A. Chung and Abu Md Huda Chapter 6 A Comprehensive Model of Project 71 Management John R. Adams and Miguel E. Caldentey Chapter 7 Another Look at Life Cycles 88 Thomas C. Belanger and Jim Highsmith v vi Contents Chapter 8 Putting Together a Work-Breakdown 103 Structure Paul Warner and Paul Cassar Chapter 9 Tools to Achieve On-Time Performance 116 J. Davidson Frame Chapter 10 Keeping the Lid on Project Costs 143 Kim LaScola Needy and Kimberly L. Sarnowski Chapter 11 Calculating Costs and Keeping Records 159 for Project Contracts James J. O’Brien Chapter 12 Developing Winning Proposals 180 Hans J. Thamhain Chapter 13 Techniques for Managing Project Risk 202 Guy M. Merritt and Preston G. Smith Chapter 14 Building the Foundation for Project 219 Success—The Statement of Work Michael G. Martin SECTION III Project Leadership 245 Chapter 15 The Tasks of Project Leadership 247 Timothy J. Kloppenborg, Arthur Shriberg, and Jayashree Venkatraman Chapter 16 Making Optimal Use of the Matrix 272 Organization Charles J. Teplitz Chapter 17 How to Motivate All Stakeholders to 288 Work Together R. Max Wideman Chapter 18 Political Strategies for Projects and 305 Project Managers Bud Baker Contents vii Chapter 19 The Role of Senior Management on 313 Projects Kenneth O. Hartley Chapter 20 Building a High-Performance Project 325 Team Warren Opfer Chapter 21 Motivation in the Project Environment 343 Robert J. Yourzak Chapter 22 How to Get the Right Message Across 353 Francis M. Webster, Jr. and Stephen D. Owens Chapter 23 Negotiating Skills for Project Managers 368 Stephen D. Owens and Francis M. Webster, Jr. Chapter 24 Integrating Project-Management Skills 379 for the Future Elvin Isgrig SECTION IV Project Oversight 405 Chapter 25 How to Monitor and Evaluate Projects 407 James R. Snyder Chapter 26 Project-Management Software: A 426 Guideline for System Selection and Use Bopaya Bidanda and David Hackworth Chapter 27 Effective Project-Management 448 Information Systems Frank T. Anbari Chapter 28 Total Customer Satisfaction 467 Lewis R. Ireland Chapter 29 Project Evaluation at Lucent 481 Technologies Daniel P. Ono viii Contents Chapter 30 Project Termination: The Good, the Bad, 503 and the Ugly Carl L. Pritchard Chapter 31 Implementing Earned-Value Project 521 Management in Ten Easy Steps Quentin W. Fleming and Joel M. Koppelman Chapter 32 Legal Considerations for Project 540 Managers Randall L. Speck SECTION V Team Management 559 Chapter 33 New Ways to Use Project Teams 561 David I. Cleland Chapter 34 Energizing Project Teams 575 Gwenn C. Carr, Gary L. Englehardt, and John Tuman, Jr. Chapter 35 Concurrent Product-Development Teams 594 Preston G. Smith Chapter 36 Self-Managed Production Teams 609 Karen M. Bursic Index 623 Acknowledgments The preparation and content of this Field Guide required the cooper- ative effort of many well-known people in the field. The authors who provided the chapters are all experts in the disciplineofprojectman- agement. Their contributions reflect a kaleidoscope of the theory andprac- tice of project management, expressed in pragmatic terms for the use of people who practice project management in their work. The people who contributed to the 2nd Edition ofthis book aremanyof the same ones who contributed to the ‘‘first of its kind’’ lst Edition of this book. I am deeply indebted to all of these people who supplied updated material for their chapters, as well as those who provided new chapters for the book. I thank Claire Zubritzky and Lisa Bopp of the IndustrialEngineeringDe- partment of the University of Pittsburgh who provided outstandingadmin- istrative support for the development of the manuscript for this book, Special thanks to Dr. Bopaya Bidanda, Chairperson of the IndustrialEn- gineering Department, and Dean Gerald D. Holder, Dean of the School of Engineering, who provided an intellectual and supportive environment where projects such as the development of this book could be undertaken. Robert L. Argentieri, Executive Editor, John Wiley & Sons, Inc., who pro- vided the opportunity for the creation of this book, and its subsequent ad- dition to the project management literature deserves special recognition. Dr. David I. Cleland Professor Emeritus School of Engineering University of Pittsburgh Pittsburgh, Pennsylvania ix Preface TThis Field Guide provides basic and useful guidance on the practice ofprojectmanagementinawidevarietyofapplications.Awho’s-who rosterofexpertauthorspresentexplanationsandadviceonallaspects of project management. The book provides fundamentalblueprintsforsuc- cessful project planning and execution. A must-own volume for project managers, product and service developers,teamleaders,andexecutiveper- sonnel in all industries will find the information useful and pragmatic. The primary change in this 2nd Edition is the updating of the chapters in the original book. In addition, several new chapters have been added, viz., EffectiveProjectInformationSystems;ProjectManagementSoftware:A GuidelineforProjectSelectionandUse;ImplementingEarnedValue;Project Leadership;BuildingtheProjectStatementofWork;BuildingHighPerform- ance Teams, and Project Management Maturity. There are five major sections in this book. Section I sets the stage for project management through chapters on the strategic management of or- ganizations, the rationale for project management, what constitutesproject success, and the design and implementation of the project management process. Section II covers a range of different subjects related to planning tech- niques such as project selection, life cycle choice, developing the work- breakdown structure, project costs, achieving on-time performance, developing winning proposals, and risk assessment. Section III deals with the general topic of project leadership.Motivation of stakeholders, the use of the matrix organization, political strategies, the role of senior management, communications, negotiating skills, and devel- oping project management skills for the future are all provided in this sec- tion. Section IV looks at project oversight through how to monitor projects, use project software and information systems, qualitymanagement,project evaluation, the timely termination of projects, and legal considerations in the management of projects. xi xii Preface Section V, the last section in the book, extends the use of project man- agement concepts and processes into non-traditional use of project teams suchasreengineeringteams,productdevelopmentteams,andself-managed production teams. I wish the users of this book the best of success in the management of their projects! David I. Cleland Professor Emeritus University of Pittsburgh