The Little Black Book of Project Management

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The Little Black Book of Project Management

© 2022 Michael C. Thomsett.

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Published by HarperCollins Leadership, an imprint of HarperCollins Focus LLC.

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ISBN: 978-0-8144-1530-6 (eBook)

Library of Congress Cataloging-in-Publication Data

Thomsett, Michael C.

The little black book of project management / Michael C. Thomsett.—3rd ed.

p. cm.

Includes index.

ISBN-13: 978-0-8144-1529-0

ISBN-10: 0-8144-1529-6

1. Project management. I. Title.

HD69.P75 T48 2002

658.4’04—dc21

2009935594

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Please note that footnotes in this ebook may contain hyperlinks to external websites as part of bibliographic citations. These hyperlinks have not been activated by the publisher, who cannot verify the accuracy of these links beyond the date of publication.

Contents

Introduction to the Third Edition

1 Organizing for the Long Term

Background for Project Management

Project Definitions

Definition and Control

A New Look for Project Management

The Successful Project Manager

The Methodical Manager

Project Classification

Work Project

2 The Six Sigma Approach

The Meaning of Six Sigma

Business Process Management (BPM)

Project Participants and Goal Definitions

Defining Goals in Terms of Customer Service

Work Project

3 Creating the Plan

Setting Leadership Goals

Building Your Resource Network

Structuring Your Project Team

Defining the Project’s Scope

Holding a Project Announcement Meeting

Setting Project Objectives

Developing the Initial Schedule

Identifying Key Elements Necessary for Project Success

Work Project

4 Choosing the Project Team

The Imposed Team Problem

The Commitment Problem

Ten important Team-Building Guidelines

Defining Areas of Responsibility

Estimating Time Requirements

Working with Other Departments

The Executive Point of View

Delegation Problems and Solutions

Work Project

5 Preparing the Project Budget

Budgeting Responsibility

Checklist: Effective Budgets

Labor Expense: The Primary Factor

Additional Budgeting Segments

Budgeting Each Phase of Your Project

Budgeting Controls

Work Project

6 Establishing a Schedule

The Scheduling Problem

The Gantt Chart

Scheduling Control

The Scheduling Solution

Gantt Limitations

Work Project

7 Flowcharting for Project Control

Guidelines for Project Control

Listing Out the Phases

Work Breakdown Structures

CPM and PERT Methods

Automated Project Management Systems

Setting Your Flowcharting Rules

Work Project

8 Designing the Project Flowchart

Activity and Event Sequences

The Vertical Flowchart and Its Limitations

The Horizontal Network Diagram and Its Advantages

Building the Network Diagram

Applying the Network Diagram

Expanded Applications

Work Project

9 Managing the Value Chain in the Project

Attributes of the Value Chain

Risk Management and the Value Chain

How Value Is Incorporated into the Big Picture

Value: An Intangible Turned into a Tangible

Work Project

10 Writing the Supporting Documentation

Project Narratives

More Than Paperwork

Simplifying Instructions

The Diagram/Narrative Combination

Project Control Documentation

Work Project

11 Conducting the Project Review

Defining Success

The Progress Review

Project Leadership Attributes

Monitoring and Reporting

The Missed Deadline

The Accelerated Schedule

The Changing Objective

Staying on Course

Work Project

12 The Communication Challenge

Communication Skills Project Managers Need

The Budget as a Communication Tool

The Schedule as a Communication Tool

Working with Department Managers

Working with Other Department Employees

Working with Outside Consultants

Weal Links in Communication

How Flowcharting Helps

Meeting with Outside Resources

Running the Meeting

Work Project

13 Project Management and Your Career

An Organizational Science

Attributes of Project Leadership

Taking Charge

Eliminating Common Problems

Maximizing Your Skills

Work Project

14 Finding the Best Project Management Software

Appendix: Work Project Answers

Glossary

Index

List of Figures

Introduction to the

Third Edition

It is your business when the wall next door catches fire.

—HORACE—

Getting more results with fewer resources: This ideal defines project initiatives in many organizations. However, it is not simply the economic value, efficiency, or speed that defines success in project management. The process needs also to involve quality control in the supply chain, concern for product safety and value, and cooperation within the organization.

