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Ryan Archer
Topic: Panic Attacks
Specific Purpose: To inform my audience about the nature,
extent, and symptoms of panic attacks
I can’t breathe, my arms are tingling, I’m really dizzy, and it
feels as if my heart is about to fly out of my chest. When this
happened to me three years ago at an outdoor concert, I was
really frightened. At the time, I had no idea what was going on.
My doctor told me later that I had experienced a panic attack. I
have learned a lot about my condition during the past three
years, and I did additional research for this speech. Today I
would like to inform you about the nature of panic attacks, the
people affected most often by them, and the options for
treatment.
Connective: Let’s start with the nature of panic attacks.
I. Panic attacks are a severe medical condition with a number of
physical and mental symptoms.
a. As defined by the National Institute of Mental Health, panic
attacks involve “unexpected and repeated episodes on intense
fear accompanied by physical symptoms.”
1. The attacks usually come out of nowhere and strike when
least expected.
2. Their length can vary from a few minutes to several hours.
b. There are a number of symptoms common to most panic
attacks
1. Physical symptoms include a pounding heart, shortness of
breath, lightheadedness, and numbness of tingling sensations in
the arms and legs.
2. Mental symptoms include acute fear, a sense of disaster or
helplessness, and a feeling of being detached from one’s own
body.
Connective: Now that you know something about the nature of
panic attacks, let’s look at how widespread they are.
II. Panic attacks affect millions of people
A. According to the American Psychiatric Association, six
million Americans suffer from panic attacks.
B. Some groups have a higher incidence of panic attacks than do
other groups
1. The National Institute of Mental health reports that panic
attacks strike women twice as often as men.
2. Half the people who suffer from panic attacks develop
symptoms before the age of 24.
Connective: Given the severity of panic attacks, I’m sure you
are wondering how they can be treated.
III. There are two major options for treating panic attacks.
a. One option is medication
1. Antidepressants are the most frequently prescribed
medication for panic attacks
2. The rearrange the brain’s chemical levels so as to get rid of
unwanted fear responses.
b. Another option is cognitive-behavioral therapy
1. This therapy involves techniques that help people with panic
attacks gain control of their symptoms and feelings.
a. Some techniques involve breathing exercises
b. Other techniques target through patterns that can trigger
panic attacks
2. According to David Barlow, author of the Clinical Handbook
of Psychological Disorders, cognitive behavioral therapy can be
highly effective.
As we have seen, panic attacks affect millions of people.
Fortunately, there are treatment options to help prevent panic
attacks and to deal with them when they occur. In my case, the
combination of medication and cognitive behavioral therapy has
been extremely helpful. I don’t know if I will ever be
completely free of panic attacks, but at least I understand now
what they are and what I can do about them.
hroughout the fifty-odd years of software development, the
industry
has gone through at least four generations of programming
languages
and three major development paradigms. We have held
countless sem-
inars on how to develop software correctly, forced many courses
into
undergraduate degree programs, and introduced standards in our
organizations
that require specific technologies. Still, we have not improved
our ability to suc-
cessfully, consistently move from idea to product. In fact,
recent studies document
that, while the failure rate for software development efforts has
improved in recent
years, the number of projects experiencing severe problems has
risen almost 50
percent.1 There is no magic in managing software development
successfully, but a
number of issues related to software development make it
unique.
John S. Reel, Trident Data Systems
Critical Success
Factors In Software
Projects
S o f t w a re p ro j e c t s a re s t i l l l a t e, o ve r b u d g e
t, a n d
u n p re d i c t a b l e. S o m e t i m e s t h e e n t i re p ro j e c
t f a i l s b e f o re
e ve r d e l i ve r i n g a n a p p l i ca t i o n . T h i s c l e a r,
co m m o n s e n s e
re v i e w o f f u n d a m e n t a l p ro j e c t m a n a g e m e n
t t e c h n i q u e s
re m i n d s u s t h a t w e s t i l l h a ve a l o n g w a y t o
g o.
T
1 8 I E E E S o f t w a r e M a y / J u n e 1 9 9 9 0 7 4 0 - 7 4 5
9 / 9 9 / $ 1 0 . 0 0 © 1 9 9 9 I E E E
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MANAGING COMPLEXITY
Several characteristics of software-based en-
deavors complicate management. First, software-
based systems are exceptionally complex. In fact,
many agree that “the basic problem of computing
is the mastery of complexity.”2 Because software de-
velopers must deal with complex problems, they are
generally very intelligent and complex individuals,
which also complicates the management formula.
Add the fact that developers are trying to hit a mov-
ing target—user requirements—and you get a
volatile mixture of management issues.
These and many other influ-
ences contribute to a fantastically
high failure rate among software
development projects. The Chaos
study, published by the Standish
Group, found that 26 percent of
all software projects fail (down
from 40 percent in 1997), but 46 percent experience
cost and schedule overruns or significantly reduced
functionality (up from 33 percent in 1997).1 The
study also shows that the completion rate has im-
proved because companies have trended towards
smaller, more manageable projects—not because
the management techniques have improved. Can
you imagine a construction firm completing only 74
percent of its buildings and completing only 54 per-
cent of the buildings within schedule and budget?
To change this trend, we must place special empha-
sis on certain factors of the management process.
You may think the answers lie in elaborate analy-
sis methodologies, highly advanced configuration
management techniques, or the perfect develop-
ment language. Those elements of the technology
landscape are as important as highly scientific and
analytical research in analysis and design method-
ologies, project management, and software quality.
However, blueprints of the latest train technology
didn’t improve life in the Wild West until rail com-
panies invested in the fundamental aspects of train
transportation—tracks and depots. Likewise in soft-
ware, more “advanced” technologies are far less crit-
ical to improving practice than embracing what I be-
lieve are the five essential factors to managing a
successful software project:
1. Start on the right foot.
2. Maintain momentum.
3. Track progress.
4. Make smart decisions.
5. Institutionalize post-mortem analyses.
Granted, even a detailed review of these may
leave you wondering what’s new here. Not much—
this is common-sense, basic management stuff. And
yet these principles are not commonly employed. If
they were, we would not see such high failure rates.
START ON THE RIGHT FOOT
It is difficult to call any of these factors most im-
portant, since they are all critical to the success of
large development efforts. However, getting a pro-
ject set up and started properly certainly leads this
class of factors. Just as it is difficult to grow strong
plants in weak soil, it is almost impossible to suc-
cessfully lead a development effort that is set up im-
properly. Tom Field analyzed pitfalls in software de-
velopment efforts and gave 10 signs of IS project
failures—at least seven of which are fully deter-
mined before a design is developed or a line of code
is written.3 Therefore, 70 percent of the dooming
acts occur before a build even starts.
Here are 10 signs of IS project failure:3
1. Project managers don’t understand users’
needs.
2. The project’s scope is ill-defined.
3. Project changes are managed poorly.
4. The chosen technology changes.
5. Business needs change.
6. Deadlines are unrealistic.
7. Users are resistant.
8. Sponsorship is lost.
9. The project lacks people with appropriate
skills.
10. Managers ignore best practices and lessons
learned.
Given this information, what can we do to get
projects off to a successful start?
Set realistic objectives and expectations—
for everyone
The first objective in getting a project off to a
good start is to get everyone on the same wave-
length. Management, users, develop ers, and
d e signers must all have realistic expectations. In
M a y / J u n e 1 9 9 9 I E E E S o f t w a r e 1 9
At least seven of 10 signs of IS project failures
are determined before a design is developed
or a line of code is written.
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case your customers haven’t heard, remind them
routinely that this system will not solve all of their
problems and it will probably create new issues. The
new system should cost-effectively solve more prob-
lems than it creates. The developers must also un-
derstand that the customers do not know exactly
what they want, how they want it, or how it will help
them. Often, they don’t even know how much they
can spend. Everyone has to come to the table with
their eyes open, willing to cooperate and listen. To
avoid later heartache, pay strict attention to the
commitments made by both sides.
Build the right team
Nex t, you must put together the right team.
First ensure that you have enough resources to get
the job done. If you do not get commitments for
resources up front, the effort is doomed. If man-
agement is not excited enough about the effort
to give it enough resources, you may not have the
suppor t necessary for success. Remember, too,
that you will likely need more resources than you
think. We are all inherently optimistic, so guard
your personnel projections and err on the high
side from the start.
Building the right team means getting good
people. This is hard because companies usually want
to place personnel moving off other efforts.
Sometimes these people are good resources, but
not always. However, also recognize that you do not
need, or want, all of the very best designers and de-
velopers. In my experience, staffing around 20 per-
cent of the team with the best available works well.
This figure is loosely supported in Fred Brooks’essay
“The Surgical Team.”4 His team of about 10 people
includes two who are real experts (the Chief
Programmer and the Language Lawyer). Having too
many stars creates ego issues and distractions, while
not having enough can leave the team struggling
with small problems.
The rest of the team should be good, solid de-
velopers with compatible personalities and work
habits. The more advanced team members can step
ahead into uncharted waters, develop the most crit-
ical algorithms and applications, and provide
technical mentoring to the rest of the team.
