C H A P T E R

1
Projects in Contemporary
Organizations

The past several decades have been marked by rapid growth in the use of project management
as a means by which organizations achieve their objectives. In the past, most projects
were external to the organization—building a new skyscraper, designing a commercial ad
campaign, launching a rocket—but the growth in the use of projects lately has primarily been
in the area of projects internal to organizations: developing a new product, opening a new
branch, improving the services provided to customers. As exhilarating as outside projects are,
successfully executing internal projects is even more satisfying in that the organization has
substantially improved its ability to execute more efficiently, effectively, or quickly, resulting
in an agency or business that can even better contribute to society while simultaneously
enhancing its own competitive strength. Project management provides an organization with
powerful tools that improve its ability to plan, implement, and control its activities as well as
the ways in which it utilizes its people and resources.
It is popular to ask, “Why can’t they run government the way I run my business?” In
the case of project management, however, business and other organizations learned from
government, not the other way around. A lion’s share of the credit for the development of
the techniques and practices of project management belongs to the military, which faced a
series of major tasks that simply were not achievable by traditional organizations operat-
ing in traditional ways. The United States Navy’s Polaris program, NASA’s Apollo space
program, and more recently, the space shuttle and the development of “smart” bombs and
missiles are a few of the many instances of the application of these specially developed
management approaches to extraordinarily complex projects. Following such examples,
nonmilitary government sectors, private industry, public service agencies, and volunteer
organizations have all used project management to increase their effectiveness. Most firms
in the computer software business routinely develop their output as projects or groups of
projects.
Project management has emerged because the characteristics of our contemporary society
demand the development of new methods of management. Of the many forces involved, three
are paramount: (1) the exponential expansion of human knowledge; (2) the growing demand
for a broad range of complex, sophisticated, customized goods and services; and (3) the
evolution of worldwide competitive markets for the production and consumption of goods

1
2 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

and services. All three forces combine to mandate the use of teams to solve problems that used
to be solvable by individuals. These three forces combine to increase greatly the complexity
of goods and services produced plus the complexity of the processes used to produce them.
This, in turn, leads to the need for more sophisticated systems to control both outcomes and
processes.

Forces Fostering Project Management

First, the expansion of knowledge allows an increasing number of academic disciplines to
be used in solving problems associated with the development, production, and distribution
of goods and services. Second, satisfying the continuing demand for more complex and
customized products and services depends on our ability to make product design an inte-
grated and inherent part of our production and distribution systems. Third, worldwide mar-
kets force us to include cultural and environmental differences in our managerial decisions
about what, where, when, and how to produce and distribute output. The requisite knowledge
does not reside in any one individual, no matter how well educated or knowledgeable. Thus,
under these conditions, teams are used for making decisions and taking action. This calls for
a high level of coordination and cooperation between groups of people not particularly used
to such interaction. Largely geared to the mass production of simpler goods, traditional or-
ganizational structures and management systems are simply not adequate to the task. Project
management is.
The organizational response to the forces noted above cannot take the form of an instanta-
neous transformation from the old to the new. To be successful, the transition must be system-
atic, but it tends to be slow and tortuous for most enterprises. Accomplishing organizational
change is a natural application of project management, and many firms have set up projects to
implement their goals for strategic and tactical change.
Another important societal force is the intense competition among institutions, both profit
and not-for-profit, fostered by our economic system resulting in organizational “crusades”
such as “total quality control,” “supply chain management,” and particularly prominent these
days: “Six-sigma*.” The competition that all of these crusades engenders puts extreme pres-
sure on organizations to make their complex, customized outputs available as quickly as
possible. “Time-to-market” is critical. Responses must come faster, decisions must be made
sooner, and results must occur more quickly. Imagine the communications problems alone.
Information and knowledge are growing explosively, but the time permissible to locate and
use the appropriate knowledge is decreasing.
In addition, these forces operate in a society that assumes that technology can do
anything. The fact is, this assumption is reasonably true, within the bounds of nature’s
fundamental laws. The problem lies not in this assumption so much as in a concomitant
assumption that allows society to ignore both the economic and noneconomic costs
associated with technological progress until some dramatic event focuses our attention on
the costs (e.g., the Chernobyl nuclear accident, the Exxon Valdez oil spill, or the possibil-
ity of global warming). At times, our faith in technology is disturbed by difficulties and
threats arising from its careless implementation, as in the case of industrial waste, but on
the whole we seem remarkably tolerant of technological change. For a case in point, con-
sider California farm workers who waited more than 20 years to challenge a University of
California research program devoted to the development of labor-saving farm machinery

*Six-sigma (see Pande et al., 2000; Pyzdek, 2003) itself involves projects, usually of a process improvement type
that involves the use of many project management tools (Chapter 8), teamwork (Chapters 5 and 12), quality tools such as
“benchmarking” (Chapter 11), and even audits (Chapter 12).
 PROJECTS IN CONTEMPORARY ORGANIZATIONS 3

(Sun, 1984). The acceptance of technological advancement is so strong it took more than
two decades to muster the legal attack. Consider also the easy acceptance of communication
by e-mail and shopping on the Internet.
Finally, the projects we undertake are large and getting larger. The modern advertising
company, for example, advances from blanket print ads to regionally focused television ads
to personally focused Internet ads. As each new capability extends our grasp, it serves as the
base for new demands that force us to extend our reach even farther. Projects increase in size
and complexity because the more we can do, the more we try to do.
The projects that command the most public attention tend to be large, complex, multi-
disciplinary endeavors. Often, such endeavors are both similar to and different from previous
projects with which we may be more or less familiar. Similarities with the past provide a
base from which to start, but the differences imbue every project with considerable risk. The
complexities and multidisciplinary aspects of projects require that many parts be put together
so that the prime objectives—performance, time (or schedule), and cost—are met.

Three Project Objectives

While multimillion-dollar, five-year projects capture public attention, the overwhelming
majority of all projects are comparatively small—though nonetheless important to doer and
user alike. They involve outcomes, or deliverables, such as a new floor for a professional
basketball team, a new insurance policy to protect against a specific casualty loss, a new
Web site, a new casing for a four-wheel-drive minivan transmission, a new industrial floor
cleanser, the installation of a new method for peer-review of patient care in a hospital, even
the development of new software to help manage projects. The list could be extended almost
without limit. These undertakings have much in common with their larger counterparts.
They are complex, multidisciplinary, and have the same general objectives—performance
(or scope), time, and cost. We refer to these as “direct” project objectives or goals.
There is a tendency to think of a project solely in terms of its outcome—that is, its
performance. But the time at which the outcome is available is itself a part of the outcome,
as is the cost entailed in achieving the outcome. The completion of a building on time and on
budget is quite a different outcome from the completion of the same physical structure a year
late or 20 percent over budget, or both.
Indeed, even the concept of performance or scope is more complex than is apparent. Much
has been written in recent years arguing that, in addition to time, cost, and specifications, there
is a fourth dimension to be considered. This fourth dimension is the expectations of the cli-
ent (see Darnell, 1997), which sometimes tend to increase as the project progresses, known
as “scope creep” (see Chapter 11). One might say that the expectations of the client are not
an additional target, but an inherent part of the project specifications. However, to consider
the client’s desires as different from the project specifications is to court conflict between
client and project team, each of whom has unique ideas about the deliverables’ nature. Also,
to separate client desires from project specifications creates conflict because client and team
rarely act in concert. The client specifies a desired outcome. Then the project team designs
and implements the project. Then the client views the result of the team’s ideas. Despite
this logic, differences between the client’s expectations and the project team’s designs are
common. As a result, meeting the client’s desires may not be well reflected by the specified
performance of the project. The expectations of client and project team should be aligned and
integrated throughout the entire project, but rarely are.
As a result of the above, we include the nebulous elements of the client’s expectations
and desires along with the “specified” performance, as stated in the project proposal, as the
total “required performance” objective for the project. The three direct project objectives are
4 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

Performance

Required performance

Target
Cost
Budget limit

Due date

Time Figure 1-1 Direct project goals—performance,

(“schedule”)
cost, time.

shown in Figure 1-1, with the specified project objectives on the axes. This illustration implies
that there is some “function” that relates them, one to another—and so there is! Although
the functions vary from project to project, and from time to time for a given project, we
will refer to these relationships, or trade-offs, throughout this book. The primary task of the
project manager is to manage these trade-offs, along with a fourth, unspecified trade-off that
always exists between the direct project objectives/goals and a set of ancillary (or process)
objectives/goals.
In a more basic sense, those with a stake in the project (the project manager, project team,
senior management, the client, and other project stakeholders) have an interest in making the
project a success. In a thorough, empirical research study that we will consider in more detail
in Chapter 12, Shenhar et al. (1997) have concluded that project success has four dimensions:
(1) project efficiency, (2) impact on the customer, (3) the business impact on the organization,
and (4) opening new opportunities for the future. The first two are clearly part of what we
have defined as the project’s direct objectives, the latter two are also specific objectives of the
project and are thus direct goals. Ancillary goals include improving the organization’s project
management competency and methods, individuals’ increased managerial experience gained
through project management, and similar goals.
One other crucial, but unstated, element of ancillary trade-offs that a PM must consider
is the health of the project team as well as the rest of the organization. The PM cannot burn
out the team in an attempt to achieve the direct objectives, nor destroy the organization’s
functional departments in an attempt to meet the project’s direct goals. Another ancillary ele-
ment is the project’s environment, that is, those things or persons outside the project, and often
outside the sponsoring organization, that affect the project or are affected by it. Examples of
this environment might be antipollution groups, trade unions, competitive firms, and the like.
We will deal with these issues in more detail in Chapter 12.
From the early days of project management, the direct project objectives of time, cost,
and performance (as generally agreed to by the client and the organization actually doing the
project) have been accepted as the primary determinants of project success or failure. In the
past 25 years or so, other direct and ancillary objectives have been suggested. These did not
replace the traditional time, cost, and performance, but were added as also relevant. For the
most part, however, Chapters 1–11 will focus mainly on the traditional direct objectives.
 PROJECTS IN CONTEMPORARY ORGANIZATIONS 5

The Project Manager

While managing the trade-offs, the project manager (PM) is expected to integrate all aspects of
the project, ensure that the proper knowledge and resources are available when and where needed,
and above all, ensure that the expected results are produced in a timely, cost-effective manner.
The complexity of the problems faced by the PM, taken together with the rapid growth
in the number of project-oriented organizations, has contributed to the professionalization of
project management. One of the major international organizations dedicated to this profession-
alization is the Project Management Institute (PMI®, at www.pmi.org), established in 1969. By
1990, the PMI had 7,500 members. Five years later, it had grown to over 17,000, and by the end
of 2007 it had exploded to over 260,000 members in more than 171 countries (see Figure 1-2).
This exponential growth is indicative of the rapid growth in the use of projects, but also reflects
the importance of the PMI as a force in the development of project management as a profession.
Its mission is to foster the growth of project management as well as “building professionalism”
in the field. The Project Management Journal and PM Network magazines were founded by
the PMI to communicate ideas about project management, as well as solutions for commonly
encountered problems. Another PMI objective is to codify the areas of learning required for
competent project management. This project management body of knowledge, PMBOK®, is
PMBOK Guide meant to serve as the fundamental basis for education for project managers (Project Manage-
ment Institute, 2004). To certify that active project managers understood and could utilize this
body of knowledge, PMI initiated a certificate of proficiency called the Project Management
Professional (PMP®) that includes a group of education, experience, and testing requirements
to obtain. More recently, PMI has added two more certificates, one for advanced program
managers, called the Program Management Professional (PgMP®), and another for developing
project managers, the Certified Associate in Project Management (CAPM®), which has less
educational and experience requirements. The profession has flourished, with the result that

160

140

120
PMI membership (1000)

100

80

60

40

20

0
1970 1980 1990 2000 Figure 1-2 Project Manage-
Year ment Institute growth history.
6 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

many colleges and universities offer training in project management and some offer specialized
degree programs in the area.
Clearly, rapid growth in the number of project managers and of the PMI membership were
the result, not the cause, of tremendous growth in the number of projects being carried out.
The software industry alone has been responsible for a significant percent of the growth.
Another major source of growth has been the need to control project activity in large organiza-
tions. As the number of nonroutine activities increases in an organization, there is an increased
need in senior management to understand and control the system. Project management, with
its schedules, budgets, due dates, risk assessments, statements of expected outcomes, and
people who take responsibility, is a way to meet this need. These forces have combined and
led to the creation of a project-organized firm. Much more will be said about project-oriented
organizations in Chapter 4.
As we note in the coming chapters, the project manager’s job is not without problems.
There is the ever-present frustration of being responsible for outcomes while lacking full
authority to command the requisite resources or personnel. There are the constant problems
of dealing with the parties involved in any project—senior management, client, project team,
and public—all of whom seem to speak different languages and have different objectives.
There are the ceaseless organizational and technical “fires to be fought.” There are vendors
who cannot seem to keep “lightning-strike-me-dead” promises about delivery dates. This list
of troubles only scratches the surface.
Difficult as the job may be, most project managers take a considerable amount of pleasure
and job satisfaction from their occupation. The challenges are many and the risks significant,
but so are the rewards of success. Project managers usually enjoy organizational visibility,
considerable variety in their day-to-day duties, and often have the prestige associated with
work on the enterprise’s high-priority objectives. The profession, however, is not one for the
timid. Risk and conflict avoiders do not make happy project managers. Those who can stom-
ach the risks and enjoy practicing the arts of conflict resolution, however, can take substantial
monetary and psychological rewards from their work.

