Sixth Edition

Robert K. Wysocki, Ph.D.

Effective Project Management

Traditional, Agile, Extreme

Effective Project Management: Traditional, Agile, Extreme, Sixth Edition

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Copyright © 2012 by John Wiley & Sons, Inc., Indianapolis, IndianaPublished simultaneously in Canada

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iii

About the Author

Robert K. Wysocki, Ph.D., has over 40 years’ experience as a project manage-ment consultant and trainer, information systems manager, systems and man-agement consultant, author, training developer, and provider. He has written 20 books on project management, business analysis, and information systems management. One of his books, Effective Project Management, 5th Edition, has been a best-seller and is recommended by the Project Management Institute for the library of every project manager. He has over 30 publications and presentations in professional and trade journals and has made more than 100 presentations at professional and trade conferences and meetings. He has developed more than 20 project management courses and trained over 10,000 project managers.

In 1990 he founded Enterprise Information Insights, Inc. (EII), a project man-agement consulting and training practice specializing in project management methodology design and integration, Project Support Offi ce establishment, the development of training curriculum, and the development of a portfolio of assessment tools focused on organizations, project teams, and individuals. His clients include AT&T, Aetna, Babbage Simmel, British Computer Society, Boston University Corporate Education Center, Computerworld, Converse Shoes, the Czechoslovakian government, Data General, Digital, Eli Lilly, Harvard Community Health Plan, IBM, J. Walter Thompson, Novartis, Peoples Bank, Sapient, The Limited, the State of Ohio, Travelers Insurance, Walmart, Wells Fargo, ZTE, and several others.

He is a member of the ProjectWorld Executive Advisory Board, the Project Management Institute, the American Society of Training and Development, the International Institute of Business Analysts, and the Society of Human Resource

iv About the Technical Editor

Management. He is past Association Vice President of AITP (formerly DPMA). He earned a B.A. in mathematics from the University of Dallas, and an M.S. and Ph.D. in mathematical statistics from Southern Methodist University.

About the Technical Editor

Brenda K. Gillingham is a principal program manager and business analyst who specializes in enterprise-level business transformation projects within high-tech industry PMO structures. She also teaches a wide range of project management and business strategy courses in university and corporate profes-sional learning environments. Brenda’s diverse program management career includes three Fortune 100 companies and an Ivy-Plus university. One of her many successful business process restructuring projects was a front-page feature in various U.S.-based national technical publications.

An active member of the Project Management Institute since 1996, Brenda served 9 years on the Board of Directors of the 2,500+ member Mass Bay Chapter and is a certifi ed Project Management Professional (PMP) since 1999. Brenda earned her MBA in Management of Technology with high distinction from Bentley University and is a member of the Beta Gamma Sigma Honor Society. She also holds certifi cations in Organizational Change Management, Process Reengineering, Six Sigma, and Prince2 project management methodology.

v

Executive EditorBob Elliott

Senior Project EditorKevin Kent

Technical EditorBrenda K. Gillingham

Production EditorKathleen Wisor

Copy EditorKim Cofer

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ProofreaderJen Larsen, Word One

IndexerRobert Swanson

Cover DesignerRyan Sneed

Credits

vi

Acknowledgments

This acknowledgment is really my special thanks to the teaching faculty of at least 250 universities and colleges all over the globe who have adopted previous editions. Many of them have offered feedback that I fi nd most useful. Many of their suggestions have been incorporated in this sixth edition. I also owe a debt of gratitude to the many consultants and companies across the globe that have used APF and taken the time to comment on their experiences. I am aware of APF being adopted in several industries including banking, insurance, fi lm production, retailing, drug research, distribution, professional services, supply chain management, and logistics. To them I offer my heartfelt thanks.

