Project Management 2.0
Leveraging Tools, Distributed Collaboration, and Metrics for Project Success

MASTER PROJECT MANAGEMENT FOR A VIRTUAL WORLD

In this full color guide, Project Management expert Harold Kerzner provides much needed guidance on today?s changing project management mechanics, especially the growing importance of value metrics and key performance indicators. In Project Management 2.0, Kerzner explains how PM 2.0 offers better outcomes with a focus on new tools, better governance, and improved collaboration. Kerzner also compares various methodologies and examines how PM 2.0 facilitates problem solving and decision making. You?ll find essential background on PM 2.0, as well as a detailed examination of web-based project management tools and how to use them.

• Improve project governance and collaboration with stakeholders
• Achieve more meaningful information reporting with KPIs, metrics, and dashboards
• Discover easier ways for teams to work together from different locations
• Gain an understanding of the project manager?s role in strategic planning and portfolio management
• Implement problem-solving and decision-making processes
• Understand how to implement effective methodologies

Project Management 2.0 explains PM 2.0 tools and techniques that managers, project team members, engineers, and consultants can start using now for improved project outcomes.

Preface ix

Acknowledgment xi

Foreword xiii

Why This Story Makes Sense xiv

Through The Looking Glass At A Chaotic Future Is It Half Empty Or Half Full Or Just Plain Complicated? xvi