Trends in Project Management

Many new developments and interests in project management are being driven by quickly
changing global markets, technology, and education. Global competition is putting pressure
on prices, response times, and product/service innovation. Computer and telecommunications
technologies along with greater education are allowing companies to respond to these pres-
sures, pushing the boundaries of project management into regions where new tools are being
developed for types of projects that have never been considered before. In addition, the pres-
sure for more and more products and services has led to initiating more projects, but with
faster life cycles. We consider a variety of trends in turn.
Achieving Strategic Goals (Chapter 2, especially Section 2.7). There has been a greater
push to use projects to achieve more strategic goals, and filtering existing major projects to
make sure that their objectives support the organization’s strategy and mission. Projects that
do not have clear ties to the strategy and mission are terminated and their resources are redi-
rected to those that do. An example of this is given in Section 1.7 where the Project Portfolio
Process is described.
Achieving Routine Goals (Section 1.1). On the other hand, there has also been a push
to use project management to accomplish routine departmental tasks that would previously
have been handled as a functional effort. This is because lower level management has become
aware that projects accomplish their performance objectives within their budget and deadline,
 PROJECTS IN CONTEMPORARY ORGANIZATIONS 7

and hope to employ this new tool to improve management of their functions. As a result,
artificial deadlines and budgets are created to accomplish specific, though routine, tasks
within the functional departments, a process called “projectizing.” However, as reported by
Jared Sandberg (Sandberg, 2007) in the Wall Street Journal, there is an important danger with
this new tactic. If the deadline isn’t really important and the workers find out it is only artifi-
cial (e.g., either by meeting it but getting no appreciation or missing it but with no penalty),
this will destroy the credibility of any future deadlines or budgets, much like “the boy who
cried wolf.”
Improving Project Effectiveness (Sections 2.1, 2.7, 4.6, 5.1, 5.5, 11.2, 11.3). A variety of
efforts are being pursued to improve the results of project management, whether strategic or
routine. One well-known effort is the creation of a formal Project Management Office (PMO,
see Section 4.6) in many organizations, which is responsible for the successful initiation and
completion of projects throughout the organization. Another effort is the evaluation of an
organization’s project management “maturity,” or skill and experience in managing projects
(discussed in Section 2.1). This is often one of the responsibilities of the PMO. Another
responsibility of the PMO is to educate project managers about the ancillary goals of the orga-
nization (mentioned earlier in this chapter), which automatically become a part of the goals of
every project whether the project manager knows it or not. Achieving better control over each
project through the use of phase gates (Sections 5.1, 5.5, 11.2), earned value (Section 10.3),
critical ratios (Section 11.3), and other such techniques is also a current trend.
Virtual Projects (Sections 4.3, 10.2). With the rapid increase in globalization, many
projects now involve global teams with team members operating in different countries and
different time zones, each bringing a unique set of talents to the project. These are known
as virtual projects because the team members may never physically meet before the team
is disbanded and another team reconstituted. Advanced telecommunications and computer
technologies allow such virtual projects to be created, conduct their work, and complete their
project successfully.
Quasi-Projects (Section 1.1). Led by the demands of the information technology/systems
departments, project management is now being extended into areas where the final perfor-
mance (or “scope”) requirements may not be understood, the time deadline unknown, and/or
the budget undetermined. This ill-defined type of project (which we call a “quasi-project”) is
extremely difficult to manage and is often initiated by setting an artificial due date and budget,
and then completed by “de-scoping” the required performance to meet those limits. However,
new tools for these kinds of quasi-projects are now being developed—prototyping, phase-
gating, and others—to help these teams achieve results that satisfy the customer in spite of all
the unknowns.

Recent Changes in Managing Organizations

In the two decades since the first edition of this book was published, the process of managing
organizations has been impacted by three revolutionary changes. First, we have seen an accel-
erating replacement of traditional, hierarchical management by consensual management. Sec-
ond, we are currently witnessing the adoption of the “systems approach” (sometimes called
“systems engineering”) to deal with organizational or technological problems because it is
abundantly clear that when we act on one part of an organization or system, we are certain to
affect other parts. Third, we have seen organizations establishing projects as the preferred way
to accomplish their goals. Examples vary from the hundreds of projects required to accom-
plish the “globalization” of a multibillion dollar household products firm to the incremental
tailoring of products and services for individual customers. We elaborate on this tie between
8 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

the organization’s goals and the projects it selects for implementation in the following chapter.
And as we will note in Chapter 4 and elsewhere, there has been a rapid and sustained growth
in the number of organizations that use projects to accomplish almost all of the nonroutine
tasks they undertake. While all three of these phenomena have been known for many years, it
is comparatively recent that they have been widely recognized and practiced.
In his fascinating book, Rescuing Prometheus (Hughes, 1998), technology historian Thomas
Hughes examines four large-scale projects that required the use of a nontraditional management
style, a nontraditional organizational design, and a nontraditional approach to problem solving
in order to achieve their objectives. These huge projects—the Semiautomatic Ground Environ-
ment (SAGE) air defense system, the Atlas Intercontinental Ballistic Missile, the Boston Central
Artery/Tunnel, and the Department of Defense Advanced Research Projects Agency’s Internet
(ARPANET)—are all characterized by extraordinarily diverse knowledge and information input
requirements.* The size and technological complexity of these projects required input from
a large number of autonomous organizations—governmental, industrial, and academic—that
usually did not work cooperatively with other organizations, were sometimes competitors, and
could be philosophical and/or political opponents. Further, any actions taken to deal with parts
of the total project often had disturbing impacts on many other parts of the system.
Obviously, these projects were not the first complex, large-scale projects carried out in
this country or elsewhere. For example, the Manhattan Project—devoted to the development
of the atomic bomb—was such a project. The Manhattan Project, however, was the sole and
full-time work for a large majority of the individuals and organizations working on it. The
organizations contributing to the projects Hughes describes were, for the most part, working
on many other tasks. For example, Massachusetts Institute of Technology (MIT), the Pen-
tagon, IBM, Bell Labs (now Lucent Technologies), RAND Corporation, the Massachusetts
Department of Highways, and a great many other organizations were all highly involved in
one or more of these projects while still carrying on their usual work. The use of multiple
organizations (both within and outside of the sponsoring firm) as contributors to a project is no
longer remarkable. Transdisciplinary projects are more the rule than the exception.
These revolutions and modifications in the style of management and organization of
projects will be reflected throughout this book. For example, we have come to believe that
the use of a traditional, hierarchical management style rather than a consensual style to man-
age multiorganizational projects is a major generator of conflict between members of the
project team. We have long felt, and are now certain, that staffing multidisciplinary projects
with individuals whose primary focus is on a specific discipline rather than on the problem(s)
embodied in the project will also lead to high levels of interpersonal conflict between project
team members. In Chapter 4 we will discuss some issues involved in the widespread use
of projects to accomplish organizational change. As in the first edition, we adopt a systems
approach to dealing with the problems of managing projects.
This book identifies the specific tasks facing PMs. We investigate the nature of the projects
for which the PM is responsible, the skills that must be used to manage projects, and the means
by which the manager can bring the project to a successful conclusion in terms of the three
primary criteria: performance, time, and cost. Before delving into the details of this analy-
sis, however, we clarify the nature of a project and determine how it differs from the other
activities that are conducted in organizations. We also note a few of the major advantages,
disadvantages, strengths, and limitations of project management. At this end of this chapter,
we describe the approach followed throughout the rest of the book.

*Hughes’s term for this is “transdisciplinary” (across disciplines), which is rather more accurate than the usual
“interdisciplinary” (between disciplines).
 1.1 THE DEFINITION OF A “PROJECT” 9

1.1 THE DEFINITION OF A “PROJECT”

The PMI has defined a project as “A temporary endeavor undertaken to create a unique prod-
uct or service” (Project Management Institute, 2004, p. 5). There is a rich variety of projects
to be found in our society. Although some may argue that the construction of the Tower of
Babel or the Egyptian pyramids were some of the first “projects,” it is probable that cave-
men formed a project to gather the raw material for mammoth stew. It is certainly true that
the construction of Boulder Dam and Edison’s invention of the light bulb were projects by
any sensible definition. Modern project management, however, is usually said to have begun
with the Manhattan Project. In its early days, project management was used mainly for very
large, complex research and development (R & D) projects like the development of the Atlas
Intercontinental Ballistic Missile and similar military weapon systems. Massive construction
programs were also organized as projects—the construction of dams, ships, refineries, and
freeways, among others.
As the techniques of project management were developed, mostly by the military, the
use of project organization began to spread. Private construction firms found that project
organization was helpful on smaller projects, such as the building of a warehouse or an apart-
ment complex. Automotive companies used project organization to develop new automobile
models. Both General Electric and Pratt & Whitney used project organization to develop new
jet aircraft engines for airlines, as well as the Air Force. Project management has even been
used to develop new models of shoes and ships (though possibly not sealing wax). More
recently, the use of project management by international organizations, and especially orga-
nizations producing services rather than products, has grown rapidly. Advertising campaigns,
global mergers, and capital acquisitions are often handled as projects, and the methods have
spread to the nonprofit sector. Weddings, scout-o-ramas, fund drives, election campaigns,
parties, and recitals have all made use of project management. Most striking has been the
widespread adoption of project management techniques for the development of computer
software.
In discussions of project management, it is sometimes useful to make a distinction
between terms such as project, program, task, and work packages. The military, source of
most of these terms, generally uses the term program to refer to an exceptionally large, long-
range objective that is broken down into a set of projects. These projects are divided further
into tasks, which are, in turn, split into work packages that are themselves composed of work
units. But exceptions to this hierarchical nomenclature abound. The Manhattan Project was
a huge “program,” but a “task force” was created to investigate the many potential futures of
a large steel company. In the broadest sense, a project is a specific, finite task to be accom-
plished. Whether large- or small-scale or whether long- or short-run is not particularly rele-
vant. What is relevant is that the project be seen as a unit. There are, however, some attributes
that characterize projects.

Importance
The most crucial attribute of a project is that it must be important enough in the eyes of senior
management to justify setting up a special organizational unit outside the routine structure of
the organization. If the rest of the organization senses, or even suspects, that it is not really
that important, the project is generally doomed to fail. The symptoms of lack of importance
are numerous and subtle: no mention of it by top management, assigning the project to
someone of low stature or rank, adding the project to the responsibilities of someone who is
already too overworked, failing to monitor its progress, failing to see to its resource needs,
and so on.
10 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

Performance
A project is usually a one-time activity with a well-defined set of desired end results. (We
discuss poorly defined, or “quasi-” projects a bit later.) It can be divided into subtasks that
must be accomplished in order to achieve the project goals. The project is complex enough
that the subtasks require careful coordination and control in terms of timing, precedence,
cost, and performance. Often, the project itself must be coordinated with other projects
being carried out by the same parent organization.

Life Cycle with a Finite Due Date

Like organic entities, projects have life cycles. From a slow beginning they progress to a
buildup of size, then peak, begin a decline, and finally must be terminated by some due
date. (Also like organic entities, they often resist termination.) Some projects end by being
phased into the normal, ongoing operations of the parent organization. The life cycle is
discussed further in Section 1.3 where an important exception to the usual description of
the growth curve is mentioned. There are several different ways in which to view project
life cycles. These will be discussed in more detail later.

Interdependencies
Projects often interact with other projects being carried out simultaneously by their parent
organization. Typically, these interactions take the form of competition for scarce resources
between projects, and much of Chapter 9 is devoted to dealing with these issues. While such
interproject interactions are common, projects always interact with the parent organization’s
standard, ongoing operations. Although the functional departments of an organization (mar-
keting, finance, manufacturing, and the like) interact with one another in regular, patterned
ways, the patterns of interaction between projects and these departments tend to be change-
able. Marketing may be involved at the beginning and end of a project, but not in the middle.
Manufacturing may have major involvement throughout. Finance is often involved at the be-
ginning and accounting (the controller) at the end, as well as at periodic reporting times. The
PM must keep all these interactions clear and maintain the appropriate interrelationships with
all external groups.

