The Wiley Guide to Project Control E-Book

Peter W. G. Morris

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: The Wiley Guides to Project Management
• Sprache: Englisch

Seitenzahl: 390

Veröffentlichungsjahr: 2010

Beschreibung

Timely and accessible content on the traditional project management activities of control, risk, time and cost, and quality and value

The Wiley Guides to the Management of Projects address critical, need-to-know information that will help professionals successfully manage projects in most businesses and help students learn the best practices of the industry. They contain not only well-known and widely used basic project management practices but also the newest and most cutting-edge concepts in the broader theory and practice of managing projects.

This second book in the series explains the "traditional" project management activities of control, risk, time, cost, and quality. The expert contributors show that project control represents more than the simple evaluation of project performance. They detail the principles of project time and cost control and offer a detailed review of critical chain project management. In addition, they provide a framework for project performance measurement, show how to make risk management more effective, and tell how to improve quality management.

Touching on all of the fundamental levers of project control, this book will prove to be a comprehensive "owner's manual" for project and team managers, project team members, engineers, business consultants, and all those involved in any aspect of project management.

Complete your understanding of project management with these other books in The Wiley Guides to the Management of Projects series:
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The Wiley Guide to Project Organization & Project Management Competencies
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The Wiley Guide to Project Technology, Supply Chain & Procurement Management
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The Wiley Guide to Project, Program & Portfolio Management

Leseprobe

Table of Contents

THE WILEY GUIDES TO THE MANAGEMENT OF PROJECTS

Title Page

Copyright Page

Introduction

Project Management

The Management of Projects

Structure of The Wiley Guide to Project Control

About the Authors

References

CHAPTER ONE - PROJECT CONTROL

Introduction

Project Control and Systems Theory

Defining the Project Objectives

Planning the Project

Performance Measurement and Control Action

Summary

References

Suggested Further Reading

CHAPTER TWO - TIME AND COST

Scheduling Representation

Cost Management

Summary

References

CHAPTER THREE - CRITICAL CHAIN PROJECT MANAGEMENT

Any Project Worth Doing Is Worth Doing Fast!

Single Project Critical Chain Project Management

What Is Different about CCPM?

Multiple-Project Critical Chain

Organization-Wide Implementation of CCPM

Software

Summary

References

CHAPTER FOUR - PROJECT PERFORMANCE MEASUREMENT

Project Performance and Feedback Control Systems

What to Measure and Control

Earned Value Analysis (EVA)—Time and Cost Control within Scope

Success Criteria and Success Factors

Balancing Time/Cost with Satisfaction

Balanced Scorecard (BSC) Approach

Integrating EVA and Success Factors into BSC to Maximize Performance

Summary

References

CHAPTER FIVE - QUALITATIVE AND QUANTITATIVE RISK MANAGEMENT

Definitions

The Rationale for Risk Management

The Risk Management Process

Summary

References and Further Reading

CHAPTER SIX - MAKING RISK MANAGEMENT MORE EFFECTIVE

Why Is Analysis Being Undertaken?

What Is the Scope of Risks to Be Included in the Analysis?

Whichway Should Analysis Be Carried Out

What Resources (Wherewithal) Are Required?

When Should Analysis Be Undertaken?

Who Wants the Risk Analysis, and Who Is to Undertake It?

Summary

References

CHAPTER SEVEN - IMPROVING QUALITY IN PROJECTS AND PROGRAMS

From Quality Control to Continuous Quality Improvement

Overview on Quality Management Methods in the Project-Oriented Company

Quality Standards for Projects and Programs

Quality Management in Projects and Programs

Management Audits and Reviews of Projects and Programs

The International Project Management Award

Quality Management in the Project-Oriented Company

References and Further Reading

CHAPTER EIGHT - THE PROJECT MANAGEMENT SUPPORT OFFICE

The Need for a PMSO

Purpose

Mandate

Sponsorship

Charging for PMSO Services

Responsibilities of the PMSO

Portfolio, Program, and Project Support

Project Ramp-up Support and Project Rescue

Project Management within the Organization

Competency

Systems and Tools

Measuring Success of the PMSO

Summary

References

INDEX

THE WILEY GUIDES TO THE MANAGEMENT OF PROJECTS

Edited by Peter W. G. Morris and Jeffrey K. Pinto

The Wiley Guide to Project, Program & Portfolio Management 978-0-470-22685-8

The Wiley Guide to Project Control 978-0-470-22684-1

The Wiley Guide to Project Organization & Project Management Competencies 978-0-470-22683-4

The Wiley Guide to Project Technology, Supply Chain & Procurement Management 978-0-470-22682-7

This book is printed on acid-free paper. ♾

Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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ISBN: 978-0-470-22684-1

THE WILEY GUIDE TO PROJECT CONTROL:PREFACE AND INTRODUCTION

Peter W. G. Morris and Jeffrey Pinto

In 1983, Dave Cleland and William King produced for Van Nostrand Reinhold (now John Wiley & Sons) the Project Management Handbook, a book that rapidly became a classic. Now over twenty years later, Wiley is bringing this landmark publication up to date with a new series The Wiley Guides to the Management of Projects, comprising four separate, but linked, books.

