The Origins of Modern Project Management
The Origins of Modern Project Management
The Origins of Modern Project Management
Fourth Annual PMI College of Scheduling Conference 15 - 18 April 2007 Marriott Pinnacle Downtown, Vancouver. Updated with new information received after original publication. Patrick Weaver PMP, FAICD, FCIOB.
Director, Mosaic Project Services Pty Ltd Manager, Stakeholder Management Pty Ltd
See also: A Brief History of Scheduling - Back to the Future www.mosaicprojects.com.au/Resources_Papers_042.html Trends In Modern Project Management - Past Present & Future www.mosaicprojects.com.au/Resources_Papers_061.html Seeing The Road Ahead The art of presenting schedule data effectively www.mosaicprojects.com.au/Resources_Papers_106.html For more scheduling papers see Mosaics Planning and Scheduling Home page: www.mosaicprojects.com.au/Planning.html
Introduction
Projects in one form or another have been undertaken for millennia: the ancient Egyptians constructed the pyramids some 4500 years ago; Sun Tzu wrote about planning and strategy 2500 years ago (every battle is a project to be first won; then fought1); numerous transcontinental railways were constructed during the 19th century and buildings of different sizes and complexity have been erected for as long as mankind has occupied permanent settlements. However, it was only in the latter half of the 20th century people started to talk about project management; earlier endeavours were seen as acts of worship, engineering, nation building, etc. And the people controlling the endeavours called themselves priests, engineers, architects, etc. Whilst the Manhattan Project to build the atomic bomb in the 1940s is generally considered the first program, its managers primarily saw their roles either as military officers or scientists. For the purposes of this paper, there is an important distinction to be drawn between projects: a temporary endeavour undertaken to create a unique product, service or result2 and project management or at least the profession and practice of modern project management as it is embodied in the various project management associations around the world. In this context, modern project management is a phrase used by the author and others3 to describe the management of projects in the way described by organisations such as the APMi (UK) and PMIii in their respective bodies of knowledge (BoKs) - both current and former. This paper will discuss three themes. Firstly a brief look at the evolving processes of schedule analysis (CPMiii) and other project management tools - the technology. Second, the evolution of management science through to the 20th Century that laid the foundations for the development of modern project management as a distinct branch of general management and finally the serendipity that brought these two factors together to create a new profession.
Association for Project Management Project Management Institute Inc. Critical Path Method See also: A Brief History of Scheduling - www.mosaicprojects.com.au/Resources_Papers_042.html
The first project to add science to the process of time control was undertaken by Kelley and Walker for E.I. du Pont de Numours. The meeting that approved the funding for this project was held in Newark, Delaware, USA on the 7th May 1957 and as they say, the rest is history5. In 1956 Kelly and Walker had started developing the algorithms that became the Activity-on-Arrow or ADM method of critical path scheduling after approval of funding for the development project. The computer program they developed was trialled on plant shutdowns in 1957 and the first paper discussing the critical path method (CPM) of scheduling was published in March 19596. These developments were closely followed by the development of the PERT system. The US Air Force translated PERT into PEP (Program Evaluation Procedure) and a host of similar systems appeared over the next few years. Whilst CPM and PERT use the same basic approach, including the Activity-on-Arrow network diagram, PERT focused on time as the key variable (what varied was the probability of hitting a milestone or completion date) where CPM fixed time and the cost of achieving the target time varied. The cost variable component of CPM quickly faded from use. The time variable PERT approach lasted longer and was eventually replaced by the more accurate Monte Carlo analysis. Modern tools based on the Monte Carlo approach such as Pertmasterv are capable of calculating time and cost variables at the same time. In Europe, the Operational Research Section of the UK Central Electricity Generating Board (CEGB) was also working on similar ideas to Kelley and Walker in the period 1955 to 1958. They developed the term the longest irreducible sequence of events and applied their system to the shutdown and maintenance