PORTABLE MBA in PROJECT MANAGEMENT EDITED BY ERIC VERZUH John Wiley & Sons, Inc PORTABLE MBA in PROJECT MANAGEMENT The Portable MBA Series The Portable MBA, Fourth Edition, Robert Bruner, Mark Eaker, R Edward Freeman, Robert Spekman, Elizabeth Teisberg, and S Venkataraman The Portable MBA Desk Reference, Second Edition, Nitin Nohria The Portable MBA in Economics, Philip K Y Young The Portable MBA in Entrepreneurship, Second Edition, William D Bygrave The Portable MBA in Entrepreneurship Case Studies, William D Bygrave The Portable MBA in Finance and Accounting, Third Edition, John Leslie Livingstone and Theodore Grossman The Portable MBA in Investment, Peter L Bernstein The Portable MBA in Management, Second Edition, Allan R Cohen The Portable MBA in Market-Driven Management: Using the New Marketing Concept to Create a Customer-Oriented Company, Frederick E Webster The Portable MBA in Marketing, Second Edition, Alexander Hiam and Charles Schewe The Portable MBA in New Product Development: Managing and Forecasting for Strategic Success, Robert J Thomas The Portable MBA in Psychology for Leaders, Dean Tjosvold The Portable MBA in Real-Time Strategy: Improvising Team-Based Planning for a Fast-Changing World, Lee Tom Perry, Randall G Stott, and W Norman Smallwood The Portable MBA in Strategy, Second Edition, Liam Fahey and Robert Randall The Portable MBA in Total Quality Management: Strategies and Techniques Proven at Today’s Most Successful Companies, Stephen George and Arnold Weimerskirch PORTABLE MBA in PROJECT MANAGEMENT EDITED BY ERIC VERZUH John Wiley & Sons, Inc ➇ This book is printed on acid-free paper Copyright © 2003 by John Wiley & Sons, Inc 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, photocopying, recording, scanning, or other wise, except 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written sales materials The advice and strategies contained herein may not be suitable for your situation The publisher is not engaged in rendering professional services, and you should consult a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our Web site at www.wiley.com Chapter is abridged from Project Management: A Managerial Approach, 5th edition, by Jack R Meredith and Samuel J Mantel Jr Copyright © 2003 by John Wiley & Sons, Inc This material is used by permission of John Wiley & Sons, Inc Chapter is from The Pfeiffer Book of Successful Team-Building Tools, edited by Elaine Beich Copyright © 2001 by John Wiley & Sons, Inc This material is used by permission of Pfeiffer/JosseyBass, Inc., a subsidiary of John Wiley & Sons, Inc Chapter is from Managing Sof tware Development Projects, 2nd edition, by Neal Whitten Copyright © 1995 by John Wiley & Sons, Inc All rights reserved Chapter 10 is from Mastering Vir tual Teams, 2nd edition, by Deborah L Duarte and Nancy Tennant Snyder Copyright © 2001 by Jossey-Bass, Inc This material is used by permission of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc Chapter 12 Copyright © 2003 by the pci group Chapter 13 is from Creating an Environment for Successful Projects, by Robert J Graham and Randall L Englund Copyright © 1997 by Jossey-Bass, Inc This material is used by permission of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc ISBN 0-471-26899-2 Printed in the United States of America 10 To my parents, Jim Verzuh and Julie Welle Verzuh, and to my parents-in-law, Larry and Fran Kissler, whose lives and accomplishments continue to be an inspiration Preface In the 1990s, project management moved from a little-used industrial engineering discipline to the engine of managing America’s work Prior to 1990, project management techniques were unknown to most corporate managers who considered projects to be the realm of engineers or the IS department In universities, with few exceptions, the only place to learn project management was the industrial and management engineering program—not even “real engineering.” Fast forward to 2003 and project management has leapt to center stage Corporations are using the “project management office” to implement consistent project management practices across the enterprise and manage mission-critical strategic initiatives From the CEO’s office down to the frontlines, business and government organizations have “projectized” their work and are looking to the classic discipline of project management to give them greater productivity and faster response to changing market conditions This shift has not gone unnoticed on campus where business schools now offer masters programs in project management and many graduate and undergraduate curriculums include at least one course on project management What prompted this revolution? The American economy is increasingly characterized by change and change means projects; project management is the tool set of the twenty-first century The growing use of project management mirrors the growing number of projects we find in our workplace In every industry and profession, organizations find a greater proportion of their time and resources are committed to projects, giving rise to the project-based organization In the past, many firms considered themselves project based Consulting firms, construction-related businesses, aerospace companies, and agencies such as the U.S Army Corps of Engineers can find that 80 percent to 100 percent of their revenue/budget is attributable to projects However, a firm need not be completely devoted to projects to face the challenges of managing multiple projects or to gain the benefits of applying the project management discipline If even 20 percent of your organization’s budget or revenue is represented by projects, consider yourself a project-based organization That isn’t suggesting you try to jam the operations of your entire department or company into the project mold—it is vii .. .PORTABLE MBA in PROJECT MANAGEMENT EDITED BY ERIC VERZUH John Wiley & Sons, Inc PORTABLE MBA in PROJECT MANAGEMENT The Portable MBA Series The Portable MBA, Fourth Edition,... Bygrave The Portable MBA in Entrepreneurship Case Studies, William D Bygrave The Portable MBA in Finance and Accounting, Third Edition, John Leslie Livingstone and Theodore Grossman The Portable MBA. .. The Portable MBA in Investment, Peter L Bernstein The Portable MBA in Management, Second Edition, Allan R Cohen The Portable MBA in Market-Driven Management: Using the New Marketing Concept to