The most critical element in selecting people is
creating an environment in which they can excel, and
that lets you focus more on technology than team
dynamics. You don’t want a team of clones, but you
do want people who are compatible with one an-
other and with the company and team environment
you are striving to establish. For example, a married-
with-kids, laid-back, nine-to-five
developer might not work well on
a team of young, single, forceful
seven-to-eleven developers. This
doesn’t mean the former is any
less qualified or productive.
Actually, that laid-back developer may produce bet-
ter code and be more productive than the rest of the
group. If you think that first person brings a calming,
focused influence without either “side” becoming
overly frustrated, maybe it is a good fit after all. At
any rate, you must take these factors into consider-
ation when building your team.
Wherever possible, and it usually is possible, in-
volve customers and users in the development. Not
only does this help build higher levels of trust be-
tween developers and users, it also places domain
experts within arm’s reach of the developers
throughout development. This increases the chance
that you will develop a product that meets the user
requirements.
Give the team what they think they need
Once you have built a strong team, you must next
provide it with an environment that encourages pro-
ductivity and minimizes distractions. First, do your
best to arrange quiet, productive office spaces. This
is often impossible given most corporate realities,
but a comfortable office setting can yield dramatic
results. Highly productive environments contain
white boards, meeting areas (formal and informal),
private office areas, and flexible, modern lab facili-
ties. Add comfort elements such as stereos, light dim-
mers, coffee machines, and comfortable chairs; you
will create an environment where people can focus
on their work and forget the rest of the world.
Once you have a team with a productive office
space, you need the proper equipment. Do not for
any reason scrimp on equipment. The difference be-
tween state-of-the-art machines and adequate de-
velopment systems is less than $1,000. You will prob-
ably spend at least $100,000 per year to keep a good
developer, including salary, bonuses, benefits,
training, and other related expenses. That extra
$1,000 amortized over two years represents less
2 0 I E E E S o f t w a r e M a y / J u n e 1 9 9 9
By the time you figure out you have a quality
problem, it is probably too late to fix it.
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than 1/2 percent of the employee cost.
Finally, your team needs tools. Get good, proven
tools from stable companies. Nothing will derail a pro-
ject faster than using unsupported tools. The team
also needs training on those tools; losing files and
folders from ignorance and inexperience is painful
and costly. The term tool does not just mean com-
piler. You also need analysis and design, configura-
tion management, testing, back-up management,
document production, graphics manipulation, and
troubleshooting tools. This is, however, an area where
going first-class does not necessarily mean spending
the most money. Shop carefully, review a lot of op-
tions, and involve the entire team in the decision.
MAINTAIN THE MOMENTUM
By now, you have your development team en-
ergized with strong co-workers, a great working
environment, and some high-end hardware.
Congratulations, you have momentum. The next
critical factor is maintaining and increasing this
momentum. Building momentum initially is easy,
but rebuilding it is dreadfully difficult. Momentum
changes often during the course of a develop-
ment effort. These changes add
up quickly, so it is crucial to
quickly offset the negative shifts
with positive ones.
You should focus on three key
items to maintain or rebuild team
momentum:
♦ Attrition—keep it low.
♦ Quality—monitor it early on and establish an
expectation of excellence.
♦ Management—manage the product more
than the people.
Attrition
Attrition is a constant problem in the software in-
dustry. It can spell disaster for a mid-stream software
project, because replacement personnel must
quickly get up to speed on software that is not com-
plete, not tested, and probably not well-docu-
mented yet. A tremendous amount of knowledge
walks out the door with the person leaving, and
those left behind have a scapegoat for every prob-
lem from then on. Also, in this tight labor market,
the lag time between when a person quits and
when a replacement is hired can wreak havoc with
even the most pessimistic schedules.
Quality
You cannot go back and add quality. By the time
you figure out you have a quality problem, it is prob-
ably too late to fix it. Establish procedures and ex-
pectations for high levels of quality before any other
development begins and hire developers proven to
develop high-quality code. Have the developers par-
ticipate in regular peer-level code reviews and ex-
ternal reviews.
Invariably, when a project is cruising along, every-
body is excited, the status reports look great, and
the GUI is awesome, everything goes wrong. There
may be a bad test report, a failed demo, or a small
change request from the customer that becomes
the pebble that starts an avalanche. You fix one bug,
or make one change, and cause two more. Suddenly,
the development team that was making fantastic
progress is mired in repairing and modifying code
that has been in the bank for months.
Management
Manage your product more than your personnel.
After all, the product is what you are selling. So, if your
corporate culture can handle it, don’t worry about
dress codes or fixed work hours. Relax and let people
deliver things at the last minute. Then critique their
products. If the products are not acceptable, you can
start working with the individuals to improve their
products. The goal here is to not make individual is-
sues team problems. Just because one or two peo-
ple like to come in at 10:00 a.m. and work until 5:00
p.m., abusing the flexibility you give, doesn’t mean
you should dampen the environment for the whole
team. Too often, project leads avoid confronting the
individuals and merely “fix” the problem by setting
arbitrary team rules. Soon, everyone is griping about
deviant co-workers and the strict management.
Those are the sounds of momentum slipping away.
Roll a few of these decisions together, and the team
is soon focused more on avoiding the rules or tattling
on offenders than on producing a quality product.
When you do have a legitimate personnel prob-
lem, deal with it quickly. If you must let someone
go, do it quickly and then meet with your team to
explain what happened. As long as you are being
M a y / J u n e 1 9 9 9 I E E E S o f t w a r e 2 1
Project leaders often avoid confronting
individuals and merely “fix” a problem
by setting arbitrary team rules.
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fair, these experiences will contribute to the team’s
cohesiveness and allow them to rebuild momen-
tum quickly.
TRACK PROGRESS
Consider the intangible nature of software com-
pared to traditional brick-and-mortar construction.
Construction results in a physical manifestation of
a conceptual model—the blueprint becomes a
building that people can touch and see. They can
also touch and see all of the little pieces as they are
being nailed, welded, glued, or screwed to the
framework during construction. Software develop-
ment begins as a conceptual model and results in
an application, so there is no physical manifestation
of software that can be touched and measured, es-
pecially during construction.
A large problem in managing software develop-
ment is figuring where you are in your schedule.
How complete is a module? How long will it take to
finish modules X, Y, and Z? These are hard questions
to answer, but they must be addressed. If you don’t
know where you are in relation to the schedule, you
cannot adjust and tweak to bring things back on
track. Many methodologies exist for tracking
progress; select one at the right level of detail for
your effort, and use it religiously.
MAKE SMART DECISIONS
Making smart decisions often separates suc-
cessful project leaders from failures. It shouldn’t be
hard to identify a bad decision before you make it.
Choosing to rewrite a few of Microsoft’s dynamically
linked libraries to accommodate your design
choices, for example, is a poor decision. Yet I have
seen at least four major projects attempt such in-
sanity. If your application needs to communicate
across a serial connection, do you buy a commercial
library of communications routines or develop your
own from scratch? If you build it from scratch, you
can then implement your own personally designed
protocol. Bad call. Always use commercial libraries
when available, and never try to create a new com-
munications protocol. At best, it will cost you a for-
tune. At worst, it will sink your project.
People also consistently make bad decisions in
selecting technologies. For example, how many peo-
ple chose to develop applications for the Next plat-
form? Most never finished their applications before
that platform went away. When you pick a funda-
mental technology, whether a database engine, op-
erating system, or communications protocol, you
must do a business and a technical analysis. If the
technology isn’t catching market share and if a
healthy company doesn’t support it,
you are building your project on a
sandy foundation.
Because your foresight is fallible,
use your design to insulate yourself
from the underlying technology.
Encapsulate the interface to new or
niche technologies as much as possible. Think about
which technologies will be prone to change over
your product’s lifetime and design your application
to insulate—to a practical level—your code from
those changes.
You will have many opportunities to make good
decisions as you negotiate the customer’s require-
ments. Strive to move the requirements from the
complicated, “never been done before” category to
the “been there, done that” category. Often, users
request things that are marginally valuable without
understanding the complexity. Explain the ramifi-
cations of complicated requirements and require-
ments changes in terms of cost and schedule. Help
them help you.
POST-MORTEM ANALYSIS
Few companies institutionalize a process for
learning from their mistakes. If you do not take time
to figure out what happened during a project, both
the good and the bad, you are doomed to repeat it.
What can you learn from a post-mortem analy-
sis? First, you learn why your schedule estimates
were off. Compensating for those factors in the next
project will dramatically improve your estimating
techniques. A post-mortem will also help you de-
velop a profile for how your team and company de-
velop software systems. Most companies and teams
have personalities that strongly impact the devel-
opment cycle. As you go through post-mortem
2 2 I E E E S o f t w a r e M a y / J u n e 1 9 9 9
If you don’t take time to figure out what
happened during a project, both the good
and the bad, you’re doomed to repeat it.
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analyses, these personalities emerge as patterns
rather than as isolated incidents. Knowing the pat-
terns allows you to circumvent or at least schedule
for them on your next project.
