Fluent Essays

Reflection and Discussion Forum Week 1Reflection and Discussion Forum Week 1 Assigned Readings: Chapter 1. Introduction: Why Project Management?  Chapter 2. The Organizational Context: Strategy, Structure, and Culture  Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion. Also, provide a graduate-level response to each of the following questions: Think of a successful project and an unsuccessful project with which you are familiar. What distinguishes the two, both in terms of the process used to develop them and their outcomes? Compare and contrast the organizational cultures at Amazon and Google. Imagine if you were in charge of a project team at both companies. How might your approach to managing a project, developing your team, and coordinating with different functional departments differ at the two firms? [Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words - do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review] Project ManageMent achieving coMPetitive advantage Jeffrey K. Pinto Pennsylvania State University Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan F i f t h E d i t i o n G l o b a l e d i t i o n To Mary Beth, my wife and best friend, with the most profound thanks and love for her unwavering support. And, to our children, Emily, AJ, and Joseph—three “projects” that are definitely over budget but that are performing far better than I could have hoped! Vice President, Business, Economics, and UK Courseware: Donna Battista Director of Portfolio Management: Stephanie Wall Director, Courseware Portfolio Management: Ashley Dodge Senior Sponsoring Editor: Neeraj Bhalla Editorial Assistant: Linda Albeli Vice President, Product Marketing: Roxanne McCarley Product Marketer: Kaylee McCarley Product Marketing Assistant: Marianela Silvestri Manager of Field Marketing, Business Publishing: Adam Goldstein Field Marketing Manager: Nicole Price Vice President, Production and Digital Studio, Arts and Business: Etain O’Dea Director of Production, Business: Jeff Holcomb Managing Producer, Business: Melissa Feimer Content Producer: Sugandh Juneja Content Producer, Global Editions: Nitin Shankar Associate Acquisitions Editor, Global Editions: Ishita Sinha Senior Project Editor, Global Edition: Daniel Luiz Assistant Project Editor, Global Edition: Shasya Goel Managing Editor, Global Edition: Steven Jackson Senior Manufacturing Controller, Production, Global Edition: Caterina Pellegrino Operations Specialist: Carol Melville Design Lead: Kathryn Foot Manager, Learning Tools: Brian Surette Content Developer, Learning Tools: Lindsey Sloan Managing Producer, Digital Studio and GLP, Media Production and Development: Ashley Santora Managing Producer, Digital Studio and GLP: James Bateman Managing Producer, Digital Studio: Diane Lombardo Digital Studio Producer: Regina DaSilva Digital Studio Producer: Alana Coles Digital Content Project Lead: Courtney Kamauf Project Managers: Tierra Ross Elcano and Sasibalan C., SPi Global Interior Design: SPi Global Cover Design: Lumina Datamatics, Inc. Cover Art: stocksolutions/Shutterstock Pearson Education Limited KAO Two KAO Park Harlow CM17 9NA United Kingdom and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2020 The rights of Jeffrey K. Pinto to be identified as the author of this work have been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. Authorized adaptation from the United States edition, entitled Project Management: Achieving Competitive Advantage, 5th Edition, ISBN 978-0-134-73033-2 by Jeffrey K. Pinto, published by Pearson Education © 2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trade- marks imply any affiliation with or endorsement of this book by such owners. ISBN 10: 1-292-26914-6 ISBN 13: 978-1-292-26914-6 eBook ISBN: 978-1-292-26916-0 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 9 8 7 6 5 4 3 2 1 Typeset in Palatino LT Pro by SPi Global www.pearsonglobaleditions.com 3 BRIEF CONTENTS Preface 13 Chapter 1 Introduction: Why Project Management? 