Project Management: A Systems Approach to Planning, Scheduling, and Controlling / Edition 10

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Overview

The landmark project management reference, now in a new edition

Now in a Tenth Edition, this industry-leading project management "bible" aligns its streamlined approach to the latest release of the Project Management Institute's Project Management Body of Knowledge (PMI's PMBOK® Guide), the new mandatory source of training for the Project Management Professional (PMP®) Certificat-ion Exam. This outstanding edition gives students and professionals a profound understanding of project management with insights from one of the best-known and respected authorities on the subject.

From the intricate framework of organizational behavior and structure that can determine project success to the planning, scheduling, and controlling processes vital to effective project management, the new edition thoroughly covers every key component of the subject. This Tenth Edition features:

  • New sections on scope changes, exiting a project, collective belief, and managing virtual teams
  • More than twenty-five case studies, including a new case on the Iridium Project covering all aspects of project management
  • 400 discussion questions
  • More than 125 multiple-choice questions

E-Commerce PM for WorldCom, and adjunct IT professor in Colorado Springs Project management at its best-a banner edition of the landmark reference This latest edition of the bestselling "bible" of project management brings outstanding coverage of the basic principles and concepts of project management right up to date with the latest developments in the field.

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Editorial Reviews

From Barnes & Noble
The Barnes & Noble Review
Skillful project management is the key to the successful completion of a project within budget and on schedule. Harold Kerzner's book is the key to skillful project management. Kerzner covers everything imaginable, including case studies and problem sets designed to provide the student or avid reader with a measure of virtual experience not otherwise available to those new to the game.

The author is a well-known expert on project management, with seven previous editions under his belt, as well as other publications. His book addresses not only to students who wish to understand and improve their project management skills but also to those functional managers and upper-level executives who must provide continuous support to all projects. In other words, the book is designed for undergraduate and graduate courses in both business and engineering. Kerzner covers this subject in great depth, from organizational behavior and structure to the quantitative aspects of project management to tradeoffs in time, cost and performance. He also covers such topics as risk management, learning curves, quality management, and contracts and procurement.

This book is an absolute must-have for anyone involved in project management. It is both an excellent desk reference and an outstanding learning tool for both students and professionals who want to improve their skills. John Vacca

John Vacca, the former computer security official (CSO) for NASA's space station program (Freedom), has written 38 books about advanced storage, computer security, and aerospace technology.

Booknews
This text for undergraduate and graduate courses in business and engineering covers basic principles and concepts of project management in depth, with 46 case studies and many sample problems across a range of industries. The structure of the text reflects the importance of behavioral rather than quantitative aspects of project management. Early chapters present core topics and deal with support functions and executive involvement. Later chapters look at quantitative issues such as planning and cost control, and cover more advanced topics such as managing cultural differences, quality management, concurrent engineering, and contracts and procurement. Kerzner teaches systems management at Baldwin-Wallace College. Annotation c. Book News, Inc., Portland, OR (booknews.com)
From the Publisher
"...overall a good book..." (CVu, Dec 03)
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Product Details

  • ISBN-13: 9780470278703
  • Publisher: Wiley, John & Sons, Incorporated
  • Publication date: 3/23/2009
  • Edition description: Older Edition
  • Edition number: 10
  • Pages: 1120
  • Product dimensions: 7.70 (w) x 9.30 (h) x 5.30 (d)

Meet the Author

Harold Kerzner, Ph.D., is Senior Executive Director for Project, Program and Portfolio Management at International Institute of Learning, Inc. (IIL), a global learning solutions company that conducts training for leading corporations throughout the world.

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Table of Contents

Preface.

1. OVERVIEW.

1.0 Introduction.

1.1 Understanding Project Management.

1.2 Defining Project Success.

1.3 The Project Manager-Line Manager Interface.

1.4 Defining the Project Manager’s Role.

1.5 Defining the Functional Manager’s Role.

1.6 Defining the Functional Employee’s Role.

1.7 Defining the Executive’s Role.

1.8 Working with Executives.

1.9 The Project Manager as the Planning Agent.

1.10 Project Champions.

1.11 The Downside of Project Management.

1.12 Project-Driven versus Non-Project-Driven Organizations.

1.13 Marketing in the Project-Driven Organization.

1.14 Classification of Projects.

1.15 Location of the Project Manager.

1.16 Differing Views of Project Management.

1.17 Concurrent Engineering: A Project Management Approach.

1.18 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Study.

