SOLUTION: Stratford University Logical Framework Project Plan

THE
FAST FORWARD MBA IN
PROJECT
MANAGEMENT
SIXTH EDITION
THE COMPREHENSIVE, EASY-TO-READ HANDBOOK
FOR BEGINNERS AND PROS
ERIC VERZUH
Copyright © 2021 by Eric Verzuh. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
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Cover Design: Wiley
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10 9 8 7 6 5 4 3 2 1
For Marlene
CONTENTS
ACKNOWLEDGMENTS
ABOUT THE AUTHOR
PREFACE
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PART 1
INTRODUCTION
CHAPTER 1—PROJECT MANAGEMENT:
A PLATFORM FOR INNOVATION
A Timeless Leadership Toolset
Project Management Is Keeping Pace with
Global Change
Project Management Is an Essential Leadership
Skillset
Successful Projects Deliver Value
The Art and Science of Project Leadership
A Practical Checklist for Successful Projects:
How This Book Will Help You
Beyond the Book: Tools for Application
and Continuous Learning
End Point
Stellar Performer: OrthoSpot
Stellar Performer: PM4NGOs
CHAPTER 2—PROJECT LEADERSHIP:
PEOPLE BEFORE PROCESS
The Project Leadership Challenge
Build a Team Culture Suited to a Journey
of Discovery
Temporary Teams Form Before They Perform
Build Personal Authority and Influence
Project Leaders Need Political Savvy
Your Decision to Lead
End Point
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Contents
CHAPTER 3—FOUNDATION PRINCIPLES
OF PROJECT MANAGEMENT
Projects Require Project Management
How a Project is Defined
The Challenge of Managing Projects
The Evolution of a Discipline
The Definition of Project Success
Project Management Functions
Project Life Cycle
Organizing for Projects
Project Managers Are Leaders
End Point
Stellar Performer: Seattle Children’s Hospital
and Regional Medical Center
CHAPTER 4—AGILE AND WATERFALL: CHOOSE
A DEVELOPMENT PROCESS
Defining Value: A New Lens for Judging Projects
Informs the Development Process
Choose a Product Development Process
That Delivers Value
Best Practices for Capturing Requirements
Are Integrated into a Product Development
Process
A Development Process Is Not Project
Management
Waterfall or Agile: Which Delivers the Best Value?
Common Agile Practices
Common Agile Benefits
Choosing Between Agile and Waterfall
Development
Innovation Projects Experiment to Discover
Desirability and Viability
Product Development Methods Influence Project
Management
End Point
Stellar Performer: The Lean Startup Innovation
Movement
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v
Contents
PART 2
DEFINING THE PROJECT
CHAPTER 5—PROJECT INITIATION: TURN
A PROBLEM OR OPPORTUNITY INTO A
BUSINESS CASE
Project Initiation’s Place in the Project Life Cycle
A Mini-Analysis Phase or a Complete Project
The Role of a Project Manager
in Project Initiation
A Business Case Defines the Future
Business Value
Business Risk and Project Risk
Managing Requirements Is Tightly Linked
to Project Initiation
Common Principles for Project Initiation
Project Selection and Prioritization
Basic Business Case Content
Designing a Realistic Initiation Process
Project Leadership: Focus on Value
End Point
Fast Foundation in Project Management
Stellar Performer: The Logical Framework
Approach
CHAPTER 6—ENGAGE YOUR STAKEHOLDERS
AND WIN THEIR COOPERATION
Stakeholder Focus Throughout the Life
of the Project
Stakeholder Management Is Risk Management
for People
Stakeholder Roles on Every Project
Stakeholder Roles: Project Manager
Stakeholder Roles: Project Team
Stakeholder Roles: Management
Stakeholder Roles: The Customer
Affected Stakeholders Can Make Crucial
Contributions
Engage Affected Stakeholders
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Contents
Lead the Stakeholders
End Point
Fast Foundation in Project Management
CHAPTER 7—WRITE THE RULES: MANAGE
EXPECTATIONS AND DEFINE SUCCESS
Project Rules Are the Foundation
Publish a Project Charter
Write a Project Charter
Responsibility Matrix
End Point
Fast Foundation in Project Management
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PART 3
THE PLANNING PROCESS
CHAPTER 8—RISK MANAGEMENT: MINIMIZE
THE THREATS TO YOUR PROJECT
