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PROJECTMANAGEMENT
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Dr. Kerzner’s 16 Points to ProjectManagement Maturity
1. Adopt a project management methodology and use it consistently.
2. Implement a philosophy that drives the company toward projectmanagement maturity and communicate it to everyone.
3. Commit to developing effective plans at the beginning of each project.
4. Minimize scope changes by committing to realistic objectives.
5. Recognize that cost and schedule management are inseparable.
6. Select the right person as the project manager.
7. Provide executives with project sponsor information, not projectmanagement information.
8. Strengthen involvement and support of line management.
9. Focus on deliverables rather than resources.
10. Cultivate effective communication, cooperation, and trust to achieverapid project management maturity.
11. Share recognition for project success with the entire project team andline management.
12. Eliminate nonproductive meetings.
13. Focus on identifying and solving problems early, quickly, and costeffectively.
14. Measure progress periodically.
15. Use project management software as a tool—not as a substitute foreffective planning or interpersonal skills.
16. Institute an all-employee training program with periodic updates basedupon documented lessons learned.
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PROJECTMANAGEMENT
A Systems Approach toPlanning, Scheduling,
and Controlling
E L E V E N T H E D I T I O N
H A R O L D K E R Z N E R , P h . D .Senior Executive Director for Project Management
The International Institute for Learning New York, New York
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Cover illustration: xiaoke ma/iStockphoto
This book is printed on acid-free paper.
Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved
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Library of Congress Cataloging-in-Publication Data:Kerzner, Harold.
Project management : a systems approach to planning, scheduling, and controlling / Harold Kerzner, Ph. D. Senior Executive
Director for Project Management, the International Institute for Learning, New York, New York. — Eleventh edition.
pages cm
Includes bibliographical references and index.
ISBN 978-1-118-02227-6 (cloth); ISBN 978-1-118-41585-6 (ebk); ISBN 978-1-118-41855-0 (ebk); ISBN 978-1-118-43357-7
(ebk); ISBN 978-1-118-48322-0 (ebk); ISBN 978-1-118-48323-7 (ebk) 1. Project management. 2. Project management—Case
studies. I. Title.
HD69.P75K47 2013
658.4’04 —dc23
2012026239
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To
Dr. Herman Krier,
my Friend and Guru,
who taught me well the
meaning of the word “persistence”
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Contents
Preface xxiii
1 OVERVIEW 1
1.0 Introduction 11.1 Understanding Project Management 21.2 Defining Project Success 71.3 Success, Trade-Offs, and Competing Constraints 81.4 The Project Manager–Line Manager Interface 91.5 Defining the Project Manager’s Role 141.6 Defining the Functional Manager’s Role 151.7 Defining the Functional Employee’s Role 181.8 Defining the Executive’s Role 191.9 Working with Executives 191.10 Committee Sponsorship/Governance 201.11 The Project Manager as the Planning Agent 231.12 Project Champions 241.13 The Downside of Project Management 251.14 Project-Driven versus Non–Project-Driven Organizations 251.15 Marketing in the Project-Driven Organization 281.16 Classification of Projects 301.17 Location of the Project Manager 301.18 Differing Views of Project Management 321.19 Public-Sector Project Management 341.20 International Project Management 381.21 Concurrent Engineering: A Project Management Approach 381.22 Added Value 391.23 Studying Tips for the PMI® Project Management Certification Exam 40
Problems 42
Case StudyWilliams Machine Tool Company 44