vii

Preface xxiii

Introduction xxv

Part I Defi ning and Using Project Management Process Groups 1

Chapter 1 What Is a Project? 5

Chapter 2 What Is Project Management? 23

Chapter 3 Understanding the Project Management Process Groups 63

Chapter 4 How to Scope a TPM Project 103

Chapter 5 How to Plan a TPM Project 149

Chapter 6 How to Launch a TPM Project 225

Chapter 7 How to Monitor and Control a TPM Project 279

Chapter 8 How to Close a TPM Project 311

Part II Establishing Project Management Life Cycles and Strategies 321

Chapter 9 Complexity and Uncertainty in the Project Management Landscape 323

Chapter 10 Traditional Project Management 339

Chapter 11 Agile Project Management 377

Chapter 12 Extreme Project Management 453

Contents at a Glance

viii Contents at a Glance

Part III Building an Effective Project Management Infrastructure 479

Chapter 13 Establishing and Maturing a Project Support Offi ce 481

Chapter 14 Establishing and Managing a Project Portfolio Management Process 527

Chapter 15 Establishing and Managing a Continuous Process Improvement Program 583

Part IV Managing the Realities of Projects 625

Chapter 16 Prevention and Intervention Strategies for Distressed Projects 627

Chapter 17 Organizing Multiple Team Projects 657

Chapter 18 Managing the Professional Development of Project Teams 689

Appendix A Glossary of Acronyms 711

Appendix B What’s on the Website? 717

Appendix C Bibliography 719

Index 729

ix

Contents

Preface xxiii

Introduction xxv

Part I Defi ning and Using Project Management Process Groups 1

Chapter 1 What Is a Project? 5Defi ning a Project 6

Sequence of Activities 6Unique Activities 6Complex Activities 7Connected Activities 7One Goal 7Specifi ed Time 7Within Budget 8According to Specifi cation 8A Business-focused Defi nition of a Project 8

Defi ning a Program 9Establishing Temporary Program Offi ces 9Establishing Permanent Program Offi ces 9

Defi ning a Portfolio 10Understanding the Scope Triangle 10

Scope 11Quality 11Cost 12Time 12Resources 13Envisioning the Scope Triangle as a System in Balance 13Prioritizing the Scope Triangle Variables for

Improved Change Management 14Applying the Scope Triangle 15

x Contents

Managing the Creeps 16Scope Creep 16Hope Creep 17Effort Creep 17Feature Creep 17

The Importance of Classifying Projects 18Establishing a Rule for Classifying Projects 19Classifi cation by Project Characteristics 19Classifi cation by Project Application 21

Putting It All Together 22Discussion Questions 22

Chapter 2 What Is Project Management? 23Understanding the Fundamentals

of Project Management 24What Business Situation Is Being

Addressed by This Project? 25What Do You Need to Do? 25What Will You Do? 26How Will You Do It? 26How Will You Know You Did It? 26How Well Did You Do? 26

What Are Requirements — Really? 28Introducing Project Management Life Cycles 33

Goal and Solution Clarity 34Traditional Project Management Approaches 39Agile Project Management Approaches 44Extreme Project Management Approach 50Emertxe Project Management Life Cycle Model 53Recap of PMLC Models 55

Choosing the Best-Fit PMLC Model 56Total Cost 57Duration 58Market Stability 58Technology 58Business Climate 58Number of Departments Affected 58Organizational Environment 59Team Skills and Competencies 59

Putting It All Together 60Discussion Questions 60

Chapter 3 Understanding the Project Management Process Groups 63Defi ning the Five Process Groups 64

The Scoping Process Group 64The Planning Process Group 65

Contents xi

The Launching Process Group 65The Monitoring and Controlling Process Group 66The Closing Process Group 67

Defi ning the Nine Knowledge Areas 67Integration Management 67Scope Management 67Time Management 68Cost Management 68Quality Management 68Human Resource Management 69Communications Management 74Risk Management 75Procurement Management 85

Mapping Knowledge Areas to Process Groups 99What the Mapping Means 99How to Use the Mapping 100Using Process Groups to Defi ne PMLCs 100A Look Ahead: Mapping Process Groups to

Form Complex PMLCs 100Putting It All Together 101Discussion Questions 101

Chapter 4 How to Scope a TPM Project 103Using Tools, Templates, and

Processes to Scope a Project 104Managing Client Expectations 105

Wants versus Needs 106Project Scoping Process 106The Project Scoping Meeting 110Project Scoping Meeting Deliverables 112