of Keadby Power Station, Leicestershire in 1957. The use of CEGB - CPM achieving a saving of 42% compared to the previous overall average time for similar shutdowns7. However, whilst some of the CEGB work may pre-date 7th May 1957 (as did some of Kelley and Walkers), I have been unable to find any data to substantiate a significant milestone when work on the CEGB - CPM started. Consequently, as the CEGB-CPM developments remained largely within the CEGB and the first major use of the methodology grew out of the work at du Pont in 1957, I have selected the documented start of the du Pont project as the most clearly defined beginning date for critical path scheduling as we know it. The Precedence (PDM) methodology was developed by Dr. John Fondahl as a non-computer approach to scheduling and the results published in 1961 (the initial contract for this work was issued to Stanford University on 1st July 19588). PDM was developed into a computerised tool by H.B. Zachry Co of Texas and then commercialised by IBM as its Project Control System software9. The initial publicity surrounding scheduling focused on PERT, this was fairly quickly overtaken in the commercial world by CPM (Activity-on-Arrow networking) founded on the work of Kelley and Walker and by the end of the 60s PERT and CPM had merged into a general Activity-on-Arrow networking approach to scheduling. However by the mid 1970s the trend towards Precedence networking was gaining momentum and by the 1990s Precedence had become the dominant method of scheduling. The development of scheduling is discussed in depth in A Brief History of Scheduling - Back to the Future (see: www.mosaicprojects.com.au/Resources_Papers_042.html). However, the US Government quickly realised schedule control was only part of the answer. The US Military and
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See www.mosaicprojects.com.au/Tools.html#Pertmaster
The modern Earned Value standards in the USA, Australia, etc have developed from the C/SCSC systems promulgated by the US Military. Similarly, some of the earliest standards for WBS were US MIL Standards. In 1968, Dr. Barnes went on to develop a Fortran mainframe computer program that integrated cost, time and resources and could show the effect of decisions about the work and how it affected both cost and time simultaneously. He commecialised this in 1971 with John Gillespie as a COBOL version; the program was called the Project Cost Model (PCM), it treated a project as a plan which produced both the cost and time forecasts, broken down into (or built up from?) plans for doing each activity which led to a budget and a programme. Dr. Barnes said You could do 'what ifs' and all the other clever things but it was quite difficult as the input was all on punched cards and the only output was voluminous line printer output. Nevertheless we sold it to some quite big project outfits such as the CEGB and Costain in the UK and Anglo-American in South Africa - at a huge price. We are talking early 1970s. The Crystal Palace, a building the size of a modern shopping mall: 1848 feet [563.3 meters] long, 408 feet [124.4 meters] wide and 108 feet [32.9 meters] high, was built in eight and a half months starting on st 15 July 1850, opening on 1 May 1851. For more discussion on the links between early industrial production control systems and scheduling see: A Brief History of Scheduling - www.mosaicprojects.com.au/Resources_Papers_042.html
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Project Management Scope Creep The understanding of what is involved in project management is continuing to evolve, expand and segregate. There are now recognised disciplines of Program and Portfolio management in addition to project management. And whilst the integration and control of time, cost and scope is still the essence of modern project management, other elements such as quality, risk, technology, stakeholder management and communications, have been added over the years with supporting tools, techniques and processes. The evolution of project management seems to have mirrored the evolution in general management (discussed in the next section); starting with a focus on scientific (or hard) processes in the early years, moving to a softer skills focus in the 21st century. This trend is clearly demonstrated by analysis of papers published in the International Journal of Project Management13 which shows a drop from 49% to 12% for task focused papers (scheduling, etc), offset by increases in papers on soft subjects such as leadership and stakeholder management. Similarly many of the new tools entering the market in the 21st century are directed towards collaboration, communication and stakeholder management including the innovative Stakeholder Circle system from Stakeholder Management Pty Ltdx.