23 Chapter 2 The Organizational Context: Strategy, Structure, and Culture 60 Chapter 3 Project Selection and Portfolio Management 102 Chapter 4 Leadership and the Project Manager 142 Chapter 5 Scope Management 178 Chapter 6 Project Team Building, Conflict, and Negotiation 225 Chapter 7 Risk Management 263 Chapter 8 Cost Estimation and Budgeting 296 Chapter 9 Project Scheduling: Networks, Duration Estimation, and Critical Path 335 Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks 372 Chapter 11 Advanced Topics in Planning and Scheduling: Agile and Critical Chain 408 Chapter 12 Resource Management 442 Chapter 13 Project Evaluation and Control 474 Chapter 14 Project Closeout and Termination 518 Appendix A The Cumulative Standard Normal Distribution 550 Appendix B Tutorial for MS Project 2016 551 Appendix C Project Plan Template 561 Glossary 565 Company Index 575 Name Index 577 Subject Index 581 4 CONTENTS Preface 13 Chapter 1 INTRODUCTION: WHY PROJECT MANAGEMENT? 23 PROJECT PROFILE: Development Projects that are Transforming Africa 23 The Need for Projects 25 What is a Project? 25 General Project Characteristics 27 PROJECT PROFILE: Royal Mail: Moving with the Times 30 Why are Projects Important? 31 PROJECT PROFILE: London’s Crossrail: Europe’s Largest Construction Project 32 Project Life Cycles 34 ◾ BOX 1.1: Project Managers in Practice 36 Determinants of Project Success 37 ◾ BOX 1.2: Project Management Research in Brief 40 Developing Project Management Maturity 41 Employability Skills 45 Communication 45 Critical Thinking 45 Collaboration 45 Knowledge Application And Analysis 45 Business Ethics And Social Responsibility 45 Information Technology Application And Computing Skills 46 Data Literacy 46 Project Elements and Text Organization 46 Summary 50 • Key Terms 51 • Discussion Questions 51 Case Study 1.1 MegaTech, Inc. 52 • Case Study 1.2 The HealthSMART Program 52 • Case Study 1.3 Disney’s Expedition Everest 53 • Case Study 1.4 “Throwing Good Money after Bad”: the BBC’s Digital Media Initiative 54 • Internet Exercises 57 • PMP Certification Sample Questions 57 • Answers 57 • Notes 57 Chapter 2 THE ORGANIZATIONAL CONTEXT: STRATEGY, STRUCTURE, AND CULTURE  60 PROJECT PROFILE: The Airbus A 380: A Failure of Strategy? 60 Implementing Strategy Through Projects 62 Projects and Organizational Strategy 63 Stakeholder Management 65 Identifying Project Stakeholders 66 Managing Stakeholders 69 Organizational Structure 71 Forms of Organizational Structure 72 Functional Organizations 72 Project Organizations 75 Matrix Organizations 76 Moving to Heavyweight Project Organizations 79 ◾ BOX 2.1: Project Management Research in Brief 80 Project Management Offices 81 Contents 5 Organizational Culture 84 How Do Cultures Form? 86 Organizational Culture and Project Management 88 PROJECT PROFILE: Electronic Arts and the Power of Strong Culture in Design Teams 89 Summary 90 • Key Terms 92 • Discussion Questions 92 • Case Study 2.1 Rolls-Royce Corporation 93 • Case Study 2.2 Classic Case: Paradise Lost—The Xerox Alto 94 • Case Study 2.3 Project Task Esti- mation and the Culture of “Gotcha!” 95 • Case Study 2.4 Widgets ’R Us 95 • Internet Exercises 96 • PMP Certification Sample Questions 96 • Answers 97 • Integrated Project—Building Your Project Plan 98 • Notes 100 Chapter 3 PROJECT SELECTION AND PORTFOLIO MANAGEMENT  102 PROJECT PROFILE: Project Selection Procedures: A Cross-Industry Sampler 102 Introduction: Project Selection 103 Approaches to Project Screening and Selection 106 Method One: Checklist Model 106 Method Two: Simplified Scoring Models 107 Limitations of Scoring Models 109 Method Three: The Analytical Hierarchy Process 110 Method Four: Profile Models 113 Financial Models 115 Payback