Transcription
PROJECTMANAGEMENTBEST PRACTICESAchieving Global ExcellenceTHIRD EDITIONHAROLD KERZNER, PH.D.WlLEYINTERNATIONALInstitute for Learning, Inc.
ContentsPreface1xiiiUNDERSTANDING BEST tion1Wärtsilä2Project Management Best Practices: 1945-19603Project Management Best Practices: 1960-19855Project Management Best Practices: 1985-20148An Executive's View of Project Management13Best Practices Process17Step 1: Definition of a Best Practice18Step 2: Seeking Out Best Practices22Dashboards and Scorecards33Key Performance Indicators36Step 3: Validating the Best Practice41Step 4: Levels of Best Practices44Step 5: Management of Best Practices46Step 6: Revalidating Best Practices46Step 7: What to Do with a Best Practice47Step 8: Communicating Best Practices across the Company48Step 9: Ensuring Usage of the Best Practices51Common Beliefs51Best Practices Library52Hewlett-Packard: Best Practices in Action54DTE Energy57A Consultant's View of Project Management and Best Practices61V
viCONTENTS2FROM BEST PRACTICE TO MIGRAINE HEADACHE672.02.12.22.32.4Introduction67Good Intentions Becoming Migraines67Enterprise Project Management Methodology Migraine69Customer Satisfaction Migraine69Migraine Resulting from Responding to Changing CustomerRequirements702.5 Reporüng Level of the PMO Migraine712.6 Cash Flow Dilemma Migraine712.7 Scope Change Dilemma Migraine722.8 Outsource or Not Migraine732.9 Determining When to Cancel a Project Migraine732.10 Providing Project Awards Migraine742.11 Migraine from Having the Wrong Culture in Place752.12 Migraines due to Politics762.13 Migraines Caused by the Seven Deadly Sins832.14 Sources of Smaller Migraines942.15 Ten Uglies of Projects97References1053JOURNEYTO 07Strategie Flanning for Project Management109Hitachi Ltd.118KONE: The Project Management Challenge130The Light at the End of the Tunnel133Goodyear136Managing Assumptions140Managing Assumptions in Conservation Projects—WWFInternational140Project Govemance142Seven Fallacies That Delay Project Management Maturity146Motorola148Texas Instruments149Hewlett-Packard: Recognizing the Need152Hewlett-Packard: The Journey and the Obstacles153CooperStandard160Naviair: On Time—on Budget166DTE Energy175Key Plastics176ILLUMINAT and the Strategie Business of Project ManagementAvalon Power and Light183Roadway Express184179
viiContents3.21 Defcon Corporation1853.22 Kombs Engineering1873.23 Williams Machine Tool Company4188PROJECT MANAGEMENT 6191Introduction191Excellence Defined192Recognizing the Need for Methodology Development196Enterprise Project Management Methodologies199Benefits of a Standard Methodology204Critical Components205SAP207Cassidian: Integrated Multilevel Schedules211Tecnicas Reunidas213Teradyne: From Myth to Reality220Slalom Consulting: Project Management Functions224Slalom Consulting: Replacing Methodologies with Frameworks226Life-Cycle Phases228Expanding Life-Cycle Phases230Churchill Downs, Incorporated230Indra: The Need for a Methodology232Implementing the Methodology233Implementation Blunders235Overcoming Development and Implementation Barriers235Project Management Tools236Wärtsilä: Recognizing the Need for Supporting Tools242Tech Mahindra Limited: Project Process Monitoring244Tech Mahindra Limited: Customer Delight Index for Projects247General Motors Powertrain Group251Ericsson Telecom AB252Indra: Closing the Project255Repsol: The Repsol E&P GIP Methodology—The Project QualityManagement Process Applied to Decision Making258Rockwell Automation: Quest for a Common Process266Sherwin-Williams271Medical Mutual275Holcim278Westfield Group281Hewlett-Packard284DTE Energy286ALSTOM293Cassidian: Golden Rules in Project Management297When Traditional Methodologies May Not Work299
CONTENTSviii5INTEGRATED g Integrated Management Processes304Evolution of Complementary Project Management Processes305Zürich America Insurance Company309Total Quality Management310Concurrent Engineering315Risk Management315Wärtsilä: The Need for Proactive Risk Management318ILLUMINAT: Effective Risk Management321Indra: When a Risk Becomes Reality (Issue Management)325The Failure of Risk Management327Defining Maturity Using Risk Management328Boeing Aircraft Company329Change Management330Other Management Processes331Hewlett-Packard331Earned-Value Measurement333DTE 6.11335Introduction335Creation of a Corporate Culture336Corporate Values338Types of Cultures338Corporate Cultures at Work340Indra: Building a Cohesive Culture343maxIT-VCS346DFCU Financial348ILLUMINAT (Trinidad & Tobago) Limited363DTE Energy365Hewlett-Packard366Barriers to Implementing Project Management in Emerging MarketsMANAGEMENT ble Support from Senior Managers375Project Sponsorship376Excellence in Project Sponsorship380Hewlett-Packard Sponsorship in Action381Zürich America Insurance Company: Improving StakeholderEngagement382367
