Project Management

Theory and Practice

Gary L. Richardson

CRC Press
Taylor& Francis Group
Boca Raton London New York

CRC Press is an imprint of the

Taylor & Francis Group, an i n f o r m a business
AN AUERBACH BOOK
Contents

Preface xxiii
Acknowledgments xxv
Author xxvii

PART I Conceptual Overview of the Project Environment

Chapter 1 Introduction : „ 3
1.1 Project Management 3
1.2 Role of the Project Manager 4
1.3 Project Manager Skills 4
1.3.1 Success Management 5
1.4 Text Content and Organization 6
1.4.1 Text Structure 6
Appendices 7
References 8

Chapter 2 Evolution of Project Management 9

2.1 Early History of Project Management 9
2.2 Application of Analytical Science 10
2.3 Frederick Taylor and Scientific Management 10
2.4 Frank and Lillian Gilbreth 11
2.5 Henry Gantt 1 12
2.6 Mary Parker Follett 12
2.7 Elton Mayo 13
2.8 Phases of Project Management Evolution 13
2.9 Project Management Challenges 17
2.10 Project Management Benefits 18
2.10.1 At the Macrolevel 18
2.10.2 At the Microlevel 18
References 18

Chapter 3 Project Management Body of Knowledge 21

3.1 High Level Overview' 21
3.2 History of PMBOK® Guide development 22
3.3 Structure of the PMBOK9 Guide 22
3.3.1 Project Domains 22
3.3.1.1 Initiation 1 24
3.3.1.2 Planning 25
VI Contents

3.3.1.3 Execution 25
3.3.1.4 Monitoring and Controlling 25
3.3.1.5 Closing 25
3.3.2 Knowledge Areas 26
3.3.2.1 Scope Management 26
3.3.2.2 Time Management 26
3.3.2.3 Cost Management 26
3.3.2.4 Quality Management 27
3.3.2.5 Human Resources Management 27
3.3.2.6 Communications Management 27
3.3.2.7 Risk Management 27
3.3.2.8 Procurement Management 28
3.3.2.9 Integration Management 28
3.3.2.10 Overall Process View 28
3.4 Key Introductory Vocabulary Terms 29
3.5 Ancillary Models 30
3.6 Summary 31
Reference 31

Chapter 4 Industry Trends in Project Management 33

4.1 Standardizing Project Management 33
4.2 Enterprise Project Management 33
4.3 EPM in Operation 35
4.4 Implementation and Advantages of EPM 35
4.5 Other Trends Impacting Project Management 36
4.6 Project Management Perspective 37
Discussion Questions 37
References 37

Chapter 5 Project Types 39

- Reference 42

Chapter 6 Project Organization Concepts 43

6.1 PM Role 43
6.2 Reporting Relationships 43
6.3 Team Resources 44
6.4 Team Productivity and Size 44
6.5 Team's Physical Location Issues 45
6.6 Virtual Organizations 46
6.7 Organizational Culture 47
6.8 Summary 48
References 48

Chapter 7 Project Life Cycle Models 49

7.1 Overview of Project Methodologies 49
7.2 Life Cycle Management Process 50
7.2.1 Feasibility Review 50
7.2.2 Project Plan 51
Contents VII

7.2.3 Logical versus Physical Design 51

7.2.4 Quality Control and Assurance 51
7.2.5 Monitor and Control 52
7.2.6 Periodic Status Reviews 52
7.2.7 Milestone or Stage Gate Reviews 52
7.2.8 Project Close 52
7.2.9 Project Communication Processes 52
7.2.10 Life Cycle Models 53
7.2.11 Templates 53
7.3 Key Project Management Artifacts 53
7.3.1 Initiating 54
7.3.2 Planning 54
7.3.3 Execution 54
7.3.4 Monitoring and Control 54
7.3.5 Baseline 54
7.4 Project Methodology Models 55
7.5 Summary Points 56
7.6 Potential Shortcomings of Project Methodologies 57
References 57