Why the new title—indeed, why the need to update the original work?

That is a big question, one that goes to the heart of much of the debate in project management today and which is central to the architecture and content of these books. First, why “the management of projects” instead of “project management”?

Project management has moved a long way since 1983. If we mark the founding of project management to be somewhere between about 1955 (when the first uses of modern project management terms and techniques began being applied in the management of the U.S. missile programs) and 1969/70 (when project management professional associations were established in the United States and Europe) (Morris, 1997), then Cleland and King’s book reflected the thinking that had been developed in the field for about the first twenty years of this young discipline’s life. Well, over another twenty years has since elapsed. During this time there has been an explosive growth in project management. The professional project management associations around the world now have thousands of members—the Project Management Institute (PMI) itself having well over 200,000—and membership continues to grow! Every year there are dozens of conferences; books, journals, and electronic publications abound; companies continue to recognize project management as a core business discipline and work to improve company performance through it; and, increasingly, there is more formal educational work carried out in university teaching and research programs, both at the undergraduate, and particularly graduate, levels.

Yet, in many ways, all this activity has led to some confusion over concepts and applications. For example, the basic American, European, and Japanese professional models of project management are different. The most influential, PMI, not least due to its size, is the most limiting, reflecting an essentially execution, or delivery, orientation, evident both in its Guide to the Project Management Body of Knowledge, PMBOK Guide, 3rdEdition (PMI, 2004) and its Organizational Project Management Maturity Model, OPM3 (PMI, 2003). This approach tends to under-emphasize the front-end, definitional stages of the project, the stages that are so crucial to successful accomplishment (the European and Japanese models, as we shall see, give much greater prominence to these stages). An execution emphasis is obviously essential, but managing the definition of the project, in a way that best fits with the business, technical, and other organizational needs of the sponsors, is critical in determining how well the project will deliver business benefits and in establishing the overall strategy for the project.

It was this insight, developed through research conducted independently by the current authors shortly after the publication of the Cleland and King Handbook (Morris and Hough, 1987; Pinto and Slevin, 1988), that led to Morris coining the term “the management of projects” in 1994 to reflect the need to focus on managing the definition and delivery of the project itself to deliver a successful outcome.

These at any rate are the themes that we shall be exploring in this book (and to which we shall revert in a moment). Our aim, frankly, is to better center the discipline by defining more clearly what is involved in managing projects successfully and, in doing so, to expand the discipline’s focus.

So second, why is this endeavor so big that it takes four books? Well, first, it was both the publisher’s desire and our own to produce something substantial—something that could be used by both practitioners and scholars, hopefully for the next 10 to 20 years, like the Cleland and King book—as a reference for the best-thinking in the discipline. But why are there so many chapters that it needs four books? Quite simply, the size reflects the growth of knowledge within the field. The “management of projects” philosophy forces us (i.e., members of the discipline) to expand our frame of reference regarding what projects truly are beyond of the traditional PMBOK/OPM3 model.

These, then, are not a set of short “how to” management books, but very intentionally, resource books. We see our readership not as casual business readers, but as people who are genuinely interested in the discipline, and who is seek further insight and information—the thinking managers of projects. Specifically, the books are intended for both the general practitioner and the student (typically working at the graduate level). For both, we seek to show where and how practice and innovative thinking is shaping the discipline. We are deliberately pushing the envelope, giving practical examples, and providing references to others’ work. The books should, in short, be a real resource, allowing the reader to understand how the key “management of projects” practices are being applied in different contexts and pointing to where further information can be obtained.

To achieve this aim, we have assembled and worked, at times intensively, with a group of authors who collectively provide truly outstanding experience and insight. Some are, by any standard, among the leading researchers, writers, and speakers in the field, whether as academics or consultants. Others write directly from senior positions in industry, offering their practical experience. In every case, each has worked hard with us to furnish the relevance, the references, and the examples that the books, as a whole, aim to provide.

What one undoubtedly gets as a result is a range that is far greater than any individual alone can bring (one simply cannot be working in all these different areas so deeply as all these authors, combined, are). What one does not always get, though, are all the angles that any one mind might think is important. This is inevitable, if a little regrettable. But to a larger extent, we feel, it is beneficial for two reasons. One, this is not a discipline that is now done and finished—far from it. There are many examples where there is need and opportunity for further research and for alternative ways of looking at things. Rodney Turner and Anne Keegan, for example, in their chapter on managing innovation (The Wiley Guide to Project Technology, Supply Chain & Procurement Management, Chapter 8) ended up positioning the discussion very much in terms of learning and maturity. If we had gone to Harvard, to Wheelwright and Clark (1992) or Christensen (1999) for example, we would almost certainly have received something that focused more on the structural processes linking technology, innovation, and strategy. This divergence is healthy for the discipline, and is, in fact, inevitable in a subject that is so context-dependent as management. Second, it is also beneficial, because seeing a topic from a different viewpoint can be stimulating and lead the reader to fresh insights. Hence we have Steve Simister giving an outstandingly lucid and comprehensive treatment in The Wiley Guide to Project Control, Chapter 5 on risk management; but later we have Stephen Ward and Chris Chapman coming at the same subject (The Wiley Guide to Project Control, Chapter 6) from a different perspective and offering a penetrating treatment of it. There are many similar instances, particularly where the topic is complicated, or may vary in application, as in strategy, program management, finance, procurement, knowledge management, performance management, scheduling, competence, quality, and maturity.