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2 PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS 47
2.0 Introduction 472.1 General Systems Management 482.2 Project Management: 1945–1960 482.3 Project Management: 1960–1985 492.4 Project Management: 1985–2012 552.5 Resistance to Change 592.6 Systems, Programs, and Projects: A Definition 642.7 Product versus Project Management: A Definition 662.8 Maturity and Excellence: A Definition 682.9 Informal Project Management: A Definition 692.10 The Many Faces of Success 702.11 The Many Faces of Failure 732.12 The Stage-Gate Process 762.13 Project Life Cycles 782.14 Gate Review Meetings (Project Closure) 832.15 Engagement Project Management 842.16 Project Management Methodologies: A Definition 852.17 Enterprise Project Management Methodologies 872.18 Methodologies Can Fail 912.19 Organizational Change Management and Corporate Cultures 942.20 Project Management Intellectual Property 1002.21 Systems Thinking 101
2.22 Studying Tips for the PMI® Project Management Certification Exam 104
Problems 107
Case StudyCreating a Methodology 108
3 ORGANIZATIONAL STRUCTURES 111
3.0 Introduction 1113.1 Organizational Work Flow 1133.2 Traditional (Classical) Organization 1143.3 Developing Work Integration Positions 1173.4 Line-Staff Organization (Project Coordinator) 1213.5 Pure Product (Projectized) Organization 1223.6 Matrix Organizational Form 1253.7 Modification of Matrix Structures 1323.8 The Strong, Weak, or Balanced Matrix 1363.9 Center for Project Management Expertise 1363.10 Matrix Layering 137
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3.11 Selecting the Organizational Form 1383.12 Structuring the Small Company 1433.13 Strategic Business Unit (SBU) Project Management 1463.14 Transitional Management 1473.15 Barriers to Implementing Project Management in Emerging Markets 1493.16 Seven Fallacies that Delay Project Management Maturity 1563.17 Studying Tips for the PMI® Project Management Certification Exam 159
Problems 161
Case StudiesJones and Shephard Accountants, Inc. 166Coronado Communications 168
4 ORGANIZING AND STAFFING THE PROJECT OFFICE AND TEAM 171
4.0 Introduction 1714.1 The Staffing Environment 1724.2 Selecting the Project Manager: An Executive Decision 1744.3 Skill Requirements for Project and Program Managers 1784.4 Special Cases in Project Manager Selection 1844.5 Selecting the Wrong Project Manager 1844.6 Next Generation Project Managers 1884.7 Duties and Job Descriptions 1894.8 The Organizational Staffing Process 1934.9 The Project Office 1994.10 The Functional Team 2044.11 The Project Organizational Chart 2054.12 Special Problems 2084.13 Selecting the Project Management Implementation Team 2104.14 Mistakes Made by Inexperienced Project Managers 2134.15 Studying Tips for the PMI® Project Management Certification Exam 214
Problems 216
5 MANAGEMENT FUNCTIONS 223
5.0 Introduction 2235.1 Controlling 2255.2 Directing 2255.3 Project Authority 2305.4 Interpersonal Influences 2375.5 Barriers to Project Team Development 2405.6 Suggestions for Handling the Newly Formed Team 243
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5.7 Team Building as an Ongoing Process 2465.8 Dysfunctions of a Team 2475.9 Leadership in a Project Environment 2505.10 Life-Cycle Leadership 2525.11 Value-Based Project Leadership 2555.12 Organizational Impact 2575.13 Employee–Manager Problems 2595.14 Management Pitfalls 2625.15 Communications 2655.16 Project Review Meetings 2745.17 Project Management Bottlenecks 2755.18 Cross-Cutting Skills 2765.19 Active Listening 2775.20 Project Problem-Solving 2785.21 Brainstorming 2885.22 Project Decision-Making 2935.23 Predicting the Outcome of a Decision 3015.24 Facilitation 3035.25 Handling Negative Team Dynamics 3065.26 Communication Traps 3075.27 Proverbs and Laws 3095.28 Human Behavior Education 3115.29 Management Policies and Procedures 3125.30 Studying Tips for the PMI® Project Management Certification Exam 313
