THE WILEY GUIDE TO MANAGING PROJECTS
The Wiley Guide to Managing Projects. Edited by Peter W. G. Morris and Jeffrey K. PintoCopyright 2004 John Wiley & Sons, Inc.
THE WILEY GUIDE TOMANAGING PROJECTS
Peter W. G. Morris
Jeffrey K. Pinto
JOHN WILEY & SONS, INC.
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Copyright 2004 by John Wiley & Sons, Inc. All rights reserved.
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Library of Congress Cataloging-in-Publication Data:
Morris, Peter W. G.The Wiley guide to managing projects / Peter W. G. Morris, Jeffrey K. Pinto.
p. cm.Includes bibliographical references and index.ISBN 0-471-23302-1 (cloth)1. Project management. I. Title: Guide to managing projects. II. Morris, Peter
W. G. III. Title.HD69.P75P552 2004658.404dc22
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
SECTION I: KEY ASPECTS OF PROJECT MANAGEMENT
1 Project Control 5
2 Qualitative and Quantitative Risk Management 30
Stephen J. Simister
3 Project Management Structures 48
4 An Overview of Behavioral Issues in Project Management 67
Dennis P. Slevin and Jeffrey K. Pinto
SECTION II: THE MANAGEMENT OF PROJECTS
SECTION II.1 STRATEGY, PORTFOLIO, AND PROGRAM MANAGEMENT
5 Project Success 99
6 Management of the Project-Oriented Company 123
7 Strategic Business Management through Multiple Projects 144
Karlos A. Artto and Perttu H. Dietrich
8 Moving From Corporate Strategy to Project Strategy 177
Ashley Jamieson and Peter W. G. Morris
9 Strategic Management: The Project Linkages 206
David I. Cleland
10 Models of Project Orientation in Multiproject Organizations 223
Joseph Lampel and Pushkar P. Jha
11 Project Portfolio Selection and Management 237
Norm Archer and Fereidoun Ghasemzadeh
12 Program Management: A Strategic Decision Management Process 257
13 Modeling of Large Projects 288
14 Managing Project Stakeholders 321
Graham M. Winch
15 The Financing of Projects 340
16 Private Finance Initiative and the Management of Projects 359
SECTION II.2: TECHNOLOGY MANAGEMENT
17 Requirements Management in a Project Management Context 391
Alan M. Davis, Ann M. Hickey, and Ann S. Zweig
18 Design Management 422
19 Concurrent Engineering for Integrated Product Development 450
Hans J. Thamhain
20 Process and Product Modeling 471
Rachel Cooper, Ghassan Aouad, Angela Lee, and Song Wu
21 Managing Congurations and Data for Effective Project Management 498
Callum Kidd and Thomas F. Burgess
22 Safety, Health and Environment 514
23 Verication 543
24 Managing Technology: Innovation, Learning, and Maturity 567
Rodney Turner and Anne Keegan
SECTION II.3: SUPPLY CHAIN MANAGEMENT AND PROCUREMENT
25 Integrated Logistic Support and all that: A Review of Through-Life ProjectManagement 597
David Kirkpatrick, Steve McInally, and Daniela Pridie-Sale
26 Project Supply Chain Management: Optimizing Value: The Way We Managethe Total Supply Chain 621
27 Procurement: Process Overview and Emerging Project ManagementTechniques 643
Mark E. Nissen
28 Procurement Systems 654
David Langford and Mike Murray
29 Contract Management 678
30 Tender Management 708
31 Project Changes: Sources, Impacts, Mitigation, Pricing, Litigation, andExcellence 743
Kenneth G. Cooper and Kimberly Sklar Reichelt
SECTION II.4: CONTROL
32 Time and Cost 781
33 Critical Chain Project Management 805
Lawrence P. Leach
34 Project Performance Measurement 830
Daniel M. Brandon, Jr.
35 Making Risk Management More Effective 852
Stephen Ward and Chris Chapman
36 Value Management 876
37 Improving Quality in Projects and Programs 903
38 The Project Management Support Ofce 937
Martin Powell and James Young
SECTION II.5: COMPETENCE DEVELOPMENT
39 Contemporary Views on Shaping, Developing, and Managing Teams 983
Connie L. Delisle
40 Leadership of Project Teams 1014
Peg Thoms and John J. Kerwin
41 Power, Inuence and Negotiation in Project Management 1033
John M. Magenau and Jeffrey K. Pinto
42 Managing Human Resources in the Project-Oriented Company 1061
Martina Huemann, Rodney Turner, and Anne Keegan
43 Competencies: Organizational and Personal 1087
44 Projects: Learning at the Edge of Organization 1112
Christophe N. Bredillet
45 The Validity of Knowledge in Project Management and the Challenge ofLearning and Competency Development 1137
Peter W. G. Morris
46 Global Body of Project Management Knowledge and Standards 1150
47 Lessons Learned: Project Evaluation 1197
J. Davidson Frame
48 Developing Project Management Capability: Benchmarking, Maturity,Modeling, Gap Analyses, and ROI Studies 1214
C. William Ibbs, Justin M. Reginato, and Young Hoon Kwak
49 Project Management Maturity Models 1234
SECTION III: APPLICATIONS IN PRACTICE
50 How Projects Differ, And What to Do About It 1265
Aaron J. Shenhar and Dov Dvir
51 Managing New Product Development Projects 1287
52 Pharmaceutical Drug Development Project Management 1315
Janet Foulkes and Peter W. G. Morris
53 Project Management in the Defense Industry 1329
John F. Roulston
54 Project Management in the Construction Industry 1350
Peter W. G. Morris
55 Project Management in the Automotive Industry 1368
Christophe Midler and Christian Navarre
56 Professional Associations and Global Initiatives 1389
The management of projects represents one of the most signicant undertakings in whichmodern organizations can engage. The economic, social, and technological forces thatshape our world are creating an environment that seems, every day, to be oriented moreand more towards a project-based approach to getting things done. Everywhere there isevidence of an increased interest in managing projects: Thousands of new members areenrolling every year in project management professional organizations; hundreds of privateand public sector enterprises are pushing their operating models toward project-based work-ing; scores of universities and technical agencies are offering courses, certication, and de-grees in project management. It is clear that we are experiencing a revolution in the waywe organize and manage, happily one not threatening disruption and confusion but prof-fering improvement and opportunity.