Chapter 8 Quick Start Example : 59

8.1 Project Management Work Packages 59
8.2 WP Dictionary 59
8.3 Multiple WPs 60
8.4 Psychology of Estimating 61
8.5 Procrastination 62
8.6 Developing the Whole Project View 63
8.7 Project Scope 63
8.8 Example: Pool Project Mechanics 64
8.9 Quick Start Wrap-Up 67
Discussion Questions 68
Reference 68
Concluding Remarks for Part I 69

PART II Projects as State Change Vehicles

Chapter 9 Role of Projects in the Organization 73
9.1 Project Valuation Models 73
9.2 Project Selection Strategies 75
9.3 Conclusion 78
References 78

Chapter 10 Project Initiation 79

10.1 Environmental Factors to Consider 83
10.1.1 User Involvement 84
10.1.2 Executive Management Support 84
10.1.3 Experienced PM 85
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10.1.4
Communications 85
10.1.5
Clear Business Objectives 86
10.1.6
Minimized Scope 87
10.1.7
Other Success Factors 87
10.1.7.1 Agile Development Approaches 87
10.1.7.2 Existence of a Standard Process Infrastructure 88
10.1.7.3 Use of a Standard Methodology 88
10.1.7.4 Reliable Time Estimates 89
10.1.7.5 Availability of Appropriate Skills 89
10.1.8 Industry and Organizational Culture 89
10.2 Predicting a Project's Success 89
10.3 Forecasting the Success of Technology Projects 90
10.4 Conclusion 92
References 92
Concluding Remarks for Part II 93

PART III Defining the Triple Constraints

Chapter 11 Project Plan Development 99
11.1 Arguments for Planning 100
11.1.1 Project Monitoring and Control 100
11.1.2 Conflicting Expectations 101
11.1.3 Overlooking the Real Solution 101
11.1.4 Competing Solutions 101
11.1.5 Misaligned Goals 101
11.1.6 Quality Solutions 101
11.2 Plan Process and Components 102
11.3 Initial Planning View 102
11.4 Plan Artifacts 103
11.5 Real-World Planning Process 104
11.6 Conclusion 104
References 105

Chapter 12 Scope Management 107

12.1 Defining Project Work Units 108
12.2 WP Planning Variables 108
12.3 Multiple WPs 109
12.4 Developing the Project View 110
12.5 Developing Project WBS 110
12.6 WBS Mechanics 113
12.6.1 WBS Numbering Scheme 115
12.6.2 WBS Dictionary 116
12.6.3 Other WBS Views 117
12.6.4 Tracking Status of the WP 117
12.7 WBS Construction Mechanics 118
12.8 Requirements "Ibilities" 121
12.9 Moving Forward 122
References 123
Contents ix

Chapter 13 Time Management 125

13.1 Defining Project Work Activities 125
13.1.1 Activity Definitional Data Elements 127
13.2 Activity Sequencing 127
13.3 Duration Estimating 128
13.4 Tips for Accurate Estimating 128
13.4.1 Types of Estimates 129
13.4.2 Estimating Techniques 130
13.4.2.1 Expert Judgment 130
13.4.2.2 Analogous Estimating 130
13.4.2.3 Heuristic Estimating 131
13.4.2.4 Delphi Technique 131
13.4.2.5 Parametric Estimating 132
13.4.2.6 Phased Estimating 133
13.4.2.7 Effort Distribution Estimating (Top-Down) 135
13.4.2.8 Bottom-Up Estimating ~ 136
13.4.2.9 Monte Carlo Simulation 137
13.5 Activity Sequencing 137
13.5.1 Arrows and Boxes Models 137
13.5.2 AON Model 138
13.6 Time Calculation 139
13.7 Network Mechanics 139
13.8 Establishing the Project Activity Sequence 140
13.9 Forward Pass Calculation 141
13.10 Backward Pass Calculation 142
13.11 Defining Critical Path 143
13.12 Manipulating the Schedule 144
13.12.1 Automated Calculation Tools 144
13.13 Formatting Activity Results 144
13.14 Which Diagram Format Wins? 145
13.15 Summary 146
13.16 Estimating Checklist 146
References 147