Project management is appropriate for any nonrecurring, complex, and costly assignment. If a team is going to include participants who cross departmental and sector lines and who may even involve project managers with lower corporate rank than some team members, then a specialized team structure is essential. This also has to involve developing a carefully defined overall plan, choosing the right team, preparing a project budget, and creating a realistic and executable schedule. The coordination of a project is complex and demands mastery over many kinds of variables.

Imagine this situation: You have been named as project manager for a nonrecurring, complex, and potentially costly project. You know immediately that the degree of your success in completing this project is going to impact your career. Typically, your resources are going to be limited, your budget too small, and the deadline too short. Also typically, management has defined this project in terms of the desired end result but not including the method of execution.

This assignment challenges your management, leadership, and organizational skills. A manager or supervisor can control and execute recurring tasks within a limited department or even in a multidepart-mental sector, as long as those routines recur in a manner that is known in advance, with potential risks easily identified, quantified, and mitigated. This situation is rare, however. Such a simple responsibility might seem desirable, but there are the variables—the things you don’t anticipate—that go wrong and that make organizational life interesting. This is more so in project management than in departmental, sector, or divisional management.

A project assignment may be defined as (a) outside of your normal responsibilities, (b) involving nonrecurring tasks, and (c) involving team members or resource providers outside of your immediate organizational realm of operation. As soon as you are put in charge of a project or asked to serve as a team member, your first question might be, What is this project supposed to accomplish? You are likely to discover that no one knows the answer. The project might be simplistic in definition, with the desired end result identified, but lacking the benefits it provides, the means for accomplishing it, or even the systems to sustain it once completed. Many projects are defined not specifically, but in terms of results. For example, your project might be to reduce the defects in a process, reduce the cost of providing service, or speed up the time it takes to deliver goods to the market.

These end-result definitions are not actually definitions at all. They are end results, perceived improvements over the current system. So as project manager or team member, you are really not given any guidance about what has to be changed or fixed. The project team’s first responsibility is going to be to identify a plan that begins with the assigned end result and tracks back through the system to determine how problems are going to be addressed.

This Little Black Book is intended as a guide to help you manage or take part in any project. This means, by necessity, that you need to determine how to define what needs to be achieved at every level within a project process. To do this, the overall project has to be broken down into smaller, more manageable phases. This is how any complicated task has to be addressed. Trying to attack the whole job at once is not only impossible and disorganized, it will also lead to an unsatisfactory result. The only way to control budgets and schedules is to define logical starting points and stopping points, helping lead the team to successful completion. This includes reaching not only the goals imposed on you at the time of project assignment (the end result) but other goals the team sets as well (reduced costs, faster processing, lower errors, better internal controls). This approach also helps you to anticipate problems in a coming project phase and to take steps to address them. Another advantage is that it will help to define concrete objectives in addition to the stated end result.

Projects may also be long term due to their complexity and impact. This causes even the best organized managers to experience difficulty in managing projects. But if you know how to organize and manage recurring tasks, you already understand the common problems associated with the work cycle, staffing issues, and budgetary restraints. Your skill in working with these restrictions qualifies you also to manage projects. The project environment is different, but your skills are applicable.

The context of a project is different from the recurring routines you deal with every day. First, because the project involves nonrecurring tasks and problems, their solutions cannot be anticipated or managed routinely; you are going to need to develop solutions creatively and in cooperation with team members. Second, unlike well-defined tasks you are accustomed to, projects are likely to cross lines of responsibility, authority, and rank, thereby introducing many new problems. Third, a project plan extends over many weeks or months, so you need to develop and monitor a budget and schedule for longer than the normal monthly cycle. Most managers are used to looking ahead for a matter of days or weeks for a majority of their routines, but projects demand a longer-term perspective.