Williams Machine Tool Company.

2. PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS.

2.0 Introduction.

2.1 General Systems Management.

2.2 Project Management: 1945-1960.

2.3 Project Management: 1960-1985.

2.4 Project Management: 1985-2009.

2.5 Resistance to Change.

2.6 Systems, Programs, and Projects: A Definition.

2.7 Product versus Project Management: A Definition.

2.8 Maturity and Excellence: A Definition.

2.9 Informal Project Management: A Definition.

2.10 The Many Faces of Success.

2.11 The Many Faces of Failure.

2.12 The Stage-Gate Process.

2.13 Project Life Cycles.

2.14 Gate Review Meetings (Project Closure).

2.15 Project Management Methodologies: A Definition.

2.16 Organizational Change Management and Corporate Cultures.

2.17 Project Management Intellectual Property.

2.18 Systems Thinking.

2.19 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

3. ORGANIZATIONAL STRUCTURES.

3.0 Introduction.

3.1 Organizational Work Flow.

3.2 Traditional (Classical) Organization.

3.3 Developing Work Integration Positions.

3.4 Line-Staff Organization (Project Coordinator).

3.5 Pure Product (Projectized) Organization.

3.6 Matrix Organizational Form.

3.7 Modification of Matrix Structures.

3.8 The Strong, Weak, Balanced Matrix.

3.9 Center for Project Management Expertise.

3.10 Matrix Layering.

3.11 Selecting the Organizational Form.

3.12 Structuring the Small Company.

3.13 Strategic Business Unit (SBU) Project Management.

3.14 Transitional Management.

3.15 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Study.

Jones and Shephard Accountants, Inc.

4. ORGANIZING AND STAFFING THE PROJECT OFFICE AND TEAM.

4.0 Introduction.

4.1 The Staffing Environment.

4.2 Selecting the Project Manager: An Executive Decision.

4.3 Skill Requirements for Project and Program Managers.

4.4 Special Cases in Project Manager Selection.

4.5 Selecting the Wrong Project Manager.

4.6 Next Generation Project Managers.

4.7 Duties and Job Descriptions.

4.8 The Organizational Staffing Process.

4.9 The Project Office.

4.10 The Functional Team.

4.11 The Project Organizational Chart.

4.12 Special Problems.

4.13 Selecting the Project Management Implementation Team.

4.14 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

5. MANAGEMENT FUNCTIONS.

5.0 Introduction.

5.1 Controlling.

5.2 Directing.

5.3 Project Authority.

5.4 Interpersonal Influences.

5.5 Barriers to Project Team Development.

5.6 Suggestions for Handling the Newly Formed Team.

5.7 Team Building as an Ongoing Process.

5.8 Dysfunctions of a Team.

5.9 Leadership in a Project Environment.

5.10 Life-Cycle Leadership.

5.11 Organizational Impact.

5.12 Employee-Manager Problems.

5.13 Management Pitfalls.

5.14 Communications.

5.15 Project Review Meetings.

5.16 Project Management Bottlenecks.

5.17 Communication Traps.

5.18 Proverbs and Laws.

5.19 Human Behavior Education.

5.20 Management Policies and Procedures.

5.21 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Studies.

The Trophy Project.

Leadership Effectiveness (A).

Leadership Effectiveness (B).

Motivational Questionnaire.

6. MANAGEMENT OF YOUR TIME AND STRESS.

6.0 Introduction.

6.1 Understanding Time Management.

6.2 Time Robbers.

6.3 Time Management Forms.

6.4 Effective Time Management.

6.5 Stress and Burnout.

6.6 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Study.

The Reluctant Workers.

7. CONFLICTS.

7.0 Introduction.

7.1 Objectives.

7.2 The Conflict Environment.

7.3 Conflict Resolution.

7.4 Understanding Superior, Subordinate, and Functional Conflicts.

7.5 The Management of Conflicts.

7.6 Conflict Resolution Modes.

7.7 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Studies.

Facilities Scheduling at Mayer Manufacturing.

Telestar International.

Handling Conflict in Project Management.