Chapter 14 Cost Management 149

14.1 Project Cost Planning Basics 149
14.2 Cost Planning 150
14.3 Cost Accuracy 150
14.4 Organizational Overhead 151
14.5 Scope, Time, and Cost Alignment 151
14.5.1 Scope Replanning 151
14.5.2 Fast Tracking 152
14.5.3 Schedule Crashing 152
14.6 Indirect Costs 154
14.7 Resource Alignment 154
14.8 Budget Reserves 157
14.8.1 Approved Changes 157
14.8.2 Risk Events 158
14.8.3 Management Reserve 158
 Contents

14.9 Money Can Have Different Forms 159

14.9.1 Budget Expense Categories 159
14.9.2 Assets versus Expenses 160
14.9.3 Budget Cost Components 160
14.10 Management Approval and Baselines 161
14.11 Summary 162
References 162
Concluding Remarks for Part III 163

PART IV Advanced Planning Models

Chapter 15 Analyzing Variable Time Estimates 167

15.1 History of Variable Time Estimates 167
15.2 Modifying PERT for Commercial Projects 169
15.3 Defining Variable Time Estimates 169
15.4 Central Limit Theorem 171
15.5 Triangular Distributions 172
15.6 Calculating Probability of Completion 174
15.7 Summary 174
References 175

Chapter 16 Project Simulation 177

16.1 Traditional Time Modeling Tools 177
16.1.1 Near Critical Path Activities 177
16.1.2 Task Existence Risk Modeling 177
16.1.3 Conditional Activity Branching 178
16.1.4 Correlation between Task Durations 178
16.2 Simulation in Risk Management 178
16.3 Pertmaster Modeling 180
16.4 Other Pertmaster Metrics 181
16.5 Summary 183
References 184

Chapter 17 Critical Chain Management Model 185

17.1 Introduction 185
17.2 CC Concepts 185
17.3 CC Mechanics 188
17.4 CCM Model 189
17.5 Principles of the CC Model 189
17.6 Buffer Management 190
17.6.1 Buffer Types 192
17.7 Building the CC Schedule 193
17.8 Resource Allocation 194
17.9 Implementation Challenges 194
17.9.1 Organizational Barriers 195
17.9.1.1 Lack of Project Management Maturity 195
17.9.1.2 Buffer Resistance 195
Contents xi

17.9.1.3 Milestone Tracking versus Buffer Management

Reporting 196
17.9.1.4 Existing Processes 196
17.9.1.5 Existing Project Management Methodology 196
17.9.1.6 Existing Tools and Processes 197
17.9.1.7 Formal Tracking and Reporting
Mechanisms 197
17.9.1.8 Resistance to Change 197
17.9.2 Leadership Challenges 197
17.9.2.1 Project Control 198
17.9.2.2 Planning Support 198
17.9.2.3 WBS Development 198
17.9.2.4 Schedule Development 198
17.9.2.5 Buffer Calculations 198
17.9.2.6 Dictated versus Derived Scheduling 198
17.9.2.7 Project Prioritization 199
17.9.2.8 Resource Commitment 199
17.9.2.9 Multitasking 199
17.9.2.10 Prioritization 200
17.9.3 Skill Requirements 200
17.9.3.1 Task Time Estimation 200
17.9.3.2 Estimating Logic 200
17.9.3.3 Project Manager 201
17.9.3.4 Team Members 201
17.9.3.5 Task Status Reporting 202
17.10 Buffer Management 202
17.11 Organizational Challenges of the CC 203
17.12 CC Implementation Strategies 203
17.13 Conclusion 204
References 205

PART V Planning Support Processes

Chapter 18 Human Resource Management 209

18.1 HR Planning 209
18.2 HR in Execution 210
18.3 Acquire Project Team 210
18.4 Project Organizations 211
18.4.1 Dotted Lines 212
18.4.2 People Issues 213
18.5 Role Specifications 213
18.6 Responsibility Assignment Matrix 214
18.7 Resource Histograms 214
18.8 Staff Management Plan 215
18.9 Motivation Theory 215
18.10 Individual Motivation Theories 215
18.11 Team Motivation 218
xii Contents

18.12 Hygiene Dissatisfiers 219

18.13 Employee Satisfaction 220
18.14 Conflict Management 220
18.14.1 Conflict Sources 221
18.15 Negotiation Skills 222
18.16 Techniques for Handling Conflict 223
18.17 Conflict Management Scenario Case 224
18.18 Leader versus Manager? 224
18.19 Attributes of a Leader 224
18.20 Training Programs 225
18.21 Summary 226
References 226