When we, as editors, set out to develop this handbook, our clear motivation was tocreate a product that was timely, accessible, and relevant. Timely in that project-basedwork has continued to grow at such an enormous pace, attracting large numbers of newadherents, both as individuals and as organizations. Accessible in that we sought also tocreate a work that spoke the appropriate language to the largest possible audience, appealingto both project management practitioners and academic researchers. But above all rele-vant: Too much of project management writing addresses only the basics of time, cost,and scope management (or people and organizational issues) and fails to address the day-to-day nuances that become so important in practice. The reality is that there is far morethan this to managing projects successfully. For this book to be useful, it needed to reectnot only well-known and widely used basic project management practices but also the new,cutting-edge concepts in the broader theory and practice of managing projects. To this endwe have consciously built on our individual (but in many ways parallel) research to capturethe insights of many of the worlds leading experts, explicitly organized, as we explain inthe Introduction, around a management of projects framework.
In short, our goal was to provide a resource that demonstrated the widest possibleusefulness for readers seeking to develop and deliver successful projects, regardless of theirprofessional background.
Hence, in The Wiley Guide to Managing Projects, we have endeavored to provide a clearview of the cutting edge in project management best practice. Wherever possible, we dothis within a soundly based conceptual framework, founded in research and practical ex-perience, which we have endeavored to make explicit. In doing so we have been joined bya truly notable range of authorities, all leaders in their eld, drawn from many differentindustry sectors, practice areas, and countries. Together they address the most signicanttopics and problems currently facing project managers and project-based organizationstoday.
Whether you view this book as a comprehensive resource that should be read cover-to-cover or choose a selective subset of the topics that appeal to you directly, we hope youwill nd the experience rewarding. As a collective whole, we believe the book holds togetherwith clarity and structure; as individual essays, each chapter can provide value to the reader.
It is with genuine gratitude that we would like to acknowledge the efforts of severalindividuals whose work contributed enormously to this nished product. Bob Argentieri,acquisition editor at Wiley, rst conceived of the idea from which this book eventuallyemerged (the successor to the famous Cleland and King Project Management Handbook, as weexplain at the outset of the Introduction). It was his energy and enthusiasm that led, in largepart, to what you now see. To the contributors of the individual chapters we owe a greatdebt of thanks as well. To have so many busy professionals rst agree to participate in thisproject and then to contribute work of such outstanding quality, and work with us so pa-tiently in crafting the chapters, has been extremely gratifying. We thank them sincerely.Third, we should especially thank Gill Hypher of INDECO, who has patiently and withgood humor shepherded a host of queries and a vast quantum of correspondence in gettingthe details right to allow publication to proceed, and to Naomi Rothwell of Wiley, who hasworked with Gill to embed the emerging document in Wileys production machinery.
And last, though never least, to our families, we acknowledge a bond that can neverbe broken and a wellspring that continues to lead to greater and better things. Two peoplewere never better blessed than we have been with this support.
Peter Morris and Jeff Pinto
Peter Morris and Jeffrey Pinto
In 1983 Dave Cleland and William King produced for Van Nostrand Reinhold (nowJohn Wiley & Sons) the Project Management Handbook, a book that rapidly became a classic.Now over 20 years later John Wiley & Sons is bringing that landmark publication up-to-date with this, The Wiley Guide to Managing Projects.
Why the new titleindeed, why the need to update the original work?Thats a big question, one that goes to the heart of much of the debate in project
management today and that is central to the architecture and content of this book. First,why the management of projects?
Project management has moved a long way since 1983. If we take the founding ofproject management to be somewhere between about 1955, when the rst uses of modernproject management terms and techniques began being applied in the management of theU.S. missile programs, and 1969 to 1970, when project management professional associa-tions were established in the United States and Europe (Morris, 1997), then Cleland andKings book was reecting thinking that had been developed in the eld for about the rst20 years of this young disciplines life. Well over another 20 years has since elapsed. Duringthis time there has been an explosive growth in project management. The professionalproject management associations around the world now have thousands of memberstheProject Management Institute (PMI) itself having over 140,000and membership continuesto grow. Every year there are dozens of conferences; books, journals, and electronicpublications abound; companies continue to recognize project management as a core busi-ness discipline and work to improve company performance through it; and increasinglythere is more formal educational work carried out in universities in teaching programs atboth the undergraduate but particularly postgraduate levels and in research.
Yet in many ways all this activity has lead to some confusion over concepts and appli-cations. The basic American, European, and Japanese professional models of project man-
agement, for example, are different. PMIs is, not least because of its size, the mostinuential, with both its Guide to the Project Management Body of Knowledge (PMI, 2000) and itsnewer Organizational Project Management Maturity Model, OPM3 (PMI, 2003). Yet it is also themost limiting, reecting an essentially execution, or delivery, orientation. This tendencyunderemphasizes the front-end, denitional stages of the project, the stages that are socrucial to successful accomplishment. (The Europ...