The Handbook of Project Management: A Practical Guide to Effective Policies and Procedures, 2nd Revised Edition_1 doc

Trevor L YoungThe Handbook of PROJECT MANAGEMENT A practical guide to effective policies, techniques and processes London and Philadelphia Revised 2nd edition... Trevor Leonard, 1940-T

Trevor L Young

The Handbook of

PROJECT

MANAGEMENT

A practical guide to effective policies,

techniques and processes

London and Philadelphia

Revised 2nd edition

First published 1996

First paperback edition 1998

Second edition published in Great Britain and the United States in 2003 by Kogan Page Limited

Reprinted 2004, 2005 (twice), 2006

Revised second edition 2007

Apart from any fair dealing for the purposes of research or private study, or cism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses:

criti-120 Pentonville Road 525 South 4th Street, #241

ISBN-13 978 0 7494 4984 1

British Library Cataloguing in Publication Data

A CIP record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Young, Trevor L (Trevor Leonard),

1940-The handbook of project management : a practical guide to effective

policies, techniques and processes / Trevor L Young Rev 2nd ed.

Printed and bound in Great Britain by Creative Print and Design (Wales), Ebbw Vale

Preface to the revised second edition vii

Part 1 The programme and project environment 1

What is special about programmes and projects? 4

2 Change: programmes and projects 7

Change and the programme and project manager 8

What is programme management? 16What is project management? 17Why is programme management different from project

What is different about programme and project management? 19How are programmes and projects derived? 21

The programme and project process phase gates 26

Is the phase gate a constraint? 28

3 Organizing for programme management 31

Establishing the programme steering team 34Continuous improvement and problem solving: are they projects? 36

Operating a programme register 37The key responsibilities of the programme steering team 41Meetings of the programme steering team 42Managing the portfolio: selection of programmes and projects 44The inputs to effective selection 46

The result of effective selection 49

The project steering team administrator 54

The programme and project manager as a leader 60The dimensions of leadership in the programme and

Dimension 1: Managing stakeholders 63Dimension 2: Managing the dynamic life cycle 66Dimension 3: Managing performance 66Programmes, projects and teamwork 67

Part 2 The programme and project processes and techniques 75

5 Starting up: ideas and opportunities for projects 77

What data does the programme steering team require? 80Preparing the initial business case 80Through Gate Zero to Gate One 81Presenting the business case to the programme steering team 87

The project brief and specification 95

iv l Contents

What is necessary to define a project? 99

The scope of work statement 105

What is not going to be done? 126

Where does planning start? 127Identifying the key stages 128The project work breakdown structure 131

Avoid some classic pitfalls 135

Time-limited scheduling and estimates 143Identifying the critical path of your project 145The programme evaluation and review technique 146Analysing the logic diagram 149Using the PERT analysis data 149Analysing your resource requirements 154

Reviewing your project risk log 159Reviewing your project budget 160

Seeking approval to launch your project 162

Establishing key stage work plans 166Deriving a milestone schedule 169

Ensuring effective communication 173

Deriving a meetings schedule for your project 177

Holding a launch meeting 185

The project control system 191

Approaching the closure phase 238

Establishing completion criteria 244

Selecting project software 271The programme management office 271

Preface to the revised second edition

Welcome to this revised second edition Several significant changes weremade in the second edition In this revision most chapters have had somemodifications and additions In particular, in Chapter 7 there are addi-tional techniques on estimating and in Chapter 9 the techniques of projectbalancing have been revised A new Chapter 12 on the common problems

of project management has been added The main structure of the work,divided into two parts, remains unchanged

Part 1 looks at the programme and project environment This includeshow programmes have evolved and relate to projects and introduces theprocess for managing an idea or opportunity as it progresses from initialselection on through the different phases of a programme or project Theconcept of phase gates to allow senior management control over theprogramme and project activities is included These techniques dependvery much on organizing for programme and project management, ensur-ing that the strategically appropriate programmes and projects areselected to create a portfolio of active projects and programmes Finally inPart 1, the roles and their responsibilities are discussed to enable effectivemanagement of the portfolio

Part 2 has been extensively revised to ensure that the processes andtechniques described fit the programme and project environment Thedetailed processes for managing an opportunity through each phase gate

to completion have been enhanced with new material The risk ment process has been modified to include quantitative risk assessment.The issue management process and the change management process havebeen extensively revised on the basis of practical experience Additional

manage-cost control and earned value analysis techniques have been added.Finally, the project closure process has been enhanced.

This book is based on over 30 years’ experience in the project ment, and in that time I have learnt much from others – and much thehard way of ‘try it and see if it works’ I could not begin to list all those whohave helped me on that journey, working together at different times toachieve a successful project outcome Programme management has notbeen easily understood in many companies I would like to acknowledgethe huge amount of commitment and support from Ken Foster and thankhim for the many hundreds of satisfying hours we have spent togetherpersuading others of the value of the techniques in this book I thank Kenalso for his many suggestions and helpful comments on the material inPart 1 Finally, I thank Christine, my wife, for tolerance, patience and thesupport she gave to help me complete this project on time

environ-viii l Preface to the revised second edition

Part 1

The programme and project

environment

Part 1 is focused on understanding the steps that an organization needs to take

to create an effective environment for success in programme and projectmanagement This includes understanding the terminology and the organiza-tional structure changes advisable to take advantage of a programme-orientedenvironment in the business

Part 1 also looks at the steps necessary to institute a formalized approach toprogramme and project selection and at understanding the essential roles andtheir responsibilities that are required for these processes to be effective