In short, the breadth and diversity of this collection of work (and authors) is, we believe, one of the books’ most fertile qualities. Together, they represent a set of approximately sixty authors from different discipline perspectives (e.g., construction, new product development, information technology, defense / aerospace) whose common bond is their commitment to improving the management of projects, and who provide a range of insights from around the globe. Thus, the North American reader can gain insight into processes that, while common in Europe, have yet to make significant inroads in other locations, and vice versa. IT project managers can likewise gather information from the wealth of knowledge built up through decades of practice in the construction industry, and vice versa. The settings may change; the key principals are remarkably resilient.

But these are big topics, and it is perhaps time to return to the question of what we mean by project management and the management of projects, and to the structure of the book.

Project Management

There are several levels at which the subject of project management can be approached. We have already indicated one of them in reference to the PMI model. As we and several other of the Guides’ authors indicate later, this is a wholly valid, but essentially delivery, or execution-oriented perspective of the discipline: what the project manager needs to do in order to deliver the project “on time, in budget, to scope.” If project management professionals cannot do this effectively, they are failing at the first fence. Mastering these skills is the sine qua non—the ‘without which nothing’—of the discipline. Volume 1 addresses this basic view of the discipline—though by no means exhaustively (there are dozens of other books on the market that do this excellently—including some outstanding textbooks: Meredith and Mantel, 2003; Gray and Larson, 2003; Pinto, 2004).

PROJECT MANAGEMENT:

“On time, in budget, to scope” execution/delivery

The overriding paradigm of project management at this level is a control one (in the cybernetic sense of control involving planning, measuring, comparing, and then adjusting performance to meet planned objectives, or adjusting the plans). Interestingly, even this model—for us, the foundation stone of the discipline—is often more than many in other disciplines think of as project management: many, for example, see it as predominantly oriented around scheduling (or even as a subset, in some management textbooks, of operations management). In fact, even in some sectors of industry, this has only recently begun to change, as can be seen towards the end of the book in the chapter on project management in the pharmaceutical industry. It is more than just scheduling of course: there is a whole range of cost, scope, quality and other control activities. But there are other important topics too.

Managing project risks, for example, is an absolutely fundamental skill even at this basic level of project management. Projects, by definition, are unique: doing the work necessary to initiate, plan, execute, control, and close-out the project will inevitably entail risks. These need to be managed.

Both these areas are mainstream and generally pretty well understood within the traditional project management community (as represented by the PMI PMBOK® ‘Guide’ (PMI, 2004) for example). What is less well covered, perhaps, is the people-side of managing projects. Clearly people are absolutely central to effective project management; without people projects simply could not be managed. There is a huge amount of work that has been done on how organizations and people behave and perform, and much that has been written on this within a project management context (that so little of this finds its way into PMBOK is almost certainly due to its concentration on material that is said in PMBOK to be “unique” to project management). A lot of this information we have positioned in Volume 3, which deals more with the area of competencies, but some we have kept in the other volumes, deliberately to make the point that people issues are essential in project delivery.

It is thus important to provide the necessary balance to our building blocks of the discipline. For example, among the key contextual elements that set the stage for future activity is the organization’s structure—so pivotal in influencing how effectively projects may be run. But organizational structure has to fit within the larger social context of the organization—its culture, values, and operating philosophy; stakeholder expectations, socio-economic, and business context; behavioural norms, power, and informal influence processes, and so on. This takes us to our larger theme: looking at the project in its environment and managing its definition and delivery for stakeholder success: “the management of projects.”

The Management of Projects

The thrust of the books is, as we have said, to expand the field of project management. This is quite deliberate. For as Morris and Hough showed in The Anatomy of Major Projects (1987), in a survey of the then-existing data on project overruns (drawing on over 3,600 projects as well as eight specially prepared case studies), neither poor scheduling nor even lack of teamwork figured crucially among the factors leading to the large number of unsuccessful projects in this data set. What instead were typically important were items such as client changes, poor technology management, and poor change control; changing social, economic, and environmental factors; labor issues, poor contract management, etc. Basically, the message was that while traditional project management skills are important, they are often not sufficient to ensure project success: what is needed is to broaden the focus to cover the management of external and front-end issues, not least technology. Similarly, at about the same time, and subsequently, Pinto and his coauthors, in their studies on project success (Pinto and Slevin, 1988; Kharbanda and Pinto, 1997), showed the importance of client issues and technology, as well as the more traditional areas of project control and people.

