Best practices from 50+ world-class organizations to improve project management, add business value, and increase benefit realization
Featuring senior executives and project managers from more than 50 world-class companies offering their best practices for successful project management implementation, the newly revised Fifth Edition of Project Management Best Practices contains updates throughout to reflect the latest project management best practices that add value and efficiency to every level of an organization. The text offers guidance on a wide range of project management best practices, with new coverage of the impact of COVID-19, the growth of nontraditional projects, cultural and emotional intelligence, and much more.
Project Management Best Practices features insights and best practices from world class organizations like Siemens, Deloitte, GEA, Heineken, Sony, Dubai Customs, Philips Medical, IBM, Boeing, Comau, and Hitachi. Case studies from many of these organizations are included in each chapter to practically illustrate various concepts. This Fifth Edition includes updated information from companies covered in the earlier books along with contributions from new companies.
Project Management Best Practices includes information on: - Project management best practices throughout modern history and how the best of intentions can quickly become migraines - Responding to changing customer requirements, what to do when the wrong culture is in place, and handling the internal politics of any project - Strategic planning for project management, roadblocks to excellence, and seven fallacies that delay project management maturity - Recognizing the need for project management methodology development and where/how artificial intelligence (AI) slots into the project management field
Following the same successful format as its predecessor in terms of content, the Fifth Edition of Project Management Best Practices is an essential resource for senior level and middle level corporate managers, project and team managers, engineers, project team members, business consultants, and students in related programs of study.
Table of Contents
Preface xv
About the Companion Website xix
1 Understanding Best Practices 1
1.0 Introduction 1
1.1 Wärtsilä 2
1.2 Project Management Best Practices: 1945-1960 4
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 19
1.8 The Growth of Nontraditional Projects 22
1.9 The Growth of the VUCA Environment 24
1.10 The Impact of the COVID-19 Pandemic on Project Management 26
1.11 General Motors and Ventilators 30
1.12 Best Practices Process 33
1.13 Step 1: Definition of a Best Practice 34
1.14 Step 2: Seeking Out Best Practices 37
1.15 Dashboards and Scorecards 45
1.16 Key Performance Indicators 48
1.17 Manufacturing Best Practices in Action 54
1.18 Step 3: Validating the Best Practice 57
1.19 Step 4: Levels of Best Practices 58
1.20 Step 5: Management of Best Practices 61
1.21 Step 6: Revalidating Best Practices 61
1.22 Step 7: What to Do with a Best Practice 62
1.23 Step 8: Communicating Best Practices Across the Company 63
1.24 Step 9: Ensuring Usage of the Best Practices 65
1.25 Common Beliefs 65
1.26 The Dark Side of Project Management Best Practices 67
1.27 Best Practices Library 67
1.28 Determining the Value of a Best Practice 69
1.29 ARAMCO Bolsters Innovation through Cutting- Edge Ideas 71
2 From Best Practice to Migraine Headache 75
2.0 Introduction 75
2.1 Good Intentions Becoming Migraines 76
2.2 Enterprise Project Management Methodology Migraine 77
2.3 Trade- Off Migraine 77
2.4 Customer Satisfaction Migraine 78
2.5 Migraine Resulting from Responding to Changing Customer Requirements 79
2.6 Reporting Level of the PMO Migraine 80
2.7 Cash Flow Dilemma Migraine 80
2.8 Scope Change Dilemma Migraine 81
2.9 Outsource or Not Migraine 82
2.10 Determining When to Cancel a Project Migraine 82
2.11 Providing Project Awards Migraine 83
2.12 Migraine from Having the Wrong Culture in Place 84
2.13 Migraines Due to Politics 85
2.14 Migraines Caused by the Seven Deadly Sins 92
2.15 Sources of Smaller Headaches 106