All Project Management Is Risk Management
The Risk Management Framework
Step One: Identify the Risks
Step Two: Analyze and Prioritize the Risks
Step Three: Develop Response Plans
Step Four: Establish Contingency and Reserve
Step Five: Continuous Risk Management
Unexpected Leadership
End Point
Fast Foundation in Project Management
CHAPTER 9—A WORK BREAKDOWN
STRUCTURE MAKES A PROJECT MANAGEABLE
Defining the Work Breakdown Structure
Building a Work Breakdown Structure
Criteria for a Successful Work Breakdown
Structure
Work Package Size
When Very Small Tasks Make Sense
Planning for Quality
Breaking Down Large Programs
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vii
Contents
Contractors or Vendors Can Provide a WBS
End Point
CHAPTER 10—REALISTIC SCHEDULING
Planning Overview
Planning Step Two: Identify Task Relationships
Planning Step Three: Estimate Work Packages
Planning Step Four: Calculate an Initial Schedule
Planning Step Five: Assign and Level Resources
Small Projects Need Smaller Plans
End Point
Fast Foundation in Project Management
CHAPTER 11—MANAGE AGILE DEVELOPMENT
WITH SCRUM
Scrum Is a Framework
Scrum at a Glance
Managing the Product Backlog
Make the Plan Visible: Task Boards
and Burndown Charts
Key Factors for Scrum to Be Effective
Scrum and Project Management
End Point
CHAPTER 12—THE ART AND SCIENCE
OF ACCURATE ESTIMATING
Estimating Fundamentals
Estimating Techniques
Building the Detailed Budget Estimate
Generating the Cash Flow Schedule
End Point
Fast Foundation in Project Management
Stellar Performer: Tynet, Inc.
CHAPTER 13—BALANCE THE TRADE-OFF
AMONG COST, SCHEDULE, AND SCOPE
Three Levels of Balancing a Project
Balancing at the Project Level
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Contents
Balancing at the Business Case Level
Balancing at the Enterprise Level
End Point
Stellar Performer: Seattle Mariners
Baseball Park
Stellar Performer: Boeing 767-400ER Program
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CHAPTER 14—MANAGING CREATIVE PROJECTS:
INSIGHTS FROM MEDIA AND ENTERTAINMENT
294
Lessons from Film, Television, and
Video Production
Lessons from Creating Video Games
Lessons from Music Production
Learning to Manage Media, Entertainment,
Technology, and Art (M.E.T.A.) Projects
End Point
Stellar Performer: Flexible Life Cycle Transcends
Industries
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PART 4
CONTROLLING THE PROJECT
CHAPTER 15—BUILD A HIGH-PERFORMANCE
PROJECT TEAM
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A Framework for Building High-Performance
Teams
Leadership Responsibilities
Building a Positive Team Culture
Ground Rules
Team Identity
Team Listening Skills
Meeting Management
Collaborative Problem-Solving
Problem Analysis
Decision Modes
Conflict Management
Continuous Learning
Job Satisfaction
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ix
Contents
End Point
Fast Foundation in Project Management
Stellar Performer: Habitat for Humanity
CHAPTER 16—COMMUNICATE WITH PROJECT
STAKEHOLDERS
Embrace Your Role as a Leader
Creating a Communication Plan
Communicating Within the Project Team
Virtual Teams Benefit from Formal
Communication
Closeout Reporting
End Point
Fast Foundation in Project Management
Stellar Performer: Lockheed Martin
Aeronautics
CHAPTER 17—CHANGE MANAGEMENT:
ENGAGE YOUR STAKEHOLDERS TO
MAXIMIZE VALUE
Why the People Side Matters
Outcomes Desired: Individual Change
Management Using ADKAR
Actions Required: Organizational Change
Management
Roles: Who Does Change Management
End Point
CHAPTER 18—CONTROL SCOPE TO
DELIVER VALUE
The Change Control Process
Configuration Management
Change Control Is Essential for Managing
Expectations
End Point
Fast Foundation in Project Management
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Contents
CHAPTER 19—MEASURE PROGRESS
Measuring Schedule Performance
Measuring Cost Performance
Earned Value Reporting
Escalation Thresholds
Cost and Schedule Baselines
End Point
CHAPTER 20—SOLVE COMMON PROJECT
PROBLEMS
Responsibility Beyond Your Authority
Disaster Recovery
When the Customer Delays the Project
The Impossible Dream
Fighting Fires
Managing Volunteers
End Point