Period 116 Net Present Value 117 Discounted Payback 119 Internal Rate of Return 119 Choosing a Project Selection Approach 121 PROJECT PROFILE: Project Selection and Screening at GE: The Tollgate Process 122 Project Portfolio Management 123 Objectives and Initiatives 124 The Portfolio Selection Process 125 Developing a Proactive Portfolio 127 Keys to Successful Project Portfolio Management 130 Problems in Implementing Portfolio Management 130 Summary 132 • Key Terms 133 • Solved Problems 133 • Discussion Questions 134 • Problems 134 • Case Study 3.1 Keflavik Paper Company 137 • Case Study 3.2 Pracht: Selecting a New Ethical Product Line 138 • Internet Exercises 140 • Notes 140 Chapter 4 LEADERSHIP AND THE PROJECT MANAGER 142 PROJECT PROFILE: NASA Taps a Leader with the Right Stuff to Run Their Mars 2020 Project  142 Introduction: Successful Projects Need Leaders 144 Leaders Versus Managers 144 How the Project Manager Leads 146 Acquiring Project Resources 146 Motivating and Building Teams 147 Having a Vision and Fighting Fires 147 Communicating 148 ◾ BOX 4.1:  Project Management Research in Brief 151 Traits of Effective Project Leaders 151 Conclusions about Project Leaders 152 6 Contents PROJECT PROFILE: Leading by Example for the London Olympics—Sir John Armitt 153 Project Champions 154 Champions—Who Are They? 155 What Do Champions Do? 156 How to Make a Champion 157 The New Project Leadership 158 ◾ BOX 4.2:  Project Managers in Practice 159 PROJECT PROFILE: The Challenge of Managing Internationally 160 Project Management Professionalism 160 Project Management and Ethics 162 Unethical Behaviors in Project Management 164 PROJECT PROFILE: British Luxury Automobile Maker Caught in Corruption Charges 165 Summary 166 • Key Terms 167 • Discussion Questions 168 • Case Study 4.1 In Search of Effective Project Managers 168 • Case Study 4.2 Finding the Emotional Intelligence to Be a Real Leader 169 • Case Study 4.3 Volkswagen and Its Project to Cheat Emissions Tests 169 • Case Study 4.4 Problems with John 171 • Internet Exercises 174 • PMP Certification Sample Questions 174 • Answers 175 • Notes 175 Chapter 5 SCOPE MANAGEMENT 178 PROJECT PROFILE: Berlin’s Brandenburg Willy Brandt International Airport 178 Introduction: The Importance of Scope Management 180 Conceptual Development 180 The Statement of Work 183 The Project Charter 186 PROJECT PROFILE: Statements of Work: Then and Now 186 The Scope Statement 186 The Work Breakdown Structure 187 Purposes of the Work Breakdown Structure 187 The Organization Breakdown Structure 192 The Responsibility Assignment Matrix 195 PROJECT PROFILE: Defining a Project Work Package 196 Work Authorization 197 Scope Reporting 198 ◾ BOX 5.1: Project Management Research in Brief 199 Control Systems 200 Configuration Management 201 Project Closeout 202 Project Management and Sustainability 203 Managing Projects for Sustainability 205 PROJECT PROFILE: Nicaragua’s Canal and Sustainability Challenges 207 Summary 208 • Key Terms 209 • Discussion Questions 210 • Problems 210 • Case Study 5.1 Boeing’s Virtual Fence 210 • Case Study 5.2 California’s High-Speed Rail Project 212 • Case Study 5.3 Five Star Hotel ELV Project 214 • Case Study 5.4 The Expeditionary Fighting Vehicle 215 • Internet Exercises 217 • PMP Certification Sample Ques- tions 217 • Answers 218 • MS Project Exercises 218 • Appendix 5.1: Sample Project Charter 218 • Integrated Project—Developing the Work Breakdown Structure 221 • Notes 222 Contents 7 Chapter 6  PROJECT TEAM BUILDING, CONFLICT, AND NEGOTIATION 225 PROJECT PROFILE: Team-Building Events – Heli-skiing and Zombie Apocalypses 225 Introduction 227 Building the Project Team 227 Identify Necessary Skill Sets 227 Identify People Who have the required Skills 228 Talk to Potential Team Members and Negotiate with Functional Heads 229 Build in Fallback Positions 229 Assemble the Team 230 