The result of both works has been to change the way we look at the discipline. No longer is the focus so much just on the processes and practices needed to deliver projects “to scope, in budget, on schedule,” but rather on how we set up and define the project to deliver stakeholder success—on how to manage projects. In one sense, this almost makes the subject impossibly large, for now the only thing differentiating this form of management from other sorts is “the project.” We need, therefore, to understand the characteristics of the project development life cycle, but also the nature of projects in organizations. This becomes the kernel of the new discipline, and there is much in this book on this.

Morris articulated this idea in The Management of Projects (1994, 97), and it significantly influenced the development of the Association for Project Management’s Body of Knowledge as well as the International Project Management Association’s Competence Baseline (Morris, 2001; Morris, Jamieson, and Shepherd, 2006; Morris, Crawford, Hodgson, Shepherd, and Thomas, 2006). As a generic term, we feel “the management of projects” still works, but it is interesting to note how the rising interest in program management and portfolio management fits comfortably into this schema. Program management is now strongly seen as the management of multiple projects connected to a shared business objective—see, for example, the chapter by Michel Thiry (The Wiley Guide to Project, Program & Portfolio Management, Chapter 6.) The emphasis on managing for business benefit, and on managing projects, is exactly the same as in “the management of projects.” Similarly, the recently launched Japanese Body of Knowledge, P2M (Program and Project Management), discussed inter alia in Lynn Crawford’s chapter on project management standards (The Wiley Guide to Project Organization & Project Management Competencies, Chapter 10), is explicitly oriented around managing programs and projects to create, and optimize, business value. Systems management, strategy, value management, finance, and relations management for example are all major elements in P2M: few, if any, appear in PMBOK.

THE MANAGEMENT OF PROJECTS involves managing the definition and delivery of the project for stakeholder success. The focus is on the project in its context. Project and program management - and portfolio management, though this is less managerial - sit within this framework.

(“The management of projects” model is also more relevant to the single project situation than PMBOK incidentally, not just because of the emphasis on value, but via the inclusion of design, technology, and definition. There are many single project management situations, such as Design & Build contracts for example, where the project management team has responsibility for elements of the project design and definition).

Structure ofThe Wiley Guide to Project Control

The Wiley Guides to the Management of Projects series is made up of four distinct, but interrelated, books:

• The Wiley Guide to Project, Program & Portfolio Management

• The Wiley Guide to Project Control

• The Wiley Guide to Project Organization & Project Management Competencies

• The Wiley Guide to Project Technology, Supply Chain & Procurement Management

This book, The Wiley Guide to Project Control, is based on the “traditional” project management activities—control, risk, time, cost, and quality. Project control represents more than the simple evaluation of project performance. In fact, the control cycle—as described in Chapter 1 by Pete Harpum—is typically set up around a four-stage recurring process that first challenges us to establish targets, measure performance, compare actual results with intended goals, and make necessary adjustments. While this model offers a useful conceptual backdrop, in practice we find ourselves dealing with some aspects of project management that are seemingly as old as the hills (or somewhere between fifty and 5,000 years anyway!), but also some newer concepts—like Quality Management or Risk Management. Thus, readers will find that embedded in these chapters are not only well understood concepts, but also important, cutting-edge work that has a profound impact on the manner in which many organizations are managing projects today.

1. Pete Harpum’s Chapter 1 positions project control within a “systems” context, reminding us that, in the cybernetic sense, control involves planning as well as monitoring, and also taking corrective action. All the fundamental levers of project control are touched upon. But as in a proper “systems” way of looking at things, Pete reminds us that projects exist within bigger systems and hence we need to relate project control to business strategy—or the project’s equivalent contextual objectives.

2. In Chapter 2, Asbjørn Rolstadås takes us, with some rigor, through the principles of project time and cost control. Gantt charts and critical path are explained together with the use of contingencies in project estimating.

3. Larry Leach, in Chapter 3, extends Asbjørn’s text by offering a detailed review of critical chain project management. Beginning with Goldratt’s “Theory of Constraints” (Dettmer 1997),—which, as he points out, isn’t really a theory as such—Larry explains how one of the limitations of critical path planning, resource leveling, can be treated as a constraint, and how this constraint can be exploited by more sophisticated statistical modeling of activity times. This is done through project buffering. The implications of this methodology are then reviewed—to performance measurement (see Chapter 4), re-sourcing, and decision-making. Multi-project critical chains and organization-wide critical chain management is then reviewed, with particular emphasis on the behavior changes that will be required by managers.

