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Stanley E. Portny, PMP®Internationally recognized expert in project managementLearn to:• Organize and schedule projects efficiently and effectively• Motivate any team to gain maximum productivity• Assess risks, manage changes, maintain communication, and live up to expectations• Plan for resources and stay within a budgetProject Management3rd EditionMaking Everything Easier!™ Open the book and find:• Help for defining your project’s goals and expectations• Guidelines for knowing your project’s audience • Tips for breaking your project work into manageable pieces • The latest methods for determining and managing resources• How to deal with risk and uncertainty • Hints for providing effective leadershipStanley E. Portny is a project management consultant and a certified Project Management Professional (PMP®). He has provided training and consultation to more than 150 public and private organizations, and he has developed and conducted training programs for more than 50,000 management and staff personnel.$21.99 US / $25.99 CN / £16.99 UKISBN 978-0-470-57452-2Business/Project Management Go to®for videos, step-by-step examples, how-to articles, or to shop!The tools you need for successfulproject managementIn today’s time-crunched, cost-conscious global business environment, tight project deadlines and stringent expectations are the norm. So what does it take to succeed? This hands-on guide introduces you to the principles of project management and shows you how to put them to use so you can successfully manage a project from start to finish. And if you’re studying for the Project Management Institute’s Project Management Professional® certification exam, you can rest easy knowing that this book is aligned with the guide that’s the basis for the exam.• Project management 101 — take a look at the who, what, and why of a project and discover what it really takes to ensure success• Keep an eye on the clock — learn how to create foolproof schedules and budgets that keep your projects on track • Put your team to work — get plenty of practical tips and guidelines for identifying and involving key players • Drive it home — uncover the best ways to track, analyze, and report on your project’s activities and bring it to a successful closure• Up your project management game — take your skills to the next level with the use of technology and Earned Value ManagementProject ManagementPortny3rd Editionspine=.76”2nd EditionMobile AppsThere’s a Dummies App for This and ThatWith more than 200 million books in print and over 1,600 unique titles, Dummies is a global leader in how-to information. Now you can get the same great Dummies information in an App. With topics such as Wine, Spanish, Digital Photography, Certification, and more, you’ll have instant access to the topics you need to know in a format you can trust.To get information on all our Dummies apps, visit the from your from your phone.spine=.76”Start with FREE Cheat SheetsCheat Sheets include • Checklists • Charts • Common Instructions • And Other Good Stuff!Get Smart at makes your life easier with 1,000s of answers on everything from removing wallpaper to using the latest version of Windows. Check out our • Videos • Illustrated Articles • Step-by-Step InstructionsPlus, each month you can win valuable prizes by entering our sweepstakes. *Want a weekly dose of Dummies? Sign up for Newsletters on • Digital Photography • Microsoft Windows & Office • Personal Finance & Investing • Health & Wellness • Computing, iPods & Cell Phones • eBay • Internet • Food, Home & GardenFind out “HOW” at*Sweepstakes not currently available in all countries; visit for official rules.Get More and Do More at®To access the Cheat Sheet created specifically for this book, go to Stanley E. PortnyCertifi ed Project Management Professional (PMP)Project ManagementFORDUMmIES‰3RD EDITION01_574522-ffirs.indd i01_574522-ffirs.indd i 3/24/10 12:28 PM3/24/10 12:28 PMProject Management For Dummies®, 3rd EditionPublished byWiley Publishing, Inc.111 River St.Hoboken, NJ 07030-5774www.wiley.comCopyright © 2010 by Wiley Publishing, Inc., Indianapolis, IndianaPublished simultaneously in CanadaNo part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permit-ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way,, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its af liates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book.LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITH-OUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZA-TION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002.For technical support, please visit also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.Library of Congress Control Number: 2010924586ISBN: 978-0-470-57452-2Manufactured in the United States of America10 9 8 7 6 5 4 3 2 101_574522-ffirs.indd ii01_574522-ffirs.indd ii 3/24/10 12:28 PM3/24/10 12:28 PMAbout the AuthorStan Portny, president of Stanley E. Portny and Associates, LLC, is an internationally recognized expert in project man-agement and project leadership. During the past 30 years, he’s provided training and consultation to more than 150 public and private organizations in consumer products, insurance, pharmaceuticals,  nance, information technology, telecommunications, defense, and healthcare. He has devel-oped and conducted training programs for more than 50,000 management and staff personnel in engineering, sales and marketing, research and development, information