See: www.stakeholder-management.com
Management Historyxiv
The Role of Project Manager The appointment of people as project managers only started to emerge in the 20th century. In earlier times, the leadership of the project endeavour moved from a generalist role held by the coordinating architects such as Wren (15th to 17th C), responsible for all aspects of design and delivery including cost control and time management; to more specialist roles and responsibilities
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For more on OPM3 (from PMI) and P3M3 (from OGC) see: http://www.mosaicprojects.com.au/OPM3.html PMO = Project Management Office, for a range of papers focused on PMOs see: http://www.mosaicprojects.com.au/Resources_Papers.html#Proj_Off OGC and PRINCE2 see: http://www.ogc.gov.uk For a more expansive history see: http://telecollege.dcccd.edu/mgmt1374/book_contents/1overview/management_history/mgmt_history.htm
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A digitised version of Defoes essay is available from: http://ebooks.adelaide.edu.au/d/defoe/daniel/d31es/ See A short history of project management: part one: the 1950s and 60s," The Australian Project Manager 14 (1): 36-37 by Alan Stretton (1994) for more details.
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Sustainability
Internet ICT
Steam Power
Project Management
1990 2010
Figure 2
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Pre-Classical Developments18 The genesis of the ideas that led to the development of modern project management can arguably be traced back to the protestant reformation of the 15th centuryxvii. The Protestants and later the
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Financial management is a key element of management control. Fra Luca Bartolomeo de Pacioli published his treatise on double entry accounting in 1494, in Venice; the same bookkeeping system we use today! The ability to account effectively underpinned the success of Venice as a powerful trading state through the Renaissance and its spread certainly assisted in the development of companies during the Industrial Revolution.
Influence
Taylorism
Project Management
Figure 3
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Reductionism = Removing unnecessary elements of a process or ceremony and then breaking the process down into its smallest task or unit to understand how it works. xix Individualism = we are active, independent agents who can manage risks. These ideas are made into real things by social actions contingent upon the availability of a language to describe them. xx PWE = Prior to the protestant reformation most people saw work as a necessary evil (or at least as only a means to an end). For Protestants, serving God included participating in, and working hard at, worldly activities as this was part of Gods design and purpose for each individual. xxi But as Douglas Adams pointed out in his famous speech to BIOTA 2 in 1998, If you try and take a cat apart to see how it works, the first thing you have in your hands is a non-working cat. http://www.biota.org/people/douglasadams
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For more on the work of Henry Gantt and access to his books, see: Henry L. Gantt - A Retrospective view of his work - http://www.mosaicprojects.com.au/Resources_Papers_158.html
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Adam Smith and Henri Fayol did not invent the concepts of the division of labour and management; the origins of these concepts go back to the ancient Greeks. Around 400BC, Socrates analysed the relative similarities between military and political (public) leadership and private management; he viewed management as a distinct skill, different from other technical areas. Aristotle and Plato further developed this work, some of the management skills they defined include: delegation, leadership, the specialisation of work and the division of labour. Socrates approach to problem solving also had a strong influence on the scientific method, see: http://www.mosaicprojects.com.au/WhitePapers/WP1013_Problem_Solving.pdf The Human relations movement was founded by Australian born psychologist, George Mayo. The Hawthorn studies are his most famous piece of research.
