Project Management in Practice

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NEIL PEARSON

E W LARSON

C F GRAY

IN PRACTICE

A Complete Course for BSB41513 and BSB51413

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IN PRACTICE

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IN PRACTICE

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A Complete Course for BSB41513 and BSB51413

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A Complete Course for BSB41513 and BSB51413

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National Library of Australia Cataloguing-in-Publication Data

Author: Pearson, Neil.

Title: Project management in practice: for the certificate IV and Diploma of Project Management in the BSB07 training package / Neil Pearson, Erik W. Larson, Clifford F. Gray.

ISBN: 9781743077238 (pbk.) Notes: Includes index.

Subjects: Project management—Study and teaching—Handbooks, manuals, etc. Other Authors/Contributors:

Larson, Erik W. Gray, Clifford F. Dewey Number: 658.404

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Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Act, no part of this publication may be reproduced, distributed or transmitted in any form or by any means, or stored in a database or retrieval system, without the written

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may be reproduced, distributed or transmitted in any form or by any means, or stored in a database or retrieval system, without the written permission of McGraw-Hill Education (Australia) Pty Ltd including, but not limited to, any network or other electronic storage.

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permission of McGraw-Hill Education (Australia) Pty Ltd including, but not limited to, any network or other electronic storage.

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roject management in practice: for the certificate IV and Diploma of Project Management in the BSB07 training package /

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roject management in practice: for the certificate IV and Diploma of Project Management in the BSB07 training package / Neil Pearson, Erik W. Larson, Clifford F. Gray.

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Neil Pearson, Erik W. Larson, Clifford F. Gray.

roject management—Study and teaching—Handbooks, manuals, etc.

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roject management—Study and teaching—Handbooks, manuals, etc. arson, Erik W. Gray, Clifford F.

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arson, Erik W. Gray, Clifford F.

McGraw-Hill Education (Australia) Pty Ltd

Sample

McGraw-Hill Education (Australia) Pty Ltd

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(the Act) allows a maximum of one chapter or 10% of the pages of this work, whichever is the greater, to be

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(the Act) allows a maximum of one chapter or 10% of the pages of this work, whichever is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the institution (or the body that

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reproduced and/or communicated by any educational institution for its educational purposes provided that the institution (or the body that administers it) has sent a Statutory Educational notice to Copyright Agency Limited (CAL) and been granted a licence. For details of statutory

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administers it) has sent a Statutory Educational notice to Copyright Agency Limited (CAL) and been granted a licence. For details of statutory educational and other copyright licences contact: Copyright Agency Limited, Level 15, 233 Castlereagh Street, Sydney NSW 2000. Telephone:

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educational and other copyright licences contact: Copyright Agency Limited, Level 15, 233 Castlereagh Street, Sydney NSW 2000. Telephone:

Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Act, no part of this publication

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Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Act, no part of this publication may be reproduced, distributed or transmitted in any form or by any means, or stored in a database or retrieval system, without the written

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may be reproduced, distributed or transmitted in any form or by any means, or stored in a database or retrieval system, without the written permission of McGraw-Hill Education (Australia) Pty Ltd including, but not limited to, any network or other electronic storage.

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iii

Part 1 Setting the Scene

1 Modern Project Management 2

2 Popular Frameworks and Methodologies 17

Part 2 Positioning Projects

3 Organisational Strategy and Project Selection 46

4 Project Organisational Structures and Cultures 79

Part 3 Defining and Managing Projects

5 Defining the Scope of a Project 102

6 Estimating Time, Costs and Resources 130

7 Project Time Management 153

8 Project Cost Management 212

9 Progress and Performance Measurements 227

10 Project Quality Management 267

11 Project Human Resource Management 286

12 Project Stakeholder Management 333

13 Project Information and Communications Management 345

14 Project Risk Management 364

15 Project Procurement Management 397

Part 4 Project Wrap-up

16 Project Closure 428

Bonus Online Content

Brief Contents

The following additional material is available online at www.mcgraw-hill.co.uk/textbooks/pearson: • Project management career paths (Chapter 17)

