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(BQ) Part 1 book Project management has contents: Modern project management, organization strategy and project selection, defining the project, estimating project times and costs, developing a project plan, managing risk, scheduling resources and costs, reducing project duration, leadership - being an effective project manager.
www.downloadslide.com www.downloadslide.com Cross Reference of Project Management Body of Knowledge (PMBOK) Concepts to Text Topics Chapter Chapter Modern Project Management 1.2 Project defined 1.3 Project management defined 1.4 Projects and programs (.2) 2.1 The project life cycle (.2.3) App G.1 The project manager App G.7 Political and social environments F.1 Integration of project management processes [3.1] Chapter Organization Strategy and Project Selection 1.4 Projects and programs (.2) 1.4.1 Managing the portfolio 1.4.3 Strategy and projects 2.3 Stakeholders and review boards 12.1 RFP’s and vendor selection (.3.4.5) 11.2.2.6 SWAT analysis Chapter Chapter Defining the Project 4.1 Project charter 5.1 Gather requirements 5.2 Defining scope 5.3 Creating a WBS 5.4 Tools and techniques 6.1 Define activities 9.1.2 Responsibility matrixes 10.1 Communication planning (.2.3.4) [App G-4] Chapter Estimating Times and Costs 6.4 Activity duration estimates (.3) 6.4.2 Estimating tools (.1.3.4) 6.3.1 Identifying resources 7.1 Activity cost estimates (.2.3.4.5) 5.1.2.4 Delphi method Chapter Developing a Project Plan 4.2.2 Planning tools 6.2 Sequence activities [1.2] 6.5.1 Bar and milestone charts 6.5.2 Critical path method (.2) 6.5.2.6 Lead and lag activities [6.2.3] F.3 Project duration Chapter Managing Risk 11.1 Risk management process [F.8] 11.2 Identifying risks 11.3.2.2 Impact matrix 11.4 Risk assessment 11.5 Risk responses (.2–.1.2) 11.6 Risk register 7.1.2.5 PERT analysis 7.1.2.6.3 Contingency reserves 7.3.3.4 Change control management ISBN: 0073403342 Author: Erik W Larson, Clifford F Gray Title: Project Management Chapter Reducing Project Duration 6.5.2.7 Schedule compression Chapter 10 Leadership 9.4.2.5 Leadership skills G.1 Project leadership 10.1 Stakeholder management Chapter 11 Organization: Structure and Culture 2.4.1 Organization cultures [G.7] 2.4.2 Organization structure [9.1.3] 9.1.1 Organization charts 1.4.4 Project offices Scheduling resources and cost 6.5.2 Setting a schedule baseline [8.1.4] 6.5.3.1 Setting a resource schedule 6.5.2.4 Resource leveling 7.2 Setting a cost and time baseline schedule (1.3.5) [8.1.3] 6.5.2.3 Critical chain method Teams 9.2 Building the team (.1.3) & [3.5.3] [App G.2 Building teams] 9.4 Managing the team 9.3.2 Team building activities 9.2.4 Virtual teams 9.3.3.1 Team performance [9.4.2.2] 9.4.2.3 Conflict management 9.3.2.6 Recognition and awards Chapter 12 Outsourcing 12.1.1 Procurement requirements [G.8] 12.1.2.3 Contract types 9.4.2.3 Conflict management 12.2.7 The art of negotiating 12.2.3.5 Change requests Chapter 13 Monitoring Progress 10.5.3 Cost/schedule system (.1) 6.6 2.1 Time performance 7.2.3.1 Cost baseline development 7.3.2.1 Earned value system (F.4) 7.3.2.4 E.V., performance status report 7.3.2.2 E.V., forecasts 7.3.2.3 EV., to complete index (EAC) 7.3.2.5 Schedule and cost variance Chapter 14 Project closure Closure report 4.5.1.4 Organization processes (.5) & [4.5.3 & 4.6.3.2] 4.6.1 Administrative tasks (.3) & [3.7.1, & 12.4] 10.3.3.1 Lessons learned [8.3.3.4] 9.4.2.2 Individual performance appraisals Chapter 15 International Projects G.7 Culture awareness Chapter 16 Oversight 1.4.4 Project offices 8.1.2 Continuous improvement 5.1 Requirements vs actual [5.3] Chapter 17 Agile PM 6.1.2.2 Rolling wave Front endsheets Color: Pages: 2,3 www.downloadslide.com This page intentionally left blank Lar03342_fm_i-xvi_1.indd Page i 2/25/10 2:34:39 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com Project Management The Managerial Process Lar03342_fm_i-xvi_1.indd Page ii 2/25/10 2:34:39 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com The McGraw-Hill/Irwin Series Operations and Decision Sciences OPERATIONS MANAGEMENT Beckman and Rosenfield, Operations, Strategy: Competing in the 21st Century, First Edition Benton, Purchasing and Supply Chain Management, Second Edition Bowersox, Closs, and Cooper, Supply Chain Logistics Management, Third Edition Brown and Hyer, Managing Projects: A Team-Based Approach, First Edition Burt, Petcavage, and Pinkerton, Supply Management, Eighth Edition Cachon and Terwiesch, Matching Supply with Demand: An Introduction to Operations Management, Second Edition Hill, Manufacturing Strategy: Text & Cases, Third Edition Seppanen, Kumar, and Chandra, Process Analysis and Improvement, First Edition Hopp, Supply Chain Science, First Edition Hopp and Spearman, Factory Physics, Third Edition Simchi-Levi, Kaminsky, and Simchi-Levi, Designing and Managing the Supply Chain: Concepts, Strategies, Case Studies, Third Edition Jacobs, Berry, Whybark, and Vollmann Manufacturing Planning & Control for Supply Chain Management, Sixth Edition Sterman, Business Dynamics: Systems Thinking and Modeling for Complex World, First Edition Jacobs and Chase, Operations and Supply Management: The Core, Second Edition Stevenson, Operations Management, 10th Edition Jacobs and Chase Operations and Supply Management, Thirteenth Edition Jacobs and Whybark, Why ERP? First Edition Swink, Melnyk, Cooper, and Hartley, Managing Operations Across the Supply Chain, First Edition Thomke, Managing Product and Service Development: Text and Cases, First Edition Finch, Interactive Models for Operations and Supply Chain Management, First Edition Larson and Gray, Project Management: The Managerial Process, Fifth Edition Fitzsimmons and Fitzsimmons, Service Management: Operations, Strategy, Information Technology, Seventh Edition Leenders, Johnson, Flynn, and Fearon, Purchasing and Supply Management, Thirteenth Edition Zipkin, Foundations of Inventory Management, First Edition Nahmias, Production and Operations Analysis, Sixth Edition QUANTITATIVE METHODS AND MANAGEMENT SCIENCE Gehrlein, Operations Management Cases, First Edition Ulrich and Eppinger, Product Design and Development, Fourth Edition Harrison and Samson, Technology Management, First Edition Olson, Introduction to Information Systems Project Management, Second Edition Hillier and Hillier, Introduction to Management Science: A Modeling and Case Studies Approach with Spreadsheets, Fourth Edition Hayen, SAP R/3 Enterprise Software: An Introduction, First Edition Schroeder, Goldstein, Rungtusanatham, Operations Management: Contemporary Concepts and Cases, Fifth Edition Stevenson and Ozgur, Introduction to Management Science with Spreadsheets, First Edition Lar03342_fm_i-xvi_1.indd Page iii 2/25/10 2:34:40 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com Project Management The Managerial Process Fifth Edition Erik W Larson Oregon State University Clifford F Gray Oregon State University Lar03342_fm_i-xvi_1.indd Page iv 2/25/10 2:34:41 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com PROJECT MANAGEMENT: THE MANAGERIAL PROCESS Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020 Copyright © 2011 by The McGraw-Hill Companies, Inc All rights reserved No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper WVR/WVR ISBN 978-0-07-340334-2 MHID 0-07-340334-2 Editorial director: Stewart Mattson Publisher: Tim Vertovec Executive editor: Richard T Hercher, Jr Developmental editor: Gail Korosa Associate marketing manager: Jaime Halterman Project manager: Harvey Yep Production supervisor: Carol Bielski Designer: Mary Kazak Vander Photo researcher: Jeremy Cheshareck Media project manager: Cathy Tepper Cover image: © Veer Images Typeface: 10.5/12 Times Roman Compositor: Aptara®, Inc Printer: Worldcolor Library of Congress Cataloging-in-Publication Data Larson, Erik W., 1952Project management: the managerial process / Erik W Larson, Clifford F Gray —5th ed p cm —(The McGraw-Hill/Irwin series, operations and decision sciences) Gray’s name appears first on the earlier editions Includes index ISBN-13: 978-0-07-340334-2 (alk paper) ISBN-10: 0-07-340334-2 (alk paper) Project management Time management Risk management I