In his book Managing Software Development
Projects, Neal Whitten offers six steps for executing
a post-mortem review of a project:5
♦ Declare the intent: Announce at the beginning
of the project that you will hold the review. Also
define what topics will be addressed, and set the
procedures.
♦ Select the participants: Choose representa-
tives from each major group associated with the pro-
ject. To ensure an objective review, management
should not participate directly.
♦ Prepare the review: After the project is com-
plete, assign review participants to gather data. This
should include metrics, staffing, inter- and intra-
group communications, quality, and process.
♦ Conduct the review: The actual review should
not require more than a few days of meetings. All
participants should start by presenting their find-
ings and experiences with the project. Next, the
group prepares two lists: things that went right and
things that went wrong. Participants can then begin
to work on what went wrong to develop solutions.
♦ Present the results: The participants should
present the results to the development team and
executive leadership.
♦ Adopt the recommendations: The company
must implement the recommendations on upcom-
ing projects. Without this follow-through, the
process yields a marginal benefit.
The premise and benefit of performing post-
mortem analyses are validated by the process im-
provement movement inspired by W. Edwards
Deming during the late 1980s and early 1990s.
He suggests objectively measuring a given
process and using those measurements to eval-
uate the influence of changes to the processes.
Only by measuring a system and analyzing those
incremental measurements can you truly improve
the system.6
Guess what? Your company’s software methods
and habits for developing software constitute a sys-
tem. It is far less defined than an assembly line, but it
is still a system. The post-mortem analysis allows you
to modify that system for the next “production run.”
These five critical factors hold true regardless ofthe design and
development methodology,
the implementation language, or the application
domain. However, this is not an exhaustive list—
many other factors influence the successful man-
agement of a software development effort. But if
you master these five, you greatly increase the odds
of completing your project on time and within bud-
get. Just as important, you increase your chances of
actually delivering something your users want. ❖
REFERENCES
1. R. Whiting, “News Front: Development in Disarray,”
Software
Magazine, Sept. 1998, p. 20.
2. J. Martin and C. McClure, Structured Techniques for
Computing,
Prentice Hall, Upper Saddle River, N.J.,1988.
3. T. Field, “When BAD Things Happen to GOOD Projects,”
CIO, 15
Oct. 1997, pp. 55-62.
4. F.P. Brooks, Jr., The Mythical Man-Month: Essays on
Software
Engineering, Addison Wesley Longman, Reading, Mass., 1995.
5. N. Whitten, Managing Software Development Projects, John
Wiley & Sons, New York, 1995.
6. R. Aguayo, Dr. Deming: The American Who Taught the
Japanese
About Quality, Fireside Books, New York, 1990.
M a y / J u n e 1 9 9 9 I E E E S o f t w a r e 2 3
John S. Reel is the chief technology offi-
cer of Trident Data Systems, an informa-
tion protection and computer network-
ing company. He is a co-inventor of
patented COMSEC technology. He
received a BS in computer science from
the University of Texas at Tyler and a PhD
in computer science from Century
University. He also worked for the US Department of Defense
in systems support, software development, and management.
He is a member of the IEEE, the IEEE Computer Society,
Information Systems Security Association, and the Armed
Forces Communications and Electronics Association.
About the Author
Readers may contact Reel at 6615 Gin Road, Marion, Texas
78124; e-mail [email protected]
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PROJECT
MANAGEMENT
THE MANAGERIAL PROCESS 7E
ERIK W. LARSON
CLIFFORD F. GRAY
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Project
Management:
The Managerial Process Seventh Edition
Erik W. Larson
Clifford F. Gray
Oregon State University
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PROJECT MANAGEMENT: THE MANAGERIAL PROCESS,
SEVENTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York,
NY 10121. Copyright © 2018 by McGraw-Hill
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Names: Gray, Clifford F., author. | Larson, Erik W., 1952
author.
Title: Project management : the managerial process / Erik W.
Larson, Oregon State University,
Clifford F. Gray, Oregon State University.
Description: Seventh edition. | New York, NY : McGraw-Hill
Education, [2018]
| Clifford F. Gray is the first named author on the earlier
editions.
Identifiers: LCCN 2016040029 | ISBN 9781259666094 | ISBN
1259666093 (alk. paper)
Subjects: LCSH: Project management. | Time management. |
Risk management.
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Education, and McGraw-Hill Education does not
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mheducation.com/highered
Erik W. Larson
ERIK W. LARSON is professor of project management at the
College of Business,
Oregon State University. He teaches executive, graduate, and
undergraduate courses
on project management and leadership. His research and
consulting activities focus on
project management. He has published numerous articles on
matrix management,
product development, and project partnering. He has been
honored with teaching
awards from both the Oregon State University MBA program
and the University of
Oregon Executive MBA program. He has been a member of the
Portland, Oregon,
chapter of the Project Management Institute since 1984. In 1995
he worked as a Ful-
bright scholar with faculty at the Krakow Academy of
Economics on modernizing
Polish business education. He was a visiting professor at
Chulalongkorn University in
Bangkok, Thailand, and at Baden-Wuerttemberg Cooperative
State University in Bad
Mergentheim, Germany. He received a B.A. in psychology from
Claremont McKenna
College and a Ph.D. in management from State University of
New York at Buffalo. He
is a certified project management professional (PMP) and Scrum
Master.
Clifford F. Gray
CLIFFORD F. GRAY is professor emeritus of management at
the College of Busi-
ness, Oregon State University. He has personally taught more
than 100 executive
development seminars and workshops. Cliff has been a member
of the Project Man-
agement Institute since 1976 and was one of the founders of the
Portland, Oregon,
chapter. He was a visiting professor at Kasetsart University in
Bangkok, Thailand, in
2005. He was the president of Project Management
International, Inc. (a training and
consulting firm specializing in project management) 1977–2005.
He received his B.A.
in economics and management from Millikin University, M.B.A.
from Indiana Univer-
sity, and doctorate in operations management from the College
of Business, University
of Oregon. He is certified Scrum Master.
About the Authors
vii
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“Man’s mind, once stretched by a new idea, never regains
its original dimensions.”
Oliver Wendell Holmes, Jr.
To my family, who have always encircled me with love
and encouragement—my parents (Samuel and
Charlotte), my wife (Mary), my sons and their wives
(Kevin and Dawn, Robert and Sally) and their children
(Ryan, Carly, Connor and Lauren).
C.F.G.
“We must not cease from exploration and the end of all
exploring will be to arrive where we began and to know the
place for the first time.”
T. S. Eliot
To Ann, whose love and support have brought out the
best in me. To our girls Mary, Rachel, and Tor-Tor for
the joy and pride they give me. And to our grandkids,
Mr. B, Livvy, and Xmo, whose future depends upon
effective project management. Finally, to my muse,
Neil—Walk on!
E.W.L
viii
Our motivation in writing this text continues to be to provide a
realistic, socio-technical
view of project management. In the past, textbooks on project
management focused
almost exclusively on the tools and processes used to manage
projects and not the
human dimension. This baffled us since people not tools
complete projects! While we
firmly believe that mastering tools and processes is essential to
successful project
management, we also believe that the effectiveness of these
tools and methods is
shaped and determined by the prevailing culture of the
organization and interpersonal
dynamics of the people involved. Thus, we try to provide a
holistic view that focuses
on both of these dimensions and how they interact to determine
the fate of projects.
The role of projects in organizations is receiving increasing
attention. Projects are
the major tool for implementing and achieving the strategic
goals of the organization.
In the face of intense, worldwide competition, many
organizations have reorganized
around a philosophy of innovation, renewal, and organizational
learning to survive.
This philosophy suggests an organization that is flexible and
project driven. Project
management has developed to the point where it is a
professional discipline having its
own body of knowledge and skills. Today it is nearly impossible
to imagine anyone at
any level in the organization who would not benefit from some
degree of expertise in
the process of managing projects.
Audience
This text is written for a wide audience. It covers concepts and
skills that are used by
managers to propose, plan, secure resources, budget, and lead
project teams to suc-
cessful completions of their projects. The text should prove
useful to students and
prospective project managers in helping them understand why
organizations have
developed a formal project management process to gain a
competitive advantage.
Readers will find the concepts and techniques discussed in
enough detail to be imme-
diately useful in new-project situations. Practicing project
managers will find the text
to be a valuable guide and reference when dealing with typical
problems that arise in
the course of a project. Managers will also find the text useful
in understanding the
role of projects in the missions of their organizations. Analysts
will find the text useful
in helping to explain the data needed for project implementation
as well as the opera-
tions of inherited or purchased software. Members of the
Project Management Insti-
tute will find the text is well structured to meet the needs of
those wishing to prepare
for PMP (Project Management Professional) or CAPM
(Certified Associate in Project
Management) certification exams. The text has in-depth
coverage of the most critical
topics found in PMI’s Project Management Body of Knowledge
(PMBOK). People at
all levels in the organization assigned to work on projects will
find the text useful not
only in providing them with a rationale for the use of project
management processes
but also because of the insights they will gain on how to
enhance their contributions to
project success.