Uniqueness
Though the desired end results may have been achieved elsewhere, they are at least unique
to this organization. Moreover, every project has some elements that are unique. No two
construction or R & D projects are precisely alike. Though it is clear that construction projects
are usually more routine than R & D projects, some degree of customization is a characteristic
of projects. In addition to the presence of risk, as noted earlier, this characteristic means that
projects, by their nature, cannot be completely reduced to routine. The PM’s importance is
emphasized because, as a devotee of management by exception, the PM will find there are a
great many exceptions to manage by.

Resources
Projects have limited budgets, both for personnel as well as other resources. Often the
budget is implied rather than detailed, particularly concerning personnel, but it is strictly
limited. The attempt to obtain additional resources (or any resources) leads to the next
attribute—conflict.
 1.1 THE DEFINITION OF A “PROJECT” 11

Conflict
More than most managers, the PM lives in a world characterized by conflict. Projects compete
with functional departments for resources and personnel. More serious, with the growing
proliferation of projects, is the project-versus-project conflict for resources within multiproject
organizations. The members of the project team are in almost constant conflict for the project’s
resources and for leadership roles in solving project problems. The PM must be expert in
conflict resolution, but we will see later that there are helpful types of conflict. The PM must
recognize the difference.
The four parties-at-interest or “stakeholders” (client, parent organization, project team,
and the public) in any project even define success and failure in different ways (see Chapters
12 and 13). The client wants changes, and the parent organization wants profits, which may
be reduced if those changes are made. Individuals working on projects are often responsible to
two bosses at the same time; these bosses may have different priorities and objectives. Project
management is no place for the timid.

Nonprojects and Quasi-Projects

If the characteristics listed above define a project, it is appropriate to ask if there are nonproj-
ects. There are. The use of a manufacturing line to produce a flow of standard products is a
nonproject. The production of weekly employment reports, the preparation of school lunches,
the delivery of mail, the flight of Delta-1288 from Dallas to Dulles, checking your e-mail, all
are nonprojects. While one might argue that each of these activities is, to some degree, unique,
it is not their uniqueness that characterizes them. They are all routine. They are tasks that are
performed over and over again. This is not true of projects. Each project is a one-time event.
Even the construction of a section of interstate highway is a project. No two miles are alike
and constructing them demands constant adaptation to the differences in terrain and substruc-
ture of the earth on which the roadbed is to be laid. Projects cannot be managed adequately by
the managerial routines used for routine work.
In addition to projects and nonprojects, there are also quasi-projects: “Bill, would you
look into this?” “Judy, we need to finish this by Friday’s meeting.” “Can you find out about
this before we meet with the customer?” Most people would consider that they have just been
assigned a project, depending on who “we” and “you’’ is supposed to include. Yet there may be
no specific task identified, no specific budget given, and no specific deadline defined. Are they
still projects, and if so, can project management methods be used to manage them? Certainly!
The performance, schedule, and budget have been implied rather than carefully delineated by
the words “this,” “meet,” and “we” (meaning “you”) or “you” (which may mean a group or
team). In such cases, it is best to try to quickly nail down the performance, schedule, and bud-
get as precisely as possible, but without antagonizing the manager who assigned the project.
You may need to ask for additional help or other resources if the work is needed soon—is it
needed soon? How accurate/thorough/detailed does it need to be? And other such questions.
One common quasi-project in the information systems area is where the project includes
discovery of the scope or requirements of the task itself (and possibly also the budget and
deadline). How can you plan a project when you don’t know the performance requirements?
In this case, the project is, in fact, determining the performance requirements (and possibly
the budget and deadline also). If the entire set of work (including the discovery) has been
assigned to you as a project, then the best approach is to set this determination as the first
“milestone” in the project, at which point the resources, budget, deadline, capabilities, per-
sonnel, and any other matters will be reviewed to determine if they are sufficient to the new
project requirements. Alternatively, the customer may be willing to pay for the project on a
“cost-plus” basis, and call a halt to the effort when the benefits no longer justify the cost.
12 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

Project Management in Practice

The Olympic Torch Relay Project

Seattle

Minneapolis
Boston

New York

Chicago
Denver

Los
Angeles Atlanta

Dallas
New Orleans

Miami

Getting the Olympic Flame, known as the Olympic original torch went out. The caravan included: 50 cel-
Torch Relay, to the Salt Lake City, Utah, USA 2002 lular telephones; 60 pagers; 120 radios; 30 cars; 10
Olympic Games promised to be no simple matter. motorcycles; and clothing for 10,000 runners, 10,000
Generally, the Torch Relay has gotten longer and more volunteers, as well as 2,500 escort runners.
complex with every Olympic event. This complexity However, the torch relay is also a major marketing
is driven by the realization of host-country citizens campaign, primarily for the relay’s sponsors. Thus,
that it is a rare opportunity to have the Olympic torch accompanying the Atlanta-bound caravan were trucks
pass through your hometown and the corresponding hawking Olympic memorabilia: t-shirts, sweatshirts,
goal of the Olympic Committee to touch as many baseball caps, tickets to the soccer matches, and on
lives as possible in a positive way. and on. In addition to retail commercialism, a number
Planning for the 1996 Atlanta Olympic Torch Relay of companies were piggybacking on the torch relay to
(see figure) took two years, cost over $20 million, and further their own commercial interests: IBM, Motor-
involved an 84 day, 42 state campaign using 10,000 ola, BellSouth, Texaco, BMW, Lee, Coca-Cola, and
runners to carry the torch for 15,000 miles! Accompa- so on. All in all, a very successful relay!
nying the runners was a 40-vehicle caravan carrying
security officers, media personnel, medical person- Source: G. Ruffenach, “Getting the Olympic Flame to Atlanta
nel, computers, telecommunications gear, clothing, Won’t Be a Simple Cross-Country Run,” The Wall Street Journal,
food, and spare lanterns with extra flames in case the February 26, 1996.

1.2 WHY PROJECT MANAGEMENT?

The basic purpose for initiating a project is to accomplish specific goals. The reason for
organizing the task as a project is to focus the responsibility and authority for the attainment of
the goals on an individual or small group. In spite of the fact that the PM often lacks authority
 1.2 WHY PROJECT MANAGEMENT? 13

at a level consistent with his or her responsibility, the manager is expected to coordinate and
integrate all activities needed to reach the project’s goals. In particular, the project form of or-
ganization allows the manager to be responsive to: (1) the client and the environment, (2) iden-
tify and correct problems at an early date, (3) make timely decisions about trade-offs between
conflicting project goals, and (4) ensure that managers of the separate tasks that comprise the
project do not optimize the performance of their individual tasks at the expense of the total
project—that is, that they do not suboptimize.
Actual experience with project management (such as through the currently popular
Six-Sigma projects) indicates that the majority of organizations using it experience better
control and better customer relations (Davis, 1974), and probably an increase in their project’s
return on investment (Ibbs et al., 1997). A significant proportion of users also report shorter
development times, lower costs, higher quality and reliability, and higher profit margins. Other
reported advantages include a sharper orientation toward results, better interdepartmental
coordination, and higher worker morale.
On the negative side, most organizations report that project management results in greater
organizational complexity. Many also report that project organization increases the likelihood
that organizational policy will be violated—not a surprising outcome, considering the degree
of autonomy required for the PM. A few firms reported higher costs, more management dif-
ficulties, and low personnel utilization. As we will see in Chapter 5, the disadvantages of
project management stem from exactly the same sources as its advantages. The disadvantages
seem to be the price one pays for the advantages. On the whole, the balance weighs in favor
of project organization if the work to be done is appropriate for a project.
The tremendous diversity of uses to which project management can be put has had an
interesting, and generally unfortunate, side-effect. While we assert that all projects are to some
extent unique, there is an almost universal tendency for those working on some specific types
of projects to argue, “Software (or construction, or R & D, or marketing, or machine mainte-
nance, or . . .) projects are different and you can’t expect us to schedule (or budget, or organize,
or manage, or . . .) in the same way that other kinds of projects do.” Disagreement with such
pleas for special treatment is central to the philosophy of this book. The fundamental similari-
ties between all sorts of projects, be they long or short, product- or service-oriented, parts of
all-encompassing programs or stand-alone, are far more pervasive than are their differences.
There are also real limitations on project management. For example, the mere creation of
a project may be an admission that the parent organization and its managers cannot accom-
plish the desired outcomes through the functional organization. Further, conflict seems to be
a necessary side-effect. As we noted, the PM often lacks authority that is consistent with the
assigned level of responsibility. Therefore, the PM must depend on the goodwill of managers
in the parent organization for some of the necessary resources. Of course, if the goodwill is
not forthcoming, the PM may ask senior officials in the parent organization for their assis-
tance. But to use such power often reflects poorly on the skills of the PM and, while it may get
cooperation in the instance at hand, it may backfire in the long run.
We return to the subject of the advantages, disadvantages, and limitations of the project
form of organization later. For the moment, it is sufficient to point out that project management
is difficult even when everything goes well. When things go badly, PMs have been known to
turn gray overnight and take to hard drink! The trouble is that project organization is the only
feasible way to accomplish certain goals. It is literally not possible to design and build a major
weapon system, for example, in a timely and economically acceptable manner, except by proj-
ect organization. The stronger the emphasis on achievement of results in an organization, the
more likely it will be to adopt some form of project management. The stake or risks in using
project management may be high, but no more so than in any other form of management. And
for projects, it is less so. Tough as it may be, it is all we have—and it works!
14 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

DILBERT: © Scott Adams/Dist. by United Feature Syndicate, Inc.

All in all, the life of a PM is exciting, rewarding, at times frustrating, and tends to be at
the center of things in most organizations. Project management is now being recognized as
a “career path” in a growing number of firms, particularly those conducting projects with
lives extending more than a year or two. In such organizations, PMs may have to function for
several years, and it is important to provide promotion potential for them. It is also common
for large firms to put their more promising young managers through a “tour of duty” during
which they manage one or more projects (or parts of projects). This serves as a good test of
the aspiring manager’s ability to coordinate and manage complex tasks and to achieve results
in a politically challenging environment where negotiation skills are required.

1.3 THE PROJECT LIFE CYCLE

Most projects go through similar stages on the path from origin to completion. We define
these stages, shown in Figure 1-3, as the project’s life cycle. The project is born (its start-up
phase) and a manager is selected, the project team and initial resources are assembled, and
the work program is organized. Then work gets under way and momentum quickly builds.
Progress is made. This continues until the end is in sight. But completing the final tasks seems
to take an inordinate amount of time, partly because there are often a number of parts that
must come together and partly because team members “drag their feet” for various reasons
and avoid the final steps.
The pattern of slow-rapid-slow progress toward the project goal is common. Anyone who
has watched the construction of a home or building has observed this phenomenon. For the
most part, it is a result of the changing levels of resources used during the successive stages of
the life cycle. Figure 1-4 shows project effort, usually in terms of person-hours or resources
expended per unit of time (or number of people working on the project) plotted against time,
where time is broken up into the several phases of project life. Minimal effort is required at
the beginning, when the project concept is being developed and subjected to project selection
processes. (Later, we will argue that increasing effort in the early stages of the life cycle will
improve the chance of project success.) Normally there is a strong correlation between the
life-cycle progress curve of Figure 1-3 and the effort curve of Figure 1-4 because effort usu-
ally results in corresponding progress (although not always). Hence the mathematical deriva-
tive of the former tends to resemble the latter (Cioffi, 2004). Moreover, since the effort curve
is generally nonsymmetrical, the progress curve will in general not be symmetrical either.
Activity increases as planning is completed and the real work of the project gets under-
way. This rises to a peak and then begins to taper off as the project nears completion, finally
 1.3 THE PROJECT LIFE CYCLE 15

100
% Project completion Slow finish

Quick momentum

Slow start

0 Figure 1-3 The project life

Time cycle.