Gray, Clifford F II Gray, Clifford F Project management III Title HD69.P75G72 2011 658.4904—dc22 2009054318 www.mhhe.com Lar03342_fm_i-xvi_1.indd Page v 2/25/10 2:34:44 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com About the Authors Erik W Larson ERIK W LARSON is professor of project management at the College of Business, Oregon State University He teaches executive, graduate, and undergraduate courses on project management, organizational behavior, and leadership His research and consulting activities focus on project management He has published numerous articles on matrix management, product development, and project partnering He has been honored with teaching awards from both the Oregon State University MBA program and the University of Oregon Executive MBA program He has been a member of the Portland, Oregon, chapter of the Project Management Institute since 1984 In 1995 he worked as a Fulbright scholar with faculty at the Krakow Academy of Economics on modernizing Polish business education In 2005 he was a visiting professor at Chulalongkorn University in Bangkok, Thailand He received a B.A in psychology from Claremont McKenna College and a Ph.D in management from State University of New York at Buffalo He is a certified project management professional (PMP) and Scrum Master Clifford F Gray CLIFFORD F GRAY is professor emeritus of management at the College of Business, Oregon State University He continues to teach undergraduate and graduate project management courses overseas and in the United States; he has personally taught more than 100 executive development seminars and workshops His research and consulting interests have been divided equally between operations management and project management; he has published numerous articles in these areas, plus a text on project management He has also conducted research with colleagues in the International Project Management Association Cliff has been a member of the Project Management Institute since 1976 and was one of the founders of the Portland, Oregon, chapter He was a visiting professor at Kasetsart University in Bangkok, Thailand in 2005 He was the president of Project Management International, Inc (a training and consulting firm specializing in project management) 1977–2005 He received his B.A in economics and management from Millikin University, M.B.A from Indiana University, and doctorate in operations management from the College of Business, University of Oregon He is certified Scrum Master v Lar03342_fm_i-xvi_1.indd Page vi 2/25/10 2:34:44 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com “Man’s mind, once stretched by a new idea, never regains its original dimensions.” Oliver Wendell Holmes, Jr To my family who have always encircled me with love and encouragement—my parents (Samuel and Charlotte), my wife (Mary), my sons and their wives (Kevin and Dawn, Robert and Sally) and their children (Ryan, Carly, Connor and Lauren) C.F.G “We must not cease from exploration and the end of all exploring will be to arrive where we begin and to know the place for the first time.” T S Eliot To Ann whose love and support has brought out the best in me And, to our girls Mary, Rachel, and Tor-Tor for the joy and pride they give me Finally, to my muse, Neil, for the faith and inspiration he instills E.W.L Lar03342_fm_i-xvi_1.indd Page vii 2/25/10 2:34:44 AM user-f498 /Users/user-f498/Desktop www.downloadslide.com Preface Since you are reading this text, you have made a decision that learning more about project management will have a positive impact for you You are absolutely right! Project management has become an organization-wide core competency; nearly every manager, regardless of discipline is involved in managing one or more projects This text is designed to provide project managers and prospective project managers with the knowledge and skills that are transferable across industries and countries Our motivation for writing this text was to provide students with a holistic, integrative view of project management A holistic view focuses on how projects contribute to the strategic goals of the organization The linkages for integration include the process of selecting projects that best support the strategy of a particular organization and that in turn can be supported by the technical and managerial processes made available by the organization to bring projects to completion The goals for prospective project managers are to understand the role of a project in their organizations and to master the project management tools, techniques, and interpersonal skills necessary to orchestrate projects from start to finish The role of projects in organizations is receiving increasing attention Projects are the major tool for implementing and achieving the strategic goals of the organization In the face of intense, worldwide competition, many organizations have reorganized around a philosophy of innovation, renewal, and organizational learning to survive This philosophy suggests an organization that is flexible and project driven Project management has developed to the point where it is a professional discipline having its own body of knowledge and skills Today it is nearly impossible to imagine anyone at any level in the organization who would not benefit from some degree of expertise in the process of managing projects Audience This text is written for a wide audience It covers concepts and skills that are used by managers to propose, plan, secure resources, budget, and lead project teams to successful completions of their projects The text should prove useful to students and prospective project managers in helping them understand why organizations have developed a formal project management process to gain a competitive advantage Readers will find the concepts and techniques discussed in enough detail to be immediately useful in new-project situations Practicing project managers will find the text to be a valuable guide and reference when dealing with typical problems that arise in the course of a project Managers will also find the text useful in understanding the role of projects in the missions of their organizations Analysts will find the text useful in helping to explain the data needed for project implementation as well as the operations of inherited or purchased software Members of the Project Management Institute will find the text is well structured to meet the needs of those wishing to prepare for PMP (Project Management Professional) or CAPM (Certified Associate in Project Management) certification exams The text has indepth coverage of the most critical topics found in PMI’s Project Management vii Lar03342_ch10_338-373.indd Page 359 1/29/10 10:09:10 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 359 short on their promises Although we may befriend these managers, we don’t like to work with or for them Competence is reflected at a number of different levels First, there is task-related knowledge and skills reflected in the ability to answer questions, solve technical problems, and excel in certain kinds of work Second, there is competence at an interpersonal level demonstrated in being able to listen effectively, communicate clearly, resolve arguments, provide encouragement, and so forth Finally, there is organizational competence This includes being able to run effective meetings, set meaningful objectives, reduce inefficiencies, and build a social network Too often there is a tendency for young engineers and other professionals to place too much value on task or technical competence They underestimate the significance of organizational skills Veteran professionals, on the other hand, recognize the importance of management and place a greater value on organizational and interpersonal skills One problem new project managers experience is that it takes time to establish a sense of character and competency Character and competency are often demonstrated when they are tested, such as when a tough call has to be made or when difficult problems have to be solved Veteran project managers have the advantage of reputation and an established track record of success Although endorsements from credible sponsors can help a young