The application of skills has to occur in a different environment, but you already possess the basic management tools to succeed in managing a project. Your ability to plan, organize, execute, respond to the unexpected, and to solve all work for projects as they work within a more predictable work environment. They only need to be applied with greater flexibility and in a range of situations you cannot anticipate or predict. The project may be defined as an exception to the rules of operation. It demands greater diligence in terms of budgets and schedules, and, of course, you will no doubt be expected to continue with your regularly recurring routines in addition to working through the project.

Operating a project is like starting a new division or department. You have no historical budget as a starting point, no known cycle to add structure as you move through routines, and no way to anticipate scheduling problems. You do not even have a known range of problems needed to be addressed, because everything about the project is new.

Think of this Little Black Book as a collection of basic information you need, not only as you proceed through your project but also to create a foundation for the project-based structure you are going to create. That structure relies on organization, style, character, and arrangement of resources, and you will play a central role in defining, drawing upon, and applying these resources. The project is also going to demand the application of essential management skills, including leadership and anticipating coming problems. This book shows you how to take charge of even the most complex project and proceed with confidence in yourself and your project team.

This third edition expands on the material in previous editions by incorporating many new elements. In addition, this edition includes the current fusion of traditional project management with the widely practiced and effective skills of Six Sigma, a discussion of how value chain applies to all projects and processes, and referrals to many online resources, notably software for project management. The intention of this new edition is not only to continue to expand on the advice and application of sound management principles you need as a project manager, but also to help you develop your own internal systematic approach in applying your experience in a project environment.

1

Organizing for the Long Term

Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.

—GEORGE S. PATTON—

The new clerk in the mailroom noticed an elderly gentleman sitting in a corner, slowly sorting through a mountain of mail.

Who’s that? he asked the supervisor.

That’s old Charlie. He’s been with the company more than forty years.

The new clerk asked, Are you saying he never made it out of the mailroom?

He did, but then he asked to be transferred here—after spending a few years as a project manager.

Dread. That is a common reaction most managers have to being given a project assignment. Few managers will seek out the project, and most will avoid it if possible. Why?

First, a distinction has to be made between projects and routines. The routines associated with operation of your department are repetitive in nature. Put another way, they are predictable. That means that the recurring operations you execute can be planned as a matter of course. Once you have gone through your normal cycle a few times, you know what to expect. Because they are predictable, recurring operational routines that are easier to manage than projects.

The project itself is temporary and nonrecurring in nature. It has a beginning and an end rather than a repetitive cycle. Thus, projects are by nature chaotic. Making projects even more daunting is that few companies have specialized project teams or departments. The project is assigned to a manager who seems to be a logical choice for the job. If the project is related to marketing, it will probably be assigned within the marketing area of the company. If financial in nature, the accounting or internal auditing department will be likely candidates.

Project scope and duration are impossible to define because projects arise at every level within the organization. This characteristic presents special problems for every manager because merely receiving a project assignment does not necessarily mean that you know what will be involved in the task. This makes scheduling and budgeting difficult, to say the least. A project has to be planned out, defined, and organized before you can know what you are up against in terms of actual management. Thus, you may be given an assignment, budget, and deadline before the project itself has been defined well enough to proceed. It will then be necessary to revise not only the schedule and budget, but perhaps the very definition of the project itself.

The secret to the skilled execution of a project is not found in the development of new skills, but in applying existing skills in a new environment. Projects are exceptional, out of the ordinary, and by definition, temporary in nature. So the problems, restrictions, deadlines, and budget are all outside the normal course of your operations. Some professions deal in projects continuously; for example, engineers, contractors, and architects operate in a project environment for every job they undertake. However, they have the experience to manage any problem that arises because it is part of their skills package to operate in ever-changing circumstances where similar problems arise.

You manage a series of problems in your department as an operational fact of life. Your department may be defined in terms of the kinds of problems you face each month and overcome. The controls you apply, budgets you meet, and reports you generate as a result of confronting problems within your operational cycle are the outcomes you know and expect. Assignments are made in the same or similar time sequence from month to month, and routines are performed in the same order, usually by the same employees. Even many of the problems that arise are predictable. However, when you are faced with the temporary and exceptional project, it raises several questions, all of which are related to questions of organization, planning, and control. These include:

How do I get started?

Exactly what is the project meant to achieve or discover?