Problems 318
Case StudiesThe Trophy Project 327Communication Failures 329McRoy Aerospace 332The Poor Worker 333The Prima Donna 334The Team Meeting 335Leadership Effectiveness (A) 337Leadership Effectiveness (B) 341Motivational Questionnaire 347
6 MANAGEMENT OF YOUR TIME AND STRESS 355
6.0 Introduction 3556.1 Understanding Time Management 3566.2 Time Robbers 3566.3 Time Management Forms 358
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6.4 Effective Time Management 3596.5 Stress and Burnout 3606.6 Studying Tips for the PMI® Project Management Certification Exam 362
Problems 363
Case StudyThe Reluctant Workers 364
7 CONFLICTS 365
7.0 Introduction 365
7.1 Objectives 366
7.2 The Conflict Environment 367
7.3 Types of Conflicts 368
7.4 Conflict Resolution 371
7.5 Understanding Superior, Subordinate, and Functional Conflicts 372
7.6 The Management of Conflicts 374
7.7 Conflict Resolution Modes 375
7.8 Studying Tips for the PMI® Project Management Certification Exam 377
Problems 379
Case StudiesFacilities Scheduling at Mayer Manufacturing 382
Telestar International 383
Handling Conflict in Project Management 384
8 SPECIAL TOPICS 391
8.0 Introduction 3928.1 Performance Measurement 3928.2 Financial Compensation and Rewards 3998.3 Critical Issues with Rewarding Project Teams 4058.4 Effective Project Management in the Small Business Organization 4088.5 Mega Projects 4108.6 Morality, Ethics, and the Corporate Culture 4118.7 Professional Responsibilities 4148.8 Internal Partnerships 4178.9 External Partnerships 4188.10 Training and Education 4208.11 Integrated Product/Project Teams 4228.12 Virtual Project Teams 4248.13 Breakthrough Projects 427
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8.14 Managing Innovation Projects 4278.15 Agile Project Management 4308.16 Studying Tips for the PMI® Project Management Certification Exam 431
Problems 437
Case StudyIs It Fraud? 440
9 THE VARIABLES FOR SUCCESS 443
9.0 Introduction 4439.1 Predicting Project Success 4449.2 Project Management Effectiveness 4489.3 Expectations 4499.4 Lessons Learned 4509.5 Understanding Best Practices 4519.6 Best Practices versus Proven Practices 4589.7 Studying Tips for the PMI® Project Management Certification Exam 459
Problems 460
Case StudyRadiance International 460
10 WORKING WITH EXECUTIVES 463
10.0 Introduction 463
10.1 The Project Sponsor 464
10.2 Handling Disagreements with the Sponsor 474
10.3 The Collective Belief 475
10.4 The Exit Champion 476
10.5 The In-House Representatives 477
10.6 Stakeholder Relations Management 478
10.7 Politics 486
10.8 Studying Tips for the PMI® Project Management Certification Exam 487
Problems 488
Case StudiesCorwin Corporation 491
The Prioritization of Projects 499
The Irresponsible Sponsors 500
Selling Executives on Project Management 502
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11 PLANNING 505
11.0 Introduction 50511.1 Validating the Assumptions 50811.2 Validating the Objectives 50911.3 General Planning 51011.4 Life-Cycle Phases 51311.5 Proposal Preparation 51611.6 Kickoff Meetings 51611.7 Understanding Participants’ Roles 51911.8 Project Planning 51911.9 The Statement of Work 52111.10 Project Specifications 52611.11 Milestone Schedules 52811.12 Work Breakdown Structure 52911.13 WBS Decomposition Problems 53611.14 Work Breakdown Structure Dictionary 54011.15 Role of the Executive in Project Selection 54111.16 Role of the Executive in Planning 54611.17 The Planning Cycle 54611.17 Work Planning Authorization 54711.19 Why Do Plans Fail? 54811.20 Stopping Projects 54911.21 Handling Project Phaseouts and Transfers 55011.22 Detailed Schedules and Charts 55111.23 Master Production Scheduling 55411.24 Project Plan 55611.25 Total Project Planning 56111.26 The Project Charter 56511.27 Project Baselines 56611.28 Verification and Validation 57011.29 Requirements Traceability Matrix 57111.30 Management Control 57211.31 The Project Manager–Line Manager Interface 57511.32 Fast-Tracking 57711.33 Configuration Management 57811.34 Enterprise Project Management Methodologies 57911.35 Project Audits 58211.36 Studying Tips for the PMI® Project Management Certification Exam 583