systems, manufacturing, operations, and support areas.Stan combines an analyst’s eye with an innate sense of order and balance and a deep respect for personal potential. He helps people understand how to control chaotic environments and produce dramatic results while still achieving personal and professional satisfaction. Widely acclaimed for his dynamic presentations and unusual ability to establish a close rapport with seminar participants, Stan specializes in tailoring his training programs to meet the unique needs of individual organizations. His clients have included ADP, ADT, American International Group, Burlington Northern Railroad, Hewlett Packard, Nabisco, Novartis Pharmaceuticals, Pitney Bowes, UPS, Vanguard Investment Companies, and the United States Navy and Air Force.A Project Management Institute–certi ed Project Management Professional (PMP), Stan received his bachelor’s degree in electrical engineering from the Polytechnic Institute of Brooklyn. He holds a master’s degree in electrical engineering and the degree of electrical engineer from the Massachusetts Institute of Technology. Stan has also studied at the Alfred P. Sloan School of Management and the George Washington University National Law Center.Stan provides on-site training in all aspects of project management, project team building, and project leadership. He can work with you to assess your organization’s current project-management practices, develop planning and control systems and procedures, and review the progress of ongoing proj-ects. In addition, Stan can serve as the keynote speaker at your organization’s or professional association’s meetings.To discuss this book or understand how Stan can work with you to enhance your organization’s project-management skills and practices, please contact him at Stanley E. Portny and Associates, LLC, 20 Helene Drive, Randolph, New Jersey 07869; phone 973-366-8500; e-mail; Web site iii01_574522-ffirs.indd iii 3/24/10 12:28 PM3/24/10 12:28 PM01_574522-ffirs.indd iv01_574522-ffirs.indd iv 3/24/10 12:28 PM3/24/10 12:28 PMDedicationTo my wife, Donna; my son, Brian; and my son and daughter-in-law, Jonathan and Marci. May we continue to share life’s joys together.Author’s AcknowledgmentsWriting and publishing this book was a team effort, and I would like to thank the many people who helped to make it possible. First, I want to thank Tracy Boggier, my acquisitions editor, who  rst contacted me to discuss the pos-sibility of my writing this third edition of my book. Thanks to her for making that phone call, for helping me prepare the proposal, for helping to get the project off to a smooth and timely start, for coordinating the publicity and sales, and for helping to bring all the pieces to a successful conclusion.Thanks to Georgette Beatty, my project editor, and Amanda Langferman, my copy editor, for their guidance, support, and the many hours they spent pol-ishing the text into a smooth,  nished product. And thanks to Anita Griner, my technical reviewer, for her many insightful observations and suggestions.Finally, thanks to my family for their continued help and inspiration. Thanks to Donna, who never doubted that this book would become a reality and who shared personal and stylistic comments as she reviewed the text countless times while always making it seem like she found it enjoyable and enlightening. Thanks to Brian, Jonathan, and Marci, whose interest and excitement helped motivate me to see the third edition of this book through to completion.01_574522-ffirs.indd v01_574522-ffirs.indd v 3/24/10 12:28 PM3/24/10 12:28 PMPublisher’s AcknowledgmentsWe’re proud of this book; please send us your comments at For other comments, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002.Some of the people who helped bring this book to market include the following:Acquisitions, Editorial, and Media DevelopmentSenior Project Editor: Georgette Beatty(Previous Edition: Chad R. Sievers)Acquisitions Editor: Tracy BoggierCopy Editor: Amanda M. Langferman(Previous Edition: Pam Ruble)Assistant Editor: Erin Calligan MooneyEditorial Program Coordinator: Joe NiesenTechnical Editor: Anita E. Griner, MBA, PMPEditorial Manager: Michelle HackerEditorial Assistant: Jennette ElNaggarCover Photo: iStockCartoons: Rich Tennant ( ServicesProject Coordinator: Katherine CrockerLayout and Graphics: Ashley Chamberlain, Samantha K. Cherolis, Joyce HaugheyProofreaders: John Greenough, Sossity R. SmithIndexer: Cheryl DukstaPublishing and Editorial for Consumer DummiesDiane Graves Steele, Vice President and Publisher, Consumer DummiesKristin Ferguson-Wagstaffe, Product Development Director, Consumer DummiesEnsley Eikenburg, Associate Publisher, TravelKelly Regan, Editorial Director, TravelPublishing for Technology DummiesAndy Cummings, Vice President and Publisher, Dummies Technology/General UserComposition ServicesDebbie Stailey, Director of Composition Services01_574522-ffirs.indd vi01_574522-ffirs.indd vi 3/24/10 12:28 PM3/24/10 12:28 PMContents at a GlanceIntroduction 1Part I: Understanding Expectations (The Who, What, and Why of Your Project) 7Chapter 1: Project Management: The Key to Achieving Results 9Chapter 2: Clarifying What You’re Trying to Accomplish — and Why 29Chapter 3: Knowing Your Project’s Audience: Involving the Right People 51Chapter 4: Developing Your Game Plan: Getting from Here to There 71Part II: Planning Time: Determining When and How Much 95Chapter 5: You Want This Project Done When? 97Chapter 6: Establishing Whom You