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TEAMFLY
Team-Fly
®
STRATEGIC
PLANNING FOR
PROJECT
MANAGEMENT USING
A PROJECT
MANAGEMENT
MATURITY MODEL
9755.Frontmatter 10/31/00 9:40 AM Page i
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STRATEGIC
PLANNING FOR
PROJECT
MANAGEMENT USING
A PROJECT
MANAGEMENT
MATURITY MODEL
HAROLD KERZNER, PhD
Senior Executive Director for Project Management
International Institute for Learning
New York, New York
John Wiley & Sons, Inc.
New York
●
Chichester
●
Weinheim
●
Brisbane
●
Singapore
●
Toronto
9755.Frontmatter 12/5/00 12:28 PM Page iii
This book is printed on acid-free paper.
Copyright © 2001 by John Wiley & Sons. All rights reserved.
Published simultaneously in Canada.
No 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 permitted 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) 750-4744. Requests to the Publisher for permission should be
addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York,
NY 10158-0012, (212) 850-6011, fax (212) 850-6008, E-Mail: PERMREQ @ WILEY.COM.
This publication is designed to provide accurate and authoritative information in regard to the
subject matter covered. It is sold with the understanding that the publisher is not engaged in
rendering professional services. If professional advice or other expert assistance is required, the
services of a competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Kerzner, Harold.
Strategic planning for project management using a project management maturity model /
Harold Kerzner.
p. cm.
Includes index.
ISBN 0-471-40039-4 (alk. paper)
1. Industrial project management. 2. Strategic planning. I. Title.
HD69.P75K494 2001 00-043814
658-4Ј 04—dc21
Printed in the United States of America.
10987654321
∞
9755.Frontmatter 10/31/00 9:40 AM Page iv
Contents
Foreword ix
Preface xi
Introduction xiii
1 The Need for Strategic Planning for Project Management 1
Introduction 1
Misconceptions 1
Wall Street Benefits 3
Stakeholders 4
Gap Analysis 5
Concluding Remarks 9
2 Impact of Economic Conditions of Project Management 11
Introduction 11
Historical Basis 11
3 Principles of Strategic Planning 15
General Strategic Planning 15
What Is Strategic Planning for Project Management? 16
Executive Involvement 25
The General Environment 26
Critical Success Factors for Strategic Planning 28
Qualitative Factors 29
Organizational Factors 30
Quantitative Factors 32
v
9755.Frontmatter 10/31/00 9:40 AM Page v
Identifying Strategic Resources 34
Why Does Strategic Planning for Project Management
Sometimes Fail? 38
4 An Introduction to the Project Management Maturity Model
(PMMM) 41
Introduciton 41
The Foundation for Excellence 42
Overlap of Levels 43
Risks 45
5 Level 1: Common Language 47
Introduction 47
Roadblocks 48
Advancement Criteria 49
Risk 50
Assessment Instrument for Level 1 50
Questions 51
6 Level 2: Common Processes 67
Introduction 67
Life Cycles for Level 2 68
Roadblocks 71
Advancement Criteria 72
Risk 72
Overlapping Levels 73
Assessment Instrument for Level 2 73
Questions 74
7 Level 3: Singular Methodology 77
Introduction 77
Integrated Processes 78
Culture 81
Management Support 81
Informal Project Management 82
Training and Education 82
Behavioral Excellence 84
Roadblocks 85
Advancement Criteria 85
Risk 86
Overlapping Levels 87
Assessment Instrument for Level 3 87
Questions 87
vi
CONTENTS
9755.Frontmatter 10/31/00 9:40 AM Page vi
8 Level 4: Benchmarking 97
Introduction 97
Characteristics 98
The Project Office/Center of Excellence 99
Benchmarking Opportunities 101
Roadblocks 103
Advancement Criteria 103
Assessment Instrument for Level 4 104
Questions 104
9 Level 5: Continuous Improvement 109
Characteristics 109
Continuous Improvement Areas 110
The Never-Ending Cycle 112
Examples of Continuous Improvement 113
Developing Effective Procedural Documentation 114
Project Management Methodologies 120
Continuous Improvement 120
Capacity Planning 122
Competency Models 123
Managing Multiple Projects 125
End-of-Phase Review Meetings 127
Strategic Selection of Projects 128
Portfolio Selection of Projects 131
Horizontal Accounting 134
Organizational Restructuring 136
Career Planning 138
Assessment Instrument for Level 5 138
Questions 139
10 Sustainable Competitive Advantage 143
Introduction 143
Strategic Thrusts 144
The Need for Continuous Improvement 147
Project Management Competitiveness 148
11 Special Problems with Strategic Planning for Project
Management 151
Introduction 151
The Many Faces of Success 152
The Many Faces of Failure 153
Training and Education 157
Change Management 158
Partnerships 162
Contents vii
9755.Frontmatter 10/31/00 9:40 AM Page vii
The Impact of Risk Controls Measures 163
Dependencies between Risks 165
Selecting the Appropriate Response Mechanism 168
Conclusions 170
11 Case Studies 171
Case 1: Packer Telecom 171
Case 2: Luxor Technologies 173
Case 3: Altex Corporation 177
Case 4: Acme Corporation 180
Case 5: Quantum Telecom 182
Case 6: Lakes Automotive 184
Case 7: Ferris HealthCare, Inc. 185
Case 8: Clark Faucet Company 187
Case 9: Hyten Corporation 190