Problems 586
12 NETWORK SCHEDULING TECHNIQUES 597
12.0 Introduction 59712.1 Network Fundamentals 600
Contents xiii
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12.2 Graphical Evaluation and Review Technique (GERT) 60412.3 Dependencies 60512.4 Slack Time 60612.5 Network Replanning 61212.6 Estimating Activity Time 61612.7 Estimating Total Project Time 61712.8 Total PERT/CPM Planning 61812.9 Crash Times 62012.10 PERT/CPM Problem Areas 62312.11 Alternative PERT/CPM Models 62612.12 Precedence Networks 62712.13 Lag 63012.14 Scheduling Problems 63212.15 The Myths of Schedule Compression 63212.16 Understanding Project Management Software 63412.17 Software Features Offered 63412.18 Software Classification 63612.19 Implementation Problems 63712.20 Critical Chain 63812.21 Studying Tips for the PMI® Project Management Certification Exam 640
Problems 643
Case StudiesCrosby Manufacturing Corporation 656The Invisible Sponsor 658
13 PROJECT GRAPHICS 661
13.0 Introduction 66113.1 Customer Reporting 66213.2 Bar (Gantt) Chart 66313.3 Other Conventional Presentation Techniques 67013.4 Logic Diagrams/Networks 67313.5 Studying Tips for the PMI® Project Management Certification Exam 674
Problems 675
14 PRICING AND ESTIMATING 677
14.0 Introduction 67714.1 Global Pricing Strategies 67814.2 Types of Estimates 67914.3 Pricing Process 68214.4 Organizational Input Requirements 68414.5 Labor Distributions 686
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14.6 Overhead Rates 69014.7 Materials/Support Costs 69214.8 Pricing Out the Work 69514.9 Smoothing Out Department Man-Hours 69614.10 The Pricing Review Procedure 69814.11 Systems Pricing 70014.12 Developing the Supporting/Backup Costs 70114.13 The Low-Bidder Dilemma 70514.14 Special Problems 70514.15 Estimating Pitfalls 70614.16 Estimating High-Risk Projects 70714.17 Project Risks 70814.18 The Disaster of Applying the 10 Percent Solution to Project Estimates 71214.19 Life-Cycle Costing (LCC) 71414.20 Logistics Support 71914.21 Economic Project Selection Criteria: Capital Budgeting 72014.22 Payback Period 72014.23 The Time Value of Money 72114.24 Net Present Value (NPV) 72214.25 Internal Rate of Return (IRR) 72314.26 Comparing IRR, NPV, and Payback 72414.27 Risk Analysis 72414.28 Capital Rationing 72514.29 Project Financing 72614.30 Studying Tips for the PMI® Project Management Certification Exam 728
Problems 730
Case StudyThe Estimating Problem 734
15 COST CONTROL 737
15.0 Introduction 73715.1 Understanding Control 74115.2 The Operating Cycle 74415.3 Cost Account Codes 74515.4 Budgets 75015.5 The Earned Value Measurement System (EVMS) 75215.6 Variance and Earned Value 75415.7 The Cost Baseline 77315.8 Justifying the Costs 77515.9 The Cost Overrun Dilemma 77815.10 Recording Material Costs Using Earned Value Measurement 77915.11 The Material Accounting Criterion 782
Contents xv
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15.12 Material Variances: Price and Usage 78315.13 Summary Variances 78415.14 Status Reporting 78515.15 Cost Control Problems 79215.16 Project Management Information Systems 79315.17 Enterprise Resource Planning 79315.18 Project Metrics 79415.19 Key Performance Indicators 80015.20 Value-Based Metrics 80615.21 Dashboards and Scorecards 81215.22 Business Intelligence 81515.23 Infographics 81615.24 Studying Tips for the PMI® Project Management Certification Exam 816
Problems 820
Case StudiesThe Bathtub Period 838Franklin Electronics 839Trouble in Paradise 841
16 TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT 845
16.0 Introduction 84516.1 Methodology for Trade-Off Analysis 84816.2 Contracts: Their Influence on Projects 86516.3 Industry Trade-Off Preferences 86616.4 Conclusion 869