Characteristics of Effective Project Teams 230 A Clear Sense of Mission 230 A Productive Interdependency 231 Cohesiveness 231 Trust 231 Enthusiasm 232 Results Orientation 232 Reasons Why Teams Fail 232 Poorly Developed or Unclear Goals 233 Poorly Defined Project Team Roles and Interdependencies 233 Lack of Project Team Motivation 233 Poor Communication 234 Poor Leadership 234 Turnover Among Project Team Members 234 Dysfunctional Behavior 234 Stages in Group Development 235 Stage One: Forming 235 Stage Two: Storming 236 Stage Three: Norming 236 Stage Four: Performing 236 Stage Five: Adjourning 236 Punctuated Equilibrium 237 Achieving Cross-Functional Cooperation 238 Superordinate Goals 238 Rules and Procedures 239 Physical Proximity 239 Accessibility 239 Outcomes of Cooperation: Task and Psychosocial Results 240 Virtual Project Teams 240 PROJECT PROFILE: Tele-Immersion Technology Eases the Use of Virtual Teams  242 Conflict Management 243 What Is Conflict? 243 Sources of Conflict 244 Methods for Resolving Conflict 246 PROJECT PROFILE: Engineers Without Borders: Project Teams Impacting Lives  247 Negotiation 248 Questions to Ask Prior to the Negotiation 248 Principled Negotiation 249 Invent Options for Mutual Gain 251 8 Contents Insist on Using Objective Criteria 252 Summary 253 • Key Terms 254 • Discussion Questions 254 Case Study 6.1 Columbus Instruments 254 • Case Study 6.2 The Bean Counter and the Cowboy 255 • Case Study 6.3 Johnson & Rogers Software Engineering, Inc. 256 • Exercise in Negotiation 258 • Internet Exercises 259 • PMP Certification Sample Questions 259 • Answers 260 • Notes 260 Chapter 7 RISK MANAGEMENT  263 PROJECT PROFILE: Samsung’s Galaxy Note 7—Failure to Manage a New Product for Risk 263 Introduction: What is Project Risk? 265 ◾ BOX 7.1: Project Managers in Practice 267 Risk Management: A Four-Stage Process 268 Risk Identification 268 PROJECT PROFILE: Dubai Reinstates The World Project 270 Risk Breakdown Structures 271 Analysis of Probability and Consequences 271 Risk Mitigation Strategies 274 Use of Contingency Reserves 276 Other Mitigation Strategies 277 Control and Documentation 277 PROJECT PROFILE: Collapse of Shanghai Apartment Building 279 Project Risk Management: An Integrated Approach 281 Summary 283 • Key Terms 284 • Solved Problem 284 • Discussion Questions 284 • Problems 284 • Case Study 7.1 Classic Case: de Havilland’s Falling Comet 285 • Case Study 7.2 The Building that Melted Cars 288 • Case Study 7.3 Classic Case: Nicoll Highway Collapse 289 • Internet Exercises 291 • PMP Certification Sample Questions 291 • Answers 292 • Integrated Project—Project Risk Assessment 293 • Notes 295 Chapter 8 COST ESTIMATION AND BUDGETING  296 PROJECT PROFILE: New York City’s Second Avenue Subway – Two Miles Completed for Only $5 Billion Spent 296 Cost Management 298 Direct Versus Indirect Costs 299 Recurring Versus Nonrecurring Costs 300 Fixed Versus Variable Costs 301 Normal Versus Expedited Costs 301 Cost Estimation 301 Learning Curves in Cost Estimation 305 Software Project Estimation—Function Points 308 ◾ BOX 8.1: Project Management Research in Brief 309 Problems with Cost Estimation 311 ◾ BOX 8.2: Project Management Research in Brief 312 Creating a Project Budget 313 Top-Down Budgeting 314 Bottom-Up Budgeting 315 Activity-Based Costing 315 Developing Budget Contingencies 317 Summary 319 • Key Terms 320 • Solved Problems 320 • Discussion Questions 321 • Problems 322 • Case Study 8.1 The Hidden Costs of Infrastructure Projects—The Case of Building Dams 325 • Case Study 8.2 Sochi Olympics—What’s the Cost of National Prestige? 