• Case studies, Appendices, and solutions to selected chapters

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ess and Performance Measurements

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ess and Performance Measurements

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esource Management

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esource Management

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Project Stakeholder Management

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Project Stakeholder Management

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Project Information and Communications Management

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Project Information and Communications Management Project Risk Management

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Project Risk Management Project Procurement Management

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Project Procurement Management

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Preface x

Acknowledgments xii About the Local Author xiii Text at a Glance xiv Text Overview xix

PART 1 Setting the Scene

Chapter 1 Modern Project Management 2

What is a project? 5

The project life cycle 7

The project manager 9

The importance of project management 10 Compression of the product life cycle 10

Complexity 10

Triple bottom line (planet, people, profit) 10

Corporate downsizing 10

Increased customer focus 11

Organisational change management 11

Small projects represent big problems 11 Project management today: a holistic

approach 12

Alignment of projects with organisational strategy 12 Management of projects through portfolio

management 13

The technical and sociocultural dimensions of

implementing projects 13

Summary 15

Chapter 2 Popular Frameworks and

Methodologies 17 An introduction to PRINCE2® ₁₈ 1. The principles 18 2. The themes 19 3. The processes 20 4. Tailoring 20

PRINCE2®_{around the world} ₂₁

An overview of ISO 21500:2012: guidance

on project management 22

An introduction to Agile Project

Management 25

Traditional versus Agile methods 25

Agile Project Management 26

Agile PM in action: Scrum 29

Applying Agile PM to large projects 32

Limitations and concerns 33

A further introduction to PMBoK 35

Applying the life cycle approach 35

Integrative project management 36

Governance and gates 37

PRINCE2®_{and PMBoK compared} ₄₀

Summary 41

Online

Case: Introducing Scrum at P2P PART 2 Positioning Projects

Chapter 3 Organisational Strategy and

Project Selection 46

Why project managers need to understand

strategy 47

The strategic management process:

an overview 48

1. Define and review the organisational mission,

vision and values 49

2. Set the organisation’s strategic objectives 52 3. Analyse the strategic objectives and identify the

‘ideal’ investment mix 52

4. Implement strategies through portfolios,

programs and projects 53

The need for an effective portfolio

management system 53

Problem 1: The implementation gap 54

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10 Triple bottom line (planet, people, profit)

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Triple bottom line (planet, people, profit) 10

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10 Increased customer focus

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Increased customer focus 11

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11 Organisational change management

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Organisational change management Small projects represent big problems

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Small projects represent big problems

Project management today: a holistic

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Project management today: a holistic approach

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approach

Alignment of projects with organisational strategy

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Alignment of projects with organisational strategy

Management of projects through portfolio

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Management of projects through portfolio

management

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management

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Integrative project management

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Integrative project management Governance and gates

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Governance and gates PRINCE2

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PRINCE2 Summary

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An introduction to Agile Project

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Traditional versus Agile methods

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A further introduction to PMBoK

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Problem 2: Organisational politics 54 Problem 3: Resource conflicts and multitasking 55 A portfolio management system 56

Classification of projects 56

Selection criteria 57

Multi-criteria selection models 59

Applying a selection model 64 Sources and solicitation of project proposals 65 Ranking proposals and selection of projects 66

Responsibility for prioritising 67

Managing the portfolio management system 67

Senior management input 67

The priority team or portfolio management office

responsibilities 67

Balancing the portfolio for risks and

dependencies 68

Project Portfolio Management (PPM) 69 Features of Project Portfolio Management (PPM)

systems 69

Prominent Project Portfolio Management (PPM)

systems 70

Summary 71

Online

Case: Hector Gaming Company Additional exercises and solutions to

selected exercises

Chapter 4 Project Organisational

Structures and Cultures 79

Project management structures 80 Organising projects within the functional

organisation 81

Organising projects as dedicated teams 82 Organising projects within a matrix

arrangement 85

Different matrix forms 85

What is the right project management

structure? 88

Organisational considerations 88

Project considerations 89

Organisational culture 90

What is organisational culture? 90

Identifying cultural characteristics 92 Implications of organisational culture for

organising projects 94

Summary 96

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Case: ORION Systems (PART B) Rosas’s Plan Case: Moss and McAdams Accounting Firm