16.5 Studying Tips for the PMI® Project Management
Certification Exam 869
17 RISK MANAGEMENT 871
17.0 Introduction 87217.1 Definition of Risk 87317.2 Tolerance for Risk 87517.3 Definition of Risk Management 876
17.4 Certainty, Risk, and Uncertainty 87717.5 Risk Management Process 88317.6 Plan Risk Management (11.1) 88417.7 Risk Identification (11.2) 88517.8 Risk Analysis (11.3, 11.4) 89217.9 Qualitative Risk Analysis (11.3) 89717.10 Quantitative Risk Analysis (11.4) 90317.11 Probability Distributions and the Monte Carlo Process 90417.12 Plan Risk Response (11.5) 913
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17.13 Monitor and Control Risks (11.6) 91917.14 Some Implementation Considerations 92017.15 The Use of Lessons Learned 92117.16 Dependencies Between Risks 92517.17 The Impact of Risk Handling Measures 93017.18 Risk and Concurrent Engineering 93317.19 Studying Tips for the PMI® Project Management Certification Exam 936
Problems 940
Case StudiesTeloxy Engineering (A) 948Teloxy Engineering (B) 948The Risk Management Department 949
18 LEARNING CURVES 953
18.0 Introduction 95318.1 General Theory 95418.2 The Learning Curve Concept 95418.3 Graphic Representation 95618.4 Key Words Associated with Learning Curves 95818.5 The Cumulative Average Curve 95818.6 Sources of Experience 96018.7 Developing Slope Measures 96318.8 Unit Costs and Use of Midpoints 96418.9 Selection of Learning Curves 96518.10 Follow-On Orders 96618.11 Manufacturing Breaks 96618.12 Learning Curve Limitations 96818.13 Prices and Experience 96818.14 Competitive Weapon 97018.15 Studying Tips for the PMI® Project Management Certification Exam 971
Problems 972
19 CONTRACT MANAGEMENT 975
19.0 Introduction 97519.1 Procurement 97619.2 Plan Procurements 97819.3 Conducting the Procurements 98119.4 Conduct Procurements: Request Seller Responses 98319.5 Conduct Procurements: Select Sellers 98319.6 Types of Contracts 98719.7 Incentive Contracts 99119.8 Contract Type versus Risk 994
Contents xvii
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19.9 Contract Administration 99519.10 Contract Closure 99819.11 Using a Checklist 99919.12 Proposal-Contractual Interaction 100019.13 Summary 100319.14 Studying Tips for the PMI® Project Management Certification Exam 1004
Case StudiesThe Scheduling Dilemma 1009To Bid or Not to Bid 1011The Management Reserve 1012
20 QUALITY MANAGEMENT 1015
20.0 Introduction 101620.1 Definition of Quality 101720.2 The Quality Movement 101920.3 Comparison of the Quality Pioneers 102220.4 The Taguchi Approach 102320.5 The Malcolm Baldrige National Quality Award 102620.6 ISO 9000 102720.7 Quality Management Concepts 102920.8 The Cost of Quality 103220.9 The Seven Quality Control Tools 103520.10 Process Capability (CP) 105220.11 Acceptance Sampling 105420.12 Implementing Six Sigma 105420.13 Lean Six Sigma and DMAIC 105620.14 Quality Leadership 105720.15 Responsibility for Quality 105820.16 Quality Circles 105820.17 Just-In-Time Manufacturing (JIT) 105920.18 Total Quality Management (TQM) 106120.19 Studying Tips for the PMI® Project Management Certification Exam 1065
21 MODERN DEVELOPMENTS IN PROJECT MANAGEMENT 1069
21.0 Introduction 106921.1 The Project Management Maturity Model (PMMM) 107021.2 Developing Effective Procedural Documentation 107421.3 Project Management Methodologies 107821.4 Continuous Improvement 107921.5 Capacity Planning 108021.6 Competency Models 108221.7 Managing Multiple Projects 108421.8 End-of-Phase Review Meetings 1085
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Case StudyHonicker Corporation 1086
22 THE BUSINESS OF SCOPE CHANGES 1089
22.0 Introduction 108922.1 Need for Business Knowledge 109122.2 Timing of Scope Changes 109222.3 Business Need for a Scope Change 109322.4 Rationale for Not Approving a Scope Change 1094
Case StudyKemko Manufacturing 1094