8. SPECIAL TOPICS.

8.0 Introduction.

8.1 Performance Measurement.

8.2 Financial Compensation and Rewards.

8.3 Critical issues with rewarding project teams.

8.4 Effective Project Management in the Small Business Organization.

8.5 Mega Projects.

8.6 Morality, Ethics, and the Corporate Culture.

8.7 Professional Responsibilities.

8.8 Internal Partnerships.

8.9 External Partnerships.

8.10 Training and Education.

8.11 Integrated Product/Project Teams.

8.12 Virtual Project Teams.

8.13 Breakthrough Projects.

8.14 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

9. THE VARIABLES FOR SUCCESS.

9.0 Introduction.

9.1 Predicting Project Success.

9.2 Project Management Effectiveness.

9.3 Expectations.

9.4 Lessons Learned.

9.5 Understanding Best Practices.

9.6 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

10. WORKING WITH EXECUTIVES.

10.0 Introduction.

10.1 The Project Sponsor.

10.2 Handling Disagreements with the Sponsor.

10.3 The Collective Belief.

10.4 The Exit Champion.

10.5 The In-House Representatives.

10.6 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Study.

Corwin Corporation.

11. PLANNING.

11.0 Introduction.

11.1 Validating the Assumptions.

11.2 General Planning.

11.3 Life-Cycle Phases.

11.4 Proposal Preparation.

11.5 Kickoff Meetings.

11.6 Understanding Participants’ Roles.

11.7 Project Planning.

11.8 The Statement of Work.

11.9 Project Specifications.

11.10 Milestone Schedules.

11.11 Work Breakdown Structure.

11.12 WBS Decomposition Problems.

11.13 Role of the Executive in Project Selection.

11.14 Role of the Executive in Planning.

11.15 The Planning Cycle.

11.16 Work Planning Authorization.

11.17 Why Do Plans Fail?

11.18 Stopping Projects.

11.19 Handling Project Phaseouts and Transfers.

11.20 Detailed Schedules and Charts.

11.21 Master Production Scheduling.

11.22 Project Plan.

11.23 Total Project Planning.

11.24 The Project Charter.

11.25 Management Control.

11.26 The Project Manager-Line Manager Interface.

11.27 Fast-Tracking.

11.28 Configuration Management.

11.29 Enter price project Management Methodologies.

11.30 Project Audits.

11.31 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

12. NETWORK SCHEDULING TECHNIQUES.

12.0 Introduction.

12.1 Network Fundamentals.

12.2 Graphical Evaluation and Review Technique (GERT).

12.3 Dependencies.

12.4 Slack Time.

12.5 Network Replanning.

12.6 Estimating Activity Time.

12.7 Estimating Total Project Time.

12.8 Total PERT/CPM Planning.

12.9 Crash Times.

12.10 PERT/CPM Problem Areas.

12.11 Alternative PERT/CPM Models.

12.12 Precedence Networks.

12.13 Lag.

12.14 Scheduling Problems.

12.15 The Myths of Schedule Compression.

12.16 Understanding Project Management Software.

12.17 Software Features Offered.

12.18 Software Classification.

12.19 Implementation Problems.

12.20 Critical Chain.

12.21 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Study.

Crosby Manufacturing Corporation.

13. PROJECT GRAPHICS.

13.0 Introduction.

13.1 Customer Reporting.

13.2 Bar (Gantt) Chart.

13.3 Other Conventional Presentation Techniques.

13.4 Logic Diagrams/Networks.

13.5 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

14. PRICING AND ESTIMATING.

14.0 Introduction.

14.1 Global Pricing Strategies.

14.2 Types of Estimates.

14.3 Pricing Process.

14.4 Organizational Input Requirements.

14.5 Labor Distributions.

14.6 Overhead Rates.

14.7 Materials/Support Costs.

14.8 Pricing Out the Work.

14.9 Smoothing Out Department Man-Hours.

14.10 The Pricing Review Procedure.

14.11 Systems Pricing.

14.12 Developing the Supporting/Backup Costs.

14.13 The Low-Bidder Dilemma.

14.14 Special Problems.

14.15 Estimating Pitfalls.

14.16 Estimating High-Risk Projects.

14.17 Project Risks.

14.18 The Disaster of Applying the 10 Percent Solution to Project Estimates.

14.19 Life-Cycle Costing (LCC).

14.20 Logistics Support.

14.21 Economic Project Selection Criteria: Capital Budgeting.

14.22 Payback Period.

14.23 The Time Value of Money.

14.24 Net Present Value (NPV).

14.25 Internal Rate of Return (IRR).

14.26 Comparing IRR, NPV, and Payback.

14.27 Risk Analysis.

14.28 Capital Rationing.

14.29 Project Financing.

14.30 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

15. COST CONTROL.

15.0 Introduction.

15.1 Understanding Control.

15.2 The Operating Cycle.

15.3 Cost Account Codes.

15.4 Budgets.

15.5 The Earned Value Measurement System (EVMS).

15.6 Variance and Earned Value.

15.7 The Cost Baseline.

15.8 Justifying the Costs.

15.9 The Cost Overrun Dilemma.

15.10 Recording Material Costs Using Earned Value Measurement.

15.11 The Material Accounting Criterion.

15.12 Material Variances: Price and Usage.

15.13 Summary Variances.

15.14 Status Reporting.

15.15 Cost Control Problems.

15.16 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Studies.

The Bathtub Period.

Franklin Electronics.

Trouble in Paradise.

16. TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT.

16.0 Introduction.

16.1 Methodology for Trade-off Analysis.

16.2 Contracts: Their Influence on Projects.

16.3 Industry Trade-off Preferences.

16.4 Conclusion.

16.5 Studying Tips for the PMI® Project Management Certification Exam.

17. RISK MANAGEMENT.

17.0 Introduction.

17.1 Definition of Risk.

17.2 Tolerance for Risk.

17.3 Definition of Risk Management.

17.4 Certainty, Risk, and Uncertainty.

17.5 Risk Management Process.

17.6 Plan Risk Management.

17.7 Risk Identification.

17.8 Risk Analysis.

17.9 Qualitative Risk Analysis.

17.10 Quantitative Risk Analysis.

17.11 Probability Distributions and The Monte Carlo Process.

17.12 Plan Risk Response.

17.13 Monitoring and Control Risks.

17.14 Some Implementation Considerations.

17.15 The Use of Lessons Learned.

17.16 Dependencies between Risks.

17.17 The Impact of Risk Handling Measures.

17.18 Risk and Concurrent Engineering.

17.19 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

Case Studies.

Teloxy Engineering (A).

Teloxy Engineering (B).

18. LEARNING CURVES.

18.0 Introduction.

18.1 General Theory.

18.2 The Learning Curve Concept.

18.3 Graphic Representation.

18.4 Key Words Associated with Learning Curves.

18.5 The Cumulative Average Curve.

18.6 Sources of Experience.

18.7 Developing Slope Measures.

18.8 Unit Costs and Use of Midpoints.

18.9 Selection of Learning Curves.

18.10 Follow-on Orders.

18.11 Manufacturing Breaks.

18.12 Learning Curve Limitations.

18.13 Prices and Experience.

18.14 Competitive Weapon.

18.15 Studying Tips for the PMI® Project Management Certification Exam.

Problems.

19. CONTRACT MANAGEMENT.

19.0 Introduction.

19.1 Procurement.

19.2 Plan Procurement.

19.3 Conducting the Procurements.

19.4 Conduct Procurements Request Seller Responses.

19.5 Conduct Procurements Select Sellers.

19.6 Types of Contracts.

19.7 Incentive Contracts.

19.8 Contract Type versus Risk.

19.9 Contract Administration Cycle.

19.10 Contract Closure.

19.11 Using a Checklist.

19.12 Proposal-Contractual Interaction.

19.13 Summary.

19.14 Studying Tips for the PMI® Project Management Certification Exam.

20. QUALITY MANAGEMENT.

20.0 Introduction.

20.1 Definition of Quality.

20.2 The Quality Movement.

20.3 Comparison of the Quality Pioneers.

20.4 The Taguchi Approach.

20.5 The Malcolm Baldrige National Quality Award.

20.6 ISO 9000.

20.7 Quality Management Concepts.

20.8 The Cost of Quality.

20.9 The Seven Quality Control Tools.

20.10 Process Capability (CP).

20.11 Acceptance Sampling.

20.12 Implementing six sigma.

20.13 Lean six sigma and DMAIC.

20.14 Quality Leadership.

20.15 Responsibility for Quality.

20.16 Quality Circles.

20.17 Just-in-Time Manufacturing (JIT).

20.18 Total Quality Management (TQM).

20.19 Studying Tips for the PMI® Project Management Certification Exam.

21. MODERN DEVELOPMENTS PROJECT MANAGEMENT.

21.0 Introduction.

21.1 The Project Management Maturity Model (PMMM).

21.2 Developing Effective Procedural Documentation.

21.3 Project Management Methodologies.

21.4 Continuous Improvement.

21.5 Capacity Planning.

21.6 Competency Models.

21.7 Managing Multiple Projects.

21.8 End-of-Phase Review Meetings.

22. THE BUSINESS OF SCOPE CHANGES.

22.0 Introduction.

22.1 Need for Business Knowledge.

22.2 Timing of Scope Changes.

22.3 Business Need for a Scope Change.

22.4 Rationale for Not Approving a Scope Change.

23. THE PROJECT OFFICE.

23.0 Introduction.

23.1 Present-Day Project Office.

23.2 Implementation Risks.

23.3 Types of Project Offices.

23.4 Networking Project Management Offices.

23.5 Project Management Information Systems.

23.6 Dissemination of Information.

23.7 Mentoring.

23.8 Development of Standards and Templates.

23.9 Project Management Benchmarking.

23.10 Business Case Development.

23.11 Customized Training (Related to Project Management).

23.12 Managing Stakeholders.

23.13 Continuous Improvement.

23.14 Capacity Planning.

23.15 Risks of Using a Project Office.

24. MANAGING CRISIS PROJECTS.

24.0 Introduction.

24.1 Understanding Crisis Management.

24.2 Ford Verus Firetone.

24.3 The Air Frnce Concorde Crash.

24.4 Intel and the Pentium Chip.

24.5 The Russian Submarine, Kursk.

24.6 The Tylenol Poisonings.

24.7 Nestlés Marketting of Infant Formula.

24.8 The Space Shuttle Challenger Disaster.

24.9 The Space Shuttle Columbia Disaster.

24.10 Victims Verus Villains.

24.11 Life-Cycle Phases.

24.12 Project Management Implications.

25. THE RISE, FALL, AND RESURRECTION OF IRIDIUM: A PROJECT MANAGEMENT PERSPECTIVE.

25.0 Introduction.

25.1 Naming the Project "Iridium".

25.2 Obtaining Executive Support.

25.3 Launching the Venture.

25.4 The Iridium System.

25.5 The Terrestial and Space-Based Network.

25.6 Project Initiation: Developing the Business Case.

25.7 The "Hiden" Business Case.

25.8 Risk Management.

25.9 The Collective Belief.

25.10 The Exit Champion.

25.11 Iridium’s Infancy Years.

25.12 Debt Financing.

25.13 The M-Star Project.

25.14 A New CEO.

25.15 Satellite Launches.

25.16 An Initial Public Offering (IPO).

25.17 Signing up Customers.

25.18 Iridium’s Rapid Ascent.

25.19 Iridium’s Rapid Descent.

25.20 The Iridium "Flu".

25.21 Searching for a White Knight.

25.22 The Definition of Failure (October, 1999).

25.23 The Satellite Deorbiting Plan.

25.24 Iridium Is Rescued for $25 Million.

25.25 Epilogue.

25.26 Shareholder Lawsuits.

25.27 The Bankruptcy Court Ruling.

25.28 Autopsy.

25.29 Financial Impact of the Bankruptcy.

25.30 What Really Went Wrong?

25.31 Lessons Learned.

25.32 Conclusion.

Appendix A. Solutions to the Project Management Conflict Exercise.

Appendix B. Solution to Leadership Exercise.

Appendix C. Dorale Products Case Studies.

Appendix D. Solution to the Dorale Products Case Studies Answers.

Appendix E. Crosslisting of PMBOK® to the Ninth Edition.

Author Index.

Subject Index.

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Interviews & Essays

Exclusive Author Essay
Project Management: Present and Future by Harold Kerzner, Ph.D.
For almost 30 years, project management was viewed as a process nice to have, but not a necessity for the survival of the firm. Companies reluctantly invested in some training courses simply to provide their personnel with basic knowledge on planning and scheduling. Project management was viewed as a threat to established lines of authority and, in most cases, only partial project management was in use. This occurred simply to placate lower- and middle-level personnel.

During this 30-year period, we did everything possible to prevent excellence in project management from occurring. We provided lip service to empowerment, teamwork, and trust. We hoarded information because the control of information was viewed as power. We placed personal and functional interests ahead of the best interest of the company in the hierarchy of priorities. And we maintained the faulty belief that time was a luxury rather than a constraint.