327 • Internet Exercises 329 • PMP Certification Sample Questions 329 • Answers 330 • Integrated Project—Developing the Cost Estimates and Budget 331 • Notes 333 Chapter 9 PROJECT SCHEDULING: NETWORKS, DURATION ESTIMATION, AND CRITICAL PATH 335 PROJECT PROFILE: Preparing for a Major Golf Tournament – It’s a Long Road to the First Tee  335 Introduction 337 Project Scheduling 337 Key Scheduling Terminology 339 Developing A Network 341 Labeling Nodes 341 Serial Activities 342 Concurrent Activities 342 Merge Activities 343 Burst Activities 343 Duration Estimation 346 Constructing the Critical Path 350 Calculating the Network 350 The Forward Pass 351 The Backward Pass 353 Probability of Project Completion 355 Laddering Activities 357 Hammock Activities 358 Options for Reducing the Critical Path 359 ◾ BOX 9.1: Project Management Research in Brief 360 Summary 361 • Key Terms 362 • Solved Problems 362 • Discussion Questions 364 • Problems 364 • Case Study 9.1 Moving the Historic Capen House 367 • Internet Exercises 369 • MS Project Exercises 369 • PMP Certification Sample Questions 370 • Answers 370 • Notes 371 Chapter 10  PROJECT SCHEDULING: LAGGING, CRASHING, AND ACTIVITY NETWORKS 372 PROJECT PROFILE: Kiruna, Sweden – A Town on the Move! 372 Introduction 374 Lags in Precedence Relationships 374 Finish to Start 374 Finish to Finish 375 Start to Start 375 Start to Finish 376 Gantt Charts 377 Adding Resources to Gantt Charts 378 Incorporating Lags in Gantt Charts 379 ◾ BOX 10.1: Project Managers in Practice 379 Crashing Projects 381 Options for Accelerating Projects 381 Crashing the Project: Budget Effects 386 Contents 9 Activity-On-Arrow Networks 389 How Are They Different? 389 AOA Versus AON 394 Controversies in the Use of Networks 395 Conclusions 396 Summary 397 • Key Terms 397 • Solved Problems 398 • Discussion Questions 399 • Problems 399 • Case Study 10.1 Project Scheduling at Blanque Cheque Construction (A) 401 • Case Study 10.2 Project Scheduling at Blanque Cheque Construction (B) 402 • MS Project Exercises 402 • PMP Certification Sample Questions 403 • Answers 404 • Integrated Project—Developing the Project Schedule 405 • Notes 406 Chapter 11 ADVANCED TOPICS IN PLANNING AND SCHEDULING:  AGILE AND CRITICAL CHAIN  408 PROJECT PROFILE: Adopting the Agile Methodology in Ericsson  409 Introduction 409 Agile Project Management 410 What Is Unique About Agile PM? 411 Tasks Versus Stories 413 Key Terms in Agile PM 413 Steps in Agile 415 Sprint Planning 415 Daily Scrums 415 The Development Work 416 Sprint Reviews 416 Sprint Retrospective 417 Keys to Success with Agile 417 Problems with Agile 418 ◾ BOX 11.1: Project Management Research in Brief 419 Extreme Programming (XP) 419 Theory of Constraints and Critical Chain Project Scheduling 420 Theory of Constraints 420 The Critical Chain Solution to Project Scheduling 421 Developing the Critical Chain Activity Network 424 Critical Chain Solutions Versus Critical Path Solutions 426 PROJECT PROFILE: Eli Lilly Pharmaceuticals and Its Commitment to Critical Chain Project Management  427 Critical Chain Solutions to Resource Conflicts 428 Critical Chain Project Portfolio Management 429 ◾ BOX 11.2: Project Management Research in Brief 432 Critiques of CCPM 433 Summary 433 • Key Terms 435 • Solved Problem 435 • D iscussion Questions 436 • Problems 436 • Case Study 11.1 It’s an Agile World 438 • Case Study 11.2 Ramstein Products, Inc. 439 • Internet Exercises 440 • Notes 440 Chapter 12 RESOURCE MANAGEMENT 442 PROJECT PROFILE: Environmental Concerns and Political Leadership Impact Fossil Fuel Project Cancellations  442 Introduction 444 The Basics of Resource Constraints 444 Time and Resource Scarcity 445 10 Contents Resource Loading 447 Resource Leveling 448 Step One: Develop the Resource-Loading Table 452 Step Two: Determine Activity Late Finish Dates 452 Step Three: Identify Resource Overallocation 454 Step Four: Level the Resource-Loading Table 454 Resource-Loading Charts 457 ◾ BOX 12.1: Project Managers in Practice 460 Managing Resources in Multiproject Environments 461 Schedule Slippage 461 Resource Utilization 461 In-Process Inventory 462 Resolving