PART 3 Defining and Managing Projects

Chapter 5 Defining the Scope of a

Project 102

Step 1: Defining the project scope 105

Typical project scope contents 105

Establishing project priorities: the triple

constraints 109

Step 2: Creating the Work Breakdown

Structure (WBS) 110

How WBS helps the project manager 111

WBS development 112

Practice techniques used to develop the WBS 115 Step 3: Integrating the WBS with the

organisation 117

Step 4: Estimating: moving towards a draft

budget and schedule 119

The scope management plan 121 Change/variation control management 121 Project scope integration 125

Summary 125

Chapter 6 Estimating Time, Costs and

Resources 130

Factors influencing the quality of estimates 131

Planning horizon 132

Project duration 132

People 133

Project structure and organisation 133

Padding estimates 133

Organisational culture 133

Other factors 133

What is being estimated? 134

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Additional exercises and solutions to

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WBS development

Practice techniques used to develop the WBS

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Resources 134

Durations 134

Costs 135

Estimating guidelines for time, cost and

resources 136

Top-down versus bottom-up estimating 137 A hybrid approach: phase estimating 139 Methods for estimating project costs,

time and resources 140

Consensus methods 140 Expert judgment 140 Alternative analysis 140 Parametric estimating 141 Analogous method 141 3-point estimate 142

Vendor bid analysis 142

Estimating tools and systems 143

Function point methods for software and

system projects 143

Learning curves 144

Template methods 145

Range estimating 145

Level of detail in estimating 146

Refining estimates 147

Summary 149

Online

Appendix 6.1: Learning Curves for Estimating

Chapter 7 Project Time Management 153

Developing the project schedule 154 From work package to network 154 Constructing a project network 155

Terminology 155

Two approaches 157

Basic rules to follow in developing project

networks 157

Activity-on-Node (AON) fundamentals 157 The process of building the activity-on-node

network 159

Using the forward and backward pass

information 167

Level of detail for activities 167

Practical considerations 167

Extended network techniques to come

closer to reality 170

Laddering 170

Use of leads and lags 170

Network relationship types 171

Reducing project duration 175 Rationale for reducing project duration 175 Options for accelerating project completion 176 Options when resources are not constrained 176 Options when resources are constrained 177 What if cost, not time, is the issue? 179 The resource scheduling problem 180

Types of resource constraints 182

Classification of a scheduling problem 183 Resource allocation methods 183

Assumptions 183

Time-constrained projects: smoothing resource

demand 183

Resource-constrained projects 185

The impacts of resource-constrained scheduling 189

Splitting activities 189

Benefits of scheduling resources 190

Assigning project work 190

Multi-project resource schedules 191 Using the resource schedule to develop a

project cost baseline 192

Project time management integration 192

Summary 193

Online

Appendix 7.1: Activity-on-arrow method Appendix 7.2: The Critical-Chain Approach Case: Power Train Ltd

Case: Advantage Energy Technology (AET) data centre migration

Additional exercises and solutions to selected exercises

Chapter 8 Project Cost Management 212

A project perspective of cost management 213

Large capital items 213

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Chapter 7 Pr

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Project Time Management

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Developing the project schedule

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From work package to network

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From work package to network

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Resource-constrained projects

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Resource-constrained projects