Chapter 19 Project Communications 229

19.1 Introduction 229
19.2 Engaging Employees: A Case Study 229
19.3 Communications Management Processes 230
19.4 Identify Stakeholders 230
19.5 Plan Communications 230
19.6 Distribute Information 232
19.7 Manage Stakeholder Expectations 232
19.8 Report Performance 233
19.9 Human Communications Model 234
19.10 Communication Channels 237
19.11 Communicating Information 239
19.12 Improving the Effectiveness of Communication 239
19.13 Effective Listening 239
19.14 Barriers to Effective Communication 239
19.15 Communication Tension 240
19.16 Communication Styles 241
19.17 Communications: The Impossible Goal? 241
19.18 Conclusion 242
Discussion Questions 242
References 242

Chapter 20 Procurement Management 245

20.1 Introduction 245
20.2 Procurement Management 245
20.3 Make or Buy Decision 246
20.4 Procurement Management Processes 247
20.5 Planning for Procurement 248
20.5.1 Planning Stage Outputs 248
20.5.2 Procurement SOW 248
20.6 Conduct Procurements 249
20.6.1 Requests for Information 249
20.6.2 Requests for Proposals 249
20.6.3 Requests for Quotation 250
20.6.4 Invitations for Bid 250
20.6.5 Invitation to Negotiation 250
Contents xiii

20.7 Bidding Process 250

20.8 Selecting Sellers 251
20.9 Contract Negotiation 251
20.10 Contracts 253
20.11 Administer Procurement 254
20.12 Procurement Audits 255
20.13 Contract Review and Reporting 255
20.13.1 Record Keeping and Audits 256
20.14 Close Procurements 256
20.15 Procurement of Human Services 257
20.16 Ranking Vendor Proposals 258
20.16.1 Instructions 258
20.17 Summary 258
Discussion Questions 260
Glossary of Procurement Terms 260
Appendix: Legal Terms 261
References 263

Chapter 21 Quality Management 265

21.1 Introduction 265
21.2 Evolution of Quality 265
21.3 Definition of Quality 266
21.4 Project Quality Management 268
21.5 Quality Perspective 268
21.6 Implications for Project Planning Stage 269
21.7 Quality Planning 269
21.7.1 Quality Policy 269
21.7.2 Quality Objectives 270
21.8 Quality Management Components 271
21.9 Quality Definition 271
21.10 Quality Planning 271
21.11 Quality Assurance 272
21.12 Quality Control 273
21.13 QA versus QC Operational Roles 273
21.14 Quality Gurus 274
21.14.1 Edwards Deming 274
21.14.2 Joseph Juran 275
21.14.3 Philip Crosby 275
21.14.4 Kaoru Ishikawa 276
21.14.5 Armand Feigenbaum 276
21.14.6 Genichi Taguchi 276
21.14.7 Six Sigma 276
21.14.8 Other Gurus 276
21.15 Quality Management Programs 277
21.15.1 ISO 9000 277
21.15.2 Zero Defects 277
21.15.3 Total Quality Management 277
21.15.4 Six Sigma 278
21.15.4.1 Statistical Definition of Six Sigma 278
21.15.4.2 Six Sigma Fascination 278
xiv Contents

21.15.4.3 Basic Methodologies 280

21.15.4.4 DMAIC Process Overview 281
21.16 PMBOK® Guide Quality Process Model 283
21.17 Other Programs 283
21.18 Evaluating Quality 283
21.18.1 Benchmarking 284
21.18.1.1 What Is It? 284
21.18.1.2 Types of Benchmarking 284
21.18.1.3 J. D. Power's Quality Benchmarking 284
21.19 Continuous Improvement 285
21.20 Failure Mode and Effects Analysis 285
21.21 Quality Tools 286
21.22 Other Quality Analysis Techniques 288
21.22.1 Design of Experiments 288
21.22.2 Quality Function Deployment 289
21.23 Organizational Roles and Responsibilities 290
21.24 Issues in Quality Management 291
21.25 Toyota Quality Perspective 291
21.26 Future of Quality Management 293
21.27 Worksheet Exercise: Are You Meeting Quality Goals? 294
Discussion Questions 296
References 296

