The AMA Handbook of Project Management

Overview

Previous edition — winner of the David I. Cleland Project Management Literature Award, presented by the Project Management Institute (PMI®)

A comprehensive reference presenting the critical concepts and theories all project managers must master, The AMA Handbook of Project Management compiles essays and advice from the field's top professionals. Compatible with the most recent edition of the Project Management Body of Knowledge® and featuring new data on the Project Management Office, the completely revised third edition shows readers how to:

• Establish project goals

• Implement planning on both the strategic and operational levels

• Manage the project life cycle and meet objectives

• Budget the project

• Handle the transition from project idea to project reality

• Manage political and resource issues

Packed with research-based information and advice from experienced practitioners—as well as new information on agile project management, Six Sigma projects, the use of social media, and the alignment of strategy and projects—this guide is a vital resource for everyone involved in project tasks.

About the Author

JEANNETTE CABANIS-BREWIN, editor-in-chief for Project Management Solutions, Inc., and principal of WordSource, LLC, has written about project management for over fifteen years. In 2007, PMI honored her with a Distinguished Contributions Award.

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Cover Copy

Previous edition — winner of the David I. Cleland Project Management Literature Award, presented by the Project Management Institute (PMI®)

A comprehensive reference bringing together writers on all of the leading-edge topics in project management today, The AMA Handbook of Project Management compiles essays and advice from the field's top professionals to present a complete overview of everything you need to know as a project management professional.

Long considered the authoritative guide to project management, The AMA Handbook of Project Management—now updated to reflect the latest thinking and be compatible with the most recent edition of A Guide to the Project Management Body of Knowledge (PMBOK)®—shows you how to:

Establish project goals • Implement planning on both the strategic and operational levels • Manage the project life cycle and meet objec?tives • Budget the project • Handle the transition from project idea to project reality • Manage political and resource issues • and much more.

Featuring new data on the Project Management Office and revised to reflect the accelerating pace of the current project management environment, this long-trusted guide covers everything from the basics to the history and future of project management, to your development as a project management professional. Whether you're a student, a certified project management practitioner, or someone who works on projects, you'll gain specific expertise on areas such as designing adequate organizational structures, generating and maintaining teamwork, managing the project life cycle, and much more. Completely revised and fully up-to-date, this is the essential book on the field of project management.

Praise for the Previous Edition of The AMA Handbook of Project Management:

"Invaluable in providing...knowledge for real professionals….a reference book that should find a spot on any serious project manager's bookshelf.? — Technical Communication magazine

"The book's editors—Paul Dinsmore and Jeannette Cabanis-Brewin—should be commended for doing an excellent editorial job….[the editorial effort] is particularly significant in view of the fact that this handbook comprises work written by 42 distinct authors….All chapters are informative and well written….its objective is to put project management into its contemporary context, enabling readers to get up to speed on important issues in project management today. In my view, the book has done a fine job in achieving this objective.? — J. Davidson Frame, PMP, The Project Management Journal

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Jacket Copy

Previous edition — winner of the David I. Cleland Project Management Literature Award, presented by the Project Management Institute (PMI®)

Compatible with the most recent edition of the Project Management Institute's A Guide to the Project Management Body of Knowledge (PMBOK)® and containing essays and advice from the field's top professionals—The AMA Handbook of Project Management presents you with the critical concepts and theories that all project managers must master. Whether you're a student of project management, a current project management professional, or someone involved in projects, this long-trusted guide, now fully up-to-date, gives you the practical, how-to information you need to succeed in this complex, constantly growing field.

The book contains definitive models, case studies, advice, and in-depth solutions to specific project management dilemmas, providing you with indispensable guidance on various topics, from passing the Project Management Professional (PMP®) Certification Exam, to thriving in a specific organization or succeeding in your project management career. Presenting the best state-of-the-art literature in the theory and process of project management, this essential resource covers crucial project management skills including strategic planning; resource allocation; risk and change management; productivity and quality assessment; scope, cost, and time management; and much more.

Divided into clear, easy-to-reference sections, the book helpfully analyzes and clarifies the task of managing projects from every angle, beginning with a discussion of project management basics. Useful for both experienced practitioners and as a study guide, the opening section's chapters correspond with those of the most recent PMBOK® Guide, providing you with a clear understanding of the fundamental disciplines and processes required to ensure that projects are brought to successful completion.

Moving on to look at the history and current state of project management as a profession, The AMA Handbook of Project Management considers issues such as ethics, professionalism, and career development, highlighting the latest trends from a global viewpoint, and providing you with perspective as to how they affect you as a project management practitioner.

The book next tackles the realities of organizational life, taking a close look at the specific challenges you will face as you move beyond the individual project. The book acquaints you with inescapable issues such as organizational culture and structure, alignment with strategy, and the synchronization of multiple projects.

Providing you with a glimpse of where the discipline of project management and the organizations in which it is practiced may be heading, the book then takes a careful look at new methodologies, organizational structures, and globally diverse teams, as seen by the field's most advanced thinkers and practitioners.