The impacts of resource-constrained scheduling

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Long lead-time items 214

Cost management plan 215

Simple time-phased budgeting 216 Why a time-phased budget baseline is needed 216 Simple time-phased project budget structure,

by category 217

Simple time-phased project budget structure,

by WBS 218

More complex time-phased project

budgets 220

What can go wrong with cost management? 223 Project cost integration management 224

Summary 225

Chapter 9 Progress and

Performance Measurements 227

Structure of a project monitoring system 228

What data is collected? 228

Collecting data and analysis 228

Reports and reporting 228

Communications Management Plan 229

Types of reports 229

Controlling project costs, resources and

schedules 230

Step 1: Setting a baseline plan 230

Step 2: Measuring progress and performance 231 Step 3: Comparing plan against actual 231

Step 4: Taking action 231

Monitoring time performance 231

Tracking Gantt chart 231

Control chart 232

Development of an earned value cost/

schedule system 234

Per cent complete rule 235

What costs are included in baselines? 236

The basis of EVM 236

Developing a status report: a hypothetical

example 238

Assumptions 238

Baseline development 238

Development of the EVM status report 238 EVM indexes to monitor progress 244

Performance indexes 244

Project per cent complete indexes 244 Technical performance measurement 245 Software for project cost/schedule systems 245

Additional earned value rules 246

Forecasting final project cost 246

Other control issues 250

Scope creep 250

Baseline changes 250

The costs and problems of data acquisition 251 Further project performance considerations 252

Summary 254

Online

Appendix 9.1 The application of additional earned value rules

Appendix 9.2 Obtaining Project

Performance Information from MS Project Additional exercises and solutions to

Chapter 10 Project Quality

Management 267

Quality and project management 268

Cost of Quality 268

Planning for Quality Assurance and Quality

Control 270

Carrying out Quality Control 278 The Pareto chart (also known as the 80/20 rule) 278 The cause–effect diagram (fishbone or Ishikawa

diagrams) 279 Run charts 280 Check sheets 281 Checklists 281 Benchmarking 281 Processes/flow charting 282

Project quality management integration 284

Summary 284

Chapter 11 Project Human Resource

Qualities of an effective project manager 287 Managing versus leading a project 290

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Controlling project costs, resources and

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Controlling project costs, resources and 230

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Step 2: Measuring progress and performance 231

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Step 3: Comparing plan against actual 231

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Step 4: Taking action

Monitoring time performance

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Monitoring time performance

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Performance Information from MS Project

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selected exercises selected exercises Chapter 10

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Chapter 10 Pr

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Pr Management

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Management

Quality and project management

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Quality and project management Cost of Quality

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Building and leveraging your networks 291

Mapping dependencies 291

Management by wandering around (MBWA) 292

Managing upward relations 293

Leading by example 294

Ethics and project management 296 Building trust: the key to exercising influence 296 The leadership style continuum 298 The Human Resource Management Plan 300

Managing project teams 301

Tuckman’s five-stage team development model 302 Situational factors affecting team development 304 Building high-performance project teams 305

Recruiting project members 306

Capturing resourcing information 307 Generational theory and project teams 310 Conducting project meetings 311

The first project team meeting 311

Managing subsequent project meetings 313

Establishing a team 314

Creating a shared vision 315

Managing project reward systems 316

Orchestrating the decision-making process 317 Managing conflict within the project 319

Encouraging functional conflict 321

Managing dysfunctional conflict 321

Rejuvenating the project team 322

Ensuring clarity of roles and responsibilities 323 Managing virtual project teams 325