Chapter 22 Risk Management 297

22.1 Introduction 297
22.2 Risk Management Process 300
22.3 Risk Management Planning 301
22.3.1 Developing an RBS 303
22.4 Risk Identification 303
22.5 Qualitative and Quantitative Risk Analysis 307
22.6 Risk Assessment 307
22.7 Risk Contingency Budget 311
22.8 Risk Response Planning 311
22.9 Risk Monitoring and Control 313
22.10 Risk Events versus Issues 313
22.11 Project Risk Assessment Worksheet 313
22.12 Risk Case Study 314
22.12.1 Mishap Foils Latest Attempt at a 25-Mile Skydive 314
22.13 Conclusion 314
Discussion Questions 316
References 316

Chapter 23 Plan Review and Approval 317

23.1 Reviewing Plan Components 317
23.2 Plan Approval Process 318
23.3 Review Major Planning Artifacts 318
23.4 Financial and Control Structures 319
23.4.1 Scope Reserve 321
23.4.2 Risk Reserve 321
Contents xv

23.4.3 Level of Effort 321

23.4.4 Overhead 322
23.4.5 Management Reserve 322
23.4.6 Profit 323
23.4.7 Budget Structure and Format 323
23.4.8 Control Structure 324
23.5 Documentation Plan Packaging 325
23.6 External Communication Process 325
23.7 Planning Stage Close 326
Discussion Questions 327

PART VI Project Execution—Managing the Plan

Chapter 24 Project Execution and Control 331

24.1 Introduction 331
24.1.1 Magic Twelve Success Indicators 331
24.2 Status View 332
24.2.1 Status-Tracking Processes 333
24.2.2 Turning the Management and Control Knobs : 335
24.2.2.1 ICC Process 336
24.3 Human Relations and Communications Issues 336
24.3.1 Team Acquisition 337
24.3.1.1 Developing the Project Team 337
24.3.1.2 Team Development 338
24.3.1.3 Team Skills and Capabilities 339
24.3.2 Manage Project Team 339
/ 24.3.2.1 Motivation Level 339
24.3.3 Meetings as Information Sources 340
24.3.3.1 Meeting Structure 341
24.3.3.2 Management Involvement 341
24.4 Project Team Member Dissatisfiers 342
24.5 Project Team Member Motivators 343
24.6 Conclusion 344
Discussion Questions 344
References 345

PART VII Monitoring and Controlling Techniques

Chapter 25 Change Management ." 351

25.1 Introduction 351
25.2 Integrated Change Control 351
25.3 Project Management Plan 352
25.4 Change Control System 354
25.5 Configuration Management 356
25.6 Change Management Workflow 357
25.7 External Communication Issues 358
xvi Contents

25.8 Project Operational Integration 359

25.9 Summary 360
25.10 Change Request Checklist 360
References 361

Chapter 26 Project and Enterprise Metrics 363

26.1 Introduction 363
26.2 Fundamentals 363
26.2.1 Alignment with Organization Goals 363
26.3 Alignment with Organizational Maturity 365
26.4 Drivers of Performance and Change 366
26.5 Summary Categories 366
26.6 Metrics Evaluation Criteria 368
26.7 Establishing a Baseline and Setting Targets 370
26.8 Beware of the Metrics Pitfalls 370
26.9 Mechanics 371
26.9.1 Miscellaneous Issues 372
26.10 Industry Standard Metrics for Monitoring and Control 374
26.11 Conclusion 374
References 375

Chapter 27 Earned Value Management 377

27.1 Basic Principles 378
27.2 Calculating EV Parameters 380
27.3 Interpreting EV Parameters 380
27.4 EVM Criteria 382
27.5 EVM Simplified 382
27.6 EVM for Commercial Applications 383
27.7 Emerging Applications of EVM 384
27.7.1 Earned Schedule 385
27.8 ES Mathematical Formulation 386
27.8.1 ES Formulae 387
27.8.2 ES Indicators 388
27.9 EVM Pros and Cons 388
27.10 Conclusions 389
Appendix 389
A. Summary Review of EV Metrics and Performance Parameters 389
B. EV Formulae and Interpretation 390
C. Using a Summary Project Plan Spreadsheet to
Calculate EV Parameters 390
D. EV Earning Rules .- 390
References 394