Our emphasis is not only on how the management process
works, but more impor-
tantly, on why it works. The concepts, principles, and
techniques are universally
Preface
ix
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x Preface
applicable. That is, the text does not specialize by industry type
or project scope.
Instead, the text is written for the individual who will be
required to manage a variety
of projects in a variety of different organizational settings. In
the case of some small
projects, a few of the steps of the techniques can be omitted, but
the conceptual frame-
work applies to all organizations in which projects are
important to survival. The
approach can be used in pure project organizations such as
construction, research orga-
nizations, and engineering consultancy firms. At the same time,
this approach will
benefit organizations that carry out many small projects while
the daily effort of deliv-
ering products or services continues.
Content
In this and other editions we continue to try to resist the forces
that engender scope creep
and focus only on essential tools and concepts that are being
used in the real world. We
have been guided by feedback from practitioners, teachers, and
students. Some changes
are minor and incremental, designed to clarify and reduce
confusion. Other changes are
significant. They represent new developments in the field or
better ways of teaching
project management principles. Below are major changes to the
seventh edition.
∙ Learning objectives have been established for each chapter and
the corresponding
segment has been marked in the text.
∙ Chapter 16 Oversight has been eliminated and critical
information on project matu-
rity models is now part of Chapter 14.
∙ Chapter 18 Project Management Career Paths has been
eliminated and essential
information from this chapter is now in Chapter 1.
∙ A new set of network exercises have been developed for
Chapter 6.
∙ A new set of crashing exercises have been developed for
Chapter 9 which introduce
crashing concepts in a developmental way.
∙ The Chapter 2 Appendix on Request for Proposal is now part
of Chapter 12.
∙ Terms and concepts have been updated to be consistent with
the sixth edition of the
Project Management Body of Knowledge (2015).
∙ New student exercises and cases have been added to chapters.
∙ The Snapshot from Practice boxes feature a number of new
examples of project
management in action as well as new Research Highlights that
continue to promote
practical application of project management.
∙ The Instructor’s Manual contains a listing of current YouTube
videos that corre-
spond to key concepts and Snapshots from Practice.
Overall the text addresses the major questions and challenges
the authors have
encountered over their 60 combined years of teaching project
management and con-
sulting with practicing project managers in domestic and
foreign environments. These
questions include: What is the strategic role of projects in
contemporary organiza-
tions? How are projects prioritized? What organizational and
managerial styles will
improve chances of project success? How do project managers
orchestrate the complex
network of relationships involving vendors, subcontractors,
project team members,
senior management, functional managers, and customers that
affect project success?
What factors contribute to the development of a high-
performance project team? What
project management system can be set up to gain some measure
of control? How do
managers prepare for a new international project in a foreign
culture?
Preface xi
Project managers must deal with all these concerns to be
effective. All of these
issues and problems represent linkages to an integrative project
management view.
The chapter content of the text has been placed within an
overall framework that inte-
grates these topics in a holistic manner. Cases and snapshots are
included from the
experiences of practicing managers. The future for project
managers appears to be
promising. Careers will be determined by success in managing
projects.
Student Learning Aids
Student resources include study outlines, online quizzes,
PowerPoint slides, videos,
Microsoft Project Video Tutorials and web links. These can be
found in Connect.
Acknowledgments
We would like to thank Scott Bailey for building the end-of-
chapter exercises for
Connect and Tracie Lee for reviewing them; Pinyarat
Sirisomboonsuk for revising
the PowerPoint slides; Oliver F. Lehmann for providing access
to PMBOK study
questions; Ronny Richardson for updating the Instructor’s
Manual; Angelo Serra for
updating the Test Bank; and Pinyarat Sirisomboonsuk for
providing new Snapshot
from Practice questions.
Next, it is important to note that the text includes contributions
from numerous stu-
dents, colleagues, friends, and managers gleaned from
professional conversations. We
want them to know we sincerely appreciate their counsel and
suggestions. Almost
every exercise, case, and example in the text is drawn from a
real-world project.
Special thanks to managers who graciously shared their current
project as ideas for
exercises, subjects for cases, and examples for the text. Shlomo
Cohen, John A.
Drexler, Jim Moran, John Sloan, Pat Taylor, and John Wold,
whose work is printed,
are gratefully acknowledged. Special gratitude is due Robert
Breitbarth of Interact
Management, who shared invaluable insights on prioritizing
projects. University stu-
dents and managers deserve special accolades for identifying
problems with earlier
drafts of the text and exercises.
We are indebted to the reviewers of past editions who shared
our commitment to
elevating the instruction of project management. The reviewers
include Paul S. Allen,
Rice University; Denis F. Cioffi, George Washington
University; Joseph D. DeVoss,
DeVry University; Edward J. Glantz, Pennsylvania State
University; Michael Godfrey,
University of Wisconsin–Oshkosh; Robert Key, University of
Phoenix; Dennis Krum-
wiede, Idaho State University; Nicholas C. Petruzzi, University
of Illinois–Urbana/
Champaign; William R. Sherrard, San Diego State University;
S. Narayan Bodapati,
Southern Illinois University at Edwardsville; Warren J. Boe,
University of Iowa;
Burton Dean, San Jose State University; Kwasi Amoako-
Gyampah, University of
North Carolina–Greensboro; Owen P. Hall, Pepperdine
University; Bruce C. Hartman,
University of Arizona; Richard Irving, York University; Robert
T. Jones, DePaul
University; Richard L. Luebbe, Miami University of Ohio;
William Moylan, Lawrence
Technological College of Business; Edward Pascal, University
of Ottawa; James H.
Patterson, Indiana University; Art Rogers, City University;
Christy Strbiak, U.S. Air
Force Academy; David A. Vaughan, City University; and
Ronald W. Witzel, Keller
Graduate School of Management. Nabil Bedewi, Georgetown
University; Scott Bailey,
Troy University; Michael Ensby, Clarkson University; Eldon
Larsen, Marshall University;
Steve Machon, DeVry University–Tinley Park; William
Matthews, William Patterson
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xii Preface
University; Erin Sims, DeVry University–Pomona; Kenneth
Solheim, DeVry
University–Federal Way; and Oya Tukel, Cleveland State
University. Gregory Anderson,
Weber State University; Dana Bachman, Colorado Christian
University; Alan Cannon,
University of Texas, Arlington; Susan Cholette, San Francisco
State; Michael Ensby,
Clarkson University; Charles Franz, University of Missouri,
Columbia; Raouf Ghattas,
DeVry University; Robert Groff, Westwood College; Raffael
Guidone, New York City
College of Technology; George Kenyon, Lamar University;
Elias Konwufine, Keiser
University; Rafael Landaeta, Old Dominion University;
Muhammad Obeidat, Southern
Polytechnic State University; Linda Rose, Westwood College;
Oya Tukel, Cleveland
State University; and Mahmoud Watad, William Paterson
University.
Victor Allen, Lawrence Technological University; Mark
Angolia, East Carolina
University; Alan Cannon, University of Texas at Arlington;
Robert Cope, Southeastern
Louisiana University; Kenneth DaRin, Clarkson University; Ron
Darnell, Amberton
University; Jay Goldberg, Marquette University; Mark Huber,
University of Georgia;
Marshall Issen, Clarkson University; Charles Lesko, East
Carolina University; Lacey
McNeely, Oregon State University; Donald Smith, Texas A&M
University; Peter
Sutanto, Prairie View A&M University; Jon Tomlinson,
University of Northwestern
Ohio. We thank you for your many thoughtful suggestions and
for making our book
better. Of course we accept responsibility for the final version
of the text.
In addition, we would like to thank our colleagues in the
College of Business at
Oregon State University for their support and help in
completing this project. In par-
ticular, we recognize Lacey McNeely, Prem Mathew, Keith
Leavitt and Pauline Schlip-
zand for their helpful advice and suggestions. We also wish to
thank the many students
who helped us at different stages of this project, most notably
Neil Young, Saajan
Patel, Katherine Knox, Dat Nguyen, and David Dempsey. Mary
Gray deserves special
credit for editing and working under tight deadlines on earlier
editions. Special thanks
go to Pinyarat (“Minkster”) Sirisomboonsuk for her help in
preparing the last four
editions.
Finally, we want to extend our thanks to all the people at
McGraw-Hill Education for
their efforts and support. First, we would like to thank Dolly
Womack, and Christina
Holt, for providing editorial direction, guidance, and
management of the book’s devel-
opment for the seventh edition. And we would also like to thank
Melissa Leick,
Jennifer Pickel, Egzon Shaqiri, Bruce Gin, and Karen
Jozefowicz for managing the
final production, design, supplement, and media phases of the
seventh edition.
Erik W. Larson
Clifford F. Gray
xiii
Guided Tour
Established Learning Objectives
Learning objectives have been added to this edition to help stu-
dents target key areas of learning. Learning objectives are listed
both at the beginning of each chapter and are called out as mar-
ginal elements throughout the narrative in each chapter.