23 THE PROJECT OFFICE 1097
23.0 Introduction 109723.1 Present-Day Project Office 109823.2 Implementation Risks 109923.3 Types of Project Offices 110023.4 Networking Project Management Offices 110123.5 Project Management Information Systems 110123.6 Dissemination of Information 110323.7 Mentoring 110423.8 Development of Standards and Templates 110523.9 Project Management Benchmarking 110523.10 Business Case Development 110623.11 Customized Training (Related to Project Management) 110723.12 Managing Stakeholder Relations 110823.13 Continuous Improvement 110923.14 Capacity Planning 110923.15 Risks of Using a Project Office 111023.16 Project Portfolio Management 1111
Case StudyThe Project Management Lawsuit 1116
24 MANAGING CRISIS PROJECTS 1119
24.0 Introduction 111924.1 Understanding Crisis Management 111924.2 Ford versus Firestone 112124.3 The Air France Concorde Crash 112224.4 Intel and the Pentium Chip 112324.5 The Russian Submarine Kursk 112324.6 The Tylenol Poisonings 1124
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24.7 Nestlé’s Marketing of Infant Formula 112724.8 The Space Shuttle Challenger Disaster 112924.9 The Space Shuttle Columbia Disaster 113024.10 Victims Versus Villains 113124.11 Life-Cycle Phases 113224.12 Project Management Implications 1133
25 FUTURE OF PROJECT MANAGEMENT 1135
25.0 Changing Times 113525.1 Complex Projects 113925.2 Complexity Theory 114425.3 Scope Creep 114525.4 Project Health Checks 115125.5 Managing Troubled Projects 1155
26 THE RISE, FALL, AND RESURRECTION OF IRIDIUM:A PROJECT MANAGEMENT PERSPECTIVE 1167
26.0 Introduction 116726.1 Naming the Project “Iridium” 116926.2 Obtaining Executive Support 117026.3 Launching the Venture 117026.4 The Iridium System 117226.5 The Terrestrial and Space-Based Network 117226.6 Project Initiation: Developing the Business Case 117326.7 The “Hidden” Business Case 117526.8 Risk Management 117526.9 The Collective Belief 117726.10 The Exit Champion 117726.11 Iridium’s Infancy Years 117826.12 Debt Financing 118126.13 The M-Star Project 118226.14 A New CEO 118326.15 Satellite Launches 118326.16 An Initial Public Offering (IPO) 118426.17 Signing Up Customers 118426.18 Iridium’s Rapid Ascent 118526.19 Iridium’s Rapid Descent 118726.20 The Iridium “Flu” 119126.21 Searching for a White Knight 119226.22 The Definition of Failure (October, 1999) 119226.23 The Satellite Deorbiting Plan 119326.24 Iridium is Rescued for $25 Million 119426.25 Iridium Begins to Grow 1194
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26.26 Shareholder Lawsuits 119526.27 The Bankruptcy Court Ruling 119526.28 Autopsy 119626.29 Financial Impact of the Bankruptcy 119726.30 What Really Went Wrong? 119826.31 Lessons Learned 120026.32 Conclusion 1202
Appendix A. Solutions to the Project Management Conflict Exercise 1205Appendix B. Solution to Leadership Exercise 1211Appendix C. Dorale Products Case Studies 1217Appendix D. Solutions to the Dorale Products Case Studies 1229Appendix E. Alignment of the PMBOK® Guide to the Text 1235
Author Index 1241
Subject Index 1243
Contents xxi
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Preface
Project management has evolved from a management philosophy restricted to afew functional areas and regarded as something nice to have to an enterprise pro-ject management system affecting every functional unit of the company. Simplystated, project management has evolved into a business process rather thanmerely a project management process. More and more companies are nowregarding project management as being mandatory for the survival of the firm.Organizations that were opponents of project management are now advocates.Management educators of the past, who preached that project management couldnot work and would be just another fad, are now staunch supporters. Project man-agement is here to stay. Colleges and universities are now offering graduatedegrees in project management.