Putting It All Together 147Discussion Questions 147

Chapter 5 How to Plan a TPM Project 149Using Tools, Templates, and Processes to

Plan a Project 151The Importance of Planning 152Using Application Software Packages to

Plan a Project 153Determining the Need for a

Software Package 154Project Planning Tools 154How Much Time Should Planning Take? 156Running the Planning Session 157

Planning and Conducting Joint Project Planning Sessions 157

Planning the JPPS 158Conducting the JPPS 164

xii Contents

Building the WBS 164Using the RBS to Build the WBS 165Uses for the WBS 167Generating the WBS 168Using the WBS for Large Projects 171Iterative Development of the WBS 171Six Criteria to Test for Completeness in the WBS 172Approaches to Building the WBS 176Representing the WBS 180

Estimating 183Estimating Duration 184Resource Loading versus Task Duration 185Variation in Task Duration 187Six Methods for Estimating Task Duration 188Estimation Life Cycles 191Estimating Resource Requirements 192Resource Planning 195Estimating Cost 196

Constructing the Project Network Diagram 199Envisioning a Complex Project Network Diagram 200Benefi ts to Network-Based Scheduling 200Building the Network Diagram Using the

Precedence Diagramming Method 202Dependencies 204Constraints 205Using the Lag Variable 209Creating an Initial Project Network Schedule 210Analyzing the Initial Project Network Diagram 214Compressing the Schedule 215Management Reserve 217

Writing an Effective Project Proposal 218Contents of the Project Proposal 219Format of the Project Proposal 221

Gaining Approval to Launch the Project 221Putting It All Together 221Discussion Questions 222

Chapter 6 How to Launch a TPM Project 225Using Tools, Templates, and

Processes to Launch a Project 226Recruiting the Project Team 227

Core Team Members 227Client Team 231Contract Team Members 231Balancing a Team 233Developing a Team Deployment Strategy 235Developing a Team Development Plan 235

Contents xiii

Conducting the Project Kick-Off Meeting 236Sponsor-Led Part 236Project Manager–Led Part 237Purpose of the Project Kick-Off Meeting 237

Establishing Team Operating Rules 241Situations that Require Team Operating Rules 241Team War Room 252

Managing Scope Changes 254The Scope Change Management Process 254Management Reserve 257Scope Bank 258

Managing Team Communications 258Establishing a Communications Model 259Managing Communication beyond the Team 262

Assigning Resources 264Leveling Resources 265Acceptably Leveled Schedule 267

Resource-Leveling Strategies 268Utilizing Available Slack 268Shifting the Project Finish Date 268Smoothing 269Alternative Methods of Scheduling Tasks 269Cost Impact of Resource Leveling 271

Finalizing the Project Schedule 271Writing Work Packages 273

Purpose of a Work Package 274Format of a Work Package 275

Putting It All Together 276Discussion Questions 278

Chapter 7 How to Monitor and Control a TPM Project 279Using Tools, Templates, and Processes to

Monitor and Control a Project 280Establishing Your Progress Reporting System 281

Types of Project Status Reports 281How and What Information to Update 285Frequency of Gathering and Reporting

Project Progress 286Variances 286

Applying Graphical Reporting Tools 288Gantt Charts 288Stoplight Reports 290Burn Charts 290Milestone Trend Charts 290Earned Value Analysis 293Integrating Milestone Trend Charts and

Earned Value Analysis 298

xiv Contents

Managing the Scope Bank 301Building and Maintaining the Issues Log 302Managing Project Status Meetings 302

Who Should Attend Status Meetings? 302When Are Status Meetings Held? 303What Is the Purpose of a Status Meeting? 303What Is the Status Meeting Format? 304The 15-Minute Daily Status Meeting 305Problem Management Meetings 305

Defi ning a Problem Escalation Strategy 306Project Manager–Based Strategies 306Resource Manager–Based Strategies 306Client-Based Strategies 307The Escalation Strategy Hierarchy 307

Gaining Approval to Close the Project 308Putting It All Together 309Discussion Questions 309