End-of-Chapter Content
Both static and algorithmic end-of-chapter content, including
Review Questions and Exercises, are now
assignable in Connect.
SmartBook
The SmartBook has been updated with new
highlights and probes for optimal student
learning.
Snapshots
The Snapshot from Practice boxes have been
updated to include a number of new exam-
ples of project management in action. New
questions based on the Snapshots are also
now assignable in Connect.
New and Updated Cases
Included at the end of each chapter are between one and five
cases which demonstrate key ideas from the text
and help students understand how Project Management comes
into play in the real world. New cases have
been added across several chapters in the 7th edition.
26
Organization Strategy
and Project Selection2
LEARNING OBJECTIVES
After reading this chapter you should be able to:
2-1 Explain why it is important for project managers to
understand their organization’s strategy.
2-2 Identify the significant role projects contribute to
the strategic direction of the organization.
2-3 Understand the need for a project priority system.
2-4 Apply financial and nonfinancial criteria to assess
the value of projects.
2-5 Understand how multi-criteria models can be
used to select projects.
2-6 Apply an objective priority system to project
selection.
2-7 Understand the need to manage the project
portfolio.
OUTLINE
2.1 The Strategic Management Process: An
Overview
2.2 The Need for a Project Priority System
2.3 A Portfolio Management System
2.4 Selection Criteria
2.5 Applying a Selection Model
2.6 Managing the Portfolio System
Summary
C H A P T E R T W O
Lar66093_ch02_026-065.indd 26 10/4/16 4:52 PM
28 Chapter 2 Organization Strategy and Project Selection
alignment even more essential for success. Ensuring a strong
link between the strategic
plan and projects is a difficult task that demands constant
attention from top and mid-
dle management.
The larger and more diverse an organization, the more difficult
it is to create and
maintain this strong link. Companies today are under enormous
pressure to manage a
process that clearly aligns projects to organization strategy.
Ample evidence still sug-
gests that many organizations have not developed a process that
clearly aligns project
selection to the strategic plan. The result is poor utilization of
the organization’s
resources—people, money, equipment, and core competencies.
Conversely, organiza-
tions that have a coherent link of projects to strategy have more
cooperation across the
organization, perform better on projects, and have fewer
projects.
How can an organization ensure this link and alignment? The
answer requires inte-
gration of projects with the strategic plan. Integration assumes
the existence of a stra-
tegic plan and a process for prioritizing projects by their
contribution to the plan. A
crucial factor to ensure the success of integrating the plan with
projects lies in the
creation of a process that is open and transparent for all
participants to review. This
chapter presents an overview of the importance of strategic
planning and the process
for developing a strategic plan. Typical problems encountered
when strategy and proj-
ects are not linked are noted. A generic methodology that
ensures integration by creat-
ing very strong linkages of project selection and priority to the
strategic plan is then
discussed. The intended outcomes are clear organization focus,
best use of scarce orga-
nization resources (people, equipment, capital), and improved
communication across
projects and departments.
Why Project Managers Need to Understand Strategy
Project management historically has been preoccupied solely
with the planning and exe-
cution of projects. Strategy was considered to be under the
purview of senior manage-
ment. This is old-school thinking. New-school thinking
recognizes that project
management is at the apex of strategy and operations. Aaron
Shenhar speaks to this issue
when he states, “. . . it is time to expand the traditional role of
the project manager from
an operational to a more strategic perspective. In the modern
evolving organization, proj-
ect managers will be focused on business aspects, and their role
will expand from getting
the job done to achieving the business results and winning in
the marketplace.”1
There are two main reasons why project managers need to
understand their organiza-
tion’s mission and strategy. The first reason is so they can make
appropriate decisions
and adjustments. For example, how a project manager would
respond to a suggestion to
modify the design of a product to enhance performance will
vary depending upon
whether his company strives to be a product leader through
innovation or to achieve
operational excellence through low cost solutions. Similarly,
how a project manager
would …
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for why they are connected to this topicSpeaker establishs a
clear connection between them and the topic but doesn't give a
reason why they care about the topicSpeaker clearly establishs
connection with the topic and why it's important to themCentral
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could be vague or stated as an incomplete sentence OR just
wrongThesis statement presented in a complete sentence and
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first main pointMain point is present doesn't support thesis,
unclear and not supportedMain point is clear but weakly
supports thesis or is not adequately developed using supporting
materialsMaint point is clear, supports thesis, and is well
developed using a variety of supporting materialsMain Point
2No clear second main pointMain point is present doesn't
support thesis, unclear and not supportedMain point is clear but
weakly supports thesis or is not adequately developed using
supporting materialsMaint point is clear, supports thesis, and is
well developed using a variety of supporting materialsMain
Point 3No clear third main pointMain point is present doesn't
support thesis, unclear and not supportedMain point is clear but
weakly supports thesis or is not adequately developed using
supporting materialsMaint point is clear, supports thesis, and is
well developed using a variety of supporting
materialsSourcesSources are not orally citedFewer than 3
sources are cited or sources were missing several parts of the
citationAt least 3 quality sources are cited orally but citations
are missing at least one componenet of a good citationAt least 3
quality sources are cited orally, including the publication, date,
person, and credentials when possibleTransitionsNo clear
transitions usedPartial transitions are usedSome transitions are
includedAll transitions are
presentDELIVERYEnthusiasticStudent shows no enthusiasm or
attempts to engage the audienceStudent relies heavily on outline
and shows little enthusiasm or energyStudent explains outline
adequately and shows some excitement about speech
topicStudent is very conversational, visually excited about
speech topic, and clearly engages the audienceVocal Delivery,
Volume, Rate, OtherSpeaker cannot be heard or
understoodSpeaker is somewhat audible, uses little vocal
variety, is monotone, speaks too slowly or quicklySpeaker is
mostly audible, uses some vocal variety and only occassionally
speaks too quickly or too slowlySpeaker is easy to understand
and uses vocal variety in a way that clearly enhances the
speechNonverbal Delivery, Gestures, Body Movement, Facial
ExpressionSpeaker makes no attempt to use gestures or chance
facial expressionSpeaker occassionally attempts gestures but
facial expression rarely changesSpeakers uses some appropriate
gestures and facial expression, and body movement is usually
purposeful with only occasional swaying, rockingSpeaker uses
appropriate gestures, facial expressions, and body movement
that clearly enhances the messageEye ContactSpeaker reads
entire speech from outline and makes little to no eye contact
with audienceSpeaker frequently reads from notes and only
occassional eye contactSpeakers occassionally refers to notes
and makes some eye contact with various members of the
audienceSpeaker maintains eye contact with all parts of room
and only occasionally glances at note
cardsCONCLUSIONSignal End to ConclusionNo signal is
presentVague attempt to indicate a transition to
conclusionSpeaker indicates a transition to conclusion but it
blends into the rest of the speech and is rushedSpeaker clearly
indicates the beginning of the conclusion through use of
transition statements, vocal tone, gesutres, and/or a brief
pauseRestate ThesisNo attempt to restate the thesisThesis or
topic is mentionedThesis is restatedThesis is clearly restated
with impactReview Main PointsNo review of main
pointsAlludes to some of the main pointsRefers to all main
points but doesn't restate themClearly restates all the main
points and the significanceMemorable CloserNo closerWeak
attempt to close, doesn't bring closure and have impact on the
end of the speechCloser effectively ends the speech but has
average impactCloser referred back to attention getter
effectively and memorably ended the speech
Persuasvie Evaluation FormInstructor Evaluation of Persuasive
SpeechGive this form to your instructor before you give your
speech. WITH A TYPED, DOUBLE SPACE, 12 point font copy
of your speech outlineIntroductionNot
PresentAttemptedAverageExcellent___/45Attention
GetterEstablish CredibilityCentral IdeaPreview the
Speech031.5-35.536-4040.5-45BodyNot
PresentAttemptedAverageExcellent___/50Main Point 1Main
Point 2Main Point 3SourcesTransitions035-39.540-44.545-
50ConclusionNot
PresentAttemptedAverageExcellent___/30Signal EndRestate
ThesisReview Main PointsMemorable Closer021-23.524-
26.527-30DeliveryNot
PresentAttemptedAverageExcellent___/25EnthusiasticVocal
Delivery, Volume, Rate, OtherNonverbal delivery, Gestures,
Body Movement, Facial ExpressionEye Contact017.5-19.520-
2222.5-25Overall EffectivenessNot
PresentAttemptedAverageExcellent__/25TopicRhetorical
SensitivityPurposeOverall Organization017.5-19.520-2222.5-
25Point Deductions State name and what your SPS is before you
start your speech: deduct 2 pointsMissing instructor evaluation
form: deduct 5 pointsNot providing a copy of your typed speech
outline to the instructor before you give your speech: deduct 10
pointsSpeech was just too short to meet all the guidelines:
deduct 5 pointsTOTAL SCORE_____/175Student NameTopic
Speech Outline
Name:
Topic:
Specific Purpose Statement:
Introduction
The introduction needs to be written out so you can make sure it
meets the 4 objectives of the introduction. Doesn’t mean you
read the introduction word for word. You need to practice
giving the speech so you can give good eye contact to the
audience and not on your paper.