Project team pitfalls 327

Groupthink 327

Bureaucratic bypass syndrome 328

Team spirit becomes team infatuation 329

Going native 329

Human resource integration management 329

Summary 330

Online

Appendix 11.1 Organisational Change Management

Case: Cerberus Corporation Case: Kerzner Office Equipment

Chapter 12 Project Stakeholder

Identifying and managing project

stakeholders 334

The stakeholder matrix 336

Influence as exchange 338

Analysis of stakeholders 340

Stakeholder complexities 342

Summary 343

Chapter 13 Project Information and Communications Management 345

Communication and project management 346

Communication challenges 346

Pitching your project: the big picture 347

Communication models 348

Sender–receiver model 348

The SMCR model (Berlo’s model) 349

The Communications Management Plan 350 Planning, developing and tracking

communications 352

Developing communications 355

Project reporting 357

Project management information systems

(PMIS) 358

Configuration Management (CI) 359

Project knowledge management 360

Stakeholder and communication

integration management 361

Summary 362

Chapter 14 Project Risk Management 364

Risk management process 365

Step 1: Establishing the risk context 368 Step 2: Risk identification 368

Step 3: Risk analysis 372

A further complexity in risk analysis 374 Time: an additional factor in risk analysis 376

Probability analysis 376

Step 4: Risk evaluation 378

Step 5: Risk treatment 378

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Managing project reward systems 316

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Orchestrating the decision-making process 317

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Managing conflict within the project

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Managing conflict within the project Encouraging functional conflict

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Encouraging functional conflict Managing dysfunctional conflict

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Managing dysfunctional conflict Rejuvenating the project team

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Rejuvenating the project team

Ensuring clarity of roles and responsibilities

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Ensuring clarity of roles and responsibilities

Managing virtual project teams

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Managing virtual project teams

Project team pitfalls

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Project team pitfalls

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The Communications Management Plan

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The Communications Management Plan Planning, developing and tracking

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Threat risk response options 378

Opportunity risk explored 382

Step 6: Contingency planning 382 Common methods for handling risk 385 Contingency funds and risk 387

Budget reserves 388

Management reserves 388

Time buffers 388

Risk monitoring and review 389 Communication and consultation 390

Risk Management Plan 390

Risk integration management 391

Summary 392

Online

Appendix 14.1 PERT and PERT simulation Appendix 14.2 RiskAMP – Monte Carlo

Simulation

Chapter 15 Project Procurement

Procurement and project management 398 Identifying procurement requirements 399

Procurement Management Plan 400

Suppliers and supplier selection 400 Tenders and the tender process 401

Outsourcing project work 402

Best practices in outsourcing project work 406 Well-defined requirements and procedures 407 Extensive training and team-building activities 407 Well-established conflict management

processes in place 409

Frequent review and status updates 410

Co-location when needed 410

Fair and incentive-laden contracts 411 Long-term outsourcing relationships 412 Contracting and contract types 412 Build, Own, Operate, Transfer (BOOT) 412

Build, Own, Operate (BOO) 413

Build, Operate, Transfer (BOT) 413

Partnerships 413

Fixed price contracts 413

Cost reimbursable contracts 414

Time and material contracts (T&M) 414 Six essential elements of a contract 414 Additional contract considerations 416

The art of negotiating 417

1. Separate the people from the problem 418 2. Focus on interests, not positions 418 3. Invent options for mutual gain 419 4. When possible, use objective criteria 419 Dealing with unreasonable people 420 A note on managing customer relations 420 Project procurement integration

management 423

Summary 424

Online

Appendix 15.1 Request for Tender (RFT) PART 4 Project Wrap-up

Chapter 16 Project Closure 428

Types of project closure 429

Normal 430 Premature 430 Phase or stage 430 Perpetual 430 Failed project 431 Changed priority 431

Wrap-up closure activities 431

Creating the final report 434

Other important closure activities 435

Performance evaluation 437

Post Implementation Review (PIR) 437

Team evaluation 438

Individual team member and project manager

performance reviews 441

Contractor and supplier evaluation 443 Retrospectives (lessons learned) 444

Why retrospectives? 444

Initiating the retrospective review 445 Use of an independent facilitator 445

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Suppliers and supplier selection

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Suppliers and supplier selection 400

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Tenders and the tender process 401

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Outsourcing project work 402

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Best practices in outsourcing project work Well-defined requirements and procedures