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PART 5
ADVANCING YOUR PRACTICE OF PROJECT
MANAGEMENT
CHAPTER 21—ENTERPRISE PROJECT
MANAGEMENT: ALIGN PROJECTS WITH
STRATEGY
Defining Enterprise Project Management
Three Tiers of Management Within EPM: Portfolio,
Program, Project
The Four Components of EPM: Process, People,
Technology, PMO
Establish Consistent EPM Processes
Technology Enables EPM Processes
The People Who Deliver Projects
Support Project Management: The Project
Management Office
End Point
Stellar Performer: Bill & Melinda Gates
Foundation
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xi
Contents
CHAPTER 22—REQUIREMENTS: DESCRIBE
THE SOLUTION TARGET
Requirements and Project Management
Are Intimately Connected
Requirement Types Illustrate the Evolving
Product Vision
Requirements Scope and Processes
Requirements Development Activities
Requirements Management Activities
The Audience for Requirements
End Point
CHAPTER 23—USE THE QUALITY DISCIPLINE
TO HIT THE TARGET
The Cost of Quality
Build the Quality Discipline into a Project
Quality Assurance and Quality Control
Quality Practices Improve Requirements
The Quality Discipline Improves Processes
Quality Is an Organizational Commitment
End Point
CHAPTER 24—PASS THE PMP EXAM
Requirements to Earn the PMP
Top 10 Study Tips for the PMP Exam
End Point
APPENDIX A: FORMS AVAILABLE ONLINE
APPENDIX B: THE DETAILED PLANNING MODEL
NOTES
INDEX
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ACKNOWLEDGMENTS
P
roject management remains a dynamic field, moving
forward through the accumulated effort of many
thousands of professionals who face new, interesting
challenges and then generously share their lessons
learned during conferences, at trade shows, through
associations, and over coffee with friends.
I have the privilege to both travel with the project management
movement and to record the journey. To all of the project teams and
project leaders who continue to innovate and move the state of the
art forward, I wish to thank you for your example and the freedom
with which you share what you learn.
There are, of course, particular friends and colleagues who
made a direct contribution to this sixth edition, and to whom I owe
particular recognition.
Tim Creasey and Karen Ball enthusiastically accepted my invitation to contribute their expertise on change management, the practices that motivate employees to change their behavior in support of
project goals. Tim, Karen, and their colleagues at Prosci are building
a body of research in this field and are tireless advocates of the
value of change management on projects. It is an honor to have
their cutting-edge practices included in this edition.
Lester Frederick challenged me to think outside the normal
boundaries of this book and was a tireless collaborator as we created a new chapter on the project management insights that can be
taken from music, film and TV, and video game projects. His amazing
network of accomplished industry veterans generously offered their
xiii
Acknowledgments
insights, which was a great learning experience for me. Thank you to
Brandon Egerton, Cordy Rierson, Grant ­Shonkwiler, ­Jonathan Feist,
DJ Swivel, Stewart Lyons, Jeremy Schmidt, Matt Scura, Michael
Cardwell, and Heather Chandler. Lester and I also thank these Full
Sail University faculty, staff, students, and alumni for their support
and expertise: Heather Torres, Dave Franko, Stephanie Dawson, Jay
Noble, Victor Herrera da Silva, and Jacob Herring.
Mandy Dietz epitomizes the synthesis required to effectively lead
projects. She long ago mastered the science of project management,
and she is expert at integrating additional concepts from process
management and leadership. Mandy contributed her considerable
expertise on collecting and managing requirements to make a substantial revision to the requirements chapter and was a valuable
sounding board on the new chapter on quality.
Donna McEwen has a gift for translating her substantial leadership experience into practical advice in a manner that is constantly
engaging. She is a trusted sounding board and creative collaborator.