Case 10: Como Tool and Die (A) 200
Case 11: Como Tool and Die (B) 204
Case 12: Macon Inc. 207
Case 13: The Trophy Project 209
Case 14: The Blue Spider Project 212
Case 15: Corwin Corporation 225
Case 16: MIS Project Management at First National Bank 235
Index 247
viii
CONTENTS
9755.Frontmatter 10/31/00 9:40 AM Page viii
[...]... efficiently toward fulfillment of its mission WHAT IS STRATEGIC PLANNING FOR PROJECT MANAGEMENT? Strategic planning for project management is the development of a standard methodology for project management, a methodology that can be used over and over again, and that will produce a high likelihood of achieving the project s objectives Although strategic planning for the methodology and execution of the methodology... or need for strategic planning for project management Others recognize its importance but simply lack expertise in how to do it In either event, strategic planning for project management is a necessity STAKEHOLDERS Given the fact that project management is no longer seen as just a quantitative tool for the employees, but is recognized as a source of benefits to the whole corporation, project management. .. International Institute for Learning 9755.Frontmatter 10/31/00 9:40 AM Page xv S T R AT E G I C PLANNING FOR PROJECT M A N AG E M E N T U S I N G A PROJECT M A N AG E M E N T M AT U R I T Y M O D E L 9755.ch01 10/31/00 9:42 AM Page 1 1 The Need for Strategic Planning for Project Management INTRODUCTION For more than 40 years, American companies have been using the principles of project management to get... Nortel Global Project Process Standards Team-Fly® 9755.Frontmatter 10/31/00 9:40 AM Page xi Preface Excellence in project management cannot occur, at least not within a reasonable time frame, without some form of strategic planning for project management Although the principles of strategic planning have been known for several decades, an understanding of their applicability to project management is... strategic planning and project management, as well as the relationship between them The relationship between project management and strategic planning can best be seen from Figure 2–1 Historically, a great deal of emphasis had been placed on strategic formulation with little emphasis on strategic implementation Now companies were recognizing that the principles of project management could be used for. .. the benefits that project management can provide to their “bottom line,” the need for strategic planning for project management has been identified as a high priority This book is broken down into two major parts The first part, Chapters 1 to 3, discusses the principles of strategic planning and how it relates to project management The second part, Chapters 4 to 10, details the project management maturity... required text for graduate courses on research methods in project management In addition, the book can be used as an introduction to research methods for project xi 9755.Frontmatter 10/31/00 9:40 AM Page xii xii PREFACE management benchmarking and continuous improvement, as well as providing a brief overview of how to design a project management methodology Seminars on strategic planning for project management. .. that the assessment instruments for each level of maturity can be customized for individual companies This customization opportunity makes Strategic Planning for Project Management Using a Project Management Maturity Model highly desirable as a required or reference text for college and university courses that require the students to perform an individual or group research project The book should also... that were project- driven, those that were non project- driven, and hybrids Knowledge concerning the benefits project management offered now permeated all levels of management Project management came to be recognized as a process that would increase shareholder value This new knowledge on the benefits of project management allowed us to 1 9755.ch01 10/31/00 9:42 AM Page 2 2 THE NEED FOR STRATEGIC PLANNING. .. looking at the project only Present view: Project management allows us to make better decisions for the best interest of the company End Result G Misconception: Project management delivers products to a customer G Present view: Project management delivers solutions to a customer Competitiveness G Misconception: The cost of project management may make us noncompetitive G Present view: Project management . PLANNING FOR PROJECT MANAGEMENT USING A PROJECT MANAGEMENT MATURITY MODEL 9755.Frontmatter 10/31/00 9:40 AM Page i This Page Intentionally Left Blank STRATEGIC PLANNING FOR PROJECT MANAGEMENT. Need for Strategic Planning for Project Management 1 INTRODUCTION For more than 40 years, American companies have been using the principles of project management to get work accomplished. Yet, for. 34 Why Does Strategic Planning for Project Management Sometimes Fail? 38 4 An Introduction to the Project Management Maturity Model (PMMM) 41 Introduciton 41 The Foundation for Excellence 42 Overlap
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