So What Does All This Mean To You? xvii

Chapter 1 Project Management 2.0 1

1.0 Introduction: Changing Times 1

1.1 Characteristics of PM 1.0 1

1.2 Other Critical Issues with PM 1.0 2

1.3 Project Management 2.0 4

1.4 Criticism of PM 2.0 7

1.5 Project Management 2.0 : Technological Blessing or Curse? 7

1.6 Policing PM 2.0 12

1.7 Working with Stakeholders in PM 2.0 13

Today’s View of Stakeholder Relations Management 14

Need for Meaningful Information 15

All That Glitters Is Not Gold 15

1.8 Finding the Information 16

1.9 Percent Complete Dilemma 17

1.10 Information Overload 18

1.11 Customer Satisfaction Headache 18

1.12 Determining Project Health 19

1.13 Dashboard Rules for Displaying Data 20

1.14 Reduction in Cost of Paperwork 21

1.15 Reduction in Executive Meddling 22

1.16 Project Management Skills 23

1.17 Contingency Planning 23

Discussion Questions 24

Chapter 2 A Peek into the Future of Project Management 25

2.0 Changing Times 25

2.1 Impact of Recessions 25

2.2 Executive View of Project Management 26

2.3 Engagement Project Management 28

2.4 Growth of More Complex Projects 30

2.5 Need for Additional Metrics 31

2.6 New Developments in Project Management 32

2.7 Project Manager’s Tool Box 33

2.8 Need for Continuous Improvement 34

2.9 Conclusions 34

Discussion Questions 34

Chapter 3 Understanding Success and Failure 37

3.0 Introduction 37

3.1 Project Management—Early Years: 1945–1960 38

3.2 Project Management Begins to Grow: 1970–1985 39

3.3 Growth in Competing Constraints 40

3.4 Rule of Inversion 42

3.5 Growth in Measurement Techniques 43

3.6 Trade-Offs 44

3.7 Putting Together Components of Success 45

3.8 New Definition of Success 46

3.9 Understanding Project Failure 47

3.10 Causes of Project Failure 50

Discussion Questions 52

Chapter 4 Value-Driven Project Management 53

4.0 Introduction 53

4.1 Understanding Today’s View of Value 54

4.2 Value Modeling 56

4.3 Value and Leadership Changes for PM 2.0 58

4.4 Value-Based Trade-Offs 62

4.5 Need for Value Metrics 64

4.6 Creating a Value Metric 64

4.7 Displaying Value Metrics in a Dashboard 71

4.8 Selecting Value Attributes 72

4.9 Additional Complexities with Value Metrics 73

Discussion Questions 76

Chapter 5 Growing Importance of Metrics with PM 2.0 77

5.0 Introduction 77

5.1 Enterprise Resource Planning 77

5.2 Need for Better Project Metrics 78

5.3 Causes for Lack of Support for Metrics Management 80

5.4 Characteristics of a Metric 81

5.5 Metrics Selection 82

5.6 Key Performance Indicators 83

Need for KPIs 84

Using KPIs 86

Anatomy of a KPI 86

KPI Characteristics 88

KPI Failures 89

5.7 Dashboards and Scorecards 90

5.8 Business Intelligence 93

5.9 Growth in Dashboard Information Systems 93

5.10 Selecting an Infographics Designer 94

5.11 Project Health Check Metrics 95

5.12 Maintaining Project’s Direction 99

5.13 Metrics and Virtual Teams 99

5.14 Metric Mania 100

5.15 Metric Training Sessions 101

5.16 Metric Owners 102

5.17 Answering Metric Questions 103

Discussion Questions 103

Chapter 6 Project Management Methodologies: 1.0 versus 2.0 105

6.0 Introduction 105

6.1 PM 2.0 Definition of Project Management Excellence 105

6.2 Need for A Methodology 106

6.3 Need for AN Enterprisewide Methodology 108

Light Methodologies 109

Heavy Methodologies 110

6.4 Benefits of A Standardized Methodology 112

6.5 Critical Components 114

6.6 From Methodologies to Framework 116

6.7 Life-Cycle Phases 116

6.8 Drivers for PM 2.0 Client-Centered Flexibility 117

6.9 Understanding Moving Targets 118

6.10 Need for Client-Specific Metrics 119

6.11 Business Case Development 119

6.12 Validating Assumptions 120

Types of Assumptions 121

Documenting Assumptions 122

6.13 Design Freezes 123

6.14 Customer Approvals 124

6.15 Agile Project Management Methodology 125

6.16 Implementing Methodology 127

6.17 Implementation Blunders 128

6.18 Overcoming Development and Implementation Barriers 128

6.19 Using Crisis Dashboards with Methodologies 129

Understanding Targets 130

Defining a Crisis 131

Crisis Dashboard Images 134

Conclusions 138

6.20 Shutting Down the Project 138

Discussion Questions 139

Chapter 7 Project Governance 141

7.0 Introduction 141

7.1 Need for Governance 141

7.2 Defining Project Governance 142

7.3 Project versus Corporate Governance 143

7.4 Roles, Responsibilities, and Decision-Making Authority 144

7.5 Governance Frameworks 145

7.6 Three Pillars of Project Governance 146

Core Project Governance Principles 147

7.7 Misinterpretation of Information 151

7.8 Filtering the Information 152

7.9 Understanding Politics in Project Environment 152

Political Risks 153

Reasons for Playing Politics 154

Situations Where Political Games Will Occur 154

Governance Committee 155

Friends and Foes 156

Attack or Retreat 156

Need for Effective Communications 158

Power and Influence 158

Managing Project Politics 159

7.10 Managing Global Stakeholder Relations 160

7.11 Failure of Project Governance 161

7.12 Saving Distressed Projects 162

Discussion Questions 163

Chapter 8 Role of Project Manager in Strategic Planning and Portfolio Management 165