project manager create a favorable first impression, ultimately he or she will have to demonstrate character and competence during the course of dealings with others in order to gain their trust So far this chapter has addressed the importance of building a network of relationships to complete the project based on trust and reciprocity The next section examines the nature of project management work and the personal qualities needed to excel at it Qualities of an Effective Project Manager Project management is, at first glance, a misleading discipline in that there is an inherent logic in the progression from formulating a project scope statement, creating a WBS, developing a network, adding resources, finalizing a plan, and reaching milestones However, when it comes to actually implementing and completing projects, this logic quickly disappears, and project managers encounter a much messier world, filled with inconsistencies and paradoxes Effective project managers have to be able to deal with the contradictory nature of their work Some of those contradictions are listed here: • Innovate and maintain stability Project managers have to put out fires, restore order, and get the project back on track At the same time they need to be innovative and develop new, better ways of doing things Innovations unravel stable routines and spark new disturbances that have to be dealt with • See the big picture while getting your hands dirty Project managers have to see the big picture and how their project fits within the larger strategy of their firm There are also times when they must get deeply involved in project work and technology If they don’t worry about the details, who will? • Encourage individuals but stress the team Project managers have to motivate, cajole, and entice individual performers while at the same time maintaining teamwork They have to be careful that they are considered fair and consistent in their treatment of team members while at the same time treating each member as a special individual Lar03342_ch10_338-373.indd Page 360 1/29/10 10:09:10 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com 360 Chapter 10 Leadership: Being an Effective Project Manager • Hands-off/Hands-on Project managers have to intervene, resolve stalemates, solve technical problems, and insist on different approaches At the same time they have to recognize when it is appropriate to sit on the sidelines and let other people figure out what to • Flexible but firm Project managers have to be adaptable and responsive to events and outcomes that occur on the project At the same time they have to hold the line at times and tough it out when everyone else wants to give up • Team versus organizational loyalties Project managers need to forge a unified project team whose members stimulate one another to extraordinary performance But at the same time they have to counter the excesses of cohesion and the team’s resistance to outside ideas They have to cultivate loyalties to both the team and the parent organization Managing these and other contradictions requires finesse and balance Finesse involves the skillful movement back and forth between opposing behavioral patterns For example, most of the time project managers actively involve others, move by increment, and seek consensus There are other times when project managers must act as autocrats and take decisive, unilateral action Balance involves recognizing the danger of extremes and that too much of a good thing invariably becomes harmful For example, many managers have a tendency to always delegate the most stressful, difficult assignments to their best team members This habit often breeds resentment among those chosen (“why am I always the one who gets the tough work?”) and never allows the weaker members to develop their talents further There is no one management style or formula for being an effective project manager The world of project management is too complicated for formulas Successful project managers have a knack for adapting styles to specific circumstances of the situation So, what should one look for in an effective project manager? Many authors have addressed this question and have generated list after list of skills and attributes associated with being an effective manager When reviewing these lists, one sometimes gets the impression that to be a successful project manager requires someone with superhuman powers While we agree that not everyone has the right stuff to be an effective project manager, there are some core traits and skills that can be developed to successfully perform the job Eight of these traits are noted below Systems thinker Project managers must be able to take a holistic rather than a reductionist approach to projects Instead of breaking up a project into individual pieces (planning, budget) and managing it by understanding each part, a systems perspective focuses on trying to understand how relevant project factors collectively interact to produce project outcomes The key to success then becomes managing the interaction between different parts and not the parts themselves Personal integrity Before you can lead and manage others, you have to be able to lead and manage yourself Begin by establishing a firm sense of who you are, what you stand for, and how you should behave This inner strength provides the buoyancy to endure the ups and downs of the project life cycle and the credibility essential to sustaining the trust of others Proactive Good project managers take action before it is needed to prevent small concerns from escalating into major problems They spend the majority of their time working within their sphere of influence to solve problems and not dwelling on things they have little control over Project managers can’t be whiners Lar03342_ch10_338-373.indd Page 361 1/29/10 10:09:11 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Research Highlight Emotional intelligence (EQ) describes the ability or skill to perceive, assess, and manage the emotions of one’s self and others Although the notion of EQ emerged in the 1920s, it was not until Daniel Goleman published his book Emotional Intelligence that the concept captured the attention of business people and public alike Goleman divided EQ into the following five emotional competences: • • • Self-awareness—knowing your emotions, recognizing feelings as they occur, and understanding the link between your emotions and your behavior Self-awareness is reflected in confidence, realistic assessment of personal strengths/weaknesses, and ability to make fun of oneself Self-regulation—being able to control disruptive impulses and moods and respond appropriately to situations Selfregulation is reflected in trustworthiness and openness to change Self-motivation—being able to gather up your feelings and pursue goals with energy, passion, and persistence The hallmarks of self-motivation include a strong desire to achieve and internal optimism Emotional Intelligence* • Empathy—being able to recognize the feelings of others and tuning into their verbal and nonverbal cues Empathy is reflected in the ability to sustain relationships and in cross-cultural sensitivity • Social skills—being able to build social networks and rapport with different kinds of people Social skills include being able to lead change, resolve conflicts, and build effective teams Not much imagination is needed to see how EQ would contribute to being an effective project manager In Goleman’s view, these competences build on each other in a hierarchy At the bottom of his hierarchy is selfawareness Some level of self-awareness is needed to move to self-regulation Ultimately, social skills requires all four of the other competences in order to begin to be proficient at leading others Experts believe that most people can learn to significantly increase their EQ Numerous training programs and materials have emerged to help individuals realize their EQ potential * T Bradberry, and J Graves, The Emotional Intelligence Quick Book: How to Put Your EQ to Work (New York: Simon & Schuster, 2005); J Cabanis-Brewin, “The Human Task of a Project Leader: Daniel Goleman on the Value of High EQ,” PM Network, November 1999, pp 