Peak effort level

Level of effort

Time
Planning, scheduling, Evaluation Figure 1-4 Time distri-
monitoring, control and termination
Conception Selection bution of project effort.

ceasing when evaluation is complete and the project is terminated. While this rise and fall of
effort always occurs, there is no particular pattern that seems to typify all projects, nor any
reason for the slowdown at the end of the project to resemble the buildup at its beginning.
Some projects end without being dragged out, as is shown in Figure 1-4. Others, however,
may be like T. S. Eliot’s world, and end “not with a bang but a whimper,” gradually slowing
down until one is almost surprised to discover that project activity has ceased. In some cases,
the effort may never fall to zero because the project team, or at least a cadre group, may be
maintained for the next appropriate project that comes along. The new project will then rise,
phoenix-like, from the ashes of the old.
The ever-present goals of meeting performance, time, and cost are the major consid-
erations throughout the project’s life cycle. It was generally thought that performance took
16 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

precedence early in the project’s life cycle. This is the time when planners focus on finding the
specific methods required to meet the project’s performance goals. We refer to these methods
as the project’s technology because they require the application of a science or art.
When the major “how” problems are solved, project workers sometimes become preoccupied
with improving performance, often beyond the levels required by the original specifications.
This search for better performance delays the schedule and pushes up the costs.
At the same time that the technology of the project is defined, the project schedule is
designed and project costs are estimated. Just as it was thought that performance took prece-
dence over schedule and cost early in the life cycle, cost was thought to be of prime importance
during the periods of high activity, and then schedule became paramount during the final stages,
when the client demanded delivery. This conventional wisdom turns out to be untrue. Recent
research indicates that performance and schedule are more important than cost during all stages.
The reality of time-cost-performance trade-offs will be discussed in greater detail in Chapter 3.
Figure 1-3 presents the conventional view of the project life cycle. There are, however, many
projects that have a life cycle quite different from the S-shaped Figure 1-3, conventional wisdom
to the contrary. Remember that Figure 1-3 shows “percent project completion” as a function
of “time.” The life-cycle function is essentially unchanged if, for the horizontal axis, we use
“resources” instead. In effect, the life cycle shows what an economist might call “return on
input,” that is, the amount of project completion resulting from inputs of time or resources. While
the S-shaped return curve reflects reality on many projects, it is seriously misleading for others.
For example, consider your progress toward getting a degree, which is usually specified,
in large part, by the number of credit hours for courses successfully passed. For smooth pro-
gress toward the degree, the life-cycle “curve” would probably resemble a stairstep, each level
portion representing a term of study and the step up representing completion of credit toward
the degree. Summer vacation would, of course, be a longer level stair continuing into the fall
term. Passing a crucial licensing exam, such as the Certified Public Accountant (CPA), the bar
exam for attorneys, or even an electrician’s or plumber’s certification, might appear as a long
flat line along the horizontal axis with a spike at the time of passing the exam; of course, the
effort curve of Figure 1-4 would look completely different.
Another type of life-cycle curve might be the installation of a new technology consisting of
multiple parts, where each independent part resulted in different incremental benefits. In these
cases, organizations prefer to install those parts resulting in “the biggest bang for the buck” first,
so the resulting life-cycle curve would show great progress at first, and slightly less next, and con-
tinual dwindling off as the remaining parts were installed, essentially concave with “decreasing
returns to scale,” as the economists call it. And there might even be an “inverse S-curve” repre-
senting fast progress at first, a slowdown in the middle, and then speeding up again at the end.
A particularly important alternative life cycle shape can be captured by the analogy of baking
a cake. Once the ingredients are mixed, we are instructed to bake the cake in a 3508 (F) oven for
35 minutes. At what point in the baking process do we have “cake?” Experienced bakers know
that the mixture changes from “goop” (a technical term well known to bakers and cooks) to
“cake” quite rapidly in the last few minutes of the baking process. The life cycle of this process
looks like the curve shown in Figure 1-5. A number of actual projects have a similar life cycle,
for example, some computer software projects, or chemistry and chemical engineering projects.
In general, this life cycle often exists for projects in which the output is composed or constructed
of several subunits (or subroutines) that have little use in and of themselves, but are quite useful
when put together. This life-cycle curve would also be typical for projects where a chemical-type
reaction occurs that rapidly transforms the output from useless to useful—from goop to cake.
Another example is the preparation of the manuscript for the current edition of this book. A great
deal of information must be collected, a great deal of rewriting must be done and new materials
gathered, but there is no visible result until everything is assembled.
 1.3 THE PROJECT LIFE CYCLE 17

% Project completion 100

0 Figure 1-5 Another possible project life

Time cycle.

Figure 1-3 shows that, as the project nears completion, continued inputs of time or
resources result in successively smaller increments of completion—diminishing marginal
returns. Figure 1-5 shows the opposite. As these projects near completion, additional inputs
result in successively larger increments of progress—increasing marginal returns, obviously
bounded at 100 percent completion. In Chapter 7, we will see that the distinction between
these types of life cycles plays a critical role in developing budgets and schedules for projects.
It is not necessary for the PM to estimate the precise shape of the life-cycle curve, but the PM
must know which type of project life cycle applies to the project at hand.
There is another comparison between the two types of project life cycles that is instruc-
tive. For the S-shaped life cycle in Figure 1-3, percentage of project completion is closely
correlated with cost, or the use of resources. In fact, this is the basis for the use of “earned
value,” a technique for monitoring project progress that we will describe in more detail in
Chapter 10. However, for the exponential progress curve in Figure 1-5, the expenditure of
resources has little correlation with progress, at least in terms of final benefit.
Finally, not only does the shape of the project life-cycle curve fail to conform to a neat,
single shape—there are also several different ways in which a project life cycle can be viewed
and understood. We might view the project life cycle as a control system, as a mechanism to
control quality, as a way of organizing the management of risk, and as a collection of small
projects within larger projects within still larger projects. Each of these views of a project’s
life is useful to the project manager. These will be discussed in later chapters.

Risk During the Life Cycle

It would be a great source of comfort if one could predict with certainty, at the start of a
project, how the performance, time, and cost goals would be met. In a few cases, routine con-
struction projects, for instance, we can generate reasonably accurate predictions, but often we
cannot. There may be considerable uncertainty about our ability to meet project goals. The
crosshatched portion of Figure 1-6 illustrates that uncertainty.
Figure 1-6 shows the uncertainty as seen at the beginning of the project. Figure 1-7 shows
how the uncertainty decreases as the project moves toward completion. From project start time,
t0, the band of uncertainty grows until it is quite wide by the estimated end of the project. As the
project actually develops, the degree of uncertainty about the final outcome is reduced. (See the
estimate made at t1, for example.) A later forecast, made at t2, reduces the uncertainty further. It is
common to make new forecasts about project performance, time, and cost either at fixed intervals
in the life of the project or when specific technological milestones are reached. In any event, the
more progress made on the project, the less uncertainty there is about achieving the final goal.
Note that the focus in Figures 1-6 and 1-7 is on the uncertainty associated with project
cost—precisely, the uncertainty of project cost at specific points in time. Without significantly
18 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

Project cost

Figure 1-6 Estimate of project cost:

Time estimate made at project start.
Project cost

Figure 1-7 Estimates of project

cost: estimates made at time t0, t1,
t0 t1 t2 Time and t2.

altering the shapes of the curves, we could exchange titles on the axes. The figures would then
show the uncertainty associated with estimates of the project schedule, given specific levels
of expenditure. The relationship between time and cost (and performance) is emphasized
throughout this book. Dealing with the uncertainty surrounding this relationship is a major
responsibility of the PM.

1.4 THE STRUCTURE OF THIS TEXT

This book, a project in itself, has been organized to follow the life cycle of all projects. It
begins with the creative idea that launches most projects and ends with termination of the
project. This approach is consistent with our belief that it is helpful to understand the entire
process of project management in order to understand and manage its parts. Another charac-
teristic of the book also relates to the process of project management: some topics, such as
“procurement,” can largely be treated as stand-alone issues, discussed in a single appropriate
place in the book, and then dispensed with. Other topics however, such as “risk,” or “plan-
ning,” arise throughout the book and are treated wherever they are relevant, which may be
quite often. To attempt to treat them in a single section, or chapter, would be misleading. In
addition, although this book is intended primarily for the student who wants to study project
 1.4 THE STRUCTURE OF THIS TEXT 19

Project Management in Practice

Demolishing San Francisco’s Bridges Safely

The Central Freeway Viaduct in downtown San Fran- • a dust control plan
cisco suffered major structural damage during the • work-hour schedule
1989 Loma Prieta earthquake and recently had to be
safely demolished. The task was complicated because • noise-level monitoring
the bilevel, multispan bridge passed within six feet of • load determinations and structural analyses.
heavily populated buildings, ran in the vicinity of both Most of the demolition was accomplished using a
overhead and underground utilities (gas, water, elec- breaker on the upper deck of the bridge and a pulver-
tric, and sewer lines), and crossed both commercial izer on the lower deck. First the roadway slab was
and residential areas with strict vibration and sound demolished, then the girders were pulverized and all
level restrictions. Thus, managing the demolition the debris pushed down to the ground. Then the cap,
while ensuring the safety of both the on-going popu- columns, and restrainers were demolished. This pro-
lation and existing facilities was a major challenge. cess continued along the length of the bridge until the
The primary tools for conducting such a delicate, entire distance was demolished. Constant monitoring
but dangerous, operation were detailed planning and was conducted for noise, vibration, safety, and pro-
thorough communications with all related parties. An cedures throughout the project. Continuous commu-
extensive Demolition Plan was required and included: nication was made with utility companies and others
• a Code of Safe Practice describing personal concerned with a particular segment being demolished.
protective equipment for the workers, as well In this fashion, the entire viaduct was demolished with
as a maintenance plan for the equipment; no major accidents or injuries.
• a Code of Safe Practice describing personal
protective equipment for the workers, as well Source: O. Y. Abudayyeh, “Safety Issues in Bridge Demolition
as a maintenance plan for the equipment; Projects: A Case Study,” PM Network, January 1997, pp. 43–45.
20 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

management, we feel it can also be of value to the prospective or acting PM, and to senior
managers who initiate projects and select, work with, or manage PMs. Therefore, our interests
often go beyond the issues of primary concern to beginning students.
Most actual projects will not be of the size and complexity addressed in many of our dis-
cussions. Though our intent was not to confine our remarks only to large engineering-oriented
projects, these are typically the most complex and place the greatest demands on project man-
agement. Smaller, simpler projects may therefore not require the depth of tools and techniques
we will present, but the student or manager should be aware that such tools exist.
Project management actually begins with the initial concept for the project. We feel that
this aspect of project management is so important, yet so universally ignored in books on
project management, that we included two appendices covering this area in previous editions
of this book. In one appendix we discussed creativity and idea generation. In another, we
described some of the techniques of technological forecasting. While our notion about the
importance of these subjects is unchanged, the location of the two appendices has been moved
from the end of this work to the Internet. The complete text of both appendices now appears in
www.wiley.com/college/meredith/ (along with other items noted in the preface to this edition).
We realize that these topics may be of more direct interest to the senior manager than the PM.
Though a PM may prefer to skip this material, since what is past is past, we believe that his-
tory holds lessons for the future. Wise PMs will wish to know the reasons for, and the history
behind, the initiation of their project.
In years past, there were arguments between those who insisted that project management
was primarily a quantitative science and those who maintained that it was a behavioral sci-
ence. It has become clear that one cannot adequately manage a project without depending
heavily on both mathematics and the science of human behavior. To contend that mathematics
is exact and that behavioral science is “mushy” is to ignore the high level of subjectivity in
most of the numeric estimates made about the times, costs, and risks associated with projects.
On the other hand, to assert that “people don’t really use that stuff” (mathematical models) is
to substitute wishful thinking for reality. For nonmathematicians, we have computers to help
with the requisite arithmetic. For the nonbehaviorists, there is no help except hard work and
an accepting attitude toward the subject.
Before undertaking a journey, it is useful to know what roads are to be traveled. While
each individual chapter begins with a more detailed account of its contents, what follows
is a brief description of chapter contents along with their organization into three general
areas: project initiation, project planning, and project execution. Following this introductory
chapter, the material in Part I focuses on project initiation. We realize that many instructors
(and students) would rather get to the basics of managing projects, and that can be done
by moving directly to Part II of the text. However, we believe that without understanding
the context of the project—why it was selected and approved, what project managers are
responsible for and their many roles (such as running a team and negotiating for resources),
the importance of the Project Management Office, and where (and why) the project resides
in the organization’s hierarchy—a PM is courting disaster. Chapter 2 starts with a description
of the concept of project management “maturity,” or sophistication, and how firms can evalu-
ate their own competence in project management. It then details the problems of evaluating
and selecting projects, as well as the information needed for project selection, the manage-
ment of risk through simulation, and some of the technical details of proposals. The chapter
concludes by expanding the concept of project selection to strategic management through
judicious selection of the organization’s projects by means of an eight-step procedure called
the “project portfolio process.” Chapter 3, “The Project Manager,” concerns the PM’s roles,
responsibilities, and some personal characteristics a project manager should possess. It also
discusses problems a PM faces when operating in a multicultural environment. Next, Chapter 4
 1.4 THE STRUCTURE OF THIS TEXT 21