ixContents7.67.77.87.97.107.117.128TRAINING AND 28.138.148.158.169385401Introduction401Training for Modern Project Management401Need for Business Education403SAP: Importance of a Project Management Career Path404International Institute for Leaming406Identifying the Need for Training410Selecting Students411Fundamentals of Project Management Education411Some Changes in Project Management Education412Designing Courses and Conducting Training414Measuring the Return on Investment on Education416Project Management Is Now a Profession416Competency Models419Harris Corporation429Alcatel-Lucent: Recognizing the Value of a PMP434Integrated Project Management at Tech Mahindra Limited436Hewlett-Packard439INFORMAL PROJECT MANAGEMENT9.09.19.29.39.49.59.69.79.810Project Governance383Tokio Marine: Excellence in Project GovernanceEmpowerment of Project Managers391Management Support at Work392Gelting Line Management Support395DTE Energy396Initiation Champions and Exit Champions397441Introduction441Informal versus Formal Project amwork447Color-Coded Status Reporting448Crisis Dashboards449Informal Project Management at Work452BEHAVIORAL EXCELLENCE45510.0 Introduction45510.1 Situational Leadership455441
CONTENTSX10.210.310.410.510.610.711470MEASURING RETURN ON INVESTMENT ON PROJECT MANAGEMENTTRAINING nflict Resolution458Staffing for Excellence460Virtual Project Teams462Rewarding Project Teams464Keys to Behavioral Excellence467Proactive versus Reactive ManagementIntroduction475Project Management Benefits476Growth of ROI Modeling477The ROI Model478 .Flanning Life-Cycle Phase479Data Collection Life-Cycle Phase480Data Analysis Life-Cycle Phase483Reporting Life-Cycle Phase487Conclusions487THE PROJECT n489Boeing492Philips Healthcare Software Customer ServicesmaxIT-VCS500Aviva502Churchill Downs Incorporated (CDI):Establishing a PMO517Churchill Downs Incorporated (CDI): ManagingScope Changes518Types of Project Offices522Dell Inc.523Computer Sciences Corporation (CSC)532Slalom Consulting: Understanding theNature of a PMO538DTE Project Audits and the PMO552Project Health Checks555PMO of the Year Award557493
Contentsxi13SIXSIGMA AND THE PROJECT MANAGEMENT roduction565Project Management—Six Sigma Relationship565Involving the PMO568Traditional versus Nontraditional Six Sigma568Understanding Six Sigma571Six Sigma Myths573Use ofAssessments575Project Selection577Typical PMO Six Sigma Projects579PROJECT PORTFOLIO MANAGEMENT58114.0 Introduction58114.1 Why Use Portfolio Management?58214.2 Involvement of Senior Management, Stakeholders,and the PMO58314.3 Project Selection Obstacles58814.4 Identification of Projects58814.5 Preliminary Evaluation59214.6 Strategie Selection of Projects59314.7 Strategie Timing59614.8 Analyzing the Portfolio59614.9 Problems with Meeting Expectations59914.10 Portfolio Management at Rockwell Automation60114.11 World Wildlife Fund (WWF)60215GLOBAL PROJECT MANAGEMENT EXCELLENCE60715.0 Introduction60715.1 IBM60815.2 Computer Associates Technologies (CA): SuccessfulProject Delivery and Management63415.3 Microsoft Corporation . 64715.4 Deloitte: Enterprise Program Management65915.5 COMAU68015.6 Fluor Corporation: Knowledge Managementfor Project Execution69215.7 Siemens PLM Software: Developing a Global Project ManagementMethodology705
CONTENTS16VALUE-DRIVEN PROJECT MANAGEMENT16.0 Introduction71316.1 Value over the Years16.2 Values and Leadership17713714717EFFECT OF MERGERS AND ACQUISITIONS ON .717.8INDEXIntroduction731Planning for Growth731Project Management Value-Added Chain732Preacquisition Decision Making735Landlords and Tenants740Best Practices: Case Study on Johnson Controls, Inc.Integration Results745Value Chain Strategies747Failure and Restructuring749751741
1.4 Project Management Best Practices: 1985-2014 8 1.5 An Executive's View of Project Management 13 1.6 Best Practices Process 17 1.7 Step 1: Definition of a Best Practice 18 1.8 Step 2: Seeking Out Best Practices 22 1.9 Dashboards and Scorecards 33 1.10 Key Performance Indicators 36 1.11 Step 3: Validating the Best Practice 41 1.12 Step 4 .