2.16 Ten Uglies of Projects 109
3 Journey to Excellence 119
3.0 Introduction 119
3.1 Strategic Planning for Project Management 122
3.2 Roadblocks to Excellence 130
3.3 Pain Points 131
3.4 Hitachi Ltd. 138
References 144
3.5 Farm Credit Mid- America Best Practices 150
References 154
3.6 NCS Integrated Delivery Methods (IDM) & Project Management Method (PMM) 155
3.7 Managing Change within Research and Development at Business Area Networks, Ericsson 162
3.8 Intel Corporation and “Map Days” 170
3.9 Apple Computer and Cell Phones 170
3.10 The Light at the End of the Tunnel 171
3.11 Managing Assumptions 173
3.12 Project Governance 174
3.13 Seven Fallacies That Delay Project Management Maturity 175
3.14 Motorola 178
3.15 Texas Instruments 179
3.16 Naviair: On Time - On Budget 180
3.17 Avalon Power and Light 190
3.18 Roadway Express 191
3.19 Kombs Engineering 193
3.20 Williams Machine Tool Company 194
4 Project Management Methodologies 197
4.0 Introduction 197
4.1 Excellence Defined 198
4.2 Recognizing the Need for Methodology Development 198
4.3 Enterprise Project Management Methodologies 202
4.4 Benefits of a Standard Methodology 207
4.5 Critical Components 208
4.6 Valmet Customer Project Management 211
4.7 Project Quality Gates - Structured Approach to Ensure Project Success 214
4.8 Técnicas Reunidas 219
4.9 Sony Corporation and Earned Value Management 225
Further Reading 229
4.10 Project Management Tools and Socialized Project Management 229
4.11 Artificial Intelligence and Project Management 230
4.12 Life- Cycle Phases 232
4.13 Expanding Life- Cycle Phases 233
4.14 Churchill Downs Incorporated 234
4.15 Indra: The Need for a Methodology 235
4.16 Implementing the Methodology 237
4.17 Implementation Blunders 238
4.18 Overcoming Development and Implementation Barriers 238
4.19 Wärtsilä: Recognizing the Need for Supporting Tools 239
4.20 General Motors Powertrain Group 240
4.21 Indra: Closing the Project 242
4.22 When Traditional Methodologies May Not Work 244
5 Integrated Processes 249
5.0 Introduction 249
5.1 Understanding Integrated Management Processes 250
5.2 Evolution of Complementary Project Management Processes 251
5.3 Total Quality Management 255
5.4 Concurrent Engineering 260
5.5 Risk Management 261
5.6 Wärtsilä: The Need for Proactive Risk Management 264
5.7 Indra: When a Risk Becomes Reality (Issue Management) 266
5.8 The Failure of Risk Management 269
5.9 Defining Maturity Using Risk Management 270
5.10 Boeing Aircraft Company 271
5.11 Change Management 271
5.12 Other Management Processes 272
6 Culture 275
6.0 Introduction 275
6.1 Creation of a Corporate Culture 276
6.2 Corporate Values 278
6.3 Types of Cultures 279
6.4 Corporate Cultures at Work 281
6.5 GEA and Heineken Collaboration: A Learning Experience 284
6.6 Indra: Building a Cohesive Culture 294
6.7 Barriers to Implementing Project Management in Emerging Markets 298
7 Management Support 307
7.0 Introduction 307
7.1 Visible Support from Senior Managers 307
7.2 Project Sponsorship 308
7.3 Excellence in Project Sponsorship 313
7.4 When Sponsorship Fails 313
References 320
7.5 The Need for a Project Cancellation Criteria 320
7.6 Project Governance 321
7.7 Tokio Marine: Excellence in Project Governance 324
7.8 Empowerment of Project Managers 330
7.9 Management Support at Work 331
7.10 Getting Line Management Support 334
7.11 Initiation Champions and Exit Champions 334
8 Training and Education 339
8.0 Introduction 339
8.1 Training for Modern Project Management 339
8.2 Need for Business Education 341
8.3 SAP: Importance of a Project Management Career Path 342
8.4 International Institute for Learning 343
8.5 Identifying the Need for Training 348
8.6 Selecting Participants 349
8.7 Fundamentals of Project Management Education 349
8.8 Some Changes in Project Management Education 350
8.9 Designing Courses and Conducting Training 352
8.10 Measuring the Return on Investment in Education 354
8.11 Project Management is Now a Profession 356
8.12 Competency Models 357
9 Informal Project Management 359
9.0 Introduction 359
9.1 Informal Versus Formal Project Management 359
9.2 Trust 362