Chapter 8 How to Close a TPM Project 311Using Tools, Templates, and Processes

to Close a Project 312Writing and Maintaining Client Acceptance Procedures 312Closing a Project 312Getting Client Acceptance 313

Ceremonial Acceptance 313Formal Acceptance 313

Installing Project Deliverables 314Phased Approach 314Cut-Over Approach 314Parallel Approach 314By-Business-Unit Approach 315

Documenting the Project 315Reference for Future Changes in Deliverables 315Historical Record for Estimating Duration and

Cost on Future Projects, Activities, and Tasks 315Training Resource for New Project Managers 315Input for Further Training and

Development of the Project Team 316Input for Performance Evaluation by the

Functional Managers of the Project Team Members 316

Conducting the Post-Implementation Audit 317Writing the Final Report 319Celebrating Success 319Putting It All Together 320Discussion Questions 320

Contents xv

Part II Establishing Project Management Life Cycles and Strategies 321

Chapter 9 Complexity and Uncertainty in the Project Management Landscape 323Understanding the Complexity/Uncertainty

Domain of Projects 324Requirements 326Flexibility 327Adaptability 328Risk vs. the Complexity/Uncertainty Domain 328Team Cohesiveness vs. the Complexity/

Uncertainty Domain 329Communications vs. the Complexity/

Uncertainty Domain 330Client Involvement vs. the Complexity/

Uncertainty Domain 331Specifi cation vs. the Complexity/Uncertainty Domain 333Change vs. the Complexity/Uncertainty Domain 335Business Value vs. the Complexity/Uncertainty Domain 336

Putting It All Together 337Discussion Questions 338

Chapter 10 Traditional Project Management 339What Is Traditional Project Management? 340Linear Project Management Life Cycle 341

Defi nition 341Characteristics 342Strengths 347Weaknesses 348When to Use a Linear PMLC Model 351Variations to the Linear PMLC Model 351Adapting and Integrating the Tools, Templates, and

Processes for Maximum Effectiveness in Linear PMLCs 354Incremental Project Management Life Cycle 355

Defi nition 356Characteristics 356Strengths 356Weaknesses 358When to Use an Incremental PMLC 361Adapting and Integrating the Tools, Templates,

and Processes for Maximum Effectiveness in Incremental PMLCs 361

Using Critical Chain Project Management 362What Is the Critical Chain? 363Variation in Duration: Common Cause versus

Special Cause 363

xvi Contents

Statistical Validation of the Critical Chain Approach 364The Critical Chain Project Management Approach 366Establishing Buffers 368Managing Buffers 370Track Record of Critical Chain Project Management 372

Putting It All Together 373Discussion Questions 376

Chapter 11 Agile Project Management 377What Is Agile Project Management? 379

Implementing APM Projects 380Co-Located APM Project Teams 382

Iterative Project Management Life Cycle 384Defi nition of the Iterative PMLC Model 384Characteristics 389Strengths 389Weaknesses 390Types of Iterative PMLC Models 391When to Use an Iterative PMLC Model 397

Adaptive Project Management Life Cycle 398Defi nition 398Characteristics 403Strengths 403Weaknesses of the Adaptive PMLC Model 405Types of Adaptive PMLC Models 406When to Use an Adaptive PMLC Model 443

Adapting and Integrating the APM Toolkit 445Scoping the Next Iteration/Cycle 445Planning the Next Iteration/Cycle 446Launching the Next Iteration/Cycle 446Monitoring and Controlling the Next Iteration/Cycle 447Closing the Next Iteration/Cycle 447Deciding to Conduct the Next Iteration/Cycle 447Closing the Project 448

Putting It All Together 448Discussion Questions 449

Chapter 12 Extreme Project Management 453What Is Extreme Project Management? 454Extreme Project Management Life Cycle 454

Defi nition 454Characteristics 455Strengths 456Weaknesses 457INSPIRE Extreme PMLC Model 457

What Is Emertxe Project Management? 471The Emertxe Project Management Life Cycle 471

Contents xvii

When to Use an Emertxe PMLC Model 471Using the Tools, Templates, and Processes for