38–42 High emotional intelligence (EQ) Project management is not for the meek Project managers have to have command of their emotions and be able to respond constructively to others when things get a bit out of control See the Research Highlight: Emotional Intelligence to read more about this quality General business perspective Because the primary role of a project manager is to integrate the contributions of different business and technical disciplines, it is important that a manager have a general grasp of business fundamentals and how the different functional disciplines interact to contribute to a successful business Effective time management Time is a manager’s scarcest resource Project managers have to be able to budget their time wisely and quickly adjust their priorities They need to balance their interactions so no one feels ignored Skillful politician Project managers have to be able to deal effectively with a wide range of people and win their support and endorsement of their project They need to be able to sell the virtues of their project without compromising the truth Optimist Project managers have to display a can-do attitude They have to be able to find rays of sunlight in a dismal day and keep people’s attention positive A good sense of humor and a playful attitude are often a project manager’s greatest strength So how does one develop these traits? Workshops, self-study, and courses can upgrade one’s general business perspective and capacity for systems thinking Training programs can improve emotional intelligence and political skills People can also be taught stress and time management techniques However, we know of 361 Lar03342_ch10_338-373.indd Page 362 2/5/10 2:12:27 PM user-f499 /Users/user-f499/Desktop/Temp Work/February-2010/05:02:10/MHBR165:LARSON:2 www.downloadslide.com 362 Chapter 10 Leadership: Being an Effective Project Manager no workshop or magic potion that can transform a pessimist into an optimist or provide a sense of purpose when there is not one These qualities get at the very soul or being of a person Optimism, integrity, and even being proactive are not easily developed if there is not already a predisposition to display them Summary To be successful, project managers must build a cooperative network among a diverse set of allies They begin by identifying who the key stakeholders on a project are, followed by a diagnosis of the nature of the relationships, and the basis for exercising influence Effective project managers are skilled at acquiring and exercising a wide range of influence They use this influence and a highly interactive management style to monitor project performance and initiate appropriate changes in project plans and direction They so in a manner that generates trust, which is ultimately based on others’ perceptions of their character and competence Project managers are encouraged to keep in mind the following suggestions: • Build relationships before you need them Identify key players and what you can to help them before you need their assistance It is always easier to receive a favor after you have granted one This requires the project manager to see the project in systems terms and to appreciate how it affects other activities and agendas inside and outside the organization From this perspective they can identify opportunities to good deeds and garner the support of others • Trust is sustained through frequent face-to-face contact Trust withers through neglect This is particularly true under conditions of rapid change and uncertainty that naturally engender doubt, suspicion, and even momentary bouts of paranoia Project managers must maintain frequent contact with key stakeholders to keep abreast of developments, assuage concerns, engage in reality testing, and focus attention on the project Frequent face-to-face interactions affirm mutual respect and trust in each other Ultimately, exercising influence in an effective and ethical manner begins and ends with how you view the other parties Do you view them as potential partners or obstacles to your goals? If obstacles, then you wield your influence to manipulate and gain compliance and cooperation If partners, you exercise influence to gain their commitment and support People who view social network building as building partnerships see every interaction with two goals: resolving the immediate problem/ concern and improving the working relationship so that next time it will be even more effective Experienced project managers realize that “what goes around comes around” and try at all cost to avoid antagonizing players for quick success Key Terms Emotional intelligence (EQ), 361 Inspiration-related currencies, 346 Law of reciprocity, 344 Leading by example, 352 Management by wandering around (MBWA), 349 Personal-related currencies, 347 Position-related currencies, 346 Proactive, 360 Relationship-related currencies, 346 Social network building, 347 Stakeholder, 341 Systems thinking, 360 Task-related currencies, 345 Lar03342_ch10_338-373.indd Page 363 1/29/10 10:09:11 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 363 Review Questions What is the difference between leading and managing a project? Why is a conductor of an orchestra an appropriate metaphor for being a project manager? What aspects of project managing are not reflected by this metaphor? Can you think of other metaphors that would be appropriate? What does the exchange model of influence suggest you to build cooperative relationships to complete a project? What differences would you expect to see between the kinds of influence currencies that a project manager in a functional matrix would use and the influence a project manager of a dedicated project team would use? Why is it important to build a relationship before you need it? Why is it critical to keep the project sponsor informed? Why is trust a function of both character and competence? Which of the eight traits/skills associated with being an effective project manager is the most important? The least important? Why? Exercises Do an Internet search for the Keirsey Temperament Sorter Questionnaire and find a site that appears to have a reputable self-assessment questionnaire Respond to the questionnaire to identify your temperament type Read supportive documents associated with your type What does this material suggest are the kinds of projects that would best suit you? What does it suggest your strengths and weaknesses are as a project manager? How can you compensate for your weaknesses? Access the Project Management Institute Web site and review the standards contained in PMI Member Ethical Standards section How useful is the information for helping someone decide what behavior is appropriate and inappropriate? You are organizing an AIDS benefit concert in your hometown that will feature local heavy metal rock groups and guest speakers Draw a dependency map identifying the major groups of people that are likely to affect the success of this project Who you think will be most cooperative? Who you think will be the least cooperative? Why? You are the project manager responsible for the overall construction of a new international airport Draw a dependency map identifying the major groups of people that are likely to affect the success of this project Who you think will be most cooperative? Who you think will be the least cooperative? Why? Identify an important relationship (co-worker, boss, friend) in which you are having trouble gaining cooperation Assess this relationship in terms of the influence currency model What kinds of influence currency have you been exchanging in this relationship? Is the “bank account” for this relationship in the “red” or the “black”? What kinds of influence would be appropriate for building a stronger relationship with that person? Each of the following six mini-case scenarios involve ethical dilemmas associated with project management How would you respond to each situation, and why? Jack Nietzche You returned from a project staffing meeting in which future project assignments were finalized Despite your best efforts, you were unable to persuade the director of project management to promote one of your best assistants, Jack Nietzche, to