Resource Decisions in Multiproject Environments 462 Summary 464 • Key Terms 465 • Solved Problem 465 • Discussion Questions 466 • Problems 466 • Case Study 12.1 The Problems of Multitasking 468 • Case Study 12.2 “First Come, First Served”: Resource Challenges for Sunrise Restoration 469 • Internet Exercises 470 MS Project Exercises 470 • PMP Certification Sample Questions 471 • Answers 472 • Integrated Project—Managing Your Project’s Resources 473 • Notes 473 Chapter 13 PROJECT EVALUATION AND CONTROL 474 PROJECT PROFILE: U.S. Army Can’t Track Spending on its Spending Tracker Project  474 Introduction 475 Control Cycles—A General Model 476 Monitoring Project Performance 476 The Project S-Curve: A Basic Tool 477 S-Curve Drawbacks 479 Milestone Analysis 479 Problems with Milestones 481 The Tracking Gantt Chart 481 Benefits and Drawbacks of Tracking Gantt Charts 482 Earned Value Management 482 Terminology for Earned Value 483 Creating Project Baselines 484 Why Use Earned Value? 484 Steps in Earned Value Management 486 Assessing a Project’s Earned Value 487 Using Earned Value to Manage a Portfolio of Projects 492 Flow of Earned Value System 492 PROJECT PROFILE: Earned Value at Northrop Grumman  493 Issues in the Effective Use of Earned Value Management 494 Human Factors in Project Evaluation and Control 496 Critical Success Factor Definitions 498 Conclusions 499 Summary 500 • Key Terms 501 • Solved Problem 501 • Discussion Questions 502 • Problems 503 • Case Study 13.1 The IT Department at Kimble College 505 • Case Study 13.2 The Superconducting S upercollider 506 • Case Study 13.3 “Dear Mr. President—Please cancel our project!”: The Honolulu Elevated Rail Project 507 • Internet Exercises 509 • MS Project Exercises 509 • PMP Certification Sample Questions 510 • Answers 511 • Appendix 13.1: Earned Schedule 511 • Notes 516 Contents 11 Chapter 14 PROJECT CLOSEOUT AND TERMINATION 518 PROJECT PROFILE: Amazon’s Golden Touch Fails with a High-Tech Gadget 518 Introduction 519 Types of Project Termination 520 ◾ BOX 14.1:  Project Managers in Practice 520 Natural Termination—the Closeout Process 522 Finishing the Work 522 Handing Over the Project 522 Gaining Acceptance for the Project 523 Harvesting the Benefits 523 Reviewing How It All Went 524 Putting It All to Bed 526 Disbanding the Team 526 What Prevents Effective Project Closeouts? 527 Early Termination for Projects 527 Making the Early Termination Decision 529 PROJECT PROFILE: Aftermath of a “Feeding Frenzy”: Dubai and Canceled Construction Projects 530 Shutting Down the Project 531 Allowing for Claims and Disputes 532 ◾ BOX 14.2:  Project Management Research in Brief 533 Preparing the Final Project Report 535 Conclusion 536 Summary 536 • Key Terms 537 • Discussion Questions 537 • Case Study 14.1 New Jersey Kills Hudson River Tunnel Project 538 • Case Study 14.2 The Project That Wouldn’t Die 539 • Case Study 14.3 A Failure Eight Years in the Making 540 • Internet Exercises 541 • PMP Certification Sample Questions 542 • Answers 543 • Appendix 14.1: Sample Pages from Project Sign-off Document 544 • Notes 548 Appendix A The Cumulative Standard Normal Distribution 550 Appendix B Tutorial for MS Project 2016 551 Appendix C Project Plan Template 561 Glossary 565 Company Index 575 Name Index 577 Subject Index 581 12 Contents 13 PREFACE Project management has become central to operations in industries as diverse as construction and information technology, architecture and hospitality, and engineering and new product devel- opment; therefore, this text simultaneously embraces the general principles of project manage- ment while addressing specific examples across the wide assortment of its applications. This text approaches each chapter from the perspective of both the material that is general to all disciplines and project types and that which is more specific to alternative forms of