Maximum xPM Effectiveness 472Scoping the Next Phase 472Planning the Next Phase 473Launching the Next Phase 474Monitoring and Controlling the Next Phase 474Closing the Phase 475Deciding to Conduct the Next Phase 475Closing the Project 475

Putting It All Together 475Discussion Questions 475

Part III Building an Effective Project Management Infrastructure 479

Chapter 13 Establishing and Maturing a Project Support Offi ce 481Background of the Project Support Offi ce 482Defi ning a Project Support Offi ce 484

Temporary or Permanent Organizational Unit 484Portfolio of Services 485Specifi c Portfolio of Projects 487

Naming the Project Support Offi ce 487Establishing Your PSO’s Mission 489Framing PSO Objectives 489Exploring PSO Support Functions 490

Project Support 490Consulting and Mentoring 491Methods and Standards 492Software Tools 493Training 494Staffi ng and Development 495

Selecting PSO Organizational Structures 497Virtual versus Real 497Proactive versus Reactive 498Temporary versus Permanent 498Program versus Projects 498Enterprise versus Functional 499Hub-and-Spoke 499

Understanding the Organizational Placement of the PSO 499

Determining When You Need a Project Support Offi ce 501

The Standish Group Report 501Spotting Symptoms That You Need a PSO 505

Establishing a PSO 507

xviii Contents

PSO Stages of Maturity Growth 508Planning a PSO 509

Facing the Challenges of Implementing a PSO 519Speed and Patience 520Leadership from the Bottom Up 520A Systems Thinking Perspective 520Enterprise-Wide Systems 520Knowledge Management 521Learning and Learned Project Organizations 521Open Communications 521

The PSO of the Future 521Hub-and-Spoke BP4SO 522Staffi ng the BP4SO 523Other Considerations 524

Putting It All Together 525Discussion Questions 525

Chapter 14 Establishing and Managing a Project Portfolio Management Process 527Introduction to Project Portfolio Management 528

What Is a Portfolio Project? 528What Is a Project Portfolio? 529What Is Project Portfolio Management? 530

The Project Portfolio Management Life Cycle 530ESTABLISH a Portfolio Strategy 532EVALUATE Project Alignment to the Portfolio Strategy 539PRIORITIZE Projects and Hold Pending

Funding Authorization 540SELECT a Balanced Portfolio Using the Prioritized List 546MANAGE the Active Projects 556

Roles and Responsibilities of the PSO in Portfolio Management 564

Project Sponsor 564Portfolio Manager 564

Preparing Your Project for Submission to the Portfolio Management Process 566

A Revised Project Overview Statement 566A Two-Step Submission Process 569A New Submission Process 570

Agile Project Portfolio Management 572Integrating a PMLC Model into the Agile Project Portfolio

Management Process 574Challenges of Managing Agile Portfolios 576SELECT a Balanced Portfolio 577MANAGE Active Projects 580

Putting It All Together 581Discussion Questions 581

Contents xix

Chapter 15 Establishing and Managing a Continuous Process Improvement Program 583Understanding Project Management

Processes and Practices 584The Project Management Process 584The Practice of the Project Management Process 586

Defi ning Process and Practice Maturity 589Level 1: Ad Hoc or Informal 589Level 2: Documented Processes 589Level 3: Documented Processes That Everyone Uses 589Level 4: Integrated into Business Processes 590Level 5: Continuous Improvement 590

Measuring Project Management Process and Practice Maturity 591

The Process Quality Matrix and Zone Map 591What Process Has Been Defi ned So Far? 596

Using the Continuous Process Improvement Model 598

Phase 1: Foundation 599Phase 2: Assessment and Analysis 600Phase 3: Improvement Initiatives 602Phase 4: Check Results 603

Defi ning Roles and Responsibilities of the PSO 603Realizing the Benefi ts of

Implementing a CPIM 604Applying CPIM to Business Processes 604

Characteristics of Business Processes 605Watching Indicators of Needed Improvement 609Documenting the “As Is” Business Process 610Envisioning the “To Be” State 610Defi ning the Gap between “As Is” and “To Be” 610Defi ning a Business Process