Finally, you'll gain a clear understanding of how project management fundamentals must be adapted to different industry and professional environments including construction and engineering, new product development, information technology, and others.

Projects are the essential life force of any organization. Packed with research-based information and advice from experienced practitioners—as well as new information on agile project management, Six Sigma projects, the use of social media, and the alignment of strategy and projects—the latest edition of The AMA Handbook of Project Management is a vital resource you'll want to have on your bookshelf.

PAUL C. DINSMORE, PMP, is an international authority on project management and organizational change. He has been honored with Project Management Institute's Distinguished Contributions Award, and is a Fellow of the institute.

JEANNETTE CABANIS-BREWIN, editor in chief for the research arm of Project Management Solutions, Inc., and principal of WordSource, LLC, has written about project management for over sixteen years. In 2007, PMI honored her with a Distinguished Contributions Award.

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Excerpt

When the lunar module Eagle landed in the Sea of Tranquility at 13 hours, 19 minutes, 39.9 seconds Eastern Standard Time on July 20, 1969, the event was hailed as one of history's major milestones. It was also one of the most fascinating and significant spin-offs of the U.S. space program and was the development of flexible yet precise organizational structures, forms, and tools that allowed people to work together to reach challenging goals. Out of that grew the modern concept of project management.

Since the Apollo days, project management, applicable both to individual endeavors and to a series of projects called programs, has been applied to many new fields of activity. With the trend toward accelerated change, the scope of project management has expanded from construction projects and aerospace to encompass organizational change, R&D projects, high-tech product development, banking and finance, nonprofit services, environmental remediation—in fact, just about every field of human endeavor.

When it first appeared in 1993, the handbook was a major contribution to the field, pulling together expert practitioners to share their advice on topics such as designing adequate organizational structures, generating and maintain teamwork, and managing the project life cycle. The second edition, released in 2005, was designed to complement and supplement the PMBOK[r]Guide, Third Edition, and to provide supporting materials for those preparing to take the certification exam or working to maintain their certification. We have retained this feature, updating the chapters in Section One to the new standard, the PMBOK[r]Guide, Fourth Edition.

As in the second edition, we have retained many of the original authors, keeping those chapters that stand as classics in the field. However, with the pace of change, we have also eliminated a few chapters that had become dated in order to include new developments in the discipline. As a brief overview, the third edition changes comprise:

--One hundred percent of the chapters have had editorial
revisions.

--Sixty percent of the chapters have been updated by the authors.

--Four chapters have been deleted, either because they were no longer relevant or
because we chose to replace them to improve coverage of the topic.

--Two chapters are by new authors, replacing chapters on the same topics (Chapter 31, "Six Sigma and Project Management? and Chapter 10, "Project Cost Management in Practice?).

--Three chapters are on new topics by new authors (Chapter 33, "Social Media Tools,? Chapter 21, "Projects; The Engine of Strategy Execution,? and Chapter 38, "Rescue Mission: Project Management in the Helping Professions.?

--And, of course, it is all, to the best of our knowledge, in line with the fourth edition of the PMBOK[r]Guide.

How to Use This Book

Students who are taking introductory courses in project management as part of a degree in another field (for example, engineering, information technology, business administration, manufacturing or production management, construction management, and so on), or who are studying for degrees in the field of project management, will find the book invaluable. As a complementary and supplementary text, the handbook does not contain materials already published in the PMBOK[r] Guide, but it is designed to help those studying project management understand and integrate the materials contained in that standard, as well as project management concepts and issues that currently are not included in the PMBOK[r]Guide.

The book targets a broad audience, including not only the traditional project management faithfuls, but also professionals involved in organizational development, research, product development, and other associated fields. The book provides a ready reference for anyone involved in project tasks, including upper management executives, project sponsors, project managers, functional managers, and team members. It addresses those working in any of the major program- and project-oriented industries, such as defense, construction, architecture, engineering, product development, systems development, R&D, education, and community development. Whether you are preparing for advancement in the project management field through certification or by completing university courses in the field, this handbook will be a valuable reference. For those using the book in a classroom setting, discussion questions provided at the end of each chapter help students and peers initiate fruitful discussions about concepts, problems, and ideas in their chosen field.

Excerpted from The AMA Handbook of Project Management, 3rd edition. Copyright © 2011 by Amacom Books. Published by AMACOM Books, a division of American Management Association, New York, NY. Used with permission.

All rights reserved. http://www.amacombooks.org.

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Table of Contents

Foreword David I. Cleland, PhD, FPMI xi

Preface Paul C. Dinsmore, PMP, and Jeannette Cabanis-Brewin xiii

Acknowledgments xvii

About the Editors xix

Chapter 1 What Is Project Management?