What’s the connective going to be? (The connectives don’t need
to be written as part of your outline)
I. Main Point 1
a. Subpoints (is where you’ll use supporting materials)
b. Subpoints
c. Subpoints
What’s the connective going to be?
II. Main Point 2
a. Subpoints
b. Subpoints
c. Subpoints
What’s the connective going to be?
III. Main Point 3
a. Subpoints
b. Subpoints
c. Subpoints
What’s the connective going to be?
Conclusion
Like the introduction, the conclusion needs to be written out.
Leave the speech with something memorable or impact.
Attach References

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Ryan ArcherTopic Panic AttacksSpecific Purpose To inform my.docx

  • 1. Ryan Archer Topic: Panic Attacks Specific Purpose: To inform my audience about the nature, extent, and symptoms of panic attacks I can’t breathe, my arms are tingling, I’m really dizzy, and it feels as if my heart is about to fly out of my chest. When this happened to me three years ago at an outdoor concert, I was really frightened. At the time, I had no idea what was going on. My doctor told me later that I had experienced a panic attack. I have learned a lot about my condition during the past three years, and I did additional research for this speech. Today I would like to inform you about the nature of panic attacks, the people affected most often by them, and the options for treatment. Connective: Let’s start with the nature of panic attacks. I. Panic attacks are a severe medical condition with a number of physical and mental symptoms. a. As defined by the National Institute of Mental Health, panic attacks involve “unexpected and repeated episodes on intense fear accompanied by physical symptoms.” 1. The attacks usually come out of nowhere and strike when least expected. 2. Their length can vary from a few minutes to several hours. b. There are a number of symptoms common to most panic attacks 1. Physical symptoms include a pounding heart, shortness of breath, lightheadedness, and numbness of tingling sensations in the arms and legs. 2. Mental symptoms include acute fear, a sense of disaster or helplessness, and a feeling of being detached from one’s own body.
  • 2. Connective: Now that you know something about the nature of panic attacks, let’s look at how widespread they are. II. Panic attacks affect millions of people A. According to the American Psychiatric Association, six million Americans suffer from panic attacks. B. Some groups have a higher incidence of panic attacks than do other groups 1. The National Institute of Mental health reports that panic attacks strike women twice as often as men. 2. Half the people who suffer from panic attacks develop symptoms before the age of 24. Connective: Given the severity of panic attacks, I’m sure you are wondering how they can be treated. III. There are two major options for treating panic attacks. a. One option is medication 1. Antidepressants are the most frequently prescribed medication for panic attacks 2. The rearrange the brain’s chemical levels so as to get rid of unwanted fear responses. b. Another option is cognitive-behavioral therapy 1. This therapy involves techniques that help people with panic attacks gain control of their symptoms and feelings. a. Some techniques involve breathing exercises b. Other techniques target through patterns that can trigger panic attacks 2. According to David Barlow, author of the Clinical Handbook of Psychological Disorders, cognitive behavioral therapy can be highly effective. As we have seen, panic attacks affect millions of people. Fortunately, there are treatment options to help prevent panic attacks and to deal with them when they occur. In my case, the
  • 3. combination of medication and cognitive behavioral therapy has been extremely helpful. I don’t know if I will ever be completely free of panic attacks, but at least I understand now what they are and what I can do about them. hroughout the fifty-odd years of software development, the industry has gone through at least four generations of programming languages and three major development paradigms. We have held countless sem- inars on how to develop software correctly, forced many courses into undergraduate degree programs, and introduced standards in our organizations that require specific technologies. Still, we have not improved our ability to suc- cessfully, consistently move from idea to product. In fact, recent studies document that, while the failure rate for software development efforts has improved in recent years, the number of projects experiencing severe problems has risen almost 50 percent.1 There is no magic in managing software development successfully, but a number of issues related to software development make it unique.
  • 4. John S. Reel, Trident Data Systems Critical Success Factors In Software Projects S o f t w a re p ro j e c t s a re s t i l l l a t e, o ve r b u d g e t, a n d u n p re d i c t a b l e. S o m e t i m e s t h e e n t i re p ro j e c t f a i l s b e f o re e ve r d e l i ve r i n g a n a p p l i ca t i o n . T h i s c l e a r, co m m o n s e n s e re v i e w o f f u n d a m e n t a l p ro j e c t m a n a g e m e n t t e c h n i q u e s re m i n d s u s t h a t w e s t i l l h a ve a l o n g w a y t o g o. T 1 8 I E E E S o f t w a r e M a y / J u n e 1 9 9 9 0 7 4 0 - 7 4 5 9 / 9 9 / $ 1 0 . 0 0 © 1 9 9 9 I E E E Authorized licensed use limited to: University of the Cumberlands. Downloaded on February 20,2020 at 03:04:33 UTC from IEEE Xplore. Restrictions apply. MANAGING COMPLEXITY Several characteristics of software-based en- deavors complicate management. First, software- based systems are exceptionally complex. In fact, many agree that “the basic problem of computing is the mastery of complexity.”2 Because software de- velopers must deal with complex problems, they are
  • 5. generally very intelligent and complex individuals, which also complicates the management formula. Add the fact that developers are trying to hit a mov- ing target—user requirements—and you get a volatile mixture of management issues. These and many other influ- ences contribute to a fantastically high failure rate among software development projects. The Chaos study, published by the Standish Group, found that 26 percent of all software projects fail (down from 40 percent in 1997), but 46 percent experience cost and schedule overruns or significantly reduced functionality (up from 33 percent in 1997).1 The study also shows that the completion rate has im- proved because companies have trended towards smaller, more manageable projects—not because the management techniques have improved. Can you imagine a construction firm completing only 74 percent of its buildings and completing only 54 per- cent of the buildings within schedule and budget? To change this trend, we must place special empha- sis on certain factors of the management process. You may think the answers lie in elaborate analy- sis methodologies, highly advanced configuration management techniques, or the perfect develop- ment language. Those elements of the technology landscape are as important as highly scientific and analytical research in analysis and design method- ologies, project management, and software quality. However, blueprints of the latest train technology didn’t improve life in the Wild West until rail com- panies invested in the fundamental aspects of train
  • 6. transportation—tracks and depots. Likewise in soft- ware, more “advanced” technologies are far less crit- ical to improving practice than embracing what I be- lieve are the five essential factors to managing a successful software project: 1. Start on the right foot. 2. Maintain momentum. 3. Track progress. 4. Make smart decisions. 5. Institutionalize post-mortem analyses. Granted, even a detailed review of these may leave you wondering what’s new here. Not much— this is common-sense, basic management stuff. And yet these principles are not commonly employed. If they were, we would not see such high failure rates. START ON THE RIGHT FOOT It is difficult to call any of these factors most im- portant, since they are all critical to the success of large development efforts. However, getting a pro- ject set up and started properly certainly leads this class of factors. Just as it is difficult to grow strong plants in weak soil, it is almost impossible to suc- cessfully lead a development effort that is set up im- properly. Tom Field analyzed pitfalls in software de- velopment efforts and gave 10 signs of IS project failures—at least seven of which are fully deter- mined before a design is developed or a line of code is written.3 Therefore, 70 percent of the dooming acts occur before a build even starts. Here are 10 signs of IS project failure:3
  • 7. 1. Project managers don’t understand users’ needs. 2. The project’s scope is ill-defined. 3. Project changes are managed poorly. 4. The chosen technology changes. 5. Business needs change. 6. Deadlines are unrealistic. 7. Users are resistant. 8. Sponsorship is lost. 9. The project lacks people with appropriate skills. 10. Managers ignore best practices and lessons learned. Given this information, what can we do to get projects off to a successful start? Set realistic objectives and expectations— for everyone The first objective in getting a project off to a good start is to get everyone on the same wave- length. Management, users, develop ers, and d e signers must all have realistic expectations. In M a y / J u n e 1 9 9 9 I E E E S o f t w a r e 1 9 At least seven of 10 signs of IS project failures are determined before a design is developed or a line of code is written. Authorized licensed use limited to: University of the
  • 8. Cumberlands. Downloaded on February 20,2020 at 03:04:33 UTC from IEEE Xplore. Restrictions apply. case your customers haven’t heard, remind them routinely that this system will not solve all of their problems and it will probably create new issues. The new system should cost-effectively solve more prob- lems than it creates. The developers must also un- derstand that the customers do not know exactly what they want, how they want it, or how it will help them. Often, they don’t even know how much they can spend. Everyone has to come to the table with their eyes open, willing to cooperate and listen. To avoid later heartache, pay strict attention to the commitments made by both sides. Build the right team Nex t, you must put together the right team. First ensure that you have enough resources to get the job done. If you do not get commitments for resources up front, the effort is doomed. If man- agement is not excited enough about the effort to give it enough resources, you may not have the suppor t necessary for success. Remember, too, that you will likely need more resources than you think. We are all inherently optimistic, so guard your personnel projections and err on the high side from the start. Building the right team means getting good people. This is hard because companies usually want to place personnel moving off other efforts.
