Table of Contents
Preface xiii
1 UNDERSTANDING BEST PRACTICES 1
1.0 Introduction 1
1.1 WÄRTSILÄ 2
1.2 Project Management Best Practices: 1945–1960 3
1.3 Project Management Best Practices: 1960–1985 5
1.4 Project Management Best Practices: 1985–2016 8
1.5 Project Management Best Practices: 2016–Present 13
1.6 Benefits Management Practice at Dubai Customs 14
1.7 An Executive’s View of Project Management 18
1.8 Best Practices Process 21
1.9 Step 1: Definition of a Best Practice 23
1.10 Step 2: Seeking Out Best Practices 25
1.11 Dashboards and Scorecards 35
1.12 Key Performance Indicators 39
1.13 Step 3: Validating the Best Practice 43
1.14 Step 4: Levels of Best Practices 45
1.15 Step 5: Management of Best Practices 47
1.16 Step 6: Revalidating Best Practices 48
1.17 Step 7: What to Do with a Best Practice 48
1.18 Step 8: Communicating Best Practices across the Company 49
1.19 Step 9: Ensuring Usage of the Best Practices 51
1.20 Common Beliefs 51
1.21 Best Practices Library 53
1.22 Hewlett-Packard: Best Practices in Action 55
2 FROM BEST PRACTICE TO MIGRAINE HEADACHE 59
2.0 Introduction 59
2.1 Good Intentions Becoming Migraines 60
2.2 Enterprise Project Management Methodology Migraine 61
2.3 Trade-off Migraine 61
2.4 Customer Satisfaction Migraine 64
2.5 Migraine Resulting from Responding to Changing Customer Requirements 65
2.6 Reporting Level of the PMO Migraine 65
2.7 Cash Flow Dilemma Migraine 66
2.8 Scope Change Dilemma Migraine 67
2.9 Outsource or Not Migraine 68
2.10 Determining When to Cancel a Project Migraine 68
2.11 Providing Project Awards Migraine 69
2.12 Migraine from Having the Wrong Culture in Place 70
2.13 Migraines Due to Politics 71
2.14 Migraines Caused by the Seven Deadly Sins 78
2.15 Sources of Smaller Headaches 91
2.16 Ten Uglies of Projects 94
3 JOURNEY TO EXCELLENCE 103
3.0 Introduction 103
3.1 Strategic Planning for Project Management 106
3.2 Roadblocks to Excellence 114
3.3 Hitachi Ltd. 115
References 121
3.4 RTA’s Top Management Support for Project Management Excellence 126
Levels of PMO Hierarchy 129
Top Management and Mega Projects 133
Push for Knowledge Sharing 137
3.5 Intel Corporation and “Map Days” 141
3.6 Apple Computer and Cell Phones 142
3.7 The Light at the End of the Tunnel 142
3.8 Pursuit Healthcare Advisors 144
3.9 Managing Assumptions 148
3.10 Managing Assumptions in Conservation Projects—WWF 149
3.11 Project Governance 153
3.12 Seven Fallacies That Delay Project Management Maturity 154
3.13 Motorola 157
3.14 Texas Instruments 158
3.15 Hewlett-Packard: Recognizing the Need 160
3.16 Hewlett-Packard: The Journey and the Obstacles 162
3.17 Naviair: On Time—On Budget 169
3.18 Avalon Power and Light 178
3.19 Roadway Express 180
3.20 Kombs Engineering 181
3.21 Williams Machine Tool Company 182
4 PROJECT MANAGEMENT METHODOLOGIES 185
4.0 Introduction 185
4.1 Excellence Defi ned 186
4.2 Recognizing the Need for Methodology Development 187
4.3 Enterprise Project Management Methodologies 191
4.4 Benefi ts of a Standard Methodology 196
4.5 Critical Components 197
4.6 Airbus Space and Defence: Integration of the APQP Methodology within Project Life Cycle 199
4.7 Project Quality Gates—Structured Approach to Ensure Project Success 201
4.8 Airbus Space and Defense: Integrated Multilevel Schedules 205
4.9 Técnicas Reunidas 208
4.10 Yanfeng Global Automotive Interior Systems Co. Ltd. 214
4.11 Sony Corporation and Earned Value Management 216
4.12 Project Management Tools and Socialized Project Management 220
4.13 Artifi cial Intelligence and Project Management 221