Other than in a few major industries such as aerospace, defense, and construction, project management was erroneously viewed as simply a scheduling tool for engineers. The resistance to a changeover to project management permeated all levels of management. Every functional department was fearful of making project management a career path position and allowing the project managers to possess profit and loss responsibility. This could diminish the stature, power, and authority of other groups.

By the mid-1990s, this mentality began to subside, largely due to two recessions. Companies were now under severe competitive pressure to create quality products in a shorter period of time. The importance of developing a long-term trusting relationship with the customers had come to the forefront. Businesses were now being forced by the stakeholders to change for the better. The survival of the firm was now at stake.

Today, businesses have changed for the better. Trust between the customers and contractors is at an all-time high. All of these factors have allowed a multitude of companies to achieve some degree of excellence in project management. Business decisions are now being emphasized ahead of personal decisions.

Words that were commonplace ten years ago have taken on new meaning today. Change is no longer being viewed as entirely bad. Today, change implies continuous improvement. Conflicts are no longer seen as detrimental. Conflicts managed well can be beneficial. Project management is no longer viewed as a system entirely internal to the organization. It is now a competitive weapon that brings higher levels of quality and increased value to the customer.

Companies that were considered excellent in the past may no longer be seen as so today, especially with regard to project management. Consider the book entitled In Search of Excellence, written by Tom Peters and Robert Waterman in 1982. How many of those companies identified in their book are still considered as excellent today? How many of those companies have won the prestigious Malcolm Baldrige Award? How many of those companies are excellent in project management?

The difference between the first 30 years of project management and the last 10 years is in implementation. For more than 30 years, we emphasized quantitative and behavioral tools. Basic knowledge and primary skills were paramount. However, within the past 10 years, emphasis was on implementation. What is now strategically important is how to put 30 years of basic project management into practice. It is the implementation of project management that today constitutes advanced project management. Subjects such as earned value analysis, situational leadership, cost and change control are part of basic courses today, whereas 10 years ago they were considered advanced topics. So, what constitutes advanced project management today? Topics related to successful project management implementation are advanced project management concepts. Included in this category are risk management, customer management, supply chain management, and strategic planning for project management.

One of the primary reasons for the growth of project management has been its recognized importance as a major contributor to the strategic planning effort. With project management viewed as a necessary tool for the implementation of a strategic plan, organizations began seeking out new applications for the tools of project management.

With project management now viewed as beneficial for the entire organization, companies embarked upon the development of a standardized, corporate-wide methodology capable of servicing a multitude of projects. All functional areas are allowed to provide an input into the development of the methodology. Companies with world-class methodologies for project management have seen the benefits of improved customer satisfaction leading to additional business, higher profitability, shorter product development times, more efficient internal operations, and improved quality.

With virtually every company implementing project management in one form or another, there is now a concerted interest in project management benchmarking. Unlike other management approaches, project management benchmarking is relatively independent of industry classification. One aerospace firm that had been using project management for over 35 years found that several telecommunications firms had, in less than five years of use, surpassed the capabilities of the aerospace firm.

Benchmarking in project management has allowed organizations to maintain continuous improvement efforts. The most recent application or project management benchmarking and continuous improvement has been in the area of capacity planning. Organizations wish to know how much additional work can be undertaken without exceeding the threshold limits on the organizational resources.

With the rapid growth in the acceptance and implementation of project management, academic institutions have begun offering educational degreed programs in project management. Thirty years ago, most colleges and universities offered only one course on project management. Today we have academic institutions providing master's and doctorate programs in project management.

Project management is no longer viewed as something nice to have. Today, and in the future, project management excellence will be viewed as a strategic competency for the firm. Effective project management practices will provide organizations with a sustained competitive advantage. And, what is truly remarkable is that many companies have achieved this level of excellence in less than five years. Best practices in implementation, leading to a sustained competitive advantage, will be the future of project management well into the 21st century.

Harold Kerzner, executive director for project management for the International Institute of Learning (IIL), is currently professor of systems management at Baldwin-Wallace College in Ohio and president of Project Management Associates, a consulting and training firm that conducts seminars for leading U.S. and international corporations.

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  • Posted September 24, 2012

    Highly Recommend - you MUST add to your library after reading

    This book is exceptionally well written and is a must on any shelf. Should be a fundamental piece of your library to build a solid foundation of project management knowledge.

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