  • 9. Sometimes these people are good resources, but not always. However, also recognize that you do not need, or want, all of the very best designers and de- velopers. In my experience, staffing around 20 per- cent of the team with the best available works well. This figure is loosely supported in Fred Brooks’essay “The Surgical Team.”4 His team of about 10 people includes two who are real experts (the Chief Programmer and the Language Lawyer). Having too many stars creates ego issues and distractions, while not having enough can leave the team struggling with small problems. The rest of the team should be good, solid de- velopers with compatible personalities and work habits. The more advanced team members can step ahead into uncharted waters, develop the most crit- ical algorithms and applications, and provide technical mentoring to the rest of the team. The most critical element in selecting people is creating an environment in which they can excel, and that lets you focus more on technology than team dynamics. You don’t want a team of clones, but you do want people who are compatible with one an- other and with the company and team environment you are striving to establish. For example, a married- with-kids, laid-back, nine-to-five developer might not work well on a team of young, single, forceful seven-to-eleven developers. This doesn’t mean the former is any less qualified or productive. Actually, that laid-back developer may produce bet-
  • 10. ter code and be more productive than the rest of the group. If you think that first person brings a calming, focused influence without either “side” becoming overly frustrated, maybe it is a good fit after all. At any rate, you must take these factors into consider- ation when building your team. Wherever possible, and it usually is possible, in- volve customers and users in the development. Not only does this help build higher levels of trust be- tween developers and users, it also places domain experts within arm’s reach of the developers throughout development. This increases the chance that you will develop a product that meets the user requirements. Give the team what they think they need Once you have built a strong team, you must next provide it with an environment that encourages pro- ductivity and minimizes distractions. First, do your best to arrange quiet, productive office spaces. This is often impossible given most corporate realities, but a comfortable office setting can yield dramatic results. Highly productive environments contain white boards, meeting areas (formal and informal), private office areas, and flexible, modern lab facili- ties. Add comfort elements such as stereos, light dim- mers, coffee machines, and comfortable chairs; you will create an environment where people can focus on their work and forget the rest of the world. Once you have a team with a productive office space, you need the proper equipment. Do not for any reason scrimp on equipment. The difference be- tween state-of-the-art machines and adequate de-
  • 11. velopment systems is less than $1,000. You will prob- ably spend at least $100,000 per year to keep a good developer, including salary, bonuses, benefits, training, and other related expenses. That extra $1,000 amortized over two years represents less 2 0 I E E E S o f t w a r e M a y / J u n e 1 9 9 9 By the time you figure out you have a quality problem, it is probably too late to fix it. Authorized licensed use limited to: University of the Cumberlands. Downloaded on February 20,2020 at 03:04:33 UTC from IEEE Xplore. Restrictions apply. than 1/2 percent of the employee cost. Finally, your team needs tools. Get good, proven tools from stable companies. Nothing will derail a pro- ject faster than using unsupported tools. The team also needs training on those tools; losing files and folders from ignorance and inexperience is painful and costly. The term tool does not just mean com- piler. You also need analysis and design, configura- tion management, testing, back-up management, document production, graphics manipulation, and troubleshooting tools. This is, however, an area where going first-class does not necessarily mean spending the most money. Shop carefully, review a lot of op- tions, and involve the entire team in the decision. MAINTAIN THE MOMENTUM By now, you have your development team en-
  • 12. ergized with strong co-workers, a great working environment, and some high-end hardware. Congratulations, you have momentum. The next critical factor is maintaining and increasing this momentum. Building momentum initially is easy, but rebuilding it is dreadfully difficult. Momentum changes often during the course of a develop- ment effort. These changes add up quickly, so it is crucial to quickly offset the negative shifts with positive ones. You should focus on three key items to maintain or rebuild team momentum: ♦ Attrition—keep it low. ♦ Quality—monitor it early on and establish an expectation of excellence. ♦ Management—manage the product more than the people. Attrition Attrition is a constant problem in the software in- dustry. It can spell disaster for a mid-stream software project, because replacement personnel must quickly get up to speed on software that is not com- plete, not tested, and probably not well-docu- mented yet. A tremendous amount of knowledge walks out the door with the person leaving, and those left behind have a scapegoat for every prob- lem from then on. Also, in this tight labor market, the lag time between when a person quits and
  • 13. when a replacement is hired can wreak havoc with even the most pessimistic schedules. Quality You cannot go back and add quality. By the time you figure out you have a quality problem, it is prob- ably too late to fix it. Establish procedures and ex- pectations for high levels of quality before any other development begins and hire developers proven to develop high-quality code. Have the developers par- ticipate in regular peer-level code reviews and ex- ternal reviews. Invariably, when a project is cruising along, every- body is excited, the status reports look great, and the GUI is awesome, everything goes wrong. There may be a bad test report, a failed demo, or a small change request from the customer that becomes the pebble that starts an avalanche. You fix one bug, or make one change, and cause two more. Suddenly, the development team that was making fantastic progress is mired in repairing and modifying code that has been in the bank for months. Management Manage your product more than your personnel. After all, the product is what you are selling. So, if your corporate culture can handle it, don’t worry about dress codes or fixed work hours. Relax and let people deliver things at the last minute. Then critique their products. If the products are not acceptable, you can start working with the individuals to improve their products. The goal here is to not make individual is-
  • 14. sues team problems. Just because one or two peo- ple like to come in at 10:00 a.m. and work until 5:00 p.m., abusing the flexibility you give, doesn’t mean you should dampen the environment for the whole team. Too often, project leads avoid confronting the individuals and merely “fix” the problem by setting arbitrary team rules. Soon, everyone is griping about deviant co-workers and the strict management. Those are the sounds of momentum slipping away. Roll a few of these decisions together, and the team is soon focused more on avoiding the rules or tattling on offenders than on producing a quality product. When you do have a legitimate personnel prob- lem, deal with it quickly. If you must let someone go, do it quickly and then meet with your team to explain what happened. As long as you are being M a y / J u n e 1 9 9 9 I E E E S o f t w a r e 2 1 Project leaders often avoid confronting individuals and merely “fix” a problem by setting arbitrary team rules. Authorized licensed use limited to: University of the Cumberlands. Downloaded on February 20,2020 at 03:04:33 UTC from IEEE Xplore. Restrictions apply. fair, these experiences will contribute to the team’s cohesiveness and allow them to rebuild momen- tum quickly. TRACK PROGRESS
  • 15. Consider the intangible nature of software com- pared to traditional brick-and-mortar construction. Construction results in a physical manifestation of a conceptual model—the blueprint becomes a building that people can touch and see. They can also touch and see all of the little pieces as they are being nailed, welded, glued, or screwed to the framework during construction. Software develop- ment begins as a conceptual model and results in an application, so there is no physical manifestation of software that can be touched and measured, es- pecially during construction. A large problem in managing software develop- ment is figuring where you are in your schedule. How complete is a module? How long will it take to finish modules X, Y, and Z? These are hard questions to answer, but they must be addressed. If you don’t know where you are in relation to the schedule, you cannot adjust and tweak to bring things back on track. Many methodologies exist for tracking progress; select one at the right level of detail for your effort, and use it religiously. MAKE SMART DECISIONS Making smart decisions often separates suc- cessful project leaders from failures. It shouldn’t be hard to identify a bad decision before you make it. Choosing to rewrite a few of Microsoft’s dynamically linked libraries to accommodate your design choices, for example, is a poor decision. Yet I have seen at least four major projects attempt such in- sanity. If your application needs to communicate across a serial connection, do you buy a commercial
  • 16. library of communications routines or develop your own from scratch? If you build it from scratch, you can then implement your own personally designed protocol. Bad call. Always use commercial libraries when available, and never try to create a new com- munications protocol. At best, it will cost you a for- tune. At worst, it will sink your project. People also consistently make bad decisions in selecting technologies. For example, how many peo- ple chose to develop applications for the Next plat- form? Most never finished their applications before that platform went away. When you pick a funda- mental technology, whether a database engine, op- erating system, or communications protocol, you must do a business and a technical analysis. If the technology isn’t catching market share and if a healthy company doesn’t support it, you are building your project on a sandy foundation. Because your foresight is fallible, use your design to insulate yourself from the underlying technology. Encapsulate the interface to new or niche technologies as much as possible. Think about which technologies will be prone to change over your product’s lifetime and design your application to insulate—to a practical level—your code from those changes. You will have many opportunities to make good decisions as you negotiate the customer’s require-
  • 17. ments. Strive to move the requirements from the complicated, “never been done before” category to the “been there, done that” category. Often, users request things that are marginally valuable without understanding the complexity. Explain the ramifi- cations of complicated requirements and require- ments changes in terms of cost and schedule. Help them help you. POST-MORTEM ANALYSIS Few companies institutionalize a process for learning from their mistakes. If you do not take time to figure out what happened during a project, both the good and the bad, you are doomed to repeat it. What can you learn from a post-mortem analy- sis? First, you learn why your schedule estimates were off. Compensating for those factors in the next project will dramatically improve your estimating techniques. A post-mortem will also help you de- velop a profile for how your team and company de- velop software systems. Most companies and teams have personalities that strongly impact the devel- opment cycle. As you go through post-mortem 2 2 I E E E S o f t w a r e M a y / J u n e 1 9 9 9 If you don’t take time to figure out what happened during a project, both the good and the bad, you’re doomed to repeat it. Authorized licensed use limited to: University of the Cumberlands. Downloaded on February 20,2020 at 03:04:33 UTC from IEEE Xplore. Restrictions apply.