Who is responsible for what, and how is the effort to be coordinated?

Beyond these are the equally important questions related to budgets, schedules, and assignments to a project team. The project presents a set of new demands that, although temporary in nature, require commitment from limited resources. Your department will be expected to continue meeting its recurring work schedule. Thus, a project places an additional burden on you and the others in your department. If the project also involves working with people in other departments, it will create even more potential problems. The point at which responsibility and work processes occur between departments often is also the point at which the smooth processing of the project routine is likely to be disrupted.

Background for Project Management

The difficulties you face as a project manager can be made to conform with a logical system for planning and execution, even when you need to continue managing your department at the same time. Much thought has gone into the science of project management on many levels. If you work regularly in a project environment, you can find assistance and support from several sources, including the Project Management Institute (PMI).

This book adheres to the standards expressed by the Project Management Institute and attempts to present readers with a concise overview of the principles they’ll need to employ as project manager. To begin, it is important to define some of the basic principles and ideas underlying the work of project management.

Spotlight on Project Management Institute (PMI)

The Project Management Institute has 265,000 members in 170 countries and was founded in 1969. PMI offers certificate programs for the credentials Project Management Professional (PMP), Certified Associate of Project Management (CAPM), Program Management Professional (PgMP), PMI Scheduling Professional (PMI-SP), and PMI Risk Management Professional (PMI-RM P).

PMI also publishes A Guide to the Project Management Body of Knowledge. This useful guide, often referred to as the PMBOK, compiles information from many sources. It has incorporated many of the standards established by project management writers, including information from the first and second editions of The Little Black Book of Project Management (1990 and 2002). PMBOK was first published in 1996 with revised editions in 2000 and 2004. Contact PMI at:

14 Campus Boulevard

Newtown Square PA 19073–3299

Phone 610–336–4600

E-mail: customercare@pmi.org

Website: www.pmi.org

Other Resources

To find local PMI chapters, check the PMI website and link to Community Membership and then to Chapter. All local chapters are listed.

Project Definitions

The project is best defined in two ways:

1. By comparing a project to a routine

2. By knowing the operational constraints associated with projects

A project has different meanings in each organization and may also vary from one department to another. For the purposes of proceeding with the preliminary steps in organizing your project, this book adheres to the two-part definition mentioned above: by comparison to routines and by the constraints under which projects are run.

The comparison between projects and routines can be divided into four parts as summarized in Figure 1-1 and outlined here:

1. A project is an exception. Unlike routines, projects involve investigation, compilation, arrangement, and reporting of findings in some way that provides value. The answers to the basic project questions cannot be found in the routines of your department, which is what makes it exceptional. The processes involved with the project fall outside your department’s normal range of activities and functions.

Figure 1-1. Comparing projects and routines.

2. Project activities are related, regardless of departmental routines. Projects are rarely so restricted in nature that they involve only one department. The characteristics of a department involve related routines, but projects are not so restricted. Thus, a project is likely to involve activities that extend beyond your immediate department, which also means that your project team may include employees from other departments.

3. Project goals and deadlines are specific. Recurring tasks invariably are developed with departmental goals in mind. Financial departments crunch numbers, marketing departments promote sales and develop new markets, and filing departments organize paperwork. The goals and related tasks tend to move forward primarily in terms of time deadlines. The same is true for departmental deadlines; they are recurring and dependable, tied to specific cyclical dates or events in other departments. Projects, though, have an isolated and finite number of goals that do not recur, plus identifiable starting and stopping points. Whereas departmental routines are general in nature, project activities are clearly specific.

4. The desired result is identified. A project is well defined only when a specific result is known. By comparison, departmental routines involve functions that may be called process maintenance. That means that rather than producing a specific outcome, a series of recurring routines are aimed at ensuring the flow of outcomes (e.g., reports) from one period to another. The department gets information from others, processes it, and passes it on in a refined form, and this series of steps takes place continuously. While a project involves the same basic idea—receiving information, analyzing it, and reporting conclusions—there are two clear distinctions worth keeping in mind. First, the work is nonrecurring, so the demands of a project cannot be easily identified in every case.