4. Reporting performance is obviously a key part of project control, but as anyone who has tried to do this soon realizes, it is not easy. The essential challenge is what measures to use, and how to report on these in an integrated way. Dan Brandon tackles this head-on in Chapter 4. Beginning, like Peter Harpum in Chapter 1, from the control cycle view, Dan covers basic schedule and cost reporting before moving on to Earned Value. He then broadens the discussion to look again at the question of project success (previously covered in Chapter 5) and how to measure this concept. As we see elsewhere in The Wiley Guide (George Steel for example in Vol. 4, Chapter 13), the project values and drivers need to dictate the measures that will be employed. Dan ends by discussing the Balanced Scorecard approach as a framework for project performance measurement, integrating Earned Value, and project success measures within this.

5. Managing project risks is absolutely fundamental skill at any level of management—including this “base” level of project management, as PMBOK recognizes. Projects by definition are unique: doing the work necessary to initiate, plan, execute, control and close-out the project inevitably entails risks. These, as Steve Simister in Chapter 5 succinctly summarizes, will need to be managed and Steve proposes a ‘risk strategy-identification-analysis-response-control’ process for doing so.

6. Stephen Ward and Chris Chapman, two of the leading scholars in the field of risk management, take us in Chapter 6 on a second, more critical discussion of the topic, suggesting in the process that we probably should be thinking of it now rather as Uncertainty Management than risk management. In doing so, they touch on many of the issues we have recently been discussing: estimating business benefit, design and technology risk, statistical probability, and selection of performance measures, among others.

7. Quality Management (QM) is a subject that bears both on strategic planning and operational control. Martina Hueman, in Chapter 7, traces the evolution of quality management from quality control to Total Quality Management before looking at quality management in project management. She does this under the headings of certification, accreditation, the quality “Excellence” model, benchmarking, audits and reviews, coaching and consulting, and evaluation. Quality standards for projects and programs are then discussed in detail, with reference to engineering, construction, and IT/IS. As she points out, typically much of the project management focus tends to end up being about product quality; there is however opportunity for it to be applied to project management processes and practices—and people—as she shows, not least in discussion of QM on organizational change projects. Martina’s discussion is particularly valuable on the role of management audits and reviews, showing how these can lead to improvements in project management competency. The chapter ends by noting the role of the Project Management Office, the topic of the next chapter, in supporting this process.

8. James Young and Martin Powell review the Project Management Support Office in Chapter 8. Initially, the project office was often seen as a project status reporting unit. Increasingly, however, it has become a “home” for project management and a center for project management excellence. The PMSO may be found at three levels in an organization: at the corporate / enterprise level, the business unit level, and the project/program level. It has particular applicability in organizations where there is considerable virtual working. Its activities cover portfolio, program, and project support; enterprise-wide project management support (resource planning, communications, benchmarking, performance measurement), competency development; and support in tools and techniques. James and Martin walk us through examples of how the PMSO might provide support in each of these areas. They conclude the chapter with a discussion of how PMSO effectiveness can be measured.

About the Authors

Peter Harpum

Peter Harpum is a project management consultant with INDECO Ltd, with significant experience in the training and development of senior staff. He has consulted to companies in a wide variety of industries, including retail and merchant banking, insurance, pharmaceuticals, precision engineering, rail infrastructure, and construction. Assignments range from wholesale organizational restructuring and change management, through in-depth analysis and subsequent rebuilding of program and project processes, to development of individual persons’ project management capability. Peter has a deep understanding of project management processes, systems, methodologies, and the ‘soft’ people issues that programs and projects depend on for success. Peter has published on design management; project methodologies, control, and success factors; capability development; portfolio and program value management; and internationalization strategies of indigenous consultants. He is a Visiting Lecturer and examiner at UMIST on project management.

Stephen Simister

Dr. Simister is a consultant and lecturer in project management and a director of his own company, Oxford Management & Research Ltd., and an Associate of INDECO Ltd. His specialty is working with clients to define the scope and project requirements to meet their business needs; facilitating group decision support workshops which allow theses requirements to be articulated to outside suppliers of goods and services; and facilitating both value and risk management workshops. He has experience in most business sectors and has been involved in all stages of project lifecycles. As a Fellow of the Association for Project Management, Stephen is currently Chairman of the Contracts & Procurement Specific Interest Group. He is also a Chartered Building Surveyor with the Royal Institution of Chartered Surveyors and sits on the construction procurement panel. Stephen lectures at a number of European universities and has written extensively on the subject of project and risk management. He is co-editor of Gower’s Handbook of Project Management, 3rd Ed. He received his doctorate in Project Management from The University of Reading and maintains close links with the university.

Asbjørn Rolstadås

Asbjørn Rolstadås is professor of production and quality engineering at the Norwegian University of Science and Technology. His research covers topics such as numerical control of machine tools, computer-aided manufacturing systems, productivity measurement and development, computer-aided production planning and control systems, and project management methods and systems. He is a member of The Royal Norwegian Society of Sciences, The Norwegian Academy of Technical Sciences, and The Royal Swedish Academy of Engineering Sciences. He serves on the editorial board of number of journals, and is the founding editor of the International Journal of Production Planning and Control. He is past president of IFIP (International Federation for Information Processing). He is also past president of the Norwegian Computer Society. He is currently the head of the Norwegian Centre for Project Management. He has done studies of project execution of major governmental projects, mainly within development of oil and gas in the North Sea. Research on risk analyses and contingency planning in cost estimates; and developed training courses in project planning and control using e-learning.