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His Acceptance Theory of Authority states that managers only have as much authority as employees allow them to have. The acceptance of authority depends on four conditions: employees must understand what the manager wants them to do, employees must be able to comply with their directive, employees must think that the directive is in keeping with organizational objectives and employees must think that the directive is not contrary to their personal goals. Barnard believed that each person has a zone of indifference or a range within which he or she would willingly accept orders without consciously questioning authority. It was up to the organization to provide sufficient inducements to broaden each employee's zone of indifference so that the manager's orders would be obeyed. Human Resources School Beginning in the early 1950s, the human resources school represented a substantial progression from human relations. The behavioural approach did not always increase productivity. Thus, motivation and leadership techniques became a topic of great interest. The human resources school understands that employees are very creative and competent, and that much of their talent is largely untapped by their employers. Employees want meaningful work; they want to contribute; they want to participate in decision making and leadership functionsxxv. Systems Theory & Contingency View Systems theory and a contingency view helped integrate the theories of management in the 1960s. Systems Theory During the 1940s and World War II, systems analysis emerged. This viewpoint uses systems concepts and quantitative approaches from mathematics, statistics, engineering, and other related fields to solve problems. From a management perspective, a system is an interrelated and interdependent set of elements functioning as a whole. It is composed of inputs from the environment (material or human resources), transformation processes of inputs to finished goods (technological and managerial processes), outputs of those finished goods into the environment (products or services), and feedback (reactions from the environment). Systems develop synergy; this is a condition in which the combined and coordinated actions of the parts of a system achieve more than all the parts could have achieved acting independently. Project management is concerned with managing a complex system with multiple inputs, outputs and complex, interrelated processes and consequently benefits from analysis using the systems approachxxvi. Contingency View
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Some of the theories include; McGregors Theory X and Theory Y, Theory Z (Ouchi), Contingency Theory (Morse & Lorsch), Goal-Setting Theory (Latham & Locke) and Expectancy Theory (Vroom). xxvi For more on system thinking see: http://www.mosaicprojects.com.au/WhitePapers/WP1044_Systems_Thinking.pdf
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See http://en.wikipedia.org/wiki/Operations_research
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http://www.mosaicprojects.com.au/Resources_Papers_042.html
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The Case Institute of Technology was a university that merged with Western Reserve University to form Case Western Reserve University, Ohio, USA. See also A Simple View of Complexity in Project Management: www.mosaicprojects.com.au/Resources_Papers_070.html The USAF was establishing joint project offices from 1951. The first for the B47 bomber was set up in Feb. 1951; these offices focused on coordination between engineering and production with a focus on systems management. By 1954 the practice was extended to Weapons system Project Offices (WSPOs). During the 1950s project and program management was very closely aligned with systems
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Within this context, project management is best described as an emerging profession whilst there is a defined body of knowledge different associations around the world have somewhat divergent views on their content. Only some bodies require formal educational and entry requirements (eg, AIPMxxxiv) others have none (eg PMIxxxv). Formal certifications exist (eg PMIs PMP credential) but certification is not a prerequisite to practice. Whilst most associations have a commitment to service ideals, only a very small proportion of project management partitioners belong to an association. Similarly, whilst there is a project management body of knowledge and project management research taking place, the support of academia for the concept of project management as a separate academic school is at best limited despite the emergence of research conferences and refereed journals over the last 15 years. And the debate over the existence of a theory of project management is only just beginning25. The premise underlying this paper is that if project management is not already a profession, it will definitely emerge as one over the next few years; and this profession is the creation of the project management associations that have progressively worked to refine and define the essence of modern project management. The Profession of Modern Project Management Projects have existed for as long as people have set out to accomplish a specific objective with limited resources. However, until relatively recently, these objectives were not seen as projects; they were seen as acts of worship, engineering, nation building, war, etc., and the people controlling the endeavours called themselves priests, engineers, architects, generals, etc. The use of the terms project and project management have only become common within the last 50 years and largely align with the growth of project management associations. Despite the abundance of projects in earlier times, no one talked about project management until the 1950s; and the spread of discussions around and about project management seems to have closely followed the spread of scheduling in the 1960s. Certainly, the advent of scheduling as a discipline completed the iron triangle of time, cost and scope; as defined by Dr. Martin Barnes in 1969. Given the embodiment of modern project management is the major project management associations such as IPMAxxxvi and PMI, the forces that created these associations also created modern project management and as this paper will demonstrate, these bodies were essentially founded by schedulers. Based on these observations, it would appear that: 1. The catalyst for the spread of discussions on project management was the formation of the project management associations; and 2. the formation of these associations was triggered by the spread of scheduling (or more importantly professional schedulers) in the early 1960s, therefore
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AIPM = Australian Institute of Project Management. PMI = Project Management Institute (USA) IPMA = International Project Management Association
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This project was known as the Ethics, Standards and Accreditation (ESA) project. The project developed a Code of Ethics, the BoK with 6 knowledge areas (scope, cost, time, quality, human resources and communications) and guidelines for the accreditation of courses offered by academic institutions and the certification of individuals. The 1986 - 87 version of the PMBOK added the concept of a project framework and added risk and procurement management as separate knowledge areas to the document. The project Management Body of Knowledge was published in August 1987. The next update was initiated in 1991 and published in 1996. The title was changed to A Guide to the Project Management Body of Knowledge (PMBOK Guide ). This was followed by the 2000 update and then the Third Edition in 2004. The next edition of the PMBOK Guide will be published in 2008.