Improvement Project 611Using Process Improvement Tools,

Templates, and Processes 612Fishbone Diagrams and Root

Cause Analysis 612Control Charts 615Flowcharting 615Histograms 617Pareto Analysis 617Run Charts 619Scatter Diagrams 619Force Field Analysis 620Trigger Values 622

Putting It All Together 623Discussion Questions 623

xx Contents

Part IV Managing the Realities of Projects 625

Chapter 16 Prevention and Intervention Strategies for Distressed Projects 627What Is a Distressed Project? 628

Why Projects Become Distressed or Fail 629Managing Distressed Projects 632

Prevention Management Strategies 632Using Tools, Templates, and Processes to

Prevent Distressed Projects 633Intervention Management Strategies 639An Intervention Process Template 651

Roles and Responsibilities of the PSO with Respect to Distressed Projects 653

Analyzing the Current Situation 654Revising the Desired Goal 655Evaluating the Options 655Generating the Revised Plan 655

Putting It All Together 655Discussion Questions 656

Chapter 17 Organizing Multiple Team Projects 657What Is a Multiple Team Project? 657Challenges to Managing a Multiple Team Project 659

Working with Teams from Different Companies 660Working with Fiercely Independent Team Cultures 660Working with Different Team Processes 661Accommodating Competing Priorities 661Communicating within the Team Structure 661Establishing a Project Management Structure 661Establishing One Project Management Life Cycle 661Building an Integrated Project Plan and Schedule 662Defi ning a Requirements Gathering Approach 663Establishing a Scope Change Management Process 663Defi ning the Team Meeting Structure 663Establishing Manageable Reporting Levels 664Sharing Resources across Teams 664Staffi ng across the PMLC 665Searching Out Your Second 665

Classifying Multiple Team Projects 665Two Teams 666Multiple Teams 666

Project Offi ce Structure 667Project Offi ce Characteristics 668Project Offi ce Strengths 670Project Offi ce Weaknesses 672

Contents xxi

When to Use a PO 672Core Team Structure 673

Core Team Characteristics 673Core Team Strengths 676Core Team Weaknesses 678When to Use a CT 679

Super Team Structure 680Super Team Characteristics 681Super Team Strengths 684Super Team Weaknesses 685When to Use an ST 685

Putting It All Together 686Discussion Questions 687

Chapter 18 Managing the Professional Development of Project Teams 689What Career and Professional Development

Situation Is Being Addressed? 690What Do You Need To Do? 690

Experience Acquisition 691On-the-job Training 691Off-the-job Training 691Professional Activities 692

What Will You Do? 692How Will You Do It? 692How Will You Know You Did It? 692How Well Did You Do? 693Where Do You Go from Here? — A New Idea to Consider 693

The PM/BA Position Family 693Using the PM/BA Landscape for

Professional Development 701What Might a Professional

Development Program Look Like? 702Career Planning Using the BA/PM Landscape 706

An Even Newer Idea to Consider 707Putting It All Together 709Discussion Questions 710

Appendix A Glossary of Acronyms 711

Appendix B What’s on the Website? 717

Appendix C Bibliography 719

Index 729

xxiii

Preface

All fi ve of the previous editions of Effective Project Management (EPM) have been successful and have grown in value from the feedback I have received from them. I owe that to faculty worldwide who are using my books. With the help and sup-port of John Wiley & Sons we have branded Effective Project Management. I’m seeing others play off that name recognition, and I am encouraged. I am aware of over 250 colleges and universities worldwide that have adopted my materials. Their feedback and that of the professional market has been overwhelmingly supportive of my practical and easy to read format. Effective Project Management, Sixth Edition (EPM6e) will continue to meet the needs of higher education and the professional markets. Even after this sixth edition goes to press I still view EPMas a work in process. One of my biggest problems is that I have so much I want to include, but we have made a decision to limit the book to about 800 pages. As I and my readers gain further experience with its use and as I hear about the experiences of clients, trainers, faculty and project management profession-als, the work will undoubtedly improve. You might say that the development of EPM6e and its successor editions is an agile project. The goal is to produce a perfectly intuitive and common sense approach to project management. The solution, however, continues to be elusive. But we are converging on that solu-tion with every edition of EPM!