covers a subject of critical importance to the PM that is almost universally ignored in project
management texts: the art of negotiating for resources. The chapter also includes some major
sources of interpersonal conflict among members of the project team. Concluding Part I of
the book, Chapter 5 concentrates on establishing the project organization. Different organi-
zational forms are described, as well as their respective advantages and disadvantages. The
staffing of the project team is also discussed.
In Part II we consider project planning. This section of the text discusses the essentials
of planning the project in terms of activities, costs, and schedule. Chapter 6 deals with proj-
ect activity planning and presents tools useful in organizing and staffing the various project
tasks. It also contains a short discussion of phase-gate management systems and other ways of
dealing with the problems that arise when multidisciplinary teams work on complex projects.
Because of its importance, budgeting is addressed next in Chapter 7. Scheduling, a crucial
aspect of project planning, is then described in Chapter 8, along with the most common sched-
uling models such as the Program Evaluation and Review Technique (PERT), the Critical
Path Method (CPM), and precedence diagramming. Concluding Part II, resource allocation
is covered in Chapter 9. For single projects, we discuss how the resource allocation problem
concerns resource leveling to minimize the cost of the resources; but for multiple projects,
we learn that the issue is how to allocate limited resources among several projects in order to
achieve the objectives of each.
Part III of the text then gets into actual project execution. Chapter 10 examines the infor-
mation requirements of a project and the need for monitoring critical activities. Included in
this chapter is a description of some common Project Management Information Systems
(PMIS). In general, it is not possible to manage adequately any but the smallest of projects
without the use of a computerized PMIS. There are many such systems available and several
are briefly discussed, but in this book all examples using PMIS will use Microsoft Project®
(as well as Excel® and other software made to interact easily with Microsoft Project® and
Excel®), by far the most popular project management software. While Microsoft has been a
driving force in the development of project management software, there is a wide variety of
PMIS available. We must add that to use any project management software wisely, the user
must understand the principles of project management. Chapter 11 then describes the control
process in project management. This chapter covers standards for comparison and tools to
help the manager keep the project in control. Chapter 12 deals with methods for both ongoing
and terminal audits and evaluations of a project, as well as identifying factors associated with
project success and failure. Chapter 13 describes the different forms of project termination,
such as outright shutdown, integration into the regular organization, or extension into a new
project. Each of these forms presents unique problems for the PM to solve.
The subject of risk management and its component parts, risk management planning, risk
identification, risk assessment, risk quantification, risk response development, and risk moni-
toring and control (Project Management Institute, 2004), is given extensive coverage through-
out this book. We considered the addition of a chapter specifically devoted to the management
of risk, but the fact that risk and uncertainty are inherent in all aspects of project life led us to
incorporate discussions of risk management when they were relevant to the problem at hand.
Determination of the sources and nature of risks that might affect a project is risk iden-
tification and, in our opinion, should be the subject of an ongoing analysis carried out by the
project council, the Project Management Office, and the project team itself. Risk identifica-
tion, therefore, should be embedded as a part of any project, and we deal with the subject in
Chapter 5 when we discuss project organization.
Risk analysis, a term we use to cover both risk quantification and risk response planning,
is devoted to estimating the specific impacts that various uncertainties may have on project
outcomes. The techniques used to estimate and describe uncertain outcomes vary with the
22 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

particular problem at hand. Determination of the impact of risks on the project selection pro-
cess, for example, is significantly different from a study of the impact of risks on project bud-
gets or schedules. Each will be considered in its appropriate place. The use of Decisioneering’s
Crystal Ball® (enclosed with this volume) will greatly simplify the mathematical difficulties
often associated with risk analysis.
With this introduction, let us begin our study, a project in itself, and, we hope, an interest-
ing and pleasant one.

SUMMARY

This chapter introduced the subject of project management • Our terminology follows in this order: program,
and discussed its importance in our society. It defined what project, task, work package, work unit.
we mean by a “project,” discussed the need for project man- • Projects are characterized by their importance, spe-
agement, and described the project life cycle. The final sec- cific end results, a definite life cycle, complex inter-
tion explained the structure of this text and gave an overview dependencies, some or all unique elements, limited
of the material to be described in coming chapters. resources, and an environment of conflict.
The following specific points were made in the chapter.
• Project management, though not problem-free, is the
• The Project Management Institute (PMI) was founded best way to accomplish certain goals.
in 1969 to foster the growth and professionalism of
project management.
• Projects often start slowly, build up speed while
using considerable resources, and then slow down as
• Project management is now being recognized as a completion nears.
valuable “career path” in many organizations, as
well as a way to gain valuable experience within the
• This text is organized along the project life cycle
concept, starting with project initiation in Chapters 2
organization. to 5, where selection of the project and project man-
• Project management, initiated by the military, provides ager occurs and project organization begins. Project
managers with powerful planning and control tools. planning, Chapters 6 to 9, is concerned with activity
planning, budgeting, scheduling, and resource alloca-
• The three primary forces behind project management
tion. Project execution, covered in Chapters 10 to 13,
are (1) the growing demand for complex, customized
goods and services; (2) the exponential expansion of relates to actually running the project and includes
human knowledge; and (3) the global production– activity monitoring and control, auditing and evalua-
consumption environment. tion, and finally project termination.

• The three prime objectives of project management

are to meet specified performance within cost and on
schedule.

GLOSSARY

Deliverables The desired elements of value, outcomes, project team, client, senior management, and specific public
or results that must be delivered for a project to be consid- interest groups.
ered complete. Program Often not distinguished from a project, but
Interdependencies Relations between organizational frequently meant to encompass a group of similar projects
functions where one function or task is dependent on others. oriented toward a specific goal.
Life Cycle A standard concept of a product or project Project Management The means, techniques, and con-
wherein it goes through a start-up phase, a building phase, a cepts used to run a project and achieve its objectives.
maturing phase, and a termination phase. Risk The chance that project processes or outcomes will
Parties-at-Interest Individuals or groups (the stake- not occur as planned.
holders) with a special interest in a project, usually the Stakeholder see “Parties-at-Interest.”
 QUESTIONS 23

Suboptimize Doing the best within a function or area Uncertainty Having only partial or no information about
but at a cost to the larger whole. the situation or outcomes, often due to ambiguity or com-
Task A subset of a project, consisting of work packages. plexity.
Technology The means for accomplishing a task. Work Package A subelement of a task at the lowest
Trade-off Taking less on one measure, such as performance, level in the Work Breakdown Strucure, used to assign costs
in order to do better on another, such as schedule or cost. and values.

QUESTIONS

Material Review Questions

1. Name and briefly describe the societal forces that have 7. How do projects, programs, tasks, and work packages
contributed to the need for project management. differ?
2. Describe the life cycle of a project in terms of (1) the 8. How would you define a project?
degree of project completion; (2) required effort. 9. What are some of the interdependencies related to a
3. Describe the limitations of project management. project?
4. List the seven main characteristics of a project and 10. What are some sources of conflict the project manager
briefly describe the important features of each. must deal with?
5. Name and briefly describe the three primary goals of a 11. Differentiate between direct and ancillary project goals.
project. Would learning a new skill through the project be a
6. Discuss the advantages and disadvantages of project direct or ancillary goal? Entering a new market?
management. 12. Describe the characteristics of quasi-projects.
Class Discussion Questions
13. Give several examples of projects found in our society, 19. Discuss why there are trade-offs among the three prime
avoiding those already discussed in the chapter. objectives of project management.
14. Describe some situations in which project management 20. Why is the life cycle curve often “S” shaped?
would probably not be effective. 21. How might project management be used when doing a
15. How does the rate-of-project-progress chart (Fig. 1-3) major schoolwork assignment?
help a manager make decisions? 22. Why is there such a pronounced bend in the curve of
16. Expound on the adage, “Projects proceed smoothly Figure 1-2?
until 90 percent complete, and then remain at 90 per- 23. Which of the identified project attributes in Section
cent forever.” 1.1 are always present? Which are simply frequently
17. Discuss the duties and responsibilities of the project present?
manager. How critical is the project manager to the suc- 24. Describe a project whose life cycle would be a straight
cess of the project? line from start to finish. Describe a project with an
18. Would you like to be a project manager? Why, or inverse-S life cycle.
why not?
Questions for Project Management in Practice
The Olympic Torch Relay Project
25. Is the torch relay another part of the Olympics them- 26. Is the life cycle for this project S-shaped or shaped like
selves, perhaps a sub-project? the right half of a U or something else? Why?
Demolishing San Francisco’s Bridges Safely
27. What was the main consideration in this demolition 29. Would the life cycle for this project be S-shaped or the
project? right half of a U or something else? How about the life
28. How would a demolition project differ from a more cycle for a freeway construction project?
common construction project? Consider performance,
schedule, and budget.
24 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

INCIDENTS FOR DISCUSSION

Blanka Transport, Inc. Route Manager could serve as project co-managers. He also
After several years of driving long-haul trucks, Joe Blanka felt that some of the older, more experienced drivers might be
founded his own trucking company, Blanka Transport Inc. helpful. The objective of the project would be to decrease the
(BTI), which specialized in less-than-carload shipments in size of the route imbalances by 75 percent in a 1-year period.
the midwestern part of the United States. Joe developed a Questions: Is this a proper approach to the problem?
successful method for scheduling BTI’s runs that met or What, if any, helpful suggestions would you make to Joe?
exceeded the delivery expectations of its customers. As a
result, BTI shipments were growing at a rate between 15 and Maladroit Cosmetics Company
20 percent per year. The growth, however, was not evenly
The plant manager of the Maladroit Cosmetics Company
distributed across BTI’s territory. On some routes, capac-
must replace several of her filling machines that have become
ity was overloaded in one direction and underloaded in
obsolete. She is about to take delivery of six machines at a
the other.
total cost of $4 million. These machines must be installed
Joe noticed that the imbalance problem was not stable
and fully tested in time to be used on a new production line
across time. In some months capacity was short in one
scheduled to begin operation in six months. Because this
direction, and in other months it was short in another direc-
project is important, the plant manager would like to devote
tion. He thought that one way of solving the problem would
as much time as possible to the job, but she is currently han-
be through marketing, by offering incentives to customers
dling several other projects. She thinks she has three basic
whose shipments would improve load balance. Another
choices: (1) she can handle the project informally out of
approach to the problem was to analyze and restructure
her office; (2) she can assign the project to a member of her
the route–equipment combinations. He also thought that it
staff; or (3) the company that manufactures the machines
might be possible to warehouse some less-urgent shipments
can handle the installation project for a fee close to what the
for short periods in order to help the balance.
installation would cost Maladroit.
Joe’s son, the first member of the Blanka family to attend
college, was a senior in engineering school. He had just Questions: Which of the three choices do you recom-
completed a course in project management, and after briefly mend, and why? If the project was one small machine at
describing some of the basic concepts to his father, he sug- a total cost of $4,000, would your answer be different?
gested that a project might be a good way to deal with the bal- Discuss the relative importance of the capital investment
ance problem. He thought that the Marketing Manager and the required versus the role of the investment in machinery.

CONTINUING INTEGRATIVE CLASS PROJECT

It often helps in communicating the process, difficulties, • a copy for every student, as well as the Instructor
and satisfactions of project management if the class can • presented in either hard copy CD, flash memory,
do a team project together during the term of the course. or electronic (e.g., web) form (check with your
The instructor may have a pre-chosen project for the class Instructor)
to work on, perhaps in a local organization, or the school
itself (where there are many excellent projects: the cafete- • everyone in class must participate, with one excep-
tion noted further below.
ria, parking, library, counseling, class scheduling, etc.), but
if not, the following project is offered as an alternative. • if subteams are used, they must not be organized to
The project is to prepare a “Student Study Guide” for this operate independently of each other (for example, by
course, due (time requirement) on the last day of the course doing all the work on one of the chapters).
before the final examination. The purpose of the guide is to • the project plans can be constructed manually or
help the students learn the material of the course, both by in Microsoft Project® or another software program
preparing the guide as well as using it to study for the final (check with your instructor)
examination. The requirements (performance, or “scope”)
for the guide are as follows: In addition, one student will be appointed as “Historian,”
whose job is to monitor and prepare a written report on
• a professional-looking appearance the progress of the project over its duration. This includes
• a consistent approach throughout the chapters both the tasks to be accomplished, but also the attitude and
 BIBLIOGRAPHY 25

spirit of the Project Manager (PM), the project team and/or progress. However, executing the requisite tasks of the proj-
subteams, and the various stakeholders in the project (team ect takes the most time in a real project but is a topic that
members, Instructor, future students who may use the Guide) is outside the scope of this text, which concerns only the
as well as the culture and environment of the project. The generic tasks of project management. (Every project will
main task of the Historian is to compare the reality of the have different tasks associated with it, many with very tech-
class project to that described in the textbook and point out nical requirements.) Therefore, it will be necessary to forge
in the written report similarities and differences that will ahead and do all the preparatory project elements, particu-
be recognizable by the PM and team members. The Histo- larly in Parts I and II of the book, so that progress on the proj-
rian will have no work to do on the project itself, but will ect tasks can begin right away. It would, of course, be best if
need to sit in on meetings, confer with the PM and subteam the class could read all the material up to Chapter 10, which
heads, talk to team members occasionally, confer with the initiates Part III: Project Execution, where the work begins,
Instructor, and other such activities as needed to properly before actually starting the project. Unfortunately, the course
monitor task progress. The role of this person is especially would be almost over by then and it would be too late to
critical for the class to learn how closely their project fol- start a project. As a result, the PM and the class will have to
lowed the typical path of a normal project, what problems skip ahead and read the Continuing Integrative Class Project
arose and how they should have been handled, and so forth. assignments, at least for Chapters 2–10 now; hopefully, they
As a result, this person should probably be selected by the will discover in retrospect how they could have conducted
Instructor right at the beginning of the course. each of the various elements of the project better.
There may also be some expenses (budget requirement), But for right now, it is most important to cover the project
such as photocopying costs and travel expenses, that may elements in Chapters 2 and 3—what the project will be and
require assistance from the Instructor. Usually these costs are who will be the PM, respectively, so the project can get
minor, but it depends on the project. Of course, in a real project underway ASAP. It is best to do these two elements in the
the major cost would be the labor/personnel costs of the team very first class, the first one in consultation with the Instruc-
members doing the work, a cost that is essentially “free” here. tor, and the second one with the Instructor ABSENT from
In future chapters we will continue to develop the various the room but with instructions for where to find him or her
elements of the project, such as selecting the PM, organiz- once the class has selected the PM, hopefully within 20 min-
ing the team, scheduling the deliverables, and monitoring utes but most certainly by the end of the class. Good luck!