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From an interview with Russ Archibald, PMI Founder: Initially, the discussion was primarily focused on PERT, CPM, and related planning and scheduling methods and systems. In fact the January 29 1968 letter from Ned Engman says we are discussing forming a National CPM Society. At our later meetings in New Orleans we had long discussions on the scope and name of the association and gradually the group moved toward a consensus that we should be targeting the broader subject of project management. Published in PM World Today October 2008 (Vol X, Issue X)
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Conclusions
Based on the research outlined in this paper, it is entirely reasonable to argue that the evolution of modern project management is a direct consequence of the need of professional schedulers for a forum to discuss and develop their new discipline, combined with the need to make effective use of the data generated by schedulers in an attempt to identify, manage and control their critical paths (not to mention the expectations a schedule generates in the minds of senior managers). These needs and requirements led directly to the formation of the early associations that evolved into todays project management associations, and then to the development of a defined and documented project management body of knowledge by these associations.
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The first executive meeting on INTERNET(UK) was held in the lobby of the Sheraton Hotel, Stockholm on th rd the 13 May 1972 during the 3 annual world congress of INTERNET. Jack Grimshaw was the original chaiman, annual membership fees were set at 1, and within a month membership had reached 78 (PMI at the time were charging 7). Note: AIPM joined the IPMA as the Australian national association in 2010
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Concluding Comments
One major drawback in the origins of project management outlined in this paper was the focus on tools and systems that lasted from the 1960s through into the 1990s. Only in the 21st century has the people side of project management started to move into prominence despite the fact it is people who create, design manage and execute the project for another group of people, the customers. This emphasis on people does not change the need for project management tools such as schedules, rather changes the focus of their use from a command and control approach to a collaborative, consensus-leadership role1. The definition of success also requires expanding beyond the iron triangle of time cost and output to include stakeholder satisfaction2. The third paper in this series, Trends in Modern Project Management, Past, Present & Future3 considers these issues and the future direction of our profession. The other missing link that has now been addressed is the strategic issues associated with program and portfolio management4. The publication of standards for Portfolio and Program management by PMI and work by others in the UK has started to effectively position projects and project management within the overall spectrum of corporate governance. __________________________
Concluding Comments references
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For more on this see: A Simple View of Complexity in Project Management www.mosaicprojects.com.au/Resources_Papers_070.html For more on this see: Avoiding the Successful Failure! www.mosaicprojects.com.au/Resources_Papers_046.html For more on this see: Trends in Modern Project Management, Past, Present & Future www.mosaicprojects.com.au/Resources_Papers_061.html For more on this see: Understanding Programs and Projects - Oh, there's a difference www.mosaicprojects.com.au/Resources_Papers_078.html