a project manager position You feel a bit guilty because you dangled the prospect of this promotion to motivate Jack Jack responded by putting in extra hours to Lar03342_ch10_338-373.indd Page 364 1/29/10 10:09:11 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com 364 Chapter 10 Leadership: Being an Effective Project Manager ensure that his segments of the project were completed on time You wonder how Jack will react to this disappointment More importantly, you wonder how his reaction might affect your project You have five days remaining to meet a critical deadline for a very important customer While it won’t be easy, you believed you would be able to complete the project on time Now you’re not so sure Jack is halfway through completing the documentation phase, which is the last critical activity Jack can be pretty emotional at times, and you are worried that he will blow up once he finds he didn’t get the promotion As you return to your office, you wonder what you should Should you tell Jack that he isn’t going to be promoted? What should you say if he asks about whether the new assignments were made? Seaburst Construction Project You are the project manager for the Seaburst construction project So far the project is progressing ahead of schedule and below budget You attribute this in part to the good working relationship you have with the carpenters, plumbers, electricians, and machine operators who work for your organization More than once you have asked them to give 110 percent, and they have responded One Sunday afternoon you decide to drive by the site and show it to your son As you point out various parts of the project to your son, you discover that several pieces of valuable equipment are missing from the storage shed When you start work again on Monday you are about to discuss this matter with a supervisor when you realize that all the missing equipment is back in the shed What should you do? Why? The Project Status Report Meeting You are driving to a project status report meeting with your client You encountered a significant technical problem on the project that has put your project behind schedule This is not good news because completion time is the number one priority for the project You are confident that your team can solve the problem if they are free to give their undivided attention to it and that with hard work you can get back on schedule You also believe if you tell the client about the problem, she will demand a meeting with your team to discuss the implications of the problem You can also expect her to send some of her personnel to oversee the solution to the problem These interruptions will likely further delay the project What should you tell your client about the current status of the project? Gold Star LAN project You work for a large consulting firm and were assigned to the Gold Star LAN project Work on the project is nearly completed and your clients at Gold Star appear to be pleased with your performance During the course of the project, changes in the original scope had to be made to accommodate specific needs of managers at Gold Star The costs of these changes were documented as well as overhead and submitted to the centralized accounting department They processed the information and submitted a change order bill for your signature You are surprised to see the bill is 10 percent higher than what you submitted You contact Jim Messina in the accounting office and ask if a mistake has been made He curtly replies that no mistake was made and that management adjusted the bill He recommends that you sign the document You talk to another project manager about this and she tells you off the record that overcharging clients on change orders is common practice in your firm Would you sign the document? Why? Why not? Lar03342_ch10_338-373.indd Page 365 1/29/10 10:09:11 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 365 Cape Town Bio-Tech You are responsible for installing the new Double E production line Your team has collected estimates and used the WBS to generate a project schedule You have confidence in the schedule and the work your team has done You report to top management that you believe that the project will take 110 days and be completed by March The news is greeted positively In fact, the project sponsor confides that orders not have to be shipped until April You leave the meeting wondering whether you should share this information with the project team or not Ryman Pharmaceuticals You are a test engineer on the Bridge project at Ryman Pharmaceuticals in Nashville, Tennessee You have just completed conductivity tests of a new electrochemical compound The results exceeded expectations This new compound should revolutionize the industry You are wondering whether to call your stockbroker and ask her to buy $20,000 worth of Ryman stock before everyone else finds out about the results What would you and why? References Abrashoff, D M., It’s Your Ship (New York: Business Plus, 2002) Ancona, D G., and D Caldwell, “Improving the Performance of New-Product Teams,” Research Technology Management, 33 (2) March-April 1990, pp 25–29 Anand, V., B E Ashforth, and M Joshi, “Business as Usual: The Acceptance and Perpetuation of Corruption in Organizations,” Academy of Management Executive, 19(4) 2005, pp 9–23 Badaracco, J L Jr., and A P Webb, “Business Ethics: A View from the Trenches,” California Management Review, 37 (2) Winter 1995, pp 8–28 Baker, B., “Leadership and the Project Manager,” PM Network, December 2002, p 20 Baker, W E., Network Smart: How to Build Relationships for Personal and Organizational Success (New York: McGraw-Hill, 1994) Bennis, W., On Becoming a Leader (Reading, MA: Addison-Wesley, 1989) Bradberry, T., and J Graves, The Emotional Intelligence Quick Book: How to Put Your EQ to Work (New York: Simon & Schuster, 2005) Cabanis, J., “A Question of Ethics: The Issues Project Managers Face and How They Resolve Them,” PM Network, December 1996, pp 19–24 Cabanis-Brewin, J., “The Human Task of a Project Leader: Daniel Goleman on the Value of High EQ,” PM Network, November 1999, pp 38–42 Cohen, A R., and D L Bradford, Influence Without Authority (New York: John Wiley & Sons, 1990) Covey, S R., The Seven Habits of Highly Effective People (New York: Simon & Schuster, 1989) Dinsmore, P C., “Will the Real Stakeholders Please Stand Up?” PM Network, December 1995, pp 9–10 Gabarro, S J., The Dynamics of Taking Charge (Boston: Harvard Business School Press, 1987) Hill, L A., Becoming a Manager: Mastery of a New Identity (Boston: Harvard Business School Press, 1992) Kaplan, R E., “Trade Routes: The Manager’s Network of Relationships,” Organizational Dynamics, 12 (4) Spring 1984, pp 37–52 Lar03342_ch10_338-373.indd Page 366 1/29/10 10:09:12 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com 366 Chapter 10 Leadership: Being an Effective Project Manager Kirk, D., “Managing Expectations,” PM Network, August 2000, pp 59–62 Kotter, J P., “What Leaders Really Do,” Harvard Business Review, 68 (3) May–June 1990, pp 103–11 Kouzes, J M., and B Z Posner, The Leadership Challenge (San Francisco: Jossey-Bass, 1987) Kouzes, J M., and B Z Posner, Credibility: How Leaders Gain and Lose It Why People Demand It (San Francisco: Jossey-Bass, 1993) Larson, E W., and J B King, “The Systemic Distortion of Information: An Ongoing Management Challenge,” Organizational Dynamics, 24 (3) Winter 1996, pp 49–62 Lewis, M W., M A Welsh, G E Dehler, and S G Green, “Product Development Tensions: Exploring Contrasting Styles of Project Management,” Academy of Management Journal, 45 (3) 2002, pp 546–64 Peters, L H., “A Good Man in a Storm: An Interview with Tom West,” Academy of Management Executive, 16 (4) 2002, pp 53–63 Peters, L H., “Soulful Ramblings: An Interview with Tracy Kidder,” Academy of Management Executive, 16 (4) 2002, pp 45–52 Peters, T., Thriving on Chaos: Handbook for a Management Revolution (New York: Alfred A Knopf, 1988) Pinto, J K., and S K Mantel, “The Causes of Project Failure,” IEEE Transactions in Engineering Management, 37 (4) 1990, pp 269–76 Pinto, J K., and D P Sleven, “Critical Success Factors in Successful Project Implementation,” IEEE Transactions