  • 18. analyses, these personalities emerge as patterns rather than as isolated incidents. Knowing the pat- terns allows you to circumvent or at least schedule for them on your next project. In his book Managing Software Development Projects, Neal Whitten offers six steps for executing a post-mortem review of a project:5 ♦ Declare the intent: Announce at the beginning of the project that you will hold the review. Also define what topics will be addressed, and set the procedures. ♦ Select the participants: Choose representa- tives from each major group associated with the pro- ject. To ensure an objective review, management should not participate directly. ♦ Prepare the review: After the project is com- plete, assign review participants to gather data. This should include metrics, staffing, inter- and intra- group communications, quality, and process. ♦ Conduct the review: The actual review should not require more than a few days of meetings. All participants should start by presenting their find- ings and experiences with the project. Next, the group prepares two lists: things that went right and things that went wrong. Participants can then begin to work on what went wrong to develop solutions. ♦ Present the results: The participants should
  • 19. present the results to the development team and executive leadership. ♦ Adopt the recommendations: The company must implement the recommendations on upcom- ing projects. Without this follow-through, the process yields a marginal benefit. The premise and benefit of performing post- mortem analyses are validated by the process im- provement movement inspired by W. Edwards Deming during the late 1980s and early 1990s. He suggests objectively measuring a given process and using those measurements to eval- uate the influence of changes to the processes. Only by measuring a system and analyzing those incremental measurements can you truly improve the system.6 Guess what? Your company’s software methods and habits for developing software constitute a sys- tem. It is far less defined than an assembly line, but it is still a system. The post-mortem analysis allows you to modify that system for the next “production run.” These five critical factors hold true regardless ofthe design and development methodology, the implementation language, or the application domain. However, this is not an exhaustive list— many other factors influence the successful man- agement of a software development effort. But if you master these five, you greatly increase the odds of completing your project on time and within bud- get. Just as important, you increase your chances of actually delivering something your users want. ❖
  • 20. REFERENCES 1. R. Whiting, “News Front: Development in Disarray,” Software Magazine, Sept. 1998, p. 20. 2. J. Martin and C. McClure, Structured Techniques for Computing, Prentice Hall, Upper Saddle River, N.J.,1988. 3. T. Field, “When BAD Things Happen to GOOD Projects,” CIO, 15 Oct. 1997, pp. 55-62. 4. F.P. Brooks, Jr., The Mythical Man-Month: Essays on Software Engineering, Addison Wesley Longman, Reading, Mass., 1995. 5. N. Whitten, Managing Software Development Projects, John Wiley & Sons, New York, 1995. 6. R. Aguayo, Dr. Deming: The American Who Taught the Japanese About Quality, Fireside Books, New York, 1990. M a y / J u n e 1 9 9 9 I E E E S o f t w a r e 2 3 John S. Reel is the chief technology offi- cer of Trident Data Systems, an informa- tion protection and computer network- ing company. He is a co-inventor of patented COMSEC technology. He received a BS in computer science from the University of Texas at Tyler and a PhD in computer science from Century
  • 21. University. He also worked for the US Department of Defense in systems support, software development, and management. He is a member of the IEEE, the IEEE Computer Society, Information Systems Security Association, and the Armed Forces Communications and Electronics Association. About the Author Readers may contact Reel at 6615 Gin Road, Marion, Texas 78124; e-mail [email protected] Authorized licensed use limited to: University of the Cumberlands. Downloaded on February 20,2020 at 03:04:33 UTC from IEEE Xplore. Restrictions apply. PROJECT MANAGEMENT THE MANAGERIAL PROCESS 7E ERIK W. LARSON CLIFFORD F. GRAY www.ebook3000.com http://www.ebook3000.org Connect Insight® Connect Insight is Connect’s new one-of-a-kind visual analytics dashboard—now available for both instructors and students—that provides at-a-glance
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  • 23. Connect’s new, intuitive mobile interface gives students and instructors flexible and convenient, anytime–anywhere access to all components of the Connect platform. Required=Results ® ©Getty Images/iStockphoto Using Connect improves retention rates by 19.8%, passing rates by 12.7%, and exam scores by 9.1%. SmartBook® Proven to help students improve grades and study more efficiently, SmartBook contains the same content within the print book, but actively tailors that content to the needs of the individual. SmartBook’s adaptive technology provides precise, personalized instruction on what the student should do next, guiding the student to master and remember key concepts, targeting gaps in knowledge and offering customized feedback, and driving the student toward comprehension and retention of the subject matter. Available on tablets, SmartBook puts learning at the student’s fingertips—anywhere, anytime. Adaptive Over 8 billion questions have been
  • 24. answered, making McGraw-Hill Education products more intelligent, reliable, and precise. THE ADAPTIVE READING EXPERIENCE DESIGNED TO TRANSFORM THE WAY STUDENTS READ More students earn A’s and B’s when they use McGraw-Hill Education Adaptive products. www.mheducation.com www.ebook3000.com http://www.ebook3000.org The McGraw-Hill Series Operations and Decision Sciences OPERATIONS MANAGEMENT Beckman and Rosenfield, Operations, Strategy: Competing in the 21st Century, First Edition Benton, Purchasing and Supply Chain Management, Second Edition Bowersox, Closs, Cooper, and Bowersox, Supply Chain Logistics Management,
  • 25. Fourth Edition Brown and Hyer, Managing Projects: A Team-Based Approach, First Edition Burt, Petcavage, and Pinkerton, Supply Management, Eighth Edition Cachon and Terwiesch, Operations Management First Edition Cachon and Terwiesch, Matching Supply with Demand: An Introduction to Operations Management, Third Edition Cooper and Schindler, Business Research Methods, Twelfth Edition Finch, Interactive Models for Operations and Supply Chain Management, First Edition Fitzsimmons, Fitzsimmons, and Bordoloi, Service Management: Operations, Strategy, Information Technology, Eighth Edition Gehrlein,
  • 26. Operations Management Cases, First Edition Harrison and Samson, Technology Management, First Edition Hayen, SAP R/3 Enterprise Software: An Introduction, First Edition Hill, Manufacturing Strategy: Text & Cases, Third Edition Hopp, Supply Chain Science, First Edition Hopp and Spearman, Factory Physics, Third Edition Jacobs, Berry, Whybark, and Vollmann, Manufacturing Planning & Control for Supply Chain Management, Sixth Edition Jacobs and Chase, Operations and Supply Management: The Core, Fourth Edition Jacobs and Chase, Operations and Supply Management,
  • 27. Fifteenth Edition Jacobs and Whybark, Why ERP? First Edition Larson and Gray, Project Management: The Managerial Process, Seventh Edition Leenders, Johnson, and Flynn, Purchasing and Supply Management, Fourteenth Edition Nahmias, Production and Operations Analysis, Sixth Edition Olson, Introduction to Information Systems Project Management, Second Edition Schroeder, Goldstein, Rungtusanatham, Operations Management: Contemporary Concepts and Cases, Seventh Edition Seppanen, Kumar, and Chandra, Process Analysis and Improvement, First Edition Simchi-Levi, Kaminsky, and Simchi-Levi, Designing and Managing the Supply
  • 28. Chain: Concepts, Strategies, Case Studies, Third Edition Sterman, Business Dynamics: Systems Thinking and Modeling for Complex World, First Edition Stevenson, Operations Management, Thirteenth Edition Swink, Melnyk, Cooper, and Hartley, Managing Operations Across the Supply Chain, Third Edition Thomke, Managing Product and Service Development: Text and Cases, First Edition Ulrich and Eppinger, Product Design and Development, Fourth Edition Zipkin, Foundations of Inventory Management, First Edition QUANTITATIVE METHODS AND MANAGEMENT SCIENCE Hillier and Hillier, Introduction to Management Science: A Modeling and Case Studies Approach
  • 29. with Spreadsheets, Fifth Edition Stevenson and Ozgur, Introduction to Management Science with Spreadsheets, First Edition Project Management: The Managerial Process Seventh Edition Erik W. Larson Clifford F. Gray Oregon State University www.ebook3000.com http://www.ebook3000.org PROJECT MANAGEMENT: THE MANAGERIAL PROCESS, SEVENTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2018 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2014 and 2011. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw- Hill Education, including, but not limited to, in
  • 30. any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 LWI 21 20 19 18 17 ISBN 978-1-259-66609-4 MHID 1-259-66609-3 Chief Product Officer, SVP Products & Markets: G. Scott Virkler Vice President, General Manager, Products & Markets: Marty Lange Managing Director: James Heine