projects. One way this is accomplished is through the use of specific, discipline-based examples to illustrate general prin- ciples as well as the inclusion of cases and Project Profiles that focus on more specific topics, such as, Chapter 5’s treatment of IT “death march” projects (see Box 5.1 below). Students in project management classes come from a wide and diverse cross section of uni- versity majors and career tracks. Schools of health, public administration, business, architecture and the built environment, engineering, information systems, and hospitality are all adding project management courses to their catalogs in response to the demands from organizations and profes- sional groups that see their value for students’ future careers. Why has project management become a discipline of such tremendous interest and application? The simple truth is that we live in a “pro- jectized” world. Everywhere we look, we see people engaged in project management. In fact, project management has become an integral part of practically every firm’s business model. This text takes a holistic, integrated approach to managing projects, exploring both technical and managerial challenges. It not only emphasizes individual project execution, but also provides a strategic perspective, demonstrating the means with which to manage projects at both the program and portfolio levels. Scope Reporting 177 BOX 5.1 Project Management Research in Brief Information Technology (IT) Project “Death Marches”: What Is Happening Here? Every year, billions of dollars are spent on thousands of information technology (IT) projects worldwide. With the huge emphasis on IT products and advances in software and hardware systems, it is no surprise that interest in this field is exploding. Under the circum- stances, we would naturally expect that, given the importance of IT projects in both our corporate and everyday lives, we are doing a reasonably good job of implementing these critical projects, right? Unfortunately, the answer is a clear “no.” In fact, IT projects have a terrible track record for delivery, as numerous studies have shown. How bad? The average IT project is likely to be 6 to 12 months behind schedule and 50% to 100% over budget. Of course, the numbers vary with the size of the project, but the results still suggest that companies should expect their IT projects to lead to wasted effort, enormous delays, burnout, and many lost weekends while laboring for success with the cards stacked the other way. What we are referring to here are “death march” projects. The death march project is typically one in which the project is set up for failure through the demands or expectations that the company places on it, leaving the intention that the project team will pull off a miracle. The term death march invokes images of team members wearily trudging along mile after mile, with no possibility of successful conclusion in sight. Death march projects are defined as projects “whose parameters exceed the norm by at least 50%.” In practical terms, this can mean: • The schedule has been compressed to less than half the amount estimated by a rational estimating process (e.g., the schedule suggests it should take one year to complete the project, but top management shrinks the schedule to six months). • The project team staffing has been reduced to half the number that normally would be assigned to a project of this size and scope (e.g., a project manager needing 10 resources is instead given only 5). • The budget and other necessary resources are cut in half (e.g., as a result of downsizing and other cost-cutting exercises in the company, everyone is expected to “do more with less”, or competitive bidding to win the contract was so intense that when the smoke cleared the company that won the project did so at such a cut-rate price that it cannot possibly …