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Well-defined requirements and procedures

Extensive training and team-building activities

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Extensive training and team-building activities

Well-established conflict management

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ONLINE AT www.mcgraw-hill.co.uk/textbooks/pearson:

Chapter 17 Project management career paths

Managing a retrospective 446

Overseeing a post-project retrospective 447

Utilisation of retrospectives 449

Archiving retrospectives 449

Concluding retrospective notes 450

Project celebration 450

Summary 450

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Since you are reading this text, you have made a decision that learning more about project management will have a positive impact for you. You are absolutely right! Project management has become an organization-wide core competency; nearly every manager, regardless of discipline is involved in managing projects. This text is designed to provide project managers and prospective project managers with the knowledge and skills that are transferable across industries and countries.

Our motivation for writing this text was to provide students and practitioners alike with a holistic, integrative view of project management. A holistic view focuses on how projects contribute to the strategic goals of the organization. The linkages for integration include the process of selecting projects that best support the strategy of a particular organisation and that in turn can be supported by the technical and managerial processes made available by the organization to bring projects to completion. The goals for prospective project managers are to understand the role of a project in their organizations and to master the project management tools, techniques, and interpersonal skills necessary to orchestrate projects from start to finish.

The role of projects in organisations is receiving increasing attention. Projects are the major tool for implementing and achieving the strategic goals of the organisation. In the face of intense, worldwide competition, many organisations have reorganised around a philosophy of innovation, renewal, and organisational learning to survive. This philosophy suggests an organisation that is flexible and project driven. Project management has developed to the point where it is a professional discipline having its own body of knowledge and skills. Today it is nearly impossible to imagine anyone at any level in the organisation who would not benefit from some degree of expertise in the process of managing projects.

AUDIENCE

This text is written for a wide audience. Although this text is aligned to the Australian VET sector training package for the Certificate IV and Diploma in project management and the Project Management Body of Knowledge (Fourth and Fifth editions), it covers concepts and skills that are used by managers to propose, plan, secure resources, budget, and lead project teams to successful completion. The text should prove useful to students and prospective project managers in helping them understand why organizations have developed a formal project management process to gain a competitive advantage. Readers will find the concepts and techniques discussed in enough detail to be immediately useful in any project situation. Practising project managers will find the text to be a valuable guide and reference when dealing with typical problems that arise in the course of a project.

Managers will also find the text useful in understanding the role of projects in the missions of their organizations. Facilitators of VET Training may use this text as a replacement to course notes, as the text is aligned to and covers all subject material at the Certificate IV and Diploma levels. Members of the Project Management Institute will find the text is well structured to meet the needs of those wishing to prepare for PMP (Project Management Professional) or CAPM (Certified Associate in Project Management) certification exams.

The text has in-depth coverage of the most critical topics found in PMI’s Project Management Body of Knowledge (PMBoK). People at all levels in the organisation assigned to work on projects will find the text useful not only in providing them with a rationale for the use of project management tools and techniques but also because of the insights they will gain on how to enhance their contributions to project success.

Our emphasis is not only on how the management process works but, more importantly, on why it works. The concepts, principles and techniques are universally applicable. That is, the text does not specialise by industry type or sector. Instead, the text is written for the individual who will be required

Preface

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The role of projects in organisations is receiving increasing attention. Projects are the major tool for

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The role of projects in organisations is receiving increasing attention. Projects are the major tool for implementing and achieving the strategic goals of the organisation. In the face of intense, worldwide

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implementing and achieving the strategic goals of the organisation. In the face of intense, worldwide competition, many organisations have reorganised around a philosophy of innovation, renewal, and

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competition, many organisations have reorganised around a philosophy of innovation, renewal, and organisational learning to survive. This philosophy suggests an organisation that is flexible and project

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organisational learning to survive. This philosophy suggests an organisation that is flexible and project driven. Project management has developed to the point where it is a professional discipline having its own

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driven. Project management has developed to the point where it is a professional discipline having its own body of knowledge and skills. Today it is nearly impossible to imagine anyone at any level in the organisation

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body of knowledge and skills. Today it is nearly impossible to imagine anyone at any level in the organisation who would not benefit from some degree of expertise in the process of managing projects.