This page is left intentionally blank

Introduction

During the past decade the skills of project management have becomeincreasingly recognized as highly desirable for managers at all levels in anorganization Most people today can benefit from the application of theseskills to some parts of their daily operations The rapid growth of globalmarkets and the introduction of Total Quality Management, continuousimprovements and, more recently, the drive to redesign businessprocesses all require these skills to some degree All are aimed at improv-ing organizational effectiveness and performance in a highly competitiveworld marketplace The world marketplace is continually changing andevery organization, irrespective of the service or product it offers, mustaccept that internal change is a normal process to meet the demands ofexternal change

The successful and effective implementation of change employs specificskills that have traditionally been owned by a select group of technicalprofessionals This is no longer true, and the skills of managing change areessential for everyone in an organization at all levels Change alwaysrequires a cultural shift for everyone:

• introducing new processes;

• finding new and better procedures and working practices;

• throwing off the old habits to create a more dynamic and flexibleorganization;

• being able to react effectively to market forces;

• searching for ways to maintain competitiveness;

• searching for ways to seek new horizons

To carry out such change requires some special skills Project managementhas long provided a structured and organized way to achieve success

every time, but has been buried deep inside technical and engineeringdepartments as part of their exclusive domain Unfortunately, it is notsurprising that project management has been regarded as too complicatedand as a result is frequently misunderstood and very poorly practised inother parts of the business.

WHAT IS SPECIAL ABOUT PROGRAMMES

AND PROJECTS?

If you ask anyone what is special about projects, expect to get a confusedvariation of responses The Channel Tunnel, Concorde, North Sea oil rigs,motorways, inner-city development, landing on the moon, the Taj Mahal,the Pyramids and countless others are readily recognized as ‘projects’.Certainly all can be termed ‘special’ – all have a clearly recognizablespecific result at the point of completion and we can see the result thanks

to the use of modern technology and communications Each is unique andunlikely to be repeated again in quite the same way with identical results.These large undertakings involve a wide range of technical skills and,often, large numbers of people At the other end of the spectrum manyunique but much smaller undertakings occur in every type of organiza-tion; they use fewer people but still require many skills to produce adesired result All these activities involve change since they are concernedwith creating something that does not yet exist The sum of the activities

directed towards a specific result is regarded as a project.

In recent years the term programme has entered the project environment

and, not unexpectedly, caused considerable confusion Originally it wasperceived as a management tool, just a convenient way of grouping someprojects together so that they all came under the responsibility of onesenior manager This apparently reduced the burden of reporting effortrequired but conveniently hid from view many of the issues and delaysoccurring Others saw a programme as an ongoing specialized activitywith no clear end-point, such as, for example, marketing campaigns andspace exploration Fortunately, a more rigorous understanding ofprogrammes has now been accepted, with significant benefits.Programme and project management is now more widely accepted as anessential business discipline for all professions

Such activities are frequently carried out outside the normal operationsthat keep the mainstream activity of the organization moving to satisfy itscustomers Programme and project management is seen as a burden onpeople, one demanding valuable time and resources It incurs a commit-ment of expenditure of today’s profits to generate future enhanced perfor-mance and benefits

4 l The programme and project environment

WHO IS THIS BOOK FOR?

Anyone involved in programmes or projects, regardless of their status orrole in an organization, will benefit from reading this book But that is notits real purpose The book is written with two specific aims:

• to give managers in the organization a better understanding ofprogramme and project management and how to establish an effec-tive environment to achieve results;

• to give you, the programme or project manager, a guide to help youimprove performance using well tried and tested tools and techniques.The skills of project management are not the only tools you will need tobecome more effective, yet many of these tools are valuable in your every-day work It is clearly recognized that you do not spend all your timemanaging programmes or projects and it is more likely to be an occasionalresponsibility at some time in your career

The book has been carefully designed to meet your needs if:

• you are looking to help your organization become better organized toselect and manage a programme and project portfolio;

• you are looking to develop the skills of effective programme andproject management to help you in your work as a member of a team;

• you are about to start work on a programme or project, having justbeen appointed to the role of programme or project manager;

• you have managed programmes or projects already but are seeking toimprove your skills and welcome an opportunity to review yourpresent knowledge, add some new tools and techniques to yourpersonal skill set and improve your performance;

• you have an involvement in programmes and projects and need tocoach others in the application of the appropriate tools and techniques

in a proven process

This is not an academic textbook offering you complex theories to learn.The tools and techniques of effective and successful programme andproject management are practical and relatively simple to understand.This does not mean they are always easy to apply, because of the complex-ity of the work and the effects of scale The emphasis is on businessprogrammes and projects, which are often small and of short durationwhen compared to highly technical or construction projects

The book is written as a pocket guide, so it is not a book to read once andplace in the bottom draw of your desk, never to see the light of day again!

It is a tool to be used frequently to help you, remind you and support what

you do at each step along the road from start-up of an opportunity for aprogramme or project through to successful completion Throughout youwill find practical tips and checklists for each step to help you achieve theresults expected.

Enjoy and be successful

6 l The programme and project environment

environ-Not all change is so automatic and uncontrolled You can choose tocreate change in your life by taking carefully framed decisions Youchoose to change jobs, move house, or adopt a different lifestyle as anexpression of your personal desires and as a means of satisfying yourcurrent needs.

However, frequently you face changes that you do not choose becausethe decision is taken by another You do not like an increase in taxation butsomeone decides it is essential for the greater good of the economy Suchchange is obligatory for all, and you have to face consequential changesand take decisions to further adapt your lifestyle to accommodate thereduction in income Similarly, others at work take decisions about howyou must work or what you do; you have no input to the change and youare expected to accept the new environment that results Technologicaladvances continue to affect you at an increasing pace, creating additionalstress through the need to keep up to date One thing is a certainty: thepace of change will continue to increase in the future

The consequences of change range from trivial through to very cant, affecting your response Success in managing change is directlyrelated to your ability to: