Ebook The Handbook of Project based Managent - J.Rodney Turner

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One of the most influential books ever written on the development of project management, The Handbook of Project-Based Management has been completely revised for a new generation of students and practitioners. The Third Edition now features a major change in focus from delivering corporate objectives to achieving strategic change, including embedding corporate change after a project is completed.

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  2. Other books by Rodney Turner published by McGraw-Hill Turner, J.R., Grude, K.V. and Thurloway, L., 1996, (eds), The Project Manager as Change Agent, McGraw Hill, London, 264p, ISBN: 0 07 707741 5. Turner, J.R., (ed), 1995, The Commercial Project Manager, McGraw Hill, London, 408 p, ISBN: 0 07 707946 9.
  3. THE HANDBOOK OF PROJECT-BASED MANAGEMENT Leading Strategic Change in Organizations J. Rodney Turner Third Edition New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto
  4. Copyright © 2009, 1999, 1993 by The McGraw-Hill Companies, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be repro- duced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-154975-2 MHID: 0-07-154975-7 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-154974-5, MHID: 0-07-154974-9 All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the bene- fit of the trademark owner, with no intention of infringement of the trademark. Where such designa- tions appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promo- tions, or for usein corporate training programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com. Information contained in this work has been obtained by The McGraw-Hill Companies, Inc. (“McGraw-Hill”) from sources believed to be reliable. However, neither McGraw-Hill nor its authors guarantee the accuracy or completeness of any information published herein, and neither McGraw- Hill nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that McGraw-Hill and its authors are sup- plying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms. THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUAR- ANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMA- TION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupt- ed or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.
  5. To Edward, now 18
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  7. ABOUT THE AUTHOR RODNEY TURNER is Professor of Project Management at the Kemmy Business School of the University of Limerick and at the Lille School of Management. He is also an Adjunct Professor at the University of Technology, Sydney and Educatis University, Zurich, and was a Visiting Professor at Henley Management College and George Washington University. Rodney Turner is the author or editor of fourteen books. He is editor of The International Journal of Project Management, and has written articles for journals, conferences, and magazines. He lectures on and teaches project management worldwide. From 1991 to 2004, Rodney was a member of Council of the UK’s Association for Project Management, with two years as Treasurer and two as Chairman. He is now a Vice President. From 1999 to 2002, he was President and then Chairman of the International Project Management Association, the global federation of national associations in project manage ment, of which APM is the largest member. He has also helped to establish the Benelux Region of the European Construction Institute as foundation Operations Director. Rodney is director of several SMEs and a member of the Institute of Directors. He is also a Fellow of the Institution of Mechanical Engineers and of the Association for Project Management.
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  9. CONTENTS Preface xv Acknowledgments xvii Chapter 1: Leading Change through Projects 1 1.1 Projects and their Management / 2 1.2 The Process Approach / 17 1.3 The Management of Projects and this Book / 20 1.4 Images of Projects / 21 Summary / 24 References / 25 Part 1: Managing the Context Chapter 2: Projects for Delivering Beneficial Change 29 2.1 Identifying the Need for Performance Improvement / 29 2.2 Diagnosing the Change Required / 31 2.3 The Benefits Map / 37 2.4 Projects for Implementing Corporate Strategy / 39 Summary / 46 References / 46 Chapter 3: Project Success and Strategy 47 3.1 Project Success Criteria / 48 3.2 Key Performance Indicators / 52 3.3 Project Success Factors / 53 3.4 The Strategic Management of Projects / 60 3.5 Principles of Project Management / 65 Summary / 67 References / 68 Chapter 4: The People Involved 71 4.1 Reactions to Change / 71 4.2 Managing Stakeholders / 77 4.3 Communicating with Stakeholders / 83 4.4 Project Teams / 85 ix
  10. x CONTENTS 4.5 Leading Projects / 89 Summary / 95 References / 96 Part 2: Managing Performance Chapter 5: Managing Scope 101 5.1 Principles of Scope Management / 102 5.2 Project Definition / 104 5.3 Planning at the Strategic Level: Milestone Plans / 106 5.4 Planning at Lower Levels / 113 5.5 Applications / 118 Summary / 120 References / 121 Chapter 6: Managing Project Organization 123 6.1 Principles / 123 6.2 The External Organization / 126 6.3 The Internal Organization / 131 6.4 Responsibility Charts / 133 Summary / 139 References / 140 Chapter 7: Managing Quality 141 7.1 Quality in the Context of Projects / 141 7.2 Achieving Quality on Projects / 144 7.3 Configuration Management / 148 Summary / 154 References / 155 Chapter 8: Managing Cost 157 8.1 Estimating Costs / 157 8.2 Types of Costs / 162 8.3 Estimating Techniques / 171 8.4 Controlling Costs: Obtaining Value for Money / 175 Summary / 181 References / 182 Chapter 9: Managing Time 183 9.1 The Time Schedule / 183 9.2 Estimating Duration / 189 9.3 Calculating the Schedule with Networks / 191 9.4 Resource Histograms and Resource Smoothing / 201 9.5 Controlling Time / 204 Summary / 207 References / 208
  11. CONTENTS xi Chapter 10: Managing Risk 209 10.1 The Risk Management Process / 209 10.2 Identifying Risk / 211 10.3 Assessing Risk / 216 10.4 Analyzing Risk / 223 10.5 Managing Risk / 226 Summary / 230 References / 231 Part 3: Managing the Process Chapter 11: The Project Process 235 11.1 The Project and Product Life Cycle / 235 11.2 The Feasibility Study / 239 11.3 The Design Phase / 242 11.4 New Product Development / 246 11.5 Concurrent Engineering / 250 11.6 Information Systems Projects / 254 Summary / 262 References / 263 Chapter 12: Project Start-Up 265 12.1 The Start Up Process / 265 12.2 Start Up Workshops / 270 12.3 Project Definition Report and Manual / 274 Summary / 277 References / 278 Chapter 13: Project Execution and Control 279 13.1 Resourcing a Project / 279 13.2 Implementation Planning / 280 13.3 Allocating Work / 284 13.4 Requirements for Effective Control / 286 13.5 Gathering Data and Calculating Progress / 288 13.6 Taking Action / 294 Summary / 296 References / 298 Chapter 14: Project Close Out 299 14.1 Timely and Efficient Completion / 300 14.2 Transferring the Asset to the Users / 301 14.3 Embedding the Change and Obtaining Benefit / 302 14.4 Disbanding the Team / 303 14.5 Postcompletion Reviews / 305 Summary / 306 References / 307
  12. xii CONTENTS Part 4: Governance of Project-Based Management Chapter 15: Project Governance 311 15.1 Governance / 311 15.2 Governance of the Project / 312 15.3 The Principal Agent Relationship / 315 15.4 Communication between the Project Manager and Sponsor / 317 Summary / 320 References / 321 Chapter 16: Program and Portfolio Management 323 16.1 Definitions / 324 16.2 Managing Portfolios / 328 16.3 Managing Programs / 335 16.4 The Project Office / 337 Summary / 340 References / 341 Chapter 17: Developing Organizational Capability 343 17.1 Defining Capability / 343 17.2 Developing Individual Competence / 345 17.3 Developing Organizational Capability / 350 17.4 Improving Organizational Capability / 359 17.5 Knowledge Management / 361 17.6 Competency Traps / 362 Summary / 364 References / 365 Chapter 18: Governance of the Project-Based Organization 367 18.1 Governance of Project Management / 367 18.2 Conducting Audits / 371 18.3 Conducting Health Checks / 375 18.4 End of Stage Reviews / 383 Summary / 388 References / 389 Chapter 19: International Projects 391 19.1 Types of International Project / 391 19.2 The Problem of International Projects / 394 19.3 Managing Culture / 397 Summary / 406 References / 407 Chapter 20: Epilogue 409 20.1 Principles of Project Management / 409 20.2 Key Success Factors / 410
  13. CONTENTS xiii Appendix A: Project Definition Report for the CRMO Rationalization Project 413 Appendix B: Project Control Documents for the CRMO Rationalization Project 427 Subject Index 437 Author and Source Index 447 Project Index 451
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  15. PREFACE One of my aims in writing successive editions of this book has been to maintain the book’s length. That means that as I include new ideas, I have to drop some material. I don’t want a book that gets fatter and fatter to the point where I have to start dividing it into two or more separate books. Project management is a dynamic and developing topic, and that means that there are new ideas that need to be included in the book. But also some ideas that were included in the first and second edition are now past their sell by date and so can be dropped. I have aimed to produce a book that covers the key topics of project manage ment as people see it at the moment, and to leave out some of the concepts that have not proved so effective. The book is one part shorter than the previous