Achieving Global Excellence THIRD EDITION HAROLD KERZNER, PH.D.

Transcription

1 PROJECT MANAGEMENT BEST PRACTICES Achieving Global Excellence THIRD EDITION HAROLD KERZNER, PH.D. WlLEY INTERNATIONAL Institute for Learning, Inc.

2 Contents Preface xiii 1 UNDERSTANDING BEST PRACTICES Introduction Wärtsilä Project Management Best Practices: Project Management Best Practices: Project Management Best Practices: An Executive's View of Project Management Best Practices Process Step 1: Definition of a Best Practice Step 2: Seeking Out Best Practices Dashboards and Scorecards Key Performance Indicators Step 3: Validating the Best Practice Step 4: Levels of Best Practices Step 5: Management of Best Practices Step 6: Revalidating Best Practices Step 7: What to Do with a Best Practice Step 8: Communicating Best Practices across the Company Step 9: Ensuring Usage of the Best Practices Common Beliefs Best Practices Library Hewlett-Packard: Best Practices in Action DTE Energy A Consultant's View of Project Management and Best Practices 61 V

3 vi CONTENTS 2 FROM BEST PRACTICE TO MIGRAINE HEADACHE Introduction Good Intentions Becoming Migraines Enterprise Project Management Methodology Migraine Customer Satisfaction Migraine Migraine Resulting from Responding to Changing Customer Requirements Reporüng Level of the PMO Migraine Cash Flow Dilemma Migraine Scope Change Dilemma Migraine Outsource or Not Migraine Determining When to Cancel a Project Migraine Providing Project Awards Migraine Migraine from Having the Wrong Culture in Place Migraines due to Politics Migraines Caused by the Seven Deadly Sins Sources of Smaller Migraines Ten Uglies of Projects 97 References JOURNEYTO EXCELLENCE Introduction Strategie Flanning for Project Management Hitachi Ltd KONE: The Project Management Challenge The Light at the End of the Tunnel Goodyear Managing Assumptions Managing Assumptions in Conservation Projects WWF International Project Govemance Seven Fallacies That Delay Project Management Maturity Motorola Texas Instruments Hewlett-Packard: Recognizing the Need Hewlett-Packard: The Journey and the Obstacles CooperStandard Naviair: On Time on Budget DTE Energy Key Plastics ILLUMINAT and the Strategie Business of Project Management Avalon Power and Light Roadway Express 184

4 Contents vii 3.21 Defcon Corporation Kombs Engineering Williams Machine Tool Company PROJECT MANAGEMENT METHODOLOGIES Introduction Excellence Defined Recognizing the Need for Methodology Development Enterprise Project Management Methodologies Benefits of a Standard Methodology Critical Components SAP Cassidian: Integrated Multilevel Schedules Tecnicas Reunidas Teradyne: From Myth to Reality Slalom Consulting: Project Management Functions Slalom Consulting: Replacing Methodologies with Frameworks Life-Cycle Phases Expanding Life-Cycle Phases Churchill Downs, Incorporated Indra: The Need for a Methodology Implementing the Methodology Implementation Blunders Overcoming Development and Implementation Barriers Project Management Tools Wärtsilä: Recognizing the Need for Supporting Tools Tech Mahindra Limited: Project Process Monitoring Tech Mahindra Limited: Customer Delight Index for Projects General Motors Powertrain Group Ericsson Telecom AB Indra: Closing the Project Repsol: The Repsol E&P GIP Methodology The Project Quality Management Process Applied to Decision Making Rockwell Automation: Quest for a Common Process Sherwin-Williams Medical Mutual Holcim Westfield Group Hewlett-Packard DTE Energy ALSTOM Cassidian: Golden Rules in Project Management When Traditional Methodologies May Not Work 299