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who would not benefit from some degree of expertise in the process of managing projects.

This text is written for a wide audience. Although this text is aligned to the Australian VET sector training

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This text is written for a wide audience. Although this text is aligned to the Australian VET sector training package for the Certificate IV and Diploma in project management and the Project Management Body of

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package for the Certificate IV and Diploma in project management and the Project Management Body of

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Knowledge (Fourth and Fifth editions), it covers concepts and skills that are used by managers to propose,

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Knowledge (Fourth and Fifth editions), it covers concepts and skills that are used by managers to propose, plan, secure resources, budget, and lead project teams to successful completion. The text should prove

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plan, secure resources, budget, and lead project teams to successful completion. The text should prove useful to students and prospective project managers in helping them understand why organizations have

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useful to students and prospective project managers in helping them understand why organizations have developed a formal project management process to gain a competitive advantage. Readers will find the

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developed a formal project management process to gain a competitive advantage. Readers will find the

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concepts and techniques discussed in enough detail to be immediately useful in any project situation.

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concepts and techniques discussed in enough detail to be immediately useful in any project situation. Practising project managers will find the text to be a valuable guide and reference when dealing with typical

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Practising project managers will find the text to be a valuable guide and reference when dealing with typical problems that arise in the course of a project.

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problems that arise in the course of a project.

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Our motivation for writing this text was to provide students and practitioners alike with a holistic, integrative

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Our motivation for writing this text was to provide students and practitioners alike with a holistic, integrative view of project management. A holistic view focuses on how projects contribute to the strategic goals of

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view of project management. A holistic view focuses on how projects contribute to the strategic goals of the organization. The linkages for integration include the process of selecting projects that best support

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the organization. The linkages for integration include the process of selecting projects that best support the strategy of a particular organisation and that in turn can be supported by the technical and managerial

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the strategy of a particular organisation and that in turn can be supported by the technical and managerial processes made available by the organization to bring projects to completion. The goals for prospective

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processes made available by the organization to bring projects to completion. The goals for prospective project managers are to understand the role of a project in their organizations and to master the project

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project managers are to understand the role of a project in their organizations and to master the project management tools, techniques, and interpersonal skills necessary to orchestrate projects from start to finish.

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management tools, techniques, and interpersonal skills necessary to orchestrate projects from start to finish. The role of projects in organisations is receiving increasing attention. Projects are the major tool for

only

The role of projects in organisations is receiving increasing attention. Projects are the major tool for implementing and achieving the strategic goals of the organisation. In the face of intense, worldwide

only

implementing and achieving the strategic goals of the organisation. In the face of intense, worldwide competition, many organisations have reorganised around a philosophy of innovation, renewal, and

only

competition, many organisations have reorganised around a philosophy of innovation, renewal, and organisational learning to survive. This philosophy suggests an organisation that is flexible and project

only

organisational learning to survive. This philosophy suggests an organisation that is flexible and project

(13)

Preface

xii

to manage a variety of projects in a variety of different organisational settings. In the case of some small projects, a few of the steps of the techniques can be omitted, but the conceptual framework applies to all organisations in which projects are important to survival. The approach can be used in pure project organisations such as construction, research and engineering consultancy. At the same time, this approach will benefit organisations that carry out many small projects while the daily effort of delivering products or services continues.

CONTENT

In this Australian edition of the book, we have responded to valuable feedback received from both students and teachers. As a result of this feedback, the following changes have been made to this edition:

• Restructuring of text to provide coverage of all ten areas of the fifth edition of the Project Management Body of Knowledge (2013).

• Further recognition and explanation of other project management methodologies such as Agile, PRINCE2 and ISO21500:2012.