edition, at four parts rather than five. The first three parts cover the same ground as the first three parts of the previous two editions. Part 1 describes the context of projects. In particular it considers how the strategy of the parent organization and the desire to achieve performance improvement through strategic change drive the creation of projects. It then looks at project success strategy and describes the criteria by which we judge success, the factors by which we increase the chance of success, and how we combine the two into a strategy for our projects. The third chapter in the part considers the people involved in the project. It takes a different per spective from the previous two editions where the equivalent chapter looked at the posi tion of projects in the parent organization. In this edition that chapter focuses much more on how to lead the stakeholders to gain their support for the project. Part 2 covers the same ground as the previous two editions, describing the functions of project management, how to manage the scope, project organization, quality, cost, time, and the risk that pervades them all. Part 3 also substantially covers the same ground as the previous editions, describing three stages of the project life cycle: start, execution, and close out. However, I have included a new chapter at the start of the part, describing the project life cycle, and differ ent versions for different types of project. This chapter covers much of the ground of what was previously the fifth part, on applications, but in a more focused way. Although these three parts cover very much the same ground, I have incorporated new thinking, and so in places the material is different from the previous editions. It is in Part 4 where I have taken a radically different approach. In the previous two edi tions, Part 4 described administrative support given to the project by the parent organiza tion. Now, in accordance with the modern style, I take a governance perspective. As a result, it covers some of the same ground, because the administrative support described in the pre vious editions is governance support, but it also introduces many new ideas. I start by defin ing what we mean by governance and describe the governance of the individual project, and the governance roles that imply. In the next two chapters, I describe the governance of the context, particularly program and portfolio management and the development of organiza tional project management capability. I then describe the project governance role of the executive board, and the interest they should take in projects. xv
  16. xvi PREFACE I have retained the chapter on international projects as the last main chapter, and as in the previous two editions close with an epilogue. I have updated the references throughout the book. I think the main purpose of refer ences is to point to further reading for readers who want to find out more about the topics. I think that only books that are readily available are useful for the purpose, so I tend not to cite academic research journals or magazine articles for that purpose, and definitely not obscure conferences. The other main purpose for references is to acknowledge source materials, and for that purpose I may cite an academic research journal article. Rodney Turner East Horsley, Surrey
  17. ACKNOWLEDGMENTS My main thanks in writing this third edition continues to go to the now nearly 30,000 people who have bought the previous editions, and thereby give me encouragement to continue to spread the good word of project management. I would also like to thank Wade Ren and Vladimir Voropayev who led the translation of the book into Chinese and Russian, respectively. I wish to thank the people with whom I have worked and whose ideas have contributed to the material of this book. The first and second editions drew on distance learning mater ial in project management at Henley Management College. Elements of the third edition still draw on the ideas of Mahen Tampoe, Susan Foreman, Svine Arne Jessen, Peter Morris, Nick Aked, Roger Sharp, Richard Morreale, David Topping, and Anne French. There are also people with whom I have written research papers over the years, particularly Bob Cochrane, Anne Keegan, Martina Huemann, and Ralf Müller. I also wish to acknowledge the ongoing inspiration I receive from my work with Kristofer Grude, with whom I wrote my first book over 20 years ago. I have received significant help in the process of writing the book from Judy Morton. Judy has proofread all the material, and helped me prepare the figures. And finally, I must thank my family for putting up with all the travel that spreading the good word of project management seems to entail. Rodney Turner East Horsley, Surrey xvii
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