BIBLIOGRAPHY

Cioffi, D. F. Personal communication, 2004. Ibbs, C. W., and Y. H. Kwak, “Assessing Project Manage-
Darnell, R. “The Emerging Role of the Project Manager.” ment Maturity.” Project Management Journal, March 2000.
PM Network, July 1997. Kerzner, H. Project Management: A Systems Approach to
Davis, E. W. “CPM Use in Top 400 Construction Firms.” Planning, Scheduling, and Controlling, 8th ed. New Jersey:
Journal of the Construction Division, American Society of Wiley, 2003.
Civil Engineers, 1974. Pande, P. S., R. P. Newman, and R. R. Cavanagh. The Six
Davis, E. W. Project Management: Techniques, Applica- Sigma Way, New York: McGraw-Hill, 2000.
tions, and Managerial Issues, 2nd ed. Norcross, GA: AIIE Project Management Institute. A Guide to the Project
Monograph, 1983. Management Body of Knowledge, 3rd ed. Newtown Square,
Gido, J., and J. P. Clements. Successful Project Manage- PA: Project Management Institute, 2004.
ment, with Microsoft Project 2003 CD-ROM. Cincinnati: Pyzdek, T. The Six Sigma Handbook, rev. ed., New York:
Thompson/South-Western, 2004. McGraw-Hill, 2003.
Grey, C. F., and E. W. Larson. Project Management: Sandberg, J. “Rise of False Deadline Means Truly Urgent
The Managerial Process. New York: McGraw-Hill/Irwin, Often Gets Done Late.” Wall Street Journal, January 24,
2005. 2007.
Hughes, T. P. Rescuing Prometheus. New York, Pantheon, Shenhar, A. J., O. Levy, and D. Dvir. “Mapping the
1998. Dimensions of Project Success.” Project Management Jour-
Ibbs, C. W., and Y. H. Kwak. “Measuring Project Man- nal, June 1997.
agement’s Return on Investment.” PM Network, Nov. Sun, M. “Weighing the Social Costs of Innovation.” Science,
1997. March 30, 1984.
26 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

The following reading describes the common occurrence of someone suddenly being appointed a project manager and find-
ing he or she has been inadequately trained for the task. Based on the authors’ own experiences and interviews with dozens
of senior project managers, they distill twelve guidelines for new project managers. The guidelines run the gamut from proj-
ect initiation, through planning, to execution and close-out. Some are technical, some are uncommon sense, and many are
philosophical, and sometimes political. But they are sage advice, not only for the novice but for the experienced project
manager as well.

D I R E C T E D R E A D I N G
LESSONS FOR AN ACCIDENTAL PROFESSION
J. K. Pinto and O. P. Kharbanda: Lessons for an Accidental
Profession. Reprinted with permission from Business Horizons, March–April 1995.
Copyright ©1995 by Indiana University Kelly School of Business.

Projects and project management are the wave of the future project managers are varied and difficult to pin down. Our
in global business. Increasingly technically complex products goal is to offer some guidelines for an accidental profession,
and processes, vastly shortened time-to-market windows, and based on our own experiences and interviews with a num-
the need for cross-functional expertise make project manage- ber of senior project managers—most of whom had to learn
ment an important and powerful tool in the hands of organi- their own lessons the hard way.
zations that understand its use. But the expanded use of such
techniques is not always being met by a concomitant increase “Accidental” Project Managers
in the pool of competent project managers. Unfortunately, and
perhaps ironically, it is the very popularity of project manage- Project managers occupy a unique and often precarious posi-
ment that presents many organizations with their most severe tion within many firms. Possessing little formal authority and
challenges. They often belatedly discover that they simply do forced to operate outside the traditional organizational hier-
not have sufficient numbers of the sorts of competent project archy, they quickly and often belatedly learn the real limits
managers who are often the key driving force behind suc- of their power. It has been said that an effective project man-
cessful product or service development. Senior managers in ager is the kingpin, but not the king. They are the bosses, it is
many companies readily acknowledge the ad hoc manner in true, but often in a loosely defined way. Indeed, in most firms
which most project managers acquire their skills, but they they may lack the authority to conduct performance apprais-
are unsure how to better develop and provide for a supply of als and offer incentives and rewards to their subordinates. As
well-trained project leaders for the future. a result, their management styles must be those of persua-
In this article, we seek to offer a unique perspective on sion and influence, rather than coercion and command.
this neglected species. Though much has been written on Because of these and other limitations on the flexibility
how to improve the process of project management, less and power of project managers, project management has
is known about the sorts of skills and challenges that spe- rightly been termed the “accidental profession” by more than
cifically characterize project managers. What we do know one writer. There are two primary reasons for this sobriquet.
tends to offer a portrait of successful project managers as First, few formal or systematic programs exist for selecting
strong leaders, possessing a variety of problem-solving, and training project managers, even within firms that spe-
communication, motivational, visionary, and team-building cialize in project management work. This results at best in ad
skills. Authors such as Posner (1987), Einsiedel (1987), and hoc training that may or may not teach these people the skills
Petterson (1991) are correct. Project managers are a special they need to succeed. Most project managers fall into their
breed. Managing projects is a unique challenge that requires responsibilities by happenstance rather than by calculation.
a strategy and methodology all its own. Perhaps most Second, as Frame (1987) cogently observed, few individuals
important, it requires people willing to function as leaders grow up with the dream of one day becoming a project man-
in every sense of the term. They must not only chart the ager. It is neither a well-defined nor a well-understood career
appropriate course, but provide the means, the support, and path within most modern organizations. Generally, the role
the confidence for their teams to attain these goals. Effective is thrust upon people, rather than being sought.
project managers often operate less as directive and auto- Consider the typical experiences of project managers
cratic decision makers than as facilitators, team members, within many corporations. Novice managers, new to the
and cheerleaders. In effect, the characteristics we look for in company and its culture, are given a project to complete
 DIRECTED READING 27

with the directive to operate within a set of narrowly defined • A large computer hardware manufacturer has been
constraints. These constraints most commonly include a dominated by the members of the hardware engi-
specified time frame for completion, a budget, and a set of neering department to such an extent that practically
performance characteristics. Those who are able to quickly all new product ideas originate internally, within the
master the nature of their myriad duties succeed; those who department. By the time marketing personnel (sneer-
do not generally fail. This “fly or die” mentality goes far ingly called “order takers” by the engineering depart-
toward creating an attitude of fear among potential project ment) are brought on board, they are presented with
managers. Generation after generation of them learn their a fait accompli: a finished product they are instructed
duties the hard way, often after having either failed com- to sell. Marketing managers are now so cynical about
pletely or stumbled along from one crisis to another. The new projects that they usually do not even bother
predictable result is wasteful: failed projects; managers bat- sending a representative to new product development
tling entrenched bureaucracy and powerful factions; money, team meetings.
market opportunities, and other resources irretrievably lost • A medium-sized manufacturing firm made it a pol-
to the company. icy to reward and punish project managers on the
The amazing part of this scenario is that it is repeated basis of their ability to bring projects in on time and
again and again in company after company. Rather than under budget. These project managers were never
treating project management as the unique and valuable held to any requirement that the project be accepted
discipline it is, necessitating formal training and selection by its clients or become commercially successful.
policies, many companies continue to repeat their past mis- They quickly learned that their rewards were sim-
takes. This almost leads one to believe they implicitly view ply tied to satisfying the cost accountants, so they
experience and failure as the best teacher. began to cut corners and make decisions that seri-
We need to shed light on the wide range of demands, ously undermined product quality.
opportunities, travails, challenges, and vexations that are part
of becoming a better project manager. Many of the problems • Projects in one division of a large, multinational cor-
poration are routinely assigned to new managers who
these individuals struggle with every day are far more mana-
often have less than one year of experience with the
gerial or behavioral in nature than technical. Such behavioral
company. Given a project scheduling software pack-
challenges are frequently vexing, and though they can some-
age and the telephone number of a senior project
times seem inconsequential, they have a tremendous impact
manager to be used “only in emergencies,” they are
on the successful implementation of projects. For example,
instructed to form their project teams and begin the
it does not take long for many project managers to discover
development process without any formal training or
exactly how far their personal power and status will take
channels of communication to important clients and
them in interacting with the rest of the organization. Hence,
functional groups. Not surprisingly, senior managers
an understanding of influence tactics and political behavior is
at this company estimate that fewer than 30 percent of
absolutely essential. Unfortunately, novice project managers
new product development efforts are profitable. Most
are rarely clued into this important bit of information until it
take so long to develop, or incur such high cost over-
is too late—until, perhaps, they have appealed through for-
runs, that they are either abandoned before scheduled
mal channels for extra resources and been denied.
introduction or never live up to their potential in the
Consider the following examples:
marketplace.
• A long-distance telephone company whose CEO
became so enamored of the concept of high-profile This ad hoc approach to project management—coupled,
project teams—or “skunkworks,” as they have come as it frequently is, with an on-the-job training philosophy—
to be called—that he assigned that title to the few is pervasive. It is also pernicious. Under the best of circum-
most highly visible, strategically important projects. stances, project managers are called upon to lead, coordinate,
Quickly, both senior and middle managers in depart- plan, and control a diverse and complex set of processes and
ments across the organization came to realize that the people in the pursuit of achieving project objectives. To ham-
only way to get their pet projects the resources neces- per them with inadequate training and unrealistic expecta-
sary to succeed was to redesignate all new projects as tions is to unnecessarily penalize them before they can begin
“skunkworks.” At last report, there were more than to operate with any degree of confidence or effectiveness.
75 high-profile skunkworks projects whose manag- The successful management of projects is simultaneously a
ers report directly to the CEO. The company now human and technical challenge, requiring a far-sighted, stra-
has severe difficulties in making research allocation tegic outlook coupled with the flexibility to react to conflicts
decisions among its projects and routinely under- and trouble areas as they arise on a daily basis. The project
funds some vital projects while overfunding other, managers who are ultimately successful at their profession
less important ones. must learn to deal with and anticipate the constraints on their
28 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