Larry Leach

Larry Leach is the president of the Advanced Projects Institute (API), a management consulting firm. API specializes in project management, which includes leading the implementation of the new Critical Chain method of project management. Larry supports many companies, large and small, with diverse projects, ranging from R&D to construction. Larry developed and operated Project Management Office for American National Insurance Company (ANICO), in Galveston Texas, performing large IT projects. He has worked at the Vice Presidential level in several Fortune 500 companies, where he managed a variety of programs of large and small projects. Prior to that, Larry successfully managed dozens of projects, ranging up to one billion dollars. Larry has Masters’ Degrees in both Business Management from the University of Idaho, and in Mechanical Engineering from the University of Connecticut. He was awarded membership in Tau Beta Pi, the Engineering honorary society, while earning his undergraduate degree in Engineering at Stevens Institute of Technology. Larry is a member of the Project Management Institute (PMI) and a certified Project Management Professional. His has published many papers on related topics, including a PMI Journal article on Critical Chain in June, 1999, and a pair of papers published in PM Network in spring, 2001. He presents seminars for PMI Seminars, and authored the recently published book, Critical Chain Project Management. Larry also serves as faculty for the University of Phoenix, facilitating courses in business management.

Daniel Brandon

Dr. Daniel Brandon is a Professor and the Department Chairperson of the Information Technology Management (ITM) Department at Christian Brothers University (CBU) in Memphis, TN. His education includes a BS in Engineering from Case Western University, MS in Engineering from the University of Connecticut, and a Ph.D. from the University of Connecticut specializing in computer control and simulation. He also holds the PMP (Project Management Professional) certification. His research interest is focused on software development, both on the technical side (analysis, design, and programming) and on the management side. In addition to his eight years at CBU, Dr. Brandon has over twenty years experience in the information systems industry including experience in general management, project management, operations, research, and development. He was the Director of Information Systems for the Prime Technical Contractor at the NASA Stennis Space Center for six years, MIS manager for Film Transit Corporation in Memphis for ten years, and affiliated with Control Data Corporation in Minneapolis for six years in several positions, including Manager of Applications Development. He is also an independent consultant and software developer for several industries including: Finance, Transportation / Logistics, Medical, Law, and Entertainment.

Stephen Ward

Stephen Ward is a Senior Lecturer in Management Science at the School of Management, University of Southampton, UK. He holds a B.Sc. in Mathematics and Physics (Nottingham), an M.Sc. in Management Science (Imperial College, London), and a PhD in developing effective models in the practice of operational research (Southampton). He is a member of the PMI and a Fellow of the UK Institute of Risk Management. Before joining Southampton University, he worked in the OR group at Nat West Bank. At Southampton, he was responsible for setting up the School’s MBA program and he is now Director of the School’s Master’s program in Risk Management. He founded and edited for ten years the Operational Research Society’s quarterly publication OR Insight which continues to publish articles on the application of management science. Dr Ward’s teaching interests cover a wide range of management topics including decision analysis, managerial decision processes, insurance, operational and project risk management, and strategic management. His research and consulting activities relate to project risk management systems and the management of uncertainty. He has published a range of papers on risk management and co-authored two books (with Chris Chapman): Project Risk Management (Wiley, second edition Autumn 2003), and Managing Project Risk and Uncertainty (Wiley 2002). The latter text provides a case based treatment of key issues in uncertainty management using constructively simple forms of analysis. Dr. Ward is currently working on organization-wide approaches to integrated risk management, building on emergent issues in project risk management.

Chris Chapman

Chris Chapman has been Professor of Management Science, University of Southampton, since 1986. He is a former Head of the Department of Accounting and Management Science (1984-91) and Director of the School of Management (1995-98). He was founding Chair for the Project Risk Management Specific Interest Group, Association for Project Management 1986-91; President of the Operational Research Society (1992-93); and a panel member, Business and Management Studies, HEFCE Research Assessment Exercise in 1992 and 1996. He was elected Honorary Fellow of the Institute of Actuaries, 1999. His consulting and research have focused on risk management since 1975. He undertook seminal work as a consultant to BP International, developing project planning and costing procedures for their North Sea operations, 1976-82, adopted world-wide by BP. The new ideas associated with this work were developed and generalized during a variety of assignments in the USA, Canada, and the UK for many major clients. He has authored or co-authored five books, fifteen book chapters, and forty refereed academic journal papers (including ORS President’s medal for 1985 paper in JORS). His most recent book is Project Risk Management: Processes, Techniques and Insights (with Stephen Ward), Wiley, 1997.