Chapter 28 Tracking Project Progress 395

28.1 Introduction 395
28.2 Status Tracking 395
28.3 Tracking Metrics 397
28.4 Information Distribution 397
28.5 Control 398
Contents xvii

28.5.1 Project Plan 399

28.5.2 Issue Management Process 399
28.5.3 Configuration Management 399
28.5.4 Integrated Change Control 400
28.6 KA Controls 400
28.6.1 Scope Control 400
28.6.2 Schedule Control 400
28.6.3 Cost Control 400
28.6.4 Quality Control 401
28.7 Project Status Tracking Case Study 402
28.8 Conclusion 403
References 403

Chapter 29 Enterprise Reporting Using the Balanced Scorecard 405

29.1 Introduction 405
29.2 Scorecard Implementation 406
29.2.1 Communicating Strategic Objectives 406
29.2.2 Communicating Strategy 406
29.2.3 Assigning Responsibility 406
29.2.4 Aligning Strategy 406
29.2.5 Process Integration 407
29.3 BSC Implementation Principles 407
29.3.1 Best Practices 407
29.3.2 Barriers to Success 408
29.4 BSC Model 408
29.4.1 Financial Perspective 410
29.4.2 Internal Business Process Perspective 410
29.4.3 Learning and Growth Perspective 410
29.4.4' Customer Perspective 411
29.5 BSC as a Strategic Management System 411
29.5.1 Overcoming the Vision Barrier 411
29.5.2 Overcoming the People Barrier 412
29.5.3 Overcoming the Resource Barrier 412
29.5.4 Overcoming the Management Barrier 413
29.6 BSC as a Communication Tool 413
29.7 Balancing the BSC Components 413
29.8 Advantages and Disadvantages of BSC 414
29.8.1 Advantages 414
29.8.2 Disadvantages 415
29.9 Future of the BSC 415
29.10 Conclusion 415
References : 416

Part VIII Closing the Project

Chapter 30 The Closing Process 419

30.1 Project Implementation Review 419
30.1.1 Normal Project Termination 420
 Contents

30.2 Abnormal Termination 421

30.3 Termination Model 421
30.4 Project Termination Checklist 421
30.5 Project Team and Client Relationship 423
30.6 Creating Lessons Learned Documentation 423
30.7 Lessons Learned Report 424
30.8 Project Team Celebration 424
30.9 Conclusion 425
References 425

PART IX Contemporary Topics

Chapter 31 Organizational Maturity 429

31.1 Introduction 429
31.2 Overview of Formal CMMs 430
31.3 SEFs CMM 431
31.4 CMM Structure 431
31.5 CMM Maturity Levels 432
31.5.1 Initial Level (Level 1) 432
31.5.2 Repeatability Level (Level 2) 432
31.5.3 Defined Level (Level 3) 433
31.5.4 Managed Level (Level 4) 433
31.5.5 Optimizing Level (Level 5) 433
31.6 Capability Maturity Model Integration (CMMI) 433
31.7 Value of Organizational Maturity 434
31.8 Organizational Project Management (0PM3) 435
31.9 Overview of OPM3 436
31.10 OPM3 Components 438
31.10.1 Knowledge 438
31.10.2 Assessment 438
31.10.3 Evaluation Process 438
31.11 Best Practices 439
31.12 Capabilities Directory 439
31.13 Improvement Planning Directory 439
31.14 OPM3 Processes 442
31.15 Applying OPM3 in an Organization 443
31.16 OPM3 Benefits and Case Studies 444
31.17 Conclusion 445
References 446

Chapter 32 Project Portfolio Management 447

32.1 Introduction 447
32.2 Role of PPM 447
32.3 Improving Project Selection Decisions 448
32.4 Improving Visibility of Project Performance 448
32.5 Better Understanding of Project Value 448
32.6 Conducting "What I f Analysis 449
32.7 Project Investment Management 449
Contents xix