The text discusses the principles of project management. Students who areinterested in advanced topics, such as some of the material in Chapters 21 to 25 ofthis text, may wish to read one of my other texts, Advanced Project Management:Best Practices in Implementation (New York: Wiley, 2004) and ProjectManagement Best Practices: Achieving Global Excellence, 2nd edition (Hoboken,NJ: Wiley and IIL Publishers, 2010). John Wiley & Sons and the InternationalInstitute for Learning also introduced a four-book series on project managementbest practices, authored by Frank Saladis, Carl Belack, and Harold Kerzner.
This book is addressed not only to those undergraduate and graduate studentswho wish to improve upon their project management skills but also to those func-tional managers and upper-level executives who serve as project sponsors andmust provide continuous support for projects. During the past several years,
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xxiv PREFACE
management’s knowledge and understanding of project management has maturedto the point where almost every company is using project management in oneform or another. These companies have come to the realization that project man-agement and productivity are related and that we are now managing our businessas though it is a series of projects. Project management coursework is now con-suming more of training budgets than ever before.
General reference is provided in the text to engineers. However, the readershould not consider project management as strictly engineering-related. The engi-neering examples are the result of the fact that project management first appearedin the engineering disciplines, and we should be willing to learn from their mis-takes. Project management now resides in every profession, including informationsystems, health care, consulting, pharmaceutical, banks, and government agencies.
The text can be used for both undergraduate and graduate courses in business,information systems, and engineering. The structure of the text is based upon mybelief that project management is much more behavioral than quantitative sinceprojects are managed by people rather than tools. The first five chapters are part ofthe basic core of knowledge necessary to understand project management.Chapters 6 through 8 deal with the support functions of managing your time effec-tively, conflicts, and other special topics. Chapters 9 and 10 describe factors forpredicting success and management support. It may seem strange that ten chapterson organizational behavior and structuring are needed prior to the “hard-core”chapters of planning, scheduling, and controlling. These first ten chapters areneeded to understand the cultural environment for all projects and systems. Thesechapters are necessary for the reader to understand the difficulties in achievingcross-functional cooperation on projects where team members are working onmultiple projects concurrently and why the people involved, all of whom may havedifferent backgrounds, cannot simply be forged into a cohesive work unit withoutfriction. Chapters 11 through 20 are more of the quantitative chapters on planning,scheduling, cost control, estimating, contracting (and procurement), and quality.The next five chapters are advanced topics and future trends. Chapter 26 is a cap-stone case study that can be related to almost all of the chapters in the text.
The changes that were made in the eleventh edition include:
● A new section on success, trade-offs, and competing constraints● A new section on added value● A new section on business intelligence● A new section on project governance● An updated section on processes supporting project management● An updated section on the types of project closure● A new section on engagement project management● A new section on barriers to implementing project management in
emerging markets● A new section on fallacies in implementing project management● A new section on enterprise project management systems● A new section on How Project Management Methodologies Can Fail
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● A new section on the future of project management● A new section on managing complex projects● A new section on managing scope creep● A new section on project health checks● A new section on how to recover a troubled project● A new section on managing public projects● A new section on managing international projects● A new section on project politics● A new section on twenty common mistakes in project management● A new section on managing innovation projects● A new section on the differences between best practices and proven
practices
● An updated section on project sponsorship● An updated section on culture, teamwork, and trust● A New Section on stakeholder relations management● A new section on value-based leadership● An updated section on validating project assumptions● A new section on validating project objectives● A new section on the WBS dictionary● A new section on validation and verification● A new section on project management baselines● A new section on the traceability matrix● An expansion on WBS core attributes● An expansion on using the WBS and WBS dictionary for verification● A new section on project management metrics● A new section on key performance indicators● A new section on value metrics● A new section on project management dashboards● A new section on portfolio management● A new section on complexity theory● A new section on project management information systems● A new section on enterprise resource planning● A new section on project problem solving● A new section on brainstorming● A new section on project decision-making● A new section on determining the impact of a decision● A new section on active listening● A new section on agile project management ● A capstone case study which can be used as a review of the entire
PMBOK® Guide, 5th edition, domain areas
The text contains more than 25 case studies, more than 125 multiple-choicequestions, and nearly 400 discussion questions. There is also a separate book ofcases (Project Management Case Studies, fourth edition) that provides additionalreal-world examples.