8.0 Introduction 165

8.1 Why Strategic Plans Often Fail 166

8.2 Project Management: Executive Perspective 167

8.3 Strategic Planning: Project Management Perspective 167

8.4 Generic Strategic Planning 169

8.5 Benefits of Project Management 172

8.6 Dispelling Myths 173

8.7 Ways That Project Management Helps Strategic Planning 176

8.8 Transformational Project Management Leadership 179

8.9 Project Manager’s Role in Portfolio Management 183

8.10 Value Management and Benefits Realization 184

Understanding the Terminology 185

Life-Cycle Phases 186

Understanding Value 192

8.11 Benefits Realization Metrics 193

8.12 Portfolio Management Governance 195

Discussion Questions 197

Chapter 9 R&D Project Management 199

9.0 Introduction 199

9.1 Role of R&D in Strategic Planning 200

9.2 Product Portfolio Analysis 202

9.3 Marketing Involvement with R&D Project Managers 205

First to Market 205

Follow the Leader 206

Application Engineering 207

“Me Too” 207

9.4 Product Life Cycles 208

9.5 R&D Project Planning According to Market Share 208

9.6 Classification of R&D Projects 209

9.7 Research versus Development 210

9.8 R&D Ratio 211

Manufacturing and Sales 211

Human Behavior 212

9.9 Offensive-versus-Defensive R&D 212

9.10 Modeling R&D Planning Function 213

9.11 Priority Setting 216

Working with Marketing 216

9.12 Contract R&D 218

9.13 Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements 219

9.14 Government Influence 219

9.15 Sources of Ideas 220

9.16 Economic Evaluation of Projects 223

9.17 R&D Project Readjustments 225

9.18 Project Termination 227

9.19 Tracking R&D Performance 228

Discussion Questions 228

Chapter 10 Problem Solving and Decision Making 229

10.0 Introduction 229

10.1 Understanding Concepts 230

Necessity for Problem Solving and Decision Making 230

Research Techniques in Basic Decision-Making Process 230

Facts about Problem Solving and Decision Making 231

Information Overload 231

Getting Access to Right Information 232

Lack of Information 233

Project versus Business Problem Solving and Decision Making 233

10.2 Project Environment: Its Impact on Problem Solving and Decision Making 234

Impact of Constraints on Project Problem Solving and Decision Making 234

Impact of Assumptions on Project Problem Solving and Decision Making 235

Understanding Project Environment 235

Selecting Right Project Manager 236

10.3 Conceptual Problem-Solving and Decision-Making Process 236

Determining the Steps 237

10.4 Identifying and Understanding a Problem 238

Real Problems versus Personality Problems 238

Not All Problems Can Be Solved 239

Complexity of Problems 240

Technique for Problem Identification 240

Individual Problem Solving Conducted in Secret 241

Team Problem Solving Conducted in Secret 241

10.5 Gathering Problem-Related Data 242

Reason for Data Gathering 242

Data-Gathering Techniques 242

Setting Limits on Problem Solving and Decision Making 243

Identifying Boundary Conditions 243

Determining Who Should Attend Problem-Solving Meeting 244

Determining Who Should Attend Decision-Making Meeting 244

Creating Framework for Meeting 245

Understanding How People React in Meetings 245

Working with Participants during Meetings 246

Leadership Techniques during Meetings 246

Handling Problem-Solving and Decision-Making Conflicts 247

Continuous Solutions versus Enhancement Project Solutions 247

Problem Solving versus Scope Creep 248

Problem Solving and Decision Making during Crisis Projects 248

10.6 Analyzing Data 249

Questions to Ask 249

10.7 Developing Alternative Solutions 249

Variables to Consider during Alternative Analyses 250

Understanding Features That Are Part of Alternatives 251

Developing Hybrid Alternatives 251

Trade-Offs 251

Common Mistakes When Developing Alternatives 252

10.8 Problem-Solving Tools and Techniques 252

Root-Cause Analysis 252

General Principles of RCA 253

Corrective Actions Using RCA 254

RCA Techniques 254

Brainstorming 255

Rules for Brainstorming 255

Critical Steps in Brainstorming 256

Conducting Brainstorming Session: Process 257

Conducting Brainstorming Session: Evaluation 257

Brainstorming Sessions: Nominal Group Technique 257

Group-Passing Technique 258

Team Idea-Mapping Method 258

Electronic Brainstorming 258

Directed Brainstorming 259

Individual Brainstorming 259

Question Brainstorming 260

10.9 Creativity and Innovation 260

Creativity, Innovation, and Value 261

Negative Innovation 261

Types of Innovative Solutions 262

Problem-Solving and Decision-Making Attributes That Are Difficult to Teach 262

Creative Roadblocks 263

10.10 Decision Making: Selecting Best Solution 263

Understanding How Decisions Are Made 263

Routine Decision Making 264

Adaptive Decision Making 264

Innovative Decision Making 265

Pressured Decision Making 265

Decision-Making Meetings 266

Decision-Making Stages 266

Decision-Making Steps 266

Advantages of Group Decision Making 267

Disadvantages of Group Decision Making 267

Rational versus Intuitive Thinking 268

Divergent versus Convergent Thinking 268

Polarity Management 269

Fear of Decision Making: Mental Roadblocks 269

Danger of Hasty Decisions 270

Decision-Making Styles 270

Autocratic Decision Maker 271

Fearful Decision Maker 271

Circular Decision Maker 272

Democratic Decision Maker 272

Self-Serving Decision Maker 273

10.11 Decision Making: Tools and Methods 273

SWOT Analysis 274

Pareto Analysis 274

Multiple-Criteria Decision Analysis 275

Paired-Comparison Analysis 275

Influence Diagrams 276

Affinity Diagrams 276

Game Theory 277

Cost–Benefit Analysis 277

Nominal Work Groups 278

Delphi Techniques 278

Other Decision-Making Tools 279

10.12 Evaluating Decision and Taking Corrective Action 279

Time to Implement Solution 281

Discussion Questions 282

Chapter 11 Need for Project Management 283

11.0 Background to Project Management Maturity Models 283

11.1 Some Benefits of Using a Maturity Model 284

11.2 Determining Amount of Maturity Needed 284

11.3 Getting Started 285

11.4 Things Can Go Wrong 285

11.5 Choosing Right Maturity Model 285

11.6 Estimating Time to Reach Maturity 286

11.7 Strategic Planning for Project Management Maturity 286

11.8 Project Management Maturity Model 287

11.9 PM 2.0 Input into PMMM 291

Discussion Questions 292

Chapter 12 Using the PMO to Spearhead PM 2.0 295

12.0 Introduction 295

12.1 Traditional Project Office 295

12.2 Traditional PMO 296

12.3 Implementation Risks 297

12.4 Specialized PMO 298

12.5 Strategic PMO 299

12.6 Networking PMOs 300

12.7 Trust of Project Governance 300

12.8 Ways a PMO Can Fail 301

Unclear Mission Statement 301

Failing to Focus on Impact to Business 302

Failing to Gain Implementation Support 302

Discussion Questions 309

Index 311

HAROLD KERZNER, MS, PHD, MBA, is Senior Executive Director for Project Management at the International Institute of Learning, Inc., a global learning solutions company offering professional training and consulting services. He has consulted for corporations worldwide, and is a recognized expert on project, program, and portfolio management; total quality management; and strategic planning.