The Fast Forward MBA in Project Management

417 Pages·2005·4.04 MB·English

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RIC ERZUH
John Wiley & Sons, Inc.
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Copyright © 2005 by Eric Verzuh. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical,
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should be addressed to the Permissions Department, John Wiley & Sons, Inc.,
111 River Street, Hoboken, NJ 07030, [phone], fax [phone].
Limit of Liability/Disclaimer of Warranty: While the publisher and author have
used their best efforts in preparing this book, they make no representations or
warranties with respect to the accuracy or completeness of the contents of this
book and specifically disclaim any implied warranties of merchantability or
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Library of Congress Cataloging-in-Publication Data:
Verzuh, Eric.
The fast foward MBA in project management / Eric Verzuh.—2nd ed.
p. cm.—(The fast forward MBA series)
Includes bibliographical references and index.
ISBN 0-471-69284-0 (pbk.)
1. Project management. I. Title: MBA in project management.
II. Title. III. Series.
HD69.P75V475 2005
658.4'04—dc22 2004027080
Printed in the United States of America
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For Marlene
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A C K N O W L E D G M E N T S
T
There are no unimportant jobs on any project, and there are no unim-
portant people on the project team. From concept through completion,
many people have been involved in the development of this book. To
each of the people who have shaped this book through their advice,
encouragement, and hands-on participation, I offer my thanks.
To Kymberly Actis, for her persistence and commitment as she
turned my handwritten drawings into the many figures in this book.
To the professionals who contributed their effort and experience to
create the Stellar Performer profiles: Rod Pipinich, Fred Black, J. C.
Brummond, Virginia Klamon, John Gaffney, Brian LaMure, Marlene
Kissler, and Peggy Jacobson.
To my colleagues and clients for their interest and insights: Steve
Weidner, Greg Hutchins, Pen Stout, Karl Hoover, Steve Morris, Peter
Wynne, Bill McCampbell, Patrick Bryan, John Spilker, and Kristian
Erickson.
To the team at John Wiley & Sons, Inc. who took a risk and saw it
through: Henning Gutmann, Renana Meyers, and Sam Case.
To those who put the wheels in motion: Brian Branagan, Linda Vil-
larosa, and Barbara Lowenstein.
I particularly want to thank two top-notch project managers who
have taught me much about project management, business, and life,
and with whom I’ve had the privilege to work: Sam Huffman and the
late Fred Magness.
Finally, I thank my wife, Marlene, who has played many roles on
this project: coach, editor, critic, writer, and partner. Her insight and
perspective have been of constant value both as I wrote this book and
I O N
over the years as I built my business.
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A C K N O W L E D G M E N T S F O R
T H E S E C O N D E D I T I O N
T
The privilege of updating this book for a second edition was accompa-
nied by some hard work to make sure the result was actually an
improvement. My thanks to those who contributed their expertise and
energy.
To the professionals who shared their hard-won knowledge: Jim
Smith, Donna McEwen, T. J. Filley, Rod Pipinich, and Bill Schafer.
Once again, to my wife, Marlene, whose talents and contributions
permeate this work.
A B O U T T H E A U T H O R
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A B O U T T H E A U T H O R
ERIC VERZUH
Eric Verzuh is president of The Versatile Company, a project manage-
ment training and consulting firm based in Seattle, Washington. His
company trains thousands of professionals every year in the funda-
mentals of successful project management including how to get the
most out of Microsoft Project. Versatile’s consulting practice focuses on
helping firms establish consistent, practical methods for managing
their projects and implementing Microsoft’s enterprise project man-
agement solution. The company’s client list includes large corporations
such as Adobe Systems, Lockheed Martin, and Nordstrom, as well as
government agencies and small companies. Verzuh has been certified
as a project management professional (PMP) by the Project Manage-
ment Institute and is a frequent speaker at project management con-
ferences. His other publications include articles, conference papers
and The Portable MBA in Project Management (2003), also published
by John Wiley & Sons, Inc. Verzuh can be reached via his company’s
site on the Internet, www.versatilecompany.com.
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C O N T E N T S
PREFACE xiii
PART 1
INTRODUCTION
CHAPTER 1—PROJECT MANAGEMENT IN
A CHANGING WORLD 2
Introduction 2
Project Management Is the New Critical Career Skill 3
The Increasing Pace of Change 5
Everyone Benefits from Understanding Project
Management 6
Downloadable Forms for Project Management 6
Project Management: Art Informed by Science 7
Project Management Magnifies Other Strengths 9
End Point 10
CHAPTER 2—THE PROJECT ENVIRONMENT 12
Introduction 12
Projects Require Project Management 12
The Evolution of a Discipline 15
The Definition of Success 18
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CONTENTS
The Cost-Schedule-Quality Equilibrium 19
The Ultimate Challenge: No Damage 20
Project Management Functions 20
Project Life Cycle 22
Organizing for Projects 25
Project Managers Are Leaders 29
End Point 30
PART 2
DEFINING THE PROJECT
CHAPTER 3—PROJECT STAKEHOLDERS 36
Introduction 36
Stakeholders Are the Heart of a Successful Project 37
Stakeholder Roles: Project Manager 37
Stakeholder Roles: Project Team 38
Stakeholder Roles: Management 39
Stakeholder Roles: Sponsor 41
Stakeholder Roles: The Customer 42
Lead the Stakeholders 44
End Point 44
CHAPTER 4—MAKING THE RULES 46
Introduction 46
Project Rules Are the Foundation 46
Publish a Project Charter 48
Write a Statement of Work 51
Statement of Work: Minimum Content 52
Responsibility Matrix 58
Creating a Communication Plan 61
The Project Proposal Launches the Project 67
End Point 71
PART 3
THE PLANNING PROCESS
CHAPTER 5—RISK MANAGEMENT 85
Introduction 85
The Risk Management Advantage 86
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CONTENTS
All Project Management Is Risk Management 86
The Risk Management Framework 88
Step One: Identify the Risks 90
Step Two: Developing a Response Strategy 94
Step Three: Establish Contingency and Reserve 105
Step Four: Continuous Risk Management 106
End Point 107
CHAPTER 6—WORK BREAKDOWN STRUCTURE 113
Introduction 113
Defining the Work Breakdown Structure 113
Building a Work Breakdown Structure 117
Criteria for a Successful Work Breakdown Structure 120
Work Package Size 122
Planning for Quality 126
Breaking Down Large Programs 128
Watch for Different Terminology 128
Contractors or Vendors Can Provide a WBS 130
End Point 130
CHAPTER 7—REALISTIC SCHEDULING 131
Introduction 131
Planning Overview 132
Planning Step Two: Identify Task Relationships 133
Planning Step Three: Estimate Work Packages 136
Planning Step Four: Calculate an Initial Schedule 143
Planning Step Five: Assign and Level Resources 155
End Point 162
CHAPTER 8—THE DYNAMICS OF ACCURATE
ESTIMATING 166
Introduction 166
Estimating Fundamentals 167
Estimating Techniques 172
Building the Detailed Budget Estimate 182
Generating the Cash Flow Schedule 189
End Point 190
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