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This text, the PMBOK® Guide, and the book of cases are ideal as self-studytools for the Project Management Institute’s PMP® Certification exam. Becauseof this, there are tables of cross references on each chapter’s opening page in thetextbook detailing the sections from the book of cases and the Guide to theProject Management Body of Knowledge (PMBOK® Guide) that apply to thatchapter’s content. The left-hand margin of the pages in the text has side bars thatidentify the cross-listing of the material on that page to the appropriate section(s)of the PMBOK® Guide. At the end of most of the chapters is a section on studytips for the PMP® exam, including more than 125 multiple-choice questions.
This textbook is currently used in the college market, in the reference mar-ket, and for studying for the PMP® Certification exam. Therefore, to satisfy theneeds of all markets, a compromise had to be reached on how much of the textwould be aligned to the PMBOK® Guide and how much new material would beincluded without doubling the size of the text. Some colleges and universities usethe textbook to teach project management fundamentals without reference to thePMBOK® Guide. The text does not contain all of the material necessary to sup-port each section of the PMBOK® Guide. Therefore, to study for the PMP®
Certification exam, the PMBOK® Guide must also be used together with this text.The text covers material for almost all of the PMBOK® Guide knowledge areasbut not necessarily in the depth that appears in the PMBOK® Guide.
An instructor’s manual is available only to college and university facultymembers by contacting your local Wiley sales representative or by visiting theWiley website at www.wiley.com/kerzner. This website includes not only theinstructor’s manual but also 500 PowerPoint slides that follow the content of thebook and help organize and execute classroom instruction and group learning.Access to the instructor’s material can be provided only through John Wiley &Sons, not the author.
One-, two-, and three-day seminars on project management and the PMP®
Certification Training using the text are offered by contacting Lori MIlhaven,Executive Vice President, the International Institute for Learning, at 800-325-1533, extension 5121 (email address: [email protected]).
The problems and case studies at the ends of the chapters cover a variety ofindustries. Almost all of the case studies are real-world situations taken from myconsulting practice. Feedback from my colleagues who are using the text has pro-vided me with fruitful criticism, most of which has been incorporated into thetenth edition.
The majority of the articles on project management that have become clas-sics have been referenced in the textbook throughout the first eleven chapters.These articles were the basis for many of the modern developments in projectmanagement and are therefore identified throughout the text.
Many colleagues provided valuable criticism. In particular, I am indebted tothose industrial/government training managers whose dedication and commit-ment to quality project management education and training have led to valuablechanges in this and previous editions. In particular, I wish to thank Frank Saladis,PMP®, Senior Consultant and Trainer with the International Institute for
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Learning, for his constructive comments, recommendations, and assistance withthe mapping of the text to the PMBOK® Guide as well as recommended changesto many of the chapters. I am indebted to Dr. Edmund Conrow, PMP®, for adecade of assistance with the preparation of the risk management chapters in allof my texts. I am also indebted to Dr. Rene Rendon for his review and recom-mendations for changes to the chapter on contract management.
To the management team and employees of the International Institute forLearning, thank you all for 20 years of never-ending encouragement, support, andassistance with all of my project management research and writings.
Harold KerznerThe International Institute for Learning
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