I would like to think that this edition offers you a complete view of effec-tive project management as it is now practiced and how I believe it should be practiced in the very near future.

The training and higher education market has been a strong market for EPM.In response to numerous requests from trainers and teaching faculty for a slide presentation, I have continued that offering on the web site (accessible at www.wiley.com/go/epm6e). That slide presentation is a cradle to grave mirror image

xxiv Preface

of the text. These are the very same slides that I use when teaching or training using EPM6e. You can use it right out of the box to teach EPM, or you might want to modify it to fi t your specifi c needs.

The professional reference market has been equally strong. In response to numerous requests from practicing professionals I have expanded the coverage of contemporary approaches to project management.

My clients have been a constant source of input. Their guidance has been invaluable to me. From them I have learned about implementation experiences and ways to improve my presentation of the processes and practices of contem-porary project management.

Thank you again for adding my book to your project management library. If you have any questions or would just like to comment, please let me hear from you at rkw@eiicorp.com. You have my promise that I will quickly respond personally to each and every communiqué.

Enjoy!

Robert K. Wysocki, Ph.D.

xxv

E ffective Project Management: Traditional, Agile, Extreme, Sixth Edition (EPM6e)represents a signifi cant change from the Fifth Edition. All of the pedagogical and organizational strengths of EPM5e are retained and expanded in EPM6e.EPM6e offers fi ve different project management life cycle (PMLC) models (Linear, Incremental, Iterative, Adaptive, and Extreme) to managing a project. The choice of the best-fi t PMLC is based on the characteristics of the project and the business and organizational environment in which the project will be undertaken. These approaches recognize that major differences exist among projects and that those differences require different management approaches if the project is to be managed and successfully completed. Those differ-ences become obvious through an analysis of the Requirements Breakdown Structure (RBS).

We commonly defi ne a project as a unique experience that has never hap-pened before and will never happen again under the same set of circumstances. So, then, why don’t we defi ne the management of such projects the same way? There are a number of factors affecting the choice of PMLC and the adapta-tion of those models as the project unfolds and conditions change. This is the approach I have taken for years and have been successful beyond the statistics on failure that we are all familiar with. I hope to convince you of the benefi ts of that view in this book. Forty years of experience managing projects of all types has led me to this conclusion. I want to share my thinking with you and convince you to follow my lead.

Introduction

xxvi Introduction

The Contemporary Project Environment

The contemporary project environment is characterized by high speed, high change, lower costs, complexity, uncertainty, and a host of other factors. This presents a daunting challenge to the project manager as is described in the sections that follow.

High SpeedThe faster products and services get to market the greater will be the resulting value to the business. Current competitors are watching and responding to unmet opportunities, and new competition is waiting and watching to seize upon any opportunity that might give them a foothold or expansion in the market. Any weakness or delay in responding may just give them that advantage. This need to be fast translates into a need for the project management approach to not waste time — to rid itself, as much as possible, of spending time on non-value-added work. Many of the approaches you will study are built on that premise.

The window of opportunity is narrowing and constantly moving. Organizations that can quickly respond to those opportunities are organizations that have found a way to reduce cycle times and eliminate non-value-added work as much as possible. Taking too long to roll out a new or revamped product can result in a missed business opportunity. Project managers must know how and when to introduce multiple release strategies and compress project schedules to help meet these requirements. Even more importantly, the project manage-ment approach must support these aggressive schedules. That means that these processes must protect the schedule by eliminating all non-value-added work. You simply cannot afford to burden your project management processes with a lot of overhead activities that do not add value to the fi nal deliverables or that may compromise your effectiveness in the markets you serve.

Effective project management is not the product of a rigid or fi xed set of steps and processes to be followed on every project. Rather the choice of project management approach is based on having done due diligence on the project specifi cs and defi ned an approach that makes sense. I spend considerable time on these strategies in later chapters.