5 viii CONTENTS 5 INTEGRATED PROCESSES Introduction Understanding Integrated Management Processes Evolution of Complementary Project Management Processes Zürich America Insurance Company Total Quality Management Concurrent Engineering Risk Management Wärtsilä: The Need for Proactive Risk Management ILLUMINAT: Effective Risk Management Indra: When a Risk Becomes Reality (Issue Management) The Failure of Risk Management Defining Maturity Using Risk Management Boeing Aircraft Company Change Management Other Management Processes Hewlett-Packard Earned-Value Measurement DTE Energy CULTURE Introduction Creation of a Corporate Culture Corporate Values Types of Cultures Corporate Cultures at Work Indra: Building a Cohesive Culture maxit-vcs DFCU Financial ILLUMINAT (Trinidad & Tobago) Limited DTE Energy Hewlett-Packard Barriers to Implementing Project Management in Emerging Markets MANAGEMENT SUPPORT Introduction Visible Support from Senior Managers Project Sponsorship Excellence in Project Sponsorship Hewlett-Packard Sponsorship in Action Zürich America Insurance Company: Improving Stakeholder Engagement 382

6 Contents ix 7.6 Project Governance Tokio Marine: Excellence in Project Governance Empowerment of Project Managers Management Support at Work Gelting Line Management Support DTE Energy Initiation Champions and Exit Champions TRAINING AND EDUCATION Introduction Training for Modern Project Management Need for Business Education SAP: Importance of a Project Management Career Path International Institute for Leaming Identifying the Need for Training Selecting Students Fundamentals of Project Management Education Some Changes in Project Management Education Designing Courses and Conducting Training Measuring the Return on Investment on Education Project Management Is Now a Profession Competency Models Harris Corporation Alcatel-Lucent: Recognizing the Value of a PMP Integrated Project Management at Tech Mahindra Limited Hewlett-Packard INFORMAL PROJECT MANAGEMENT Introduction Informal versus Formal Project Management Trust Communication Cooperation Teamwork Color-Coded Status Reporting Crisis Dashboards Informal Project Management at Work BEHAVIORAL EXCELLENCE Introduction Situational Leadership 455

7 X CONTENTS 10.2 Conflict Resolution Staffing for Excellence Virtual Project Teams Rewarding Project Teams Keys to Behavioral Excellence Proactive versus Reactive Management MEASURING RETURN ON INVESTMENT ON PROJECT MANAGEMENT TRAINING DOLLARS Introduction Project Management Benefits Growth of ROI Modeling The ROI Model Flanning Life-Cycle Phase Data Collection Life-Cycle Phase Data Analysis Life-Cycle Phase Reporting Life-Cycle Phase Conclusions THE PROJECT OFFICE Introduction Boeing Philips Healthcare Software Customer Services maxit-vcs Aviva Churchill Downs Incorporated (CDI): Establishing a PMO Churchill Downs Incorporated (CDI): Managing Scope Changes Types of Project Offices Dell Inc Computer Sciences Corporation (CSC) Slalom Consulting: Understanding the Nature of a PMO DTE Energy Chubb Hewlett-Packard StarAlliance Proj ect Audits and the PMO Project Health Checks PMO of the Year Award 557

8 Contents xi 13 SIXSIGMA AND THE PROJECT MANAGEMENT OFFICE Introduction Project Management Six Sigma Relationship Involving the PMO Traditional versus Nontraditional Six Sigma Understanding Six Sigma Six Sigma Myths Use ofassessments Project Selection Typical PMO Six Sigma Projects PROJECT PORTFOLIO MANAGEMENT Introduction Why Use Portfolio Management? Involvement of Senior Management, Stakeholders, and the PMO Project Selection Obstacles Identification of Projects Preliminary Evaluation Strategie Selection of Projects Strategie Timing Analyzing the Portfolio Problems with Meeting Expectations Portfolio Management at Rockwell Automation World Wildlife Fund (WWF) GLOBAL PROJECT MANAGEMENT EXCELLENCE Introduction IBM Computer Associates Technologies (CA): Successful Project Delivery and Management Microsoft Corporation Deloitte: Enterprise Program Management COMAU Fluor Corporation: Knowledge Management for Project Execution Siemens PLM Software: Developing a Global Project Management Methodology 705

9 CONTENTS 16 VALUE-DRIVEN PROJECT MANAGEMENT Introduction Value over the Years Values and Leadership EFFECT OF MERGERS AND ACQUISITIONS ON PROJECT MANAGEMENT Introduction Planning for Growth Project Management Value-Added Chain Preacquisition Decision Making Landlords and Tenants Best Practices: Case Study on Johnson Controls, Inc Integration Results Value Chain Strategies Failure and Restructuring 749 INDEX 751