9.3 Communication 363
9.4 Cooperation 366
9.5 Teamwork 366
9.6 Color- Coded Status Reporting 367
9.7 Crisis Dashboards 368
9.8 The Risks of Using Informal Project Management 370
10 Behavioral Excellence 373
10.0 Introduction 373
10.1 Situational Leadership 373
10.2 Cultural Intelligence 376
10.3 Emotional Intelligence 377
10.4 Conflict Resolution 378
10.5 Staffing for Excellence 381
10.6 Virtual Project Teams 382
10.7 Rewarding Project Teams 384
10.8 Keys to Behavioral Excellence 387
10.9 Proactive Versus Reactive Management 391
11 Measuring Return on Investment on Project Management Training Dollars 397
11.0 Introduction 397
11.1 Project Management Benefits 398
11.2 Growth of ROI Modeling 399
11.3 The ROI Model 400
11.4 Planning Life- Cycle Phase 401
11.5 Data Collection Life- Cycle Phase 402
11.6 Data Analysis Life- Cycle Phase 405
11.7 Reporting Life- Cycle Phase 409
11.8 Education and ROI Challenges 410
11.9 Conclusions 411
12 The Project Management Office 413
12.0 Introduction 413
12.1 Boeing 415
12.2 KAUST IT PMO: Building Capabilities 417
12.3 Philips Hospital Patient (HPM) Services and Solution Deliverability 420
12.4 Churchill Downs Incorporated: Establishing a PMO 433
12.5 Churchill Downs Incorporated: Managing Scope Changes 435
12.6 Project Management Office - Blitzscaling at Nanoform 439
Acknowledgments 450
Further Reading 450
12.7 Types of Project Offices 451
12.8 Project Audits and the PMO 452
12.9 PMO of the Year Award 453
13 Six Sigma And The Project Management Office 455
13.0 Introduction 455
13.1 Project Management - Six Sigma Relationship 455
13.2 Involving the PMO 456
13.3 Traditional Versus Nontraditional Six Sigma 457
13.4 Understanding Six Sigma 459
13.5 Six Sigma Myths 462
13.6 Use of Assessments 464
13.7 Project Selection 467
13.8 Typical PMO Six Sigma Projects 469
14 Project Portfolio Management 471
14.0 Introduction 471
14.1 Involvement of Senior Management, Stakeholders, and the PMO 472
14.2 Project Selection Obstacles 477
14.3 Role of the Project Manager in Project Selection 477
References 483
14.4 Identification of Projects 484
14.5 Preliminary Evaluation 488
14.6 Strategic Selection of Projects 489
14.7 Strategic Timing 492
14.8 Analyzing the Portfolio 493
14.9 Problems with Meeting Expectations 495
14.10 Misalignment Issues 497
References 502
14.11 Post- Failure Success Analysis 502
14.12 Conclusion 507
References 507
15 Global Project Management Excellence 509
15.0 Introduction 509
15.1 IBM 510
15.2 Deloitte: Enterprise Program Management 529
15.3 COMAU 551
15.4 IPLM: Enabling Excellence in a Digitally Transformed Future of Work 559
16 Value- Driven Project Management 567
16.0 Introduction 567
16.1 Value Over the Years 568
16.2 Values and Leadership 570
17 Effects of Mergers and Acquisitions on Project Management 587
17.0 Introduction 587
17.1 Planning for Growth 587
17.2 Project Management Value- Added Chain 588
17.3 Preacquisition Decision Making 591
17.4 Landlords and Tenants 596
17.5 Some Best Practices When Companies Work Together 597
17.6 Integration Results 598
17.7 Value Chain Strategies 600
17.8 Failure and Restructuring 602
18 Agile and Scrum 605
18.0 Introduction 605
18.1 Introduction to Agile Delivery 607
18.2 Introduction to Scrum 622
18.3 Deloitte and Enterprise Value Delivery for Agile Method 638
18.4 Best Practices in Project Management Based on the Agile Operating Model Implementation by Deloitte 644
18.5 The Risk of Metric Mania 653
18.6 Conclusions and Recommendations 656
19 Benefits Realization and Value Management 659
19.0 Introduction 659
19.1 Understanding the Terminology 659
19.2 Redefining Project Success 662
19.3 Value- Drive Project Management 664
19.4 Benefits Harvesting 665
19.5 The Business Case 666
19.6 Timing for Measuring Benefits and Value 668
19.7 Investment Life- Cycle Phases 668
19.8 Categories of Benefits and Value 673
19.9 Converting Benefits to Value 676
19.10 Go- Live Project Management 676
19.11 Portfolio Benefits and Value 677
19.12 Alignment to Strategic Objectives 678
19.13 Causes of Complete or Partial BRM Failure 681
19.14 Conclusion 681
Index 683