High ChangeClients are often making up their minds or changing their minds about what they want. The environment is more the cause of high change than is any igno-rance on the part of the client. The business world is dynamic. It doesn’t stand still just because you are managing a project. The best-fi t project management approach must recognize the realities of frequent change, accommodate it, and

Introduction xxvii

embrace it. The extent to which change is expected will affect the choice of a best-fi t PMLC model.

Change is constant! I hope that does not come as a surprise to you. Change is always with you and seems to be happening at an increasing rate. Every day you face new challenges and the need to improve yesterday’s practices. As John Naisbitt says in The Third Wave, “Change or die.” For experienced project managers as well as “wannabe” project managers, the road to breakthrough performance is paved with uncertainty and with the need to be courageous, creative, and fl exible. If you simply rely on a routine application of someone else’s methodology, you are sure to fall short of the mark. As you will see in the pages that follow, I have not been afraid to step outside the box and outside my comfort zone. Nowhere is there more of a need for change and adaptation than in the approaches we take to managing projects.

Lower CostWith the reduction in management layers (a common practice in many organi-zations) the professional staff needs to fi nd ways to work smarter, not harder. Project management includes a number of tools and techniques that help the professional manage increased workloads. Your staffs need to have more room to do their work in the most productive ways possible. Burdening them with overhead activities for which they see little value is a sure way to failure.

In a landmark paper “The Coming of the New Organization” (Harvard BusinessReview, January/February 1988), written over 20 years ago but still relevant, Peter Drucker depicts middle managers as either ones who receive information from above, reinterpret it, and pass it down or ones who receive information from below, reinterpret it, and pass it up the line. Not only is quality suspect because of personal biases and political overtones, but also the computer is perfectly capable of delivering that information to the desk of any manager who has a need to know. Given these factors, plus the politics and power struggles at play, Drucker asks why employ middle managers? As technology advances and acceptance of these ideas grows, we have seen the thinning of the layers of middle management. Do not expect them to come back; they are gone forever. The effect on project managers is predictable and signifi cant. Hierarchical structures are being replaced by organizations that have a greater dependence on projects and project teams, resulting in more demands on project managers.

Increasing Levels of ComplexityAll of the simple problems have been solved. Those that remain are getting more complex with each passing day. At the same time that problems are get-ting more complex, they are getting more critical to the enterprise. They must

xxviii Introduction

be solved. We don’t have a choice. Not having a simple recipe for managing such projects is no excuse. They must be managed, and we must have an effec-tive way of managing them. This book shows you how to create common sense project management approaches adapting a common set of tools, templates, and processes to even the most complex of projects.

More UncertaintyWith increasing levels of complexity comes increasing levels of uncertainty. The two are inseparable. Adapting project management approaches to handle uncertainty means that the approaches must not only accommodate change but also embrace it and become more effective as a result of it. Change is what will lead the team and the client to a state of certainty with respect to a viable solution to its complex problems. In other words we must have project manage-ment approaches that expect change and benefi t from it.

Challenges to Effective Project Management

As discussed earlier in this introduction the contemporary project environ-ment presents the project manager and the client with a number of challenges to managing such projects effectively. The use of the best-fi t PMLC model will rise to these challenges and adapt as necessary.

Flexibility and AdaptabilityTraditional Project Management (TPM) practices were defi ned and matured in the world of the engineer and construction professional where the team expected (and got, or so it thought) a clear statement from clients as to what they wanted, when they wanted it, and how much they were willing to pay for it. All of this was delivered to the project manager wrapped in a neat package. The “i”s were all dotted, and the “t”s were all crossed. All the correct forms were fi led, and all the boxes were fi lled with the information requested. Everyone was satisfi ed that the request was well documented and that the deliverables were sure to be delivered as requested. The project team clearly understood the solution they would be expected to provide, and they could clearly plan for its delivery. That describes the naive world of the embryonic project manager until the 1950s. By the mid-1950s the computer was well on its way to becoming a viable commer-cial resource, but it was still the province of the engineer. Project management continued as it had under the management of the engineers.

The fi rst sign that change was in the wind for the project manager arose in the early 1960s. The use of computers to run businesses was now a reality, and