Need, How Much, and When 129Chapter 7: Planning for Other Resources and Developing the Budget 151Chapter 8: Venturing into the Unknown: Dealing with Risk and Uncertainty 163Part III: Group Work: Putting Your Team Together 183Chapter 9: Aligning the Key Players for Your Project 185Chapter 10: De ning Team Members’ Roles and Responsibilities 199Chapter 11: Starting Your Project Team Off on the Right Foot 221Part IV: Steering the Ship: Managing Your Project to Success 237Chapter 12: Tracking Progress and Maintaining Control 239Chapter 13: Keeping Everyone Informed 263Chapter 14: Encouraging Peak Performance by Providing Effective Leadership 281Chapter 15: Bringing Your Project to Closure 291Part V: Taking Your Project Management to the Next Level 303Chapter 16: Using Technology to Up Your Game 305Chapter 17: Monitoring Project Performance with Earned Value Management 31902_574522-ftoc.indd vii02_574522-ftoc.indd vii 3/24/10 12:28 PM3/24/10 12:28 PMPart VI: The Part of Tens 333Chapter 18: Ten Questions to Ask Yourself as You Plan Your Project 335Chapter 19: Ten Tips for Being a Better Project Manager 339Appendix: Combining the Techniques into Smooth-Flowing Processes 343Index 34702_574522-ftoc.indd viii02_574522-ftoc.indd viii 3/24/10 12:28 PM3/24/10 12:28 PM[...]... xvi Project Management For Dummies, 3rd Edition Chapter 17: Monitoring Project Performance with Earned Value Management 319 Defining Earned Value Management 319 Understanding EVM terms and formulas 320 Looking at a simple example 323 Determining the reasons for observed variances 325 The How-To: Applying Earned Value Management to Your Project. .. your project I also discuss a technique for evaluating activity performance and resource expenditures on larger projects Introduction Part VI: The Part of Tens Every For Dummies book has this fun part that gives you tidbits of information in an easy-to-chew format In this part, I share tips on how to plan a project and how to be a better project manager I also include one additional nugget of information:... the sections of the book to get a feeling for the topics I address If you’re new to project management and are just beginning to form a plan for a project, first read Parts I and II, which explain how to plan outcomes, activities, 5 6 Project Management For Dummies, 3rd Edition schedules, and resources If you want to find out how to identify and organize your project s team and other key people, start... components of a project Schedule Resources Chapter 1: Project Management: The Key to Achieving Results Although many other considerations may affect a project s performance (see the discussions in the “Defining Project Management section later in this chapter for more), these three components are the basis of a project s definition for the following three reasons: ✓ The only reason a project exists... silent majority of project managers 2 Project Management For Dummies, 3rd Edition About This Book This book helps you recognize that the basic tenets of successful project management are simple The most complex analytical technique takes less than ten minutes to master! In this book, I introduce information that’s necessary to plan and manage projects, and I provide important guidelines for developing... Expectations (The Who, What, and Why of Your Project) 7 Chapter 1: Project Management: The Key to Achieving Results .9 Determining What Makes a Project a Project 9 Understanding the three main components that define a project 10 Recognizing the diversity of projects 11 Describing the four stages of a project 12 Defining Project Management 14 Examining the initiating... plans Because ignoring these occurrences may seriously jeopardize your project s success, you need to return to the earlier project stages and rethink them in light of these new realities Defining Project Management Project management is the process of guiding a project from its beginning through its performance to its closure Project management includes five sets of processes, which I describe in more... and control your project I offer you specific techniques and approaches to define clearly what you want your project to accomplish and who needs to be involved Finally, I show you how to determine the work you have to do to meet the expectations for your project Chapter 1 Project Management: The Key to Achieving Results In This Chapter ▶ Characterizing projects ▶ Breaking down project management ▶ Coming... asked to manage a project So, hang on tight — you’re going to need a new set of skills and techniques to steer that project to successful completion But not to worry! This chapter gets you off to a smooth start by showing you what projects and project management really are and by helping you separate projects from nonproject assignments This chapter also offers the rationale for why projects succeed... x Project Management For Dummies, 3rd Edition Chapter 2: Clarifying What You’re Trying to Accomplish — and Why 29 Defining Your Project with a Scope Statement 29 Looking at the Big Picture: How Your Project Fits In 31 Figuring out why you’re doing the project 32 Drawing the line: Where your project starts and stops 40 Stating your project s . logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies. com, Making Everything. specifically for this book, go to www .dummies. com/cheatsheet/projectmanagementby Stanley E. PortnyCertifi ed Project Management Professional (PMP) Project Management FOR DUMmIES ‰3RD
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