Project Management Concepts and Methodologies

Francis M. Webster, Jr., PhD, and Joan Knutson 1

Section One

The Project Management Body of Knowledge: Comprehension and Practice

Introduction 13

Chapter 2 Bodies of Knowledge and Competency Standards in

Project Management

Alan M. Stretton 15

Chapter 3 Project Management Process Groups:

Project Management Knowledge in Action

Geree Streun, PMP, CSQE 27

Chapter 4 Initiation Strategies for Managing Major Projects

Peter W. G. Morris 33

Chapter 5 Comprehensive Planning for Complex Projects

David L. Pells 47

Chapter 6 Controlling Costs and Schedule:

Systems That Really Work

Ralph d. Ellis, Jr. 63

Chapter 7 Project Management Integration in Practice

Geree Streun, PMP, CSQE 73

Chapter 8 Project Scope Management in Practice

Renee Mepyans-Robinson 79

Chapter 9 Time Management in Practice

Valis Houston, PMP 87

Chapter 10 Project Cost Management in Practice

Paul Lombard, PMP, CQM 97

10a Studies in Cost Management:

Earned Value—An Integrated Project Management Ap-proach

Lee R. Lambert, PMP 107

Chapter 11 Project Quality Management in Practice

Geree Streun, PMP, CSQE 123

11A Studies in Project Quality Management:

Achieving Business Excellence Using Baldrige,

Business Process Management, Process Improvement and

Project Management

Alan Mendelssohn and Michael Howell, ASQ 129

Chapter 12 Human Resource Management in Practice

Lee Towe, PMP 141

12a Studies in Project Human Resource Management:

Team Building and Interpersonal Skills

Paul C. Dinsmore, PMP 151

12b Studies in Project Human Resource Management: Leadership

Hans J. Thamhain, PHD, PMP 163

Chapter 13 Project Communications Management in Practice

Renee Mepyans-Robinson 173

13a Studies in Communications Management:

Achieving Project Success Through

Stakeholder Management

John Tuman, Jr., P.ENG 183

Chapter 14 Risk Management in Practice

David Hillson, PHD, PMP, FAPM, FIRM 193

CHAPTER 15 Project Procurement Management in Practice

Judith A. Edwards, PHD, PMP, IEEE, SM 205

15a Studies in Procurement Management:

Managing to Avoid Claims

Irving M. Fogel, P. ENG 217

Section Two

The Profession of Project Management

introduction 225

Chapter 16 Preparing for the Project Management

Professional Certification Exam

Theodore R. BocCuzzi, PMP 227

CHAPTER 17 Competency and Careers in Project Manage-ment

J. Kent Crawford, PMP, and Jeannette Cabanis-Brewin 239

Chapter 18 Project Management Ethics:

Responsibility, Values, and Ethics in Project Environments

Thomas Mengel, PhD, PMP 255

Chapter 19 Professionalization of Project Management:

What Does It Mean for Practice?

Janice Thomas, PhD and Bill Zwerman 265

Section THREE

Organizational Issues in Project Management

INTRODUCTION 279

Chapter 20 Projects: The Engine of Strategy Execution

James S. Pennypacker and Jeannette Cabanis-Brewin 281

Chapter 21 Project Management:

A Strategic Asset?

Kam Jugdev, PhD, PMP 291

CHAPTER 22 Enterprise Project Management:

Elements and Deployment Issues

Chris Vandersluis 303

Chapter 23 Project Portfolio Management:

Principles and Best Practices

Gerald I. Kendall, PMP 313

CHAPTER 24 Measuring the Value of Project Management:

A Measurement System

James S. Pennypacker 325

Chapter 25 A Process of Organizational Change:

From Bureaucracy to Project Management Orientation

Robert J. Graham, PhD, PMP 335

CHAPTER 26 Managing Multiple Projects:

Balancing Time, Resources, and Objectives

Lowell Dye, PMP 345

CHAPTER 27 The Project Office:

Rationale and Implementation

J. Kent Crawford, PMP, and Jeannette Cabanis-Brewin 355

Section FOUR

Issues and Ideas in Project Management Practice

Introduction 369

Chapter 28 Dealing with Power and Politics in Project Manage-ment

Randall L. Englund 371

Chapter 29 Multiproject Constraint Management:

The "Critical Chain? Approach

Frank Patrick 385

CHAPTER 30 Communities of Practice and Project Manage-ment

Connie deLisle, PHD, and Kim Rowe, P.ENG 395

Chapter 31 Six Sigma and Project Management

Rip stauffer 407

CHAPTER 32 Cultural Challenges in Managing International Projects

Paul C. Dinsmore, PMP, and Manuel M. Benitez Codas 417

CHAPTER 33 Social Media Tools: An Introduction to Their Role in

Project Management

Alan Levine 427

Section FIVE

Industry Applications of Project Management Practice

INTRODUCTION 439

Chapter 34 Building Organizational Project Management Capabil-ity:

Learning From Engineering and Construction

Christopher Sauer 441

CHAPTER 35 New Product Development:

Issues for Project Management

Dennis M. Smith 453

CHAPTER 36 Why IT Matters:

Project Management for Information Technology

Karen R.J. White, PMP 463

CHAPTER 37 Applying Project Management Tools and Techniques

in the Ecosystem Restoration Industry

Stan Veraart, PMP, and Donald Ross 475

CHAPTER 38 Rescue Mission: Project Management in the Helping Professions

Jeannette Cabanis-Brewin 483

About the Contributors 491

Index 505

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