in Engineering Management, 34 (1) 1987, pp 22–27 Posner, B Z., “What It Takes to Be an Effective Project Manager,” Project Management Journal, March 1987, pp 51–55 Project Management Institute, Leadership in Project Management Annual (Newton Square, PA: PMI Publishing, 2006) Robb, D J., “Ethics in Project Management: Issues, Practice, and Motive,” PM Network, December 1996, pp 13–18 Sayles, L R., Leadership: Managing in Real Organizations (New York: McGrawHill, 1989), pp 70–78 Sayles, L R., The Working Leader (New York: Free Press, 1993) Senge, P M., The Fifth Discipline (New York: Doubleday, 1990) Shenhar, A J., and B Nofziner, “A New Model for Training Project Managers,” Proceedings of the 28th Annual Project Management Institute Symposium, 1997, pp 301–6 Shtub, A., J F Bard, and S Globerson, Project Management: Engineering, Technology, and Implementation (Englewood Cliffs, NJ: Prentice Hall, 1994) Case Western Oceanography Institute It was already 72 degrees when Astrid Young pulled into the parking lot at the Western Oceanography Institute (WOI) The radio announcer was reminding listeners to leave out extra water for their pets because the temperature was going to Lar03342_ch10_338-373.indd Page 367 1/29/10 10:09:12 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 367 be in the high 90s for the third straight day Young made a mental note to call her husband, Jon, when she got to her office and make sure that he left plenty of water outside for their cat, Figaro Young was three-quarters of the way through the Microsoft NT conversion project Yesterday had been a disaster, and she was determined to get back on top of things ASTRID YOUNG Astrid Young was a 27-year-old graduate of Western State University (WSU) with a B.S degree in management information systems After graduation she worked for five years at Evergreen Systems in Seattle, Washington While at WSU she worked part time for an oceanography professor, Ahmet Green, creating a customized database for a research project he was conducting Green was recently appointed director of WOI, and Young was confident that this prior experience was instrumental in her getting the job as information services (IS) director at the Institute Although she took a significant pay cut, she jumped at the opportunity to return to her alma mater Her job at Evergreen Systems had been very demanding The long hours and extensive traveling had created tension in her marriage She was looking forward to a normal job with reasonable hours Besides, Jon would be busy pursuing his MBA at Western State While at Evergreen, Young worked on Y2000 projects and installed NT servers She was confident that she had the requisite technical expertise to excel at her new job Western Oceanography Institute was an independently funded research facility aligned with Western State University Approximately 60 full- and part-time staff worked at the Institute They worked on research grants funded by the National Science Foundation (NSF) and the United Nations (UN), as well as research financed by private industry There were typically to major research projects under way at any one time as well as 20 to 25 smaller projects One-third of the Institute’s scientists had part-time teaching assignments at WSU and used the Institute to conduct their own basic research FIRST FOUR MONTHS AT WOI Young worked at the Institute for four months prior to initiating the NT conversion project She made a point of introducing herself to the various groups of people upon her arrival at the Institute Still, her contact with the staff had been limited She spent most of her time becoming familiar with WOI’s information system, training her staff, responding to unexpected problems, and planning the conversion project Young suffered from food allergies and refrained from informal staff lunches at nearby restaurants She stopped regularly attending the biweekly staff meetings in order to devote more time to her work She now only attended the meetings when there was a specific agenda item regarding her operation Last month the system was corrupted by a virus introduced over the Internet She devoted an entire weekend to restoring the system to operation A recurring headache was one of the servers code-named “Poncho” that would occasionally shut down for no apparent reason Instead of replacing it, she decided to nurse Poncho along until it was replaced by the new NT system Her work was frequently interrupted by frantic calls from staff researchers who needed immediate help on a variety of computer-related problems She was shocked at how computer illiterate some of the researchers were and how she had to guide them Lar03342_ch10_338-373.indd Page 368 1/30/10 7:05:22 PM user-f501 /Users/user-f501/Desktop/Tempwork/JANUARY 2010/30-01-10/MHBR165:Larson:2 www.downloadslide.com 368 Chapter 10 Leadership: Being an Effective Project Manager through some of the basics of e-mail management and database configuration She did find time to help Assistant Professor Amanda Johnson on a project Johnson was the only researcher to respond to Young’s e-mail announcing that the IS staff was available to help on projects Young created a virtual project office on the Internet so that Johnson could collaborate with colleagues from institutes in Italy and Thailand on a UN research grant She looked forward to the day when she could spend more time on fun projects like that Young had a part-time team of five student assistants from the computer science department At first she was not sure how freely she could delegate work to the students, and she closely supervised their work She quickly realized that they were all very bright, competent workers who were anxious to leverage this work experience into a lucrative career upon graduation She admitted that she sometimes had a hard time relating to students who were preoccupied with fraternity bashes and X-games She lost her temper only once, and that was at Samantha Eggert for failing to set up an adequate virus screening system that would have prevented the Internet corruption that occurred She kept a close eye on Eggert’s work after that, but in time, Eggert proved her worth Young saw a lot of herself in Eggert’s work habits THE MICROSOFT NT CONVERSION PROJECT Young laid the groundwork for the NT conversion project in her recruitment interview with the director by arguing that conversion was a critical skill she would bring to the position Once hired she was able to sell the director and his immediate staff on the project, but not without some resistance Some associate directors questioned whether it was necessary to go through another conversion so soon after the Windows 95 conversion 16 months ago Some of the researchers lobbied that the money would be better spent on installing a centralized air-conditioning system at WOI Ultimately, the director signed off on the project after Young assured him that the conversion would be relatively painless and the Institute would then have a state-of-the-art information system The conversion was scheduled to take eight weeks to complete and consisted of four major phases: server setup, network installation, data migration, and workstation conversion The project would be completed during the summer so that the student assistants could work full time on the project Young and her student team would first need to purchase and set up seven new NT servers They would then create a new local area network (LAN) Next they would migrate data to the new Oracle NT database Finally, they would convert the existing 65 client computers into NT workstations capable of functioning on the new system Young had been actively involved in four similar conversions when working at Evergreen Systems and was confident that she and her team could complete the project with a minimum of technical problems She also believed that this conversion would not be traumatic to the staff at the Institute because the NT interface was very similar to the Windows 95 interface Young knew that in order for the project to be considered successful, there needed to be minimum disruption of daily staff functions She held a staff briefing meeting to outline the scope of the project and the impact