Donna ensured the new content on leadership, quality, and agile
versus waterfall development stayed relevant to project managers.
Tony Johnson has generously contributed his expertise on the
PMP Exam since the third edition of this book. I appreciate his
friendship and collaboration.
Spencer Lamoreaux is a gifted facilitator and IT leader for a
major technology company. He offered his considerable expertise
on agile practices as a valuable sounding board.
What could be more satisfying than for a father to learn from his
children? I wish to thank Dan and Jack for sharing their professional
experiences, which influenced the chapters on agile and leadership.
At the risk of missing other friends and colleagues who spent
time discussing this edition, I wish to recognize several who made
valuable suggestions: Ernie Baker, Dale Christenson, Vicki L
­ egman,
Andrew Schlam, Renee Adair, Mark Caudle, Tim Cermak, Karl
­Croswhite, Clint Gradin, Bill Holt, Franklin Sarigumba, Bill Warner,
and Steve Weidner.
Richard Narramore and Mike Campbell, my editors at John Wiley
& Sons, are energetic supporters. Twenty-three years ago, an editor
at Wiley took a risk on an unpublished author. I am very grateful
for the opportunity that Wiley provides and the partnership that
­continues.
My wife, Marlene Kissler, again played the critical role of sounding
board and editor. This book is readable because she reads it first.
My parents, Julie Welle Verzuh and Jim Verzuh, enriched my life
with their love and friendship. I miss them.
xiv
ABOUT THE AUTHOR
ERIC VERZUH
Eric Verzuh is president of The Versatile Company, a project management training and consulting firm based in Seattle,
­Washington.
His company trains thousands of professionals every year in
the fundamentals of successful project management, including
how to pass the Project Management Professional (PMP®) Exam
and how get the most out of Microsoft Project. Versatile’s consulting practice focuses on helping firms establish consistent, practical
methods for managing their projects and implementing Microsoft’s
enterprise project management solution. The company’s client list
includes large corporations as well as government agencies, small
­companies, and nonprofit organizations.
Verzuh has been certified as a Project Management Professional
(PMP) by the Project Management Institute. He is a founding board
member of Project Management Training Alliance (PMTA) and a
founding board member of PM4NGOs, a nonprofit organization
committed to promoting project management in developing countries. His other publications include articles, conference papers, and
The Portable MBA in Project Management (2003), also published by
John Wiley & Sons, Inc.
Verzuh can be reached via his company’s website at www
.VersatileCompany.com, or you can e-mail Eric directly at EVerzuh
@VersatileCompany.com.
xv
PREFACE
G
lobal turbulence from a pandemic, economic
upheaval, revolutionary innovation, and environmental crisis underscore the need for both
pragmatic and visionary leadership in a world of
constant change. Work is increasingly accomplished
through temporary networks. More than ever, organizations need leaders who can synthesize facts and assumptions
to set a direction. Project management, a set of critical thinking and
communication tools, is the right discipline for this moment.
This sixth edition retains the book’s primary focus on excellence
in project management, including a new chapter on the project manager’s primary responsibility as a leader of diverse stakeholders.
Two other new chapters address the disciplines of quality and
change management. Both of these topics have their own certifications and extensive bodies of established theory. Both should be
familiar to any working project manager.
The actual practice of project management continues to evolve.
Agile concepts and frameworks have had a substantial impact and
are included in many chapters. A new chapter draws insights from
film, music, and video game projects, capturing the contribution of
project management to these highly creative efforts.
Two chapters have been substantially revised to reflect current
practice and to make them more practical and easier to read.
Chapter 4 addresses agile and waterfall development and Chapter 22
addresses collecting and managing requirements.
xvii
Preface
A substantial new feature is the inclusion of instructional videos.
Many of these animated videos are specifically directed at the reader
considering Project Management Professional certification.
The Project Management Institute has changed the focus and format of their Guide to the Project Management Body of Knowledge to
emphasize principles rather than detailed processes. The principles
in their seventh-edition guide are consistent with this book.
I have been teaching and writing on project management for
over 30 years. My experience is that project managers are optimists,
pragmatic problem solvers, and team-oriented servant leaders.
It continu…
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