4.14 Life-Cycle Phases 223
4.15 Expanding Life-Cycle Phases 224
4.16 Churchill Downs Incorporated 224
4.17 Indra: The Need for a Methodology 226
4.18 Implementing the Methodology 228
4.19 Implementation Blunders 229
4.20 Overcoming Development and Implementation Barriers 230
4.21 Wärtsilä: Recognizing the Need for Supporting Tools 230
4.22 General Motors Powertrain Group 232
4.23 Ericsson Telecom AB 233
4.24 Indra: Closing the Project 236
4.25 Rockwell Automation: Quest for a Common Process 238
4.26 Sherwin-Williams 243
4.27 Hewlett-Packard 247
4.28 Airbus Space and Defence: Golden Rules in Project Management 248
4.29 When Traditional Methodologies May Not Work 251
5 INTEGRATED PROCESSES 255
5.0 Introduction 255
5.1 Understanding Integrated Management Processes 256
5.2 Evolution of Complementary Project Management Processes 257
5.3 Zurich America Insurance Company 261
5.4 Total Quality Management 262
5.5 Concurrent Engineering 267
5.6 Risk Management 268
5.7 Wärtsilä: The Need for Proactive Risk Management 271
5.8 Indra: When a Risk Becomes Reality (Issue Management) 272
5.9 The Failure of Risk Management 276
5.10 Defi ning Maturity Using Risk Management 277
5.11 Boeing Aircraft Company 278
5.12 Change Management 278
5.13 Other Management Processes 279
6 CULTURE 281
6.0 Introduction 281
6.1 Creation of a Corporate Culture 282
6.2 Corporate Values 284
6.3 Types of Cultures 285
6.4 Corporate Cultures at Work 287
6.5 GEA and Heineken Collaboration: A Learning Experience 289
6.6 Indra: Building a Cohesive Culture 295
6.7 DFCU Financial 299
6.8 Hewlett-Packard 316
6.9 Barriers to Implementing Project Management in Emerging Markets 317
7 MANAGEMENT SUPPORT 325
7.0 Introduction 325
7.1 Visible Support from Senior Managers 325
7.2 Project Sponsorship 326
7.3 Excellence in Project Sponsorship 331
7.4 The Need for a Project Cancellation Criteria 331
7.5 Hewlett-Packard Sponsorship in Action 333
7.6 Zurich America Insurance Company: Improving Stakeholder Engagement 333
7.7 Project Governance 335
7.8 Tokio Marine: Excellence in Project Governance 337
7.9 Empowerment of Project Managers 343
7.10 Management Support at Work 344
7.11 Getting Line Management Support 347
7.12 Initiation Champions and Exit Champions 347
8 TRAINING AND EDUCATION 353
8.0 Introduction 353
8.1 Training for Modern Project Management 353
8.2 Need for Business Education 355
8.3 SAP: Importance of a Project Management Career Path 356
8.4 Program Management Training at thyssenkrupp North America 358
8.5 International Institute for Learning 360
8.6 Identifying the Need for Training 364
8.7 Selecting Participants 365
8.8 Fundamentals of Project Management Education 366
8.9 Some Changes in Project Management Education 367
8.10 Designing Courses and Conducting Training 368
8.11 Measuring the Return on Investment on Education 371
8.12 Project Management Is Now a Profession 372
8.13 Competency Models 373
8.14 Harris Corporation 385
8.15 Nokia: Recognizing the Value of Project Management Excellence 390
8.16 Hewlett-Packard 393
9 INFORMAL PROJECT MANAGEMENT 395
9.0 Introduction 395
9.1 Informal versus Formal Project Management 395
9.2 Trust 398
9.3 Communication 399
9.4 Cooperation 401
9.5 Teamwork 402
9.6 Color-Coded Status Reporting 403
9.7 Crisis Dashboards 403
9.8 Informal Project Management at Work 406
10 BEHAVIORAL EXCELLENCE 409
10.0 Introduction 409
10.1 Situational Leadership 409
10.2 Confl ict Resolution 412
10.3 Staffi ng for Excellence 414
10.4 Virtual Project Teams 416
10.5 Rewarding Project Teams 418
10.6 Keys to Behavioral Excellence 421