it would have on the Institute’s operations She was disappointed by the light attendance at the meeting One problem was the irregular hours staff worked at WOI Several of the researchers were night owls who preferred to work late into the night Other staff Lar03342_ch10_338-373.indd Page 369 1/29/10 10:09:12 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 369 traveled frequently She ended up holding two other briefing meetings, including one in the evening Still the attendance was less than desired The staff’s major concerns were the amount of downtime that would occur and whether the software and databases they were currently using would work on the new system Young assured them that most of the downtime would occur on the weekends and would be posted well in advance The only disruption would be two hours necessary to convert their existing computer into a workstation Young invested extra energy in researching the compatibility issue and sent an e-mail to everyone listing the software that was known to not work in the NT system The only software problems involved specially written DOS v2.1 or older programs that would not function in the new NT operating environment In one case, she assigned a student to rewrite and enhance the present program for a researcher In the other case, she was able to persuade the staff member to use a newer, better program Young sent a second e-mail asking staff members to clean up their hard drives and get rid of old, obsolete files because the new NT software would take up considerably more space than the Windows 95 operating system In some cases, she replaced existing hard drives with bigger drives so that this would not be a problem She circulated a workstation conversion schedule by e-mail so that staff could pick a preferred time for when their computer would be down and when her assistants could upgrade the computer into a workstation Seventy percent of the staff responded to the e-mail request, and she and her staff contacted the remaining staff by telephone to schedule the conversion The first six weeks of the project went relatively smoothly The NT servers arrived on time and were installed and configured on schedule The completion of the network was delayed three days when the fire marshal showed up earlier than planned to inspect the electrical wiring Young had never met the marshal before and was surprised at how nit-picking he was They failed the inspection, and it took three days to reschedule and pass inspection Word about failing the fire inspection circulated the hallways at the Institute One joker put a Smokey the Bear sign on the IS office door Young later found out that as a result of a recent fire in town, the fire marshals had been instructed to be extra vigilant in their inspections Data migration to the new Oracle database took a little longer than planned because the new version was not as compatible with the old version as advertised Still, this only added three days to the project The project was entering the fourth and final phase—conversion of client computers into NT workstations This phase involved her staff deleting the old operating system and installing new operating software in each computer at the Institute Young had scheduled two hours per machine and had organized a daily workload of 10 computers so that adequate backup could be made just in case something went wrong Young chose to convert the director’s office first and told Green that everything was going according to plan Soon the project began to experience nagging problems First, some of the staff forgot when they were scheduled to be converted The team had to wait for them to abandon what they were doing so they could convert the computer Second, the drivers on some of the computers were not compatible, and the team had to devote extra time downloading new drivers off the Internet Third, a few of the staff failed to create adequate hard drive space to accommodate the new NT software In most cases, the team worked with the staff member to delete or compress unnecessary files One time the staff member could not be found, and Young had to decide which files to delete This wasn’t a problem Lar03342_ch10_338-373.indd Page 370 1/29/10 10:09:12 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com 370 Chapter 10 Leadership: Being an Effective Project Manager since the hard drive contained computer games and ancient Word Perfect files To compound matters, midway through the third day, one of the student assistants, Steve Stills, was diagnosed with a moderate case of carpal tunnel and was told to take two weeks off from computer work After three days only 22 computers had been converted to NT stations Young ended the day by sending an e-mail to the remaining users apologizing for the delays and posting a revised schedule for their system configuration THE CALL Young and her staff were working diligently on converting computers into NT workstations when she received an urgent call from the director’s secretary requesting that she drop everything and come downstairs to the staff meeting The secretary’s voice appeared tense, and Young wondered what was up As she gathered her things, the student assistant, Eggert, cleared her throat and confided that there may be problems with some of the Institute’s Web sites She discovered yesterday that some of the links in the Web pages created using Netscape weren’t working in the Microsoft environment Young demanded to know why she wasn’t told about this sooner Eggerts confessed that she thought she had fixed the problem last night Young told her that they would talk about this when she got back and left Young entered the meeting room and immediately recognized that there were more than the usual faces in attendance The director welcomed her by saying, “We’re glad you could find the time to visit with us My staff meeting has just erupted into a series of complaints about your NT conversion project As it turns out Dr Phillips over here can’t access his documents because his Word Perfect file mysteriously disappeared Dr Simon’s geothermal assessment program, which he has used for the past seven years, doesn’t seem to work anymore Now it appears that the Web site we use to coordinate our research with the Oslo Institute is a mess Everyone is complaining about how the revised installation schedule is going to disrupt work I want to know why I wasn’t informed about these problems These guys want to lynch me for approving your project!” How would you respond to the director? What mistakes did Young make that contributed to the problems at the end of the case? How could she have managed the conversion project better? Case Tom Bray Tom Bray was mulling over today’s work schedule as he looked across the bay at the storm that was rolling in It was the second official day of the Pegasus project and now the real work was about to begin Pegasus was a two-month renovation project for AtlantiCorp, a major financial institution headquartered in Boston, Massachusetts Tom’s group was responsible for installing the furniture and equipment in the newly renovated accounts receivable department on the third floor The Pegasus project was a dedicated project team formed out of AtlantiCorp facilities department with Tom as the project lead Lar03342_ch10_338-373.indd Page 371 1/29/10 10:09:13 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 371 Tom was excited because this was his first major league project and he was looking forward to practicing a new management style—MBWA, aka management by wandering around He had been exposed to MBWA in a business class in college, but it wasn’t until he attended an AtlantiCorp leadership training seminar that he decided to change how he managed people The trainer was devout MBWA champion (“You can’t manage people from a computer!”) Furthermore, the testimonies from his peers reinforced the difference that MBWA can make when it comes to working on projects Tom had joined the facilities group at AtlantiCorp five years earlier after working for EDS for six years He quickly demonstrated technical competences and good work habits He was encouraged to take all the internal project management workshops offered by