32.8 Who Needs a PPM? 449

32.9 PPM Goal Structure 450
32.9.1 Subgoal 1: Strategic Goal Alignment 451
. 32.9.2 Subgoal 2: Resource Investment Focus 451
32.9.3 Subgoal 3: Better Project Control/Governance 451
32.9.4 Subgoal 4: Efficiency 452
32.9.5 Subgoal 5: Balance 452
32.9.6 Subgoal 6: Value Optimization 452
32.10 Models of PPM 453
32.11 The Hybrid Model 454
32.12 Efficient Frontier 454
32.12.1 Project Assessment 454
32.13 Keys to Implementing PPM 456
32.14 PPM Principles : 456
32.15 Finding the Approach that Fits 457
32.16 Executive Support .-.- 457
32.17 Governance Framework 457
32.18 Value-Measurement Framework 458
32.19 Institute Effective Processes 459
32.20 PPM Implementation Roadmap 459
32.21 External Expertise 460
32.22 Implementation Goals 460
32.23 Key PPM Interfaces 460
32.24 PPM Implementation Challenges 461
32.25 Advantages of Implementing PPM 461
32.26 Summary 462
References 462

Chapter 33 Enterprise Project Management Office 465

33.1 Introduction 465
33.2 PMO Functions 465
33.3 Enterprise Project Management Office 466
33.4 Communication 467
33.5 Performance Metrics 467
33.6 Status Reporting 468
33.7 EPMO Communication Linkages 469
33.8 EPMO Organizational Models 469
33.8.1 Weather Station 470
33.8.1.1 Organization Driver 470
33.8.1.2 Formal Authority 470
33.8.2 Control Tower 471
33.8.2.1 Organization Driver 471
33.8.2.2 Formal Authority 471
33.8.3 Resource Pool 472
33.8.3.1 Organizational Driver 472
33.8.3.2 Formal Authority 472
33.8.4 Which Model Is the Right One? 473
33.9 EPMO Maturation Stages 474
33.9.1 EPMO Tools and Technology 475
33.10 Evaluating and Prioritizing New Projects 477
xx Contents

33.11 Weighted Criteria Example 477

33.12 Summary 478
References 479

Chapter 34 HR Outsourcing 481

34.1 Introduction 481
34.2 Management Drivers 482
34.3 First Wave Outsourcing 483
34.4 Offshoring Wave 483
34.5 Issues with Outsourcing Relationships 483
34.6 Outsourcing Success and Failures 484
34.7 Best Outsourcing Practices 485
34.8 Outsourcing Vendor Evaluation Worksheet 487
34.9 Conclusion 489
References 489

Chapter 35 High Productivity Teams 491

35.1 Background and Overview 491
35.2 Introduction to TSP Concepts 492
35.3 PP Concepts 492
35.3.1 PP Example 493
35.3.2 Introducing PP to the Team 495
35.4 TP Process 495
35.5 TP Work Objects and Principles 496
35.5.1 TP Launch Structure 496
35.6 TP Launch Details 498
35.7 Teamwork Process 499
35.8 Quality Management ..'. 499
35.9 Experience Examples and Evaluation 500
35.10 TSP Qualitative Feedback Results 501
35.11 Future Trends 502
35.12 Large, Multidisciplined Projects 502
35.13 Summary 503
References 503

Chapter 36 Project Governance 505

36.1 Introduction 505
36.2 Need for Project Governance 505
36.3 Project Governance Definition 506
36.4 Organizational Level Project Governance Principles ; 507
36.5 Tactical Level Project Governance 508
36.6 Operational Governance Model 509
36.7 Defining Responsibilities 510
36.8 Populating the Project Governance Framework 512
36.9 Governance Life Cycle Maturity Model 514
36.10 Governance Value Process 514
36.11 Corporate Governance and Project Teamwork (Halas) 516
36.12 Commentary 518
Contents xxi

36.13 Conclusion 518

References 519

PART X Professional Ethics and Responsibility

Chapter 37 Ethical Project Management Practices 523

37.1 Learning Objectives 523
37.2 Introduction 523
37.3 PMI's Code of Professional Conduct 526
Review Questions 526
Reference 529
Appendix A Financial Metrics 531
Appendix B Templates 539
Appendix C Project Repository Architecture 541
Index 545