project team and personal freedom of action while consis- manager will usually tell you that a successful project is one
tently keeping their eyes on the ultimate prize. that has come in on time, has remained under budget, and
performs as expected (that is, it conforms to specifications).
From Whence Comes the Challenge? Recently, though, there has been a reassessment of this tra-
ditional model for project success. The old triple constraint
One of the most intriguing and challenging aspects of proj- is rapidly being replaced by a new model, invoking a fourth
ect management lies in the relationship of project teams to hurdle for project success: client satisfaction. This means
the rest of the parent organization. With the exception of that a project is only successful if it satisfies the needs of its
companies that are set up with matrix or project structures, intended user. As a result, client satisfaction places a new
most firms using project management techniques employ and important constraint on project managers. No wonder,
some form of standard functional structure. When project then, that there is a growing interest in the project manager’s
teams are added to an organization, the structural rules role within the corporation.
change dramatically. The vast majority of personnel who
serve on project teams do so while maintaining links back
to their functional departments. In fact, they typically split The Vital Dozen for Project Managers
their time between the project and their functional duties.
Over the last several years, we have conducted interviews
The temporary nature of projects, combined with the very
with dozens of senior project managers in which we asked
real limitations on power and discretion most project manag-
them a simple question: “What information were you never
ers face, constitutes the core challenge of managing projects
given as a novice project manager that, in retrospect, could
effectively. Clearly the very issues that characterize projects
have made your job easier?” From the data gathered in these
as distinct from functional work also illustrate the added
interviews, we have synthesized some of the more salient
complexity and difficulties they create for project managers.
issues, outlined in Figure 1 and detailed below, that man-
For example, within a functional department it is common
agers need to keep in mind when undertaking a project
to find people with more homogeneous backgrounds. This
implementation effort. While not intended to appear in any
means that the finance department is staffed with finance
particular order, these 12 rules offer a useful way to under-
people, the marketing department is made up of marketers,
stand the challenge project managers face and some ways to
and so on. On the other hand, most projects are constructed
address these concerns.
from special, cross-functional teams composed of represen-
tatives from each of the relevant functional departments, who 1. Understand the context of project management. Much
bring their own attitudes, time frames, learning, past experi- of the difficulty in becoming an effective project manager
ences, and biases to the team. Creating a cohesive and potent lies in understanding the particular challenges project man-
team out of this level of heterogeneity presents a challenge agement presents in most corporations. Projects are a unique
for even the most seasoned and skilled of project managers. form of organizational work, playing an important role
But what is the ultimate objective? What determines a within many public and private organizations today. They act
successful project and how does it differ from projects we as mechanisms for the effective introduction of new prod-
may rightfully consider to have failed? Any seasoned project ucts and services. They offer a level of intraorganizational
efficiency that all companies seek but few find. But they also
force managers to operate in a temporary environment out-
1. Understand the context of project management. side the traditional functional lines of authority, relying upon
2. Recognize project team conflict as progress. influence and other informal methods of power. In essence,
3. Understand who the stakeholders are and what it is not simply the management of a project per se that pres-
they want. ents such a unique challenge; it is also the atmosphere within
4. Accept and use the political nature of which the manager operates that adds an extra dimension
organizations. of difficulty. Projects exist outside the established hierarchy.
5. Lead from the front. They threaten, rather than support, the status quo because
6. Understand what “success” means. they represent change. So it is important for project man-
7. Build and maintain a cohesive team. agers to walk into their assigned role with their eyes wide
8. Enthusiasm and despair are both infectious. open to the monumental nature of the tasks they are likely
9. One look forward is worth two looks back. to face.
10. Remember what you are trying to do. 2. Recognize project team conflict as progress. One of
11. Use time carefully or it will use you. the common responses of project managers to team conflict
12. Above all, plan, plan, plan. is panic. This reaction is understandable in that project man-
agers perceive—usually correctly—that their reputation and
Figure 1 Twelve points to remember. careers are on the line if the project fails. Consequently, any
 DIRECTED READING 29

evidence they interpret as damaging to the prospects of and concentrate instead on maintaining satisfactory rela-
project success, such as team conflict, represents a very real tions that allow them to do their job with a minimum of
source of anxiety. In reality, however, these interpersonal external interference.
tensions are a natural result of putting individuals from 4. Accept the political nature of organizations and use it
diverse backgrounds together and requiring them to coordi- to your advantage. Like it or not, we exist in a politicized
nate their activities. Conflict, as evidenced by the stages of world. Unfortunately, our corporations are no different.
group development, is more often a sign of healthy matura- Important decisions involving resources are made through
tion in the group. bargaining and deal-making. So project managers who wish
The result of differentiation among functional depart- to succeed must learn to use the political system to their
ments demonstrates that conflict under these circumstances advantage. This involves becoming adept at negotiation as
is not only possible but unavoidable. One of the worst mis- well as using influence tactics to further the goals of the
takes a project manager can make when conflicts emerge project.
is to immediately force them below the surface without At the same time, it is important to remember that any
first analyzing the nature of the conflict. Although many project representing possible organizational change is
interpersonal conflicts are based on personality differences, threatening, often because of its potential to reshuffle the
others are of a professional nature and should be addressed power relationships among the key units and actors. Playing
head-on. the political system acknowledges this reality. Successful
Once a project manager has analyzed the nature of the project managers are those who can use their personal repu-
conflict among team members, a variety of conflict han- tations, power, and influence to ensure cordial relations with
dling approaches may be warranted, including avoidance, important stakeholders and secure the resources necessary
defusion, or problem-solving. On the other hand, whatever to smooth the client’s adoption of the project.
approach is selected should not be the result of a knee-jerk Pursuing a middle ground of political sensibility is the
reaction to suppress conflict. In our experience, we have key to project implementation success. There are two alter-
found many examples that show that even though a conflict native and equally inappropriate approaches to navigating
is pushed below the surface, it will continue to fester if left a firm’s political waters: becoming overly political and
unaddressed. The resulting eruption, which will inevitably predatory—we call these people “sharks”—and refusing
occur later in the project development cycle, will have a far to engage in politics to any degree—the politically “naive.”
stronger effect than would the original conflict if it had been Political sharks and the politically naive are at equal dis-
handled initially. advantage in managing their projects: sharks because they
3. Understand who the stakeholders are and what they pursue predatory and self-interested tactics that arouse dis-
want. Project management is a balancing act. It requires trust, and the naive because they insist on remaining above
managers to juggle the various and often conflicting the fray, even at the cost of failing to attain and keep neces-
demands of a number of powerful project stakeholders. One sary resources for their projects.
of the best tools a project manager can use is to develop Figure 2 illustrates some of the philosophical differ-
a realistic assessment early in the project identifying the ences among the three types of political actors. The process
principal stakeholders and their agendas. In some projects, of developing and applying appropriate political tactics
particularly those with important external clients or con- means using politics as it can most effectively be used: as a
stituent groups, the number of stakeholders may be quite basis for negotiation and bargaining. “Politically sensible”
large, particularly when “intervenor” groups are included. implies being politically sensitive to the concerns (real or
Intervenors, according to Cleland (1983), may include any imagined) of powerful stakeholder groups. Legitimate or
external group that can drastically affect the potential for not, their concerns over a new project are real and must
project success, such as environmental activists in a nuclear be addressed. Politically sensible managers understand that
plant construction project. Project managers who acknowl- initiating any sort of organizational disruption or change
edge the impact of stakeholders and work to minimize their by developing a new project is bound to reshuffle the dis-
effect by fostering good relations with them are often more tribution of power within the firm. That effect is likely to
successful than those who operate in a reactive mode, con- make many departments and managers very nervous as they
tinually surprised by unexpected demands from groups that begin to wonder how the future power relationships will be
were not initially considered. rearranged.
As a final point about stakeholders, it is important for a Appropriate political tactics and behavior include mak-
project manager’s morale to remember that it is essentially ing alliances with powerful members of other stakeholder
impossible to please all the stakeholders all the time. The departments, networking, negotiating mutually acceptable
conflicting nature of their demands suggests that when one solutions to seemingly insoluble problems, and recogniz-
group is happy, another is probably upset. Project managers ing that most organizational activities are predicated on the
need to forget the idea of maximizing everyone’s happiness give-and-take of negotiation and compromise. It is through
30 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

Characteristics Naive Sensible Sharks

Underlying Attitude Politics is unpleasant Politics is necessary Politics is an opportunity
Intent Avoid at all costs Further departmental goals Self-serving and predatory
Techniques Tell it like it is Network; expand connections; Manipulate; use fraud and
use system to give and receive deceit when necessary
favors
Favorite Tactics None—the truth will Negotiate, bargain Bully; misuse information;
win out cultivate and use “friends” and
other contacts
Figure 2 Characteristics of political behaviors.

these uses of political behavior that managers of project project managers usually acknowledge their limitations and
implementation efforts put themselves in the position to work through subordinates’ strengths. In serving as a facili-
most effectively influence the successful introduction of tator, one of the essential abilities of an exceptional project
their systems. manager is knowing where to go to seek the right help and
5. Lead from the front; the view is better. One message how to ask the right questions. Obviously, the act of effective
that comes through loud and clear is that project manage- questioning is easier said than done. However, bear in mind
ment is a “leader intensive” undertaking. Strong, effective that questioning is not interrogation. Good questions chal-
leaders can go a long way toward helping a project succeed lenge subordinates without putting them on the spot; they
even in the face of a number of external or unforeseen prob- encourage definite answers rather than vague responses,
lems. Conversely, a poor, inflexible leader can often ruin the and they discourage guessing. The leader’s job is to probe,
chances of many important projects ever succeeding. Lead- to require subordinates to consider all angles and options,
ers are the focal point of their projects. They serve as a ral- and to support them in making reasoned decisions. Direct
lying point for the team and are usually the major source of involvement is a key component of a leader’s ability to per-
information and communication for external stakeholders. form these tasks.
Because their role is so central and so vital, it is important to 6. Understand what “success” means. Successful proj-
recognize and cultivate the attributes project “leaders” must ect implementation is no longer subject to the traditional
work to develop. “triple constraint.” That is, the days when projects were
The essence of leadership lies in our ability to use it evaluated solely on adherence to budget, schedule, and
flexibly. This means that not all subordinates or situations performance criteria are past. In modern business, with its
merit the same response. Under some circumstances an increased emphasis on customer satisfaction, we have to
autocratic approach is appropriate; other situations will be retrain project managers to expand their criteria for proj-
far better served by adopting a consensual style. Effective ect success to include a fourth item: client use and satisfac-
project leaders seem to understand this idea intuitively. Their tion. What this suggests is that project “success” is a far
approach must be tailored to the situation; it is self-defeating more comprehensive word than some managers may have
to attempt to tailor the situation to a preferred approach. The initially thought. The implication for rewards is also impor-
worst leaders are those who are unaware of or indifferent to tant. Within some organizations that regularly implement
the freedom they have to vary their leadership styles. And projects, it is common practice to reward the implementa-
they see any situation in which they must involve subordi- tion manager when, in reality, only half the job has been
nates as inherently threatening to their authority. As a result, accomplished. In other words, giving managers promotions
they usually operate under what is called the “Mushroom” and commendations before the project has been success-
Principle of Management.” That is, they treat their subordi- fully transferred to clients, is being used, and is affecting
nates the same way they would raise a crop of mushrooms— organizational effectiveness is seriously jumping the gun.
by keeping them in the dark and feeding them a steady diet Any project is only as good as it is used. In the final
of manure. analysis, nothing else matters if a system is not productively
Flexible leadership behavior consists of a realistic assess- employed. Consequently, every effort must be bent toward
ment of personal strengths and weaknesses. It goes without ensuring that the system fits in with client needs, that their
saying that no one person, including the project manager, concerns and opinions are solicited and listened to, and that
possesses all necessary information, knowledge, or expertise they have final sign-off approval on the transferred project.
to perform the project tasks on his own. Rather, successful In other words, the intended user of the project is the major
 DIRECTED READING 31

determinant of its success. Traditionally, the bulk of the found that the leading determinant of project failure was the
team’s efforts are centered internally, mainly on their own absence of any troubleshooting mechanisms—that is, no one
concerns: budgets, timetables, and so forth. Certainly, these was asking the “What if?” questions. Projecting a skeptical
aspects of the project implementation process are necessary, eye toward the future may seem gloomy to some managers.
but they should not be confused with the ultimate determi- But in our opinion, it makes good sense. We cannot control
nant of success: the client. the future but we can actively control our response to it.
7. Build and maintain a cohesive team. Many proj- A good example of the failure to apply this philosophy is
ects are implemented through the use of cross-functional evidenced by the progress of the “Chunnel” intended to link
teams. Developing and maintaining cordial team relations Great Britain with France. Although now in full operation,
and fostering a healthy intergroup atmosphere often seems it was not ready for substantial traffic until some 15 months
like a full-time job for most project managers. However, later than originally scheduled. As a result, Chunnel traffic
the resultant payoff from a cohesive project team cannot missed the major summer vacation season with a concomitant
be overestimated. When a team is charged to work toward loss in revenue. At the same time, the final cost (£15 billion)
project development and implementation, the healthier the is likely to be six times the original estimate of £2.3 billion
atmosphere within that team, the greater the likelihood the (O’Connor, 1993). It is instructive to take note of a recent
team will perform effectively. The project manager’s job statement by one of the project’s somewhat harassed direc-
is to do whatever is necessary to build and maintain the tors who, when pressed to state when the Chunnel would be
health (cohesion) of the team. Sometimes that support can ready, replied, “Now it will be ready when it’s ready and not
be accomplished by periodically checking with team mem- before!” Clearly, the failure to apply adequate contingency
bers to determine their attitudes and satisfaction with the planning has led to the predictable result: a belief that the
process. Other times the project manager may have to resort project will simply end when it ends.
to less conventional methods, such as throwing parties or 10. Remember what you are trying to do. Do not lose
organizing field trips. To effectively intervene and support a sight of the purpose behind the project. Sometimes it is easy
team, project managers play a variety of roles—motivator, to get bogged down in the minutiae of the development pro-
coach, cheerleader, peacemaker, conflict resolver. All these cess, fighting fires on a daily basis and dealing with thou-
duties are appropriate for creating and maintaining an effec- sands of immediate concerns. The danger is that in doing so,
tive team. project managers may fail to maintain a view of what the
8. Enthusiasm and despair are both infectious. One of end product is supposed to be. This point reemphasizes
the more interesting aspects of project leaders is that they the need to keep the mission in the forefront—and not just
often function like miniaturized billboards, projecting an the project manager, but the team as well. The goal of the
image and attitude that signals the current status of the proj- implementation serves as a large banner the leader can wave
ect and its likelihood for success. The team takes its cue from as needed to keep attitudes and motives focused in the right
the attitudes and emotions the manager exhibits. So one of direction. Sometimes a superordinate goal can serve as a
the most important roles of the leader is that of motivator and rallying point. Whatever technique project managers use, it
encourager. The worst project managers are those who play is important that they understand the importance of keeping
their cards close to their chests, revealing little or nothing the mission in focus for all team members. A simple way to
about the status of the project (again, the “Mushroom Man- discover whether team members understand the project is
ager”). Team members want and deserve to be kept abreast to intermittently ask for their assessment of its status. They
of what is happening. It is important to remember that the should know how their contributions fit into the overall
success or failure of the project affects the team as well as installation plan. Are they aware of the specific contribu-
the manager. Rather than allowing the rumor mill to churn tions of other team members? If no, more attention needs to
out disinformation, team leaders need to function as honest be paid to reestablishing a community sense of mission.
sources of information. When team members come to the 11. Use time carefully or it will use you. Time is a pre-
project manager for advice or project updates, it is important cious commodity. Yet when we talk to project managers, it
to be honest. If the manager does not know the answer to the seems that no matter how hard they work to budget it, they
questions, he should tell them that. Truth in all forms is rec- never have enough. They need to make a realistic assess-
ognizable, and most project team members are much more ment of the “time killers” in their daily schedule: How are
appreciative of honesty than of eyewash. they spending their time and what are they doing profitably
9. One look forward is worth two looks back. A recent or unprofitably? We have found that the simple practice of
series of commercials from a large computer manufacturer keeping a daily time log for a short time can be an eye-
had as their slogan the dictum that the company never stop opening experience. Many project managers discover that
asking “What if?.” Asking “What if?” questions is another they spend far too much of their time in unproductive ways:
way of saying we should never become comfortable with the project team meetings without agendas that grind on and
status of the project under development. One large-scale study on, unexpected telephone calls in the middle of planning
32 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