AtlantiCorp On his last two projects he served as assistant project manager responsible for procurement and contract management He had read books about the soft side of project management and MBWA made sense—after all, people not tools get projects done His boss had told him he needed to refine his people skills and work on developing rapport with team members MBWA seemed like a perfect solution Tom reviewed the list of team member names; some of the foreign names were real tongue twisters For example, one of his better workers was from Thailand and her name was Pinyarat Sirisomboonsuk He practiced saying “Pin-ya-raˇt See-re- -som-boon-sook.” He got up, tucked in his shirt, and walked out of his office and down to the floor where his team was busy unloading equipment Tom said “Hi” to the first few workers he met until he encountered Jack and three other workers Jack was busy pulling hardware out of a box while his teammates were standing around talking Tom blurted, “Come on guys, we’ve got work to do.” They quickly separated and began unloading boxes The rest of the visit seemed to go well He helped Shari unload a heavy box and managed to get an appreciative grin from Pinyarat when he almost correctly pronounced her name Satisfied, Tom went back up to his office thinking that MBWA wouldn’t be that tough to After responding to e-mail and calling some vendors, Tom ventured back out to see how things were going downstairs When he got there, the floor was weirdly quiet People were busy doing their work and his attempts at generating conversation elicited stiff responses He left thinking that maybe MBWA is going to be tougher than he thought What you think is going on at the end of this case? What should Tom next and why? What can be learned from this case? Case Cerberus Corporation* Cerberus is a successful producer of specialty chemicals It operates nine large campus sites in the United States, with a number of different business units on each site These business units operate independently, with direct reporting to * Courtesy of John Sloan, Oregon State University Lar03342_ch10_338-373.indd Page 372 1/29/10 10:09:13 AM user-f497 /Users/user-f497/Desktop/Tempwork/JANUARY 2010/29:01:10/MHBR165:LARSON:VYN www.downloadslide.com 372 Chapter 10 Leadership: Being an Effective Project Manager corporate headquarters Site functions such as safety, environmental, and facilities management report to a host organization—typically the business unit that is the largest user of their services SUSAN STEELE Susan Steele has worked in the Facilities group at the Cerberus Richmond site for the last two years The Facilities manager, Tom Stern, reports to the General Manager of the largest business unit on site, the highly profitable Adhesives and Sealants Division Susan started with Cerberus when she graduated with her business degree from Awsum University She was excited about her new assignment—leading a project for the first time She remembered Tom saying, “We’ve got office furniture dating back to the 80s There are those ugly green-top desks that look like they came from military surplus! I’m especially concerned about computer workstation ergonomics—it’s a major issue that we absolutely must fix! I want you to lead a project to transition our office furniture to the new corporate standard.” Susan assembled her project team: Jeff, the site safety/ergonomics engineer; Gretchen, the space planner; Cindy, the move coordinator; and Kari, the accounting liaison for Facilities At their first meeting, everyone agreed that ergonomics was the most urgent concern All five business units responded to a workstation survey that identified injury-causing ergonomics The team was developing a plan to replace old desks with new, ergo-adjustable furniture by the end of the year Susan asked Kari about the budget, and Kari responded, “Facilities should not pay for this We want the individual business units to pay so that the costs will show where they are incurred.” Gretchen spoke up: “You know, we’ve got lots of department moves going on constantly Everybody is always jockeying for space and location as their business needs change Besides the ergonomics, could we say that only corporate standard furniture gets moved? That would force changing some of the stuff that’s just plain ugly.” Everyone agreed that this was a great idea Susan presented the project plan to Tom and got a green light to proceed JON WOOD Jon Wood is a planning manager, with 22 years experience at Cerberus His business unit, Photographic Chemicals Division (PCD), is losing money Digital photography is continuing to reduce the size of the market, and PCD is having trouble matching the competition’s relentless price-cutting Jon recently transferred to Richmond from corporate headquarters, where he ran the economic forecasting group He is considered a new broom, and he is determined to sweep clean One of Jon’s early actions was to negotiate with his general manager for a department move Money was tight, and the site facilities function charged an arm and a leg for moves (covering all their fixed overhead, the operations people groused) However, Jon felt it was important to move from Building 4, where they were next to Production, to Building 6, where they could be close to Marketing, Forecasting, and Accounting His General Manager agreed, and there was lots of excitement in his team about their upcoming move Jon assigned one of his planners, Richard, to work with the Facilities team on the layout and move plan for the group Things seemed to be going fine—Jon saw Richard sitting down with the move coordinator, and they seemed to be on track Lar03342_ch10_338-373.indd Page 373 1/30/10 7:05:24 PM user-f501 /Users/user-f501/Desktop/Tempwork/JANUARY 2010/30-01-10/MHBR165:Larson:2 www.downloadslide.com Chapter 10 Leadership: Being an Effective Project Manager 373 The day before the move, Jon up the phone from a particularly tense teleconference with a Canadian subcontractor Production was not going well, and product availability would be tight for the rest of the quarter Clustered around his desk were Richard, Cindy, and a person he hadn’t met yet, Susan After hurried introductions, Susan told Jon that his filing cabinets could not be moved The cabinets are large lateral files, five feet wide and two feet deep, a combination of both filing cabinets and bookshelves Jon brought them with him from Corporate because he thought they looked nice with their dark grey steel sides and wood veneer tops Susan told him that he would have to replace them with new corporate standard cabinets, virtually the same size Jon said, “You mean you want me to throw away perfectly good filing cabinets and spend another $2,000 on new ones, just so they match? I won’t it!” Susan replied, “Then I won’t authorize the movement of the old cabinets.” Jon said, “You’re joking—these cabinets are grey, the new ones are grey—the only difference is the wood top! You’d throw away $2,000 for nothing?” Susan replied stiffly, “I’m sorry, that’s the policy.” Jon said, “I don’t care what the policy is If I have to move them myself, those cabinets are not going to the dump My division is losing money and I’m not going to throw money away If you don’t like it, you’re going to have to get your general manager to convince my general manager to make me it Now would you please leave so I can get some work done.” If you were Susan, what would you do? What, if anything, could Susan have done differently to avoid this problem? What could the management of Cerberus to more effectively manage situations like this? ... [6.2.3] F.3 Project duration Chapter Managing Risk 11 .1 Risk management process [F.8] 11 .2 Identifying risks 11 .3.2.2 Impact matrix 11 .4 Risk assessment 11 .5 Risk responses (.2– .1. 2) 11 .6 Risk register... Management Career Paths 602 210 11 Managing Project Teams 16 Oversight 532 17 An Introduction to Agile Project Management 582 10 0 Developing a Project Plan 504 15 International Projects Organization:... Chapter Modern Project Management What Is a Project? Project Management Structures The Importance of Project Management 10 Project Management Today—An Integrative Approach 13 Integration of Projects