• Localisation of the text to the Australian marketplace, including mapping to the VET competency framework for the Certificate IV and Diploma of Project Management.

• Development of a number of additional online resources to provide students and facilitators (teachers) with a rich set of content.

• Complete update of content to bring it in line with current project management thinking. • Coverage of key project management documents (artefacts) typical of most projects managed

under a life cycle approach.

• Access to a number of online project management templates to visually display the structure and content of such project management documents.

• Greater consideration of the integrative nature of project management.

Overall the text addresses the major questions and issues the authors have encountered over their 60 combined years of teaching project management and consulting with practising project managers in domestic and foreign environments.

The following questions represent the issues and problems practising project managers find consuming most of their effort:

• What is the strategic role of projects in contemporary organisations? • How are projects prioritised?

• What organisational and managerial styles will improve chances of project success?

• How do project managers orchestrate the complex network of relationships involving vendors, subcontractors, project team members, senior management, functional managers, and customers that affect project success?

• What factors contribute to the development of a high-performance project team? • What project management system can be set up to gain some measure of control? • How do managers prepare for a new international project in a foreign culture? • How does one pursue a career in project management?

Project managers must deal with all these concerns to be effective. All of these issues and problems represent linkages to an integrative project management view. The chapter content of the text has been placed within an overall framework that integrates these topics in a holistic manner. Cases and snapshots are included from the experiences of practising managers. The future for project managers appears to be promising.

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elopment of a number of additional online resources to provide students and facilitators

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elopment of a number of additional online resources to provide students and facilitators e update of content to bring it in line with current project management thinking.

Sample

e update of content to bring it in line with current project management thinking. verage of key project management documents (artefacts) typical of most projects managed

Sample

verage of key project management documents (artefacts) typical of most projects managed ccess to a number of online project management templates to visually display the structure and

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ccess to a number of online project management templates to visually display the structure and content of such project management documents.

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content of such project management documents.

eater consideration of the integrative nature of project management.

Sample

eater consideration of the integrative nature of project management.

Overall the text addresses the major questions and issues the authors have encountered over their

Sample

Overall the text addresses the major questions and issues the authors have encountered over their 60 combined years of teaching project management and consulting with practising project managers in

Sample

60 combined years of teaching project management and consulting with practising project managers in domestic and foreign environments.

Sample

domestic and foreign environments.

The following questions represent the issues and problems practising project managers find consuming

Sample

The following questions represent the issues and problems practising project managers find consuming most of their effort:

Sample

most of their effort: What is the str

Sample

What is the strategic role of projects in contemporary organisations?

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ategic role of projects in contemporary organisations? Ho

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How are projects prioritised?w are projects prioritised?

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What organisational and managerial styles will impro

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What organisational and managerial styles will impro

w do project managers orchestrate the complex network of relationships involving vendors,

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w do project managers orchestrate the complex network of relationships involving vendors,

only

and teachers. As a result of this feedback, the following changes have been made to this edition:

only

and teachers. As a result of this feedback, the following changes have been made to this edition:

estructuring of text to provide coverage of all ten areas of the fifth edition of the Project

only

estructuring of text to provide coverage of all ten areas of the fifth edition of the Project ecognition and explanation of other project management methodologies such as Agile,

only

ecognition and explanation of other project management methodologies such as Agile, ext to the Australian marketplace, including mapping to the VET competency

only

ext to the Australian marketplace, including mapping to the VET competency framework for the Certificate IV and Diploma of Project Management.

only

framework for the Certificate IV and Diploma of Project Management.

elopment of a number of additional online resources to provide students and facilitators

only

elopment of a number of additional online resources to provide students and facilitators e update of content to bring it in line with current project management thinking.

only

e update of content to bring it in line with current project management thinking. verage of key project management documents (artefacts) typical of most projects managed

only

verage of key project management documents (artefacts) typical of most projects managed