sessions, quick “chats” with other managers that end up investigated, it may no longer exist. Time and again we
taking hours, and so forth. Efficient time management—one have emphasized the importance of planning, but it is also
of the keys to successful project development—starts with apparent that there comes a limit, both to the extent and the
project managers. When they actively plan their days and time frame of the planning cycle. A survey among entrepre-
stick to a time budget, they usually find they are operating neurs, for example, revealed that only 28 percent of them
efficiently. On the other hand, when they take each problem drew up a full-scale plan (Sweet, 1994). A lesson here for
as it comes and function in an ad hoc, reactive mode, they project managers is that, like entrepreneurs, they must plan,
are likely to remain prisoners of their own schedules. but they must also be smart enough to recognize mistakes
A sure recipe for finding the time and resources needed to and change their strategy accordingly. As is noted in an old
get everything done without spending an inordinate amount military slogan, “No plan ever survives its first contact with
of time on the job or construction site is provided by Gosselin the enemy.”
(1993). The author lists six practical suggestions to help proj-
ect managers control their tasks and projects without feeling
constantly behind schedule: Project Managers in the Twenty-First Century
In our research and consulting experiences, we constantly
• Create a realistic time estimate without overextend-
interact with project managers, some with many years of
ing yourself.
experience, who express their frustration with their organi-
• Be absolutely clear about what the boss or client zations because of the lack of detailed explication of their
requires. assigned tasks and responsibilities. Year after year, manager
• Provide for contingencies (schedule slippage, loss of after manager, companies continue to make the same mis-
key team member). takes in “training” their project managers, usually through
• Revise original time estimate and provide a set of an almost ritualized baptism of fire. Project managers
options as required. deserve better. According to Rodney Turner (1993), editor
of the International Journal of Project Management:
• Be clear about factors that are fixed (specifications,
resources, and so on). Through the 90’s and into the 21st century, project-
• Learn to say “Yes, and . . .” rather than “No, but . . .” based management will sweep aside traditional func-
Negotiation is the key. tional line management and (almost) all organizations
will adopt flat, flexible organizational structures in
12. Above all, plan, plan, plan. The essence of efficient place of the old bureaucratic hierarchies . . . [N]ew
project management is to take the time to get it as right as organizational structures are replacing the old . . .
possible the first time. “It” includes the schedule, the team [M]anagers will use project-based management as
composition, the project specifications, and the budget. a vehicle for introducing strategic planning and for
There is a truism that those who fail to plan are planning winning and maintaining competitive advantage.
to fail. One of the practical difficulties with planning is that
so many of us distinguish it from other aspects of the proj- Turner presents quite a rosy future, one that is predicated
ect development, such as doing the work. Top managers are on organizations recognizing the changes they are currently
often particularly guilty of this offense as they wait impa- undergoing and are likely to continue to see in the years
tiently for the project manager to begin doing the work. ahead. In this challenging environment, project management
Of course, too much planning is guaranteed to elicit is emerging as a technique that can provide the competitive
repeated and pointed questions from top management and edge necessary to succeed, given the right manager.
other stakeholders as they seek to discover the reason why At the same time, there seems to have been a sea change
“nothing is being done.” Experienced project managers, in recent years regarding the image of project managers. The
though, know that it is vital not to rush this stage by react- old view of the project manager as essentially that of a deci-
ing too quickly to top management inquiries. The planning sion maker, expert, boss, and director seems to be giving
stage must be managed carefully to allow the project man- way to a newer ideal: that of a leader, coach, and facilitator.
ager and team the time necessary to formulate appropriate Lest the reader assume these duties are any easier, we would
and workable plans that will form the basis for the develop- assert that anyone who has attempted to perform these roles
ment process. Dividing up the tasks and starting the “work” knows from personal experience just how difficult they can
of the project too quickly is often ultimately wasteful. Steps be. As part of this metamorphosis, says Clarke (1993), the
that were poorly done are often steps that must be redone. new breed of project manager must be a natural salesper-
A complete and full investigation of any proposed proj- son who can establish harmonious customer (client) rela-
ect does take significant time and effort. However, bear in tions and develop trusting relationships with stakeholders.
mind that overly elaborate or intricate planning can be det- In addition to some of the obvious keys to project managers’
rimental to a project; by the time an opportunity is fully success—personal commitment, energy, and enthusiasm—it
 DIRECTED READING 33

appears that, most of all, successful project managers must special skills and personalities. Given the nature of their
manifest an obvious desire to see others succeed. duties, is it any wonder successful project managers are in
For successful project managers, there will always be such short supply and, once identified, so valued by their
a dynamic tension between the twin demands of technical organizations?
training and an understanding of human resource needs. It There is good news, however. Many of these skills,
must be clearly understood, however, that in assessing the though difficult to master, can be learned. Project manage-
relative importance of each challenge, the focus must clearly ment is a challenge, not a mystery. Indeed, it is our special
be on managing the human side of the process. As research purpose to demystify much of the human side of project
and practice consistently demonstrate, project management management, starting with the role played by the linchpin
is primarily a challenge in managing people. This point was in the process: the project manager. The problem in the past
recently brought to light in an excellent review of a book on has been too few sources for either seasoned or novice proj-
managing the “human side” of projects (Horner, 1993): ect managers to turn to in attempting to better understand
the nature of their unique challenge and methods for per-
There must be many project managers like me who forming more effectively. Too many organizations pay far
come from a technological background, and who too little attention to the process of selecting, training, and
suffered an education which left them singularly ill- encouraging those people charged to run project teams. The
prepared to manage people. predictable result is to continually compound the mistake
of creating wave after wave of accidental project managers,
Leading researchers and scholars perceive the twenty-
forcing them to learn through trial and error with minimal
first century as the upcoming age of project management.
guidance in how to perform their roles.
The globalization of markets, the merging of many Euro-
Managing a project is a challenge that requires a strat-
pean economies, the enhanced expenditures of money on
egy and methodology all its own. Perhaps most important, it
capital improvement both in the United States and abroad,
requires a project manager willing to function as a leader in
the rapidly opening borders of Eastern European and
every sense of the term. We have addressed a wide range of
Pacific Rim countries, with their goals of rapid infrastruc-
challenges, both contextual and personal, that form the basis
ture expansion—all of this offers an eloquent argument for
under which projects are managed in today’s organizations.
the enhanced popularity of project management as a tech-
It is hoped that readers will find something of themselves as
nique for improving the efficiency and effectiveness of
well as something of use contained in these pages.
organizational operations. With so much at stake, it is vital
that we immediately begin to address some of the deficien-
cies in our project management theory and practice.
References
Project management techniques are well known. But
until we are able to take further steps toward formalizing B. N. Baker, P. C. Murphy, and D. Fisher, “Factors Affect-
training by teaching the necessary skill set, the problems ing Project Success,” in D. I. Cleland and W. R. King, eds.,
with efficiently developing, implementing, and gaining Project Management Handbook (New York: Van Nostrand
client acceptance for these projects are likely to continue Reinhold, 1983): 778–801.
growing. There is currently a true window of opportunity K. Clarke, “Survival Skills for a New Breed,” Manage-
in the field of project management. Too often in the past, ment Today, December 1993, p. 5.
project managers have been forced to learn their skills the
hard way, through practical experience coupled with all the D. I. Cleland, “Project Stakeholder Management,” in D. I.
problems of trial and error. Certainly, experience is a valu- Cleland and W. R. King, eds., Project Management Hand-
able component of learning to become an effective project book (New York:Van Nostrand Reinhold, 1983): 275–301.
manager, but it is by no means the best. J. C. Davis, “The Accidental Profession,” Project Manage-
What conclusions are to be drawn here? If nothing else, ment Journal, 15, 3 (1984): 6.
it is certain that we have painted a portrait of project man- A. A. Einsiedel, “Profile of Effective Project Managers,”
agement as a complex, time-consuming, often exasperating Project Management Journal, 18, 5 (1987): 51–56.
process. At the same time, it is equally clear that success-
J. Davidson Frame, Managing Projects in Organizations
ful project managers are a breed apart. To answer the vari-
(San Francisco: Jossey-Bass, 1987).
ous calls they continually receive, balance the conflicting
demands of a diverse set of stakeholders, navigate tricky T. Gosselin, “What to Do with Last-Minute Jobs,” World
corporate political waters, understand the fundamental Executive Digest, December 1993, p. 70.
process of subordinate motivation, develop and constantly R. J. Graham, “A Survival Guide for the Accidental Project
refine their leadership skills, and engage in the thousands Manager,” Proceedings of the Annual Project Management
of pieces of detailed minutiae while keeping their eyes Institute Symposium (Drexel Hill, PA: Project Management
fixed firmly on project goals requires individuals with Institute, 1992), pp. 355–361.
34 CHAPTER 1 / PROJECTS IN CONTEMPORARY ORGANIZATIONS

M. Horner, “Review of ‘Managing People for Project P. Sweet, “A Planner’s Best Friend,” Accountancy, 113
Success,’ ” International Journal of Project Management, (1994): 56–58.
11 (1993): 125–126. H. J. Thamhain, “Developing Project Management Skills,”
P. R. Lawrence and J. W. Lorsch, “Differentiation and Project Management Journal, 22, 3 (1991): 39–53.
Integration in Complex Organizations,” Administrative R. Turner, “Editorial,” International Journal of Project
Science Quarterly, 11, (1967):147. Management, 11 (1993): 195.
M. Nichols, “Does New Age Business Have a Message for
Managers?” Harvard Business Review, March–April 1994, Questions
pp. 52–60.
1. What are the reasons the author advances for project man-
L. O’Connor, “Tunnelling Under the Channel,” Mechani-
agement to be considered an “accidental profession?” The
cal Engineering, December 1993, pp. 60–66.
twelve guidelines are presented in no particular order.
N. Pettersen, “What Do We Know about the Effective Order them by level of importance and explain your
Project Manager?” International Journal of Project Man- reasoning.
agement, 9 (1991): 99–104.
2. Where would you place yourself in Figure 2?
J. K. Pinto and O. P. Kharbanda, Successful Project
3. A few of the guidelines are related to the need to under-
Managers: Leading Your Team to Success (New York: Van
stand the reason for the project in the first place. Which
Nostrand Reinhold, 1995).
guidelines would you place in this category? Why is this
J. K. Pinto and D. P. Slevin, “Critical Factors in Success- so crucial?
ful Project Implementation,” IEEE Transactions on Engi-
4. Why, in lesson 9, is always thinking about “what if” so
neering Management, EM-34, 1987, pp. 22–27.
important?
B. Z. Posner, “What It Takes to Be a Good Project Man-
5. Lesson 12 warns about not planning enough, but also
ager,” Project Management Journal, 18, 1 (1987): 51–54.
about spending too much time planning. How do you
W. A. Randolph and B. Z. Posner, “What Every Manager draw the line?
Needs to Know about Project Management,” Sloan Man-
agement Review, 29, 4 (1988): 65–73.