Martina Huemann

Dr. Martina Huemann holds a doctorate in project management of the Vienna University of Economics and Business Administration. She also studied business administration and economics at the University Lund, Sweden, and the Economic University Prague, Czech Republic. Currently, she is assistant professor in the Project Management Group of the Vienna University of Economics and Business Administration. There she teaches project management to graduate and postgraduate students. In research, she focuses on individual and organizational competences in Project-oriented Organisations and Project-oriented Societies. She is visiting fellow of The University of Technology Sydney. Martina has project management experience in organizational development, research, and marketing projects. She is certified Project Manager according to the IPMA—International Project Management Association—certification. Martina organizes the annual pm days research conference and the annual PM days student paper award to promote project management research. She contributed to the development of the PM baseline—the Austrian project management body of knowledge and is board member of Project Management Austria—the Austrian project management association. She is assessor of the IPMA Award and trainer of the IPMA advanced courses. Martina is trainer and consultant of Roland Gareis Consulting. She has experience with project-oriented organizations of different industries and the public sector. Martina is specialized in management audits and reviews of projects and programs, and human resource management issues like project management assessment centers for project and program managers.

James Young

James Young is a Senior Consultant with INDECO Ltd. He is highly experienced in the development of organizational and individual project management competencies, as well as advising companies on strategies for the successful delivery of portfolios, programs, and projects. He has undertaken a number of high-profile initiatives for major blue-chip organizations. He brings experience from work undertaken across Europe, Scandinavia, South America, and the United States. Earlier in his career, James worked in the UK construction industry. James has authored a number of published articles on various aspects of project management. His research has been presented at the World Congress for Project Management, the Project Management Institute’s European Conferences and the International Project Managers Association Conference. James has a first class degree from UMIST.

Martin Powell

Martin Powell is a senior consultant at INDECO International Management Consultants. He is responsible for the delivery of assignments, in both the pharmaceutical and oil and gas sectors. He has been working with a major pharmaceutical company developing a global implementation strategy for a project management support office as well as providing strategic advice to a number of companies looking to develop one. He leads teams in the development of tailored guidelines as well as supporting wider initiatives in knowledge management and communications. Prior to joining INDECO, Martin worked as a Project Engineer for Impresa Federici S.p.a, an Italian Engineering Company in Rome, and as a Project Manager for Ove Arup & Partners, an engineering design consultancy, where he was responsible for the delivery of several high-profile projects in Italy, Spain and, Asia. He also worked with many of the leading architects such as Richard Rogers, Renzo Piano, and Zaha Hadid, supporting various Master Planning submissions for design competitions as well as being involved in troubleshooting projects. Martin has a degree in Civil Engineering from the University of Dundee. He also took electives in Spanish at St. Andrews University. He also obtained a scholarship to study at Stevens Institiute of Technology in Hoboken, New Jersey.

The Wiley Guides to the Management of Projects series offers an opportunity to take a step back and evaluate the status of the field, particularly in terms of scholarship and intellectual contributions, some twenty-four years after Cleland and King’s seminal Handbook. Much has changed in the interim. The discipline has broadened considerably—where once projects were the primary focus of a few industries, today they are literally the dominant way of organizing business in sectors as diverse as insurance and manufacturing, software engineering and utilities. But as projects have been recognized as primary, critical organizational forms, so has recognition that the range of practices, processes, and issues needed to manage them is substantially broader than was typically seen nearly a quarter of a century ago. The old project management “initiate, plan, execute, control, and close” model once considered the basis for the discipline is now increasingly recognized as insufficient and inadequate, as the many chapters of this book surely demonstrate.

The shift from “project management” to “the management of projects” is no mere linguistic sleight-of-hand: it represents a profound change in the manner in which we approach projects, organize, perform, and evaluate them.

On a personal note, we, the editors, have been both gratified and humbled by the willingness of the authors (very busy people all) to commit their time and labor to this project (and our thanks too to Gill Hypher for all her administrative assistance). Asking an internationally recognized set of experts to provide leading edge work in their respective fields, while ensuring that it is equally useful for scholars and practitioners alike, is a formidable challenge. The contributors rose to meet this challenge wonderfully, as we are sure you, our readers, will agree. In many ways, the Wiley Guides represent not only the current state of the art in the discipline; it also showcases the talents and insights of the field’s top scholars, thinkers, practitioners, and consultants.

Cleland and King’s original Project Management Handbook spawned many imitators; we hope with this book that it has acquired a worthy successor.

References

Christensen, C. M. 1999. Innovation and the General Manager. Boston: Irwin McGraw-Hill.

Cleland, D. I., and King, W. R. 1983. Project Management Handbook. New York: Van Nostrand Reinhold.

Cleland, D. I. 1990. Project Management: Strategic Design and Implementation. Blue Ridge Summit, PA: TAB Books.

Gray, C. F., and E. W. Larson. 2003. Project Management. Burr Ridge, IL: McGraw-Hill.