10.7 Proactive versus Reactive Management 425
11 MEASURING RETURN ON INVESTMENT ON PROJECT MANAGEMENT TRAINING DOLLARS 429
11.0 Introduction 429
11.1 Project Management Benefi ts 430
11.2 Growth of ROI Modeling 431
11.3 The ROI Model 432
11.4 Planning Life-Cycle Phase 433
11.5 Data Collection Life-Cycle Phase 434
11.6 Data Analysis Life-Cycle Phase 437
11.7 Reporting Life-Cycle Phase 441
11.8 Conclusions 441
12 THE PROJECT OFFICE 443
12.0 Introduction 443
12.1 Boeing 446
12.2 Philips Business Group Patient Care and Monitoring Services 448
12.3 NTT DATA 457
12.4 Cisco Systems 466
12.5 Churchill Downs Incorporated: Establishing a PMO 468
12.6 Churchill Downs Incorporated: Managing Scope Changes 469
12.7 Types of Project Offi ces 473
12.8 Hewlett-Packard 475
12.9 Star Alliance 477
12.10 Project Audits and the PMO 478
12.11 Project Health Checks 482
12.12 PMO of the Year Award 484
13 SIX SIGMA AND THE PROJECT MANAGEMENT OFFICE 493
13.0 Introduction 493
13.1 Project Management—Six Sigma Relationship 493
13.2 Involving the PMO 494
13.3 Traditional versus Nontraditional Six Sigma 495
13.4 Understanding Six Sigma 498
13.5 Six Sigma Myths 500
13.6 Use of Assessments 502
13.7 Project Selection 504
13.8 Typical PMO Six Sigma Projects 506
14 PROJECT PORTFOLIO MANAGEMENT 509
14.0 Introduction 509
14.1 The Portfolio Management Journey at Nordea 510
14.2 Resource Management as Part of Portfolio Management at Nordea 512
14.3 Involvement of Senior Management, Stakeholders, and the PMO 515
14.4 Project Selection Obstacles 520
14.5 Identifi cation of Projects 520
14.6 Preliminary Evaluation 524
14.7 Strategic Selection of Projects 525
14.8 Strategic Timing 528
14.9 Analyzing the Portfolio 529
14.10 Problems with Meeting Expectations 531
14.11 Portfolio Management at Rockwell Automation 533
14.12 WWF—World Wide Fund for Nature (also Known as World Wildlife Fund) 535
15 GLOBAL PROJECT MANAGEMENT EXCELLENCE 539
15.0 Introduction 539
15.1 IBM 540
15.2 Citigroup, Inc. 557
15.3 Microsoft Corporation 561
15.4 Deloitte: Enterprise Program Management 573
15.5 Comau 594
15.6 Fluor Corporation: Knowledge Management for Project Execution 611
15.7 Siemens PLM Software: Developing a Global Project Management Methodology 624
16 VALUE-DRIVEN PROJECT MANAGEMENT 633
16.0 Introduction 633
16.1 Value over the Years 634
16.2 Values and Leadership 636
17 EFFECT OF MERGERS AND ACQUISITIONS ON PROJECT MANAGEMENT 653
17.0 Introduction 653
17.1 Planning for Growth 653
17.2 Project Management Value-Added Chain 654
17.3 Preacquisition Decision Making 657
17.4 Landlords and Tenants 662
17.5 Some Best Practices When Companies Work Together 663
17.6 Integration Results 664
17.7 Value Chain Strategies 667
17.8 Failure and Restructuring 668
18 AGILE AND SCRUM 671
18.0 Introduction 671
18.1 Introduction to Agile Delivery 673
18.2 Introduction to Scrum 687
18.3 Deloitte and Enterprise Value Delivery for Agile Method 703
18.4 The Risk of Metric Mania 710
19 BENEFITS REALIZATION AND VALUE MANAGEMENT 715
19.0 Introduction 715
19.1 Understanding the Terminology 715
19.2 Redefi ning Project Success 718
19.3 Value-Drive Project Management 720
19.4 Benefi ts Harvesting 721
19.5 The Business Case 722
19.6 Timing for Measuring Benefi ts and Value 723
19.7 Investment Life-Cycle Phases 724
19.8 Categories of Benefi ts and Value 729
19.9 Converting Benefi ts to Value 732
19.10 Go-Live Project Management 732
19.11 Portfolio Benefi ts and Value 732
19.12 Alignment to Strategic Objectives 734
19.13 Causes of Complete or Partial BRM Failure 736
19.14 Conclusion 737
INDEX 739