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Chin-Ning Chu at PMI Global Congress, Bangkok 2006 A guide to the Project Management Body Of Knowledge, Third Edition. ISBN 1-930699-45-X, 2004. Project Management Institute Inc. Pennsylvania. Stretton, Alan,(1994) "A short history of project management: part one: the 1950s and 60s," The Australian Project Manager 14 (1): 36-37 Kenley R. Improving Site Performance Solving the Work Crew Management Problem. International Construction Conference 2005, Malaysia. Weaver P. A Brief History of Scheduling. www.mosaicprojects.com.au/Resources_Papers_042.html Kelley E.J., Walker M.R. (1959) Critical Path Planning and Scheduling. Proceedings, Eastern Joint Computer Conference, March 1959. Briggs S. Email dated 31/8/2006. Fondahl, John W (1987) Precedence Diagramming Methods: Origins and Early Development. Project Management Journal Vol XVIII No 2 June pp 33-36. Construction Project Management Control System at the H.B. Zachry Company. IBM 1963. Morris P.W.G. (1994) The Management of Projects Thomas Telford Ltd, London (p47) Morris P.W.G. (1994) The Management of Projects Thomas Telford Ltd, London (p 217) Barnes M. Email dated 14/12/2005 and interview Jan. 2006. Kolltveit B.J, Karlsen J.T., Gronhug K. Perspectives on project management. . International Journal of Project Management (2007), 25(1) 3-9. Morris P.W.G. (1994) The Management of Projects Thomas Telford Ltd, London (p4-5) Morris P.W.G. (1994) The Management of Projects Thomas Telford Ltd, London. Miles, R.E. Theories of Management: Implications for Organizational Behavior. 1975. McGraw-Hill New York Hargroves K, Smith M. The Natural Advantage of Nations. Earthscan, London 2005 p17 Whitty S.J., Schulz, M.F. The impact of Puritan ideology on aspects of project management. International Journal of Project Management (2007), 25 (1) 10-20 Beasley J.E. OR-Notes. http://people.brunel.ac.uk/~mastjjb/jeb/or/intro.html Kelley J.E. Jr and Walker M.R. The Origins of CPM, A Personal History. pmNetwork Vol III, No. 2, Feb 1989. PMI, USA. Mosley M. Email dated 6/3/2007 Archibald R. Email dated 26/11/2005*. Bugos G.E. Programming the American Aerospace Industry, 1954 - 1964. Business and Economic History (1993) 22(1) 210-222 Morris P.W.G, Crawford L., Hodgson D., Shepherd M.M., Thomas J. Exploring the role of formal bodies of knowledge in defining a profession The case of project management. International Journal of Project Management(2006), 24:8 pp710-721 Turner R.J. Towards a Theory of Project Management (3 parts). International Journal of Project Management (2006), 24(1) 1-3; (2) 93-95; (3) 187-189. OBrien J. Email dated 26/11/2005*. Ockman S. Email dated 31/8/2006. Woodward H. Email dated 26/11/2005*. Barnes M. Email dated 14/12/2005. Hovey B. Email dated 27/4/2006 (AIPM historian). Doyle B. Interview 15/1/2007 (PMF Founding Secretary). * An email based discussion including, among others, Russell Archibald, Eric Jenett, Stuart Ockman, James (Jim) OBrien, Hugh Woodward, Jon Wickwire, J. Gordon Davies and Fran M Webster, ran through November 2005. The quotes included in this paper were part of this discussion. There were no dissenting comments from any of the group regarding the formation of PMI primarily by schedulers.
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Other papers in our project management history series: A Brief History of Scheduling: http://www.mosaicprojects.com.au/Resources_Papers_042.html The Origins of Modern Project Management: http://www.mosaicprojects.com.au/Resources_Papers_050.html Trends in Modern Project Management - Past Present & Future: http://www.mosaicprojects.com.au/Resources_Papers_061.html Seeing the Road Ahead - the challenge of communicating schedule data: http://www.mosaicprojects.com.au/Resources_Papers_106.html Henry L. Gantt - A Retrospective view of his work: http://www.mosaicprojects.com.au/Resources_Papers_158.html
Additional papers on all aspects of project management are available for download free of charge from: www.mosaicprojects.com.au/PM-Knowledge_Index.html
The Stakeholder Circle tool mentioned in this paper is commercially available. For additional information and to download a free version of the tool you are invited to visit the Stakeholder Management Pty Ltd website: http://www.stakeholder-management.com
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