Griseri, P. 2002. Management Knowledge: a critical view. London: Palgrave.

Kharbanda, O. P., and J. K. Pinto. 1997. What Made Gertie Gallop? New York: Van Nostrand Reinhold.

Meredith, J. R. and S. J. Mantel, Project Management: A Managerial Approach. 5th Edition. New York: Wiley.

Morris, P. W. G., and G. H. Hough. 1987. The Anatomy of Major Projects. Chichester: John Wiley & Sons Ltd.

Morris, P. W. G. 1994. The Management of Projects. London: Thomas Telford; distributed in the USA by The American Society of Civil Engineers; paperback edition 1997.

Morris, P. W. G. 2001. “Updating the Project Management Bodies Of Knowledge” Project Management Journal 32(3):21-30.

Morris, P. W. G., H. A. J. Jamieson, and M. M. Shepherd. 2006. “Research updating the APM Body of Knowledge 4th edition” International Journal of Project Management 24:461-473.

Morris, P. W. G., L. Crawford, D. Hodgson, M. M. Shepherd, and J. Thomas. 2006. “Exploring the Role of Formal Bodies of Knowledge in Defining a Profession—the case of Project Management” International Journal of Project Management 24:710-721.

Pinto, J. K. and D. P. Slevin. 1988. “Project success: definitions and measurement techniques,” Project Management Journal 19(1):67-72.

Pinto, J. K. 2004. Project Management. Upper Saddle River, NJ: Prentice-Hall.

Project Management Institute. 2004. Guide to the Project Management Body of Knowledge. Newtown Square, PA: PMI.

Project Management Institute. 2003. Organizational Project Management Maturity Model. Newtown Square, PA: PMI.

Wheelwright, S. C. & Clark, K. B. 1992. Revolutionizing New Product Development. New York: The Free Press.

CHAPTER ONE

PROJECT CONTROL

Peter Harpum

Project control is about ensuring that the project delivers what it is set up to deliver. Fundamentally, the process of project control deals with ensuring that other project processes are operating properly. It is these other processes that will deliver the project’s products, which in turn will create the change desired by the project’s sponsor. This chapter provides an overview of the project control processes, in order to provide the conceptual framework for the rest of this section of the book.

Introduction

Control is fundamental to all management endeavor. To manage implies that control must be exercised. Peter Checkland connects the two concepts as follows:

The management process. . .is concerned with deciding to do or not to do something, with planning, with alternatives, with monitoring performance, with collaborating with other people or achieving ends through others; it is the process of taking decisions in social systems in the face of problems which may not be self generated.

Checkland, 1981

In short to

• plan

• monitor

• take action

One may ask what is the difference between project control and any other type of management control? Fundamentally there is little that project managers must do to control their work that a line manager does not do. Managers of lines and projects are both concerned with planning work; ensuring it is carried out effectively (the output from the work “does the job”) and efficiently (the work is carried out at minimum effort and cost). Ultimately, managers of lines and projects are concerned with delivering what the customer wants. The line management function is usually focussed on maximizing the efficiency of an existing set of processes—by gradual and incremental change—for as long as the processes are needed. The objective of operations management (or “business-as-usual”) is rarely to create change of significant magnitude. Projects, on the other hand, are trying to reach a predefined end state that is different to the state of affairs currently existing; projects exist to create change. Because of this, projects are almost always time-bound. Hence, the significant difference is not in control per se, but in the processes that are being controlled—and in the focus of that control.

Project management is seen by many people as mechanistic (rigidly follow set processes and controlled by specialist tools, apropos a machine) in its approach. This is unsurprising given that the modern origins of the profession lie in the hard-nosed world of defense industry contracting in America. These defense projects (for example, the Atlas and Polaris missiles) were essentially very large systems engineering programs where it was important to schedule work in the most efficient manner possible. Most of the main scheduling tools had been invented by the mid-1960s. In fact, virtually all the mainstream project control techniques were in use by the late 1960s. A host of other project control tools were all available to the project manager by the 1970s, such as resource management, work breakdown structures, risk management, earned value, quality engineering, configuration management, and systems analysis (Morris, 1997).

The reality, of course, is that project management has another, equally important aspect to it. Since the beginning of the 1970s research has shown that project success is not dependent only on the effective use of these mechanistic tools. Those elements of project management to do with managing people and the project’s environment (leadership, team building, negotiation, motivation, stakeholder management, and others) have been shown to have a huge impact on the success, or otherwise, of projects (Morris, 1987; Pinto and Slevin, 1987—see also Chapter 5 by Brandon. Both these two aspects of project management—“mechanistic” control and “soft,” people-orientated skills—are of equal importance, and this chapter does not set out to put project control in a position of dominance in the project management process. Nevertheless, it is clear that effective control of the resources available to the project manager (time, money, people, equipment) is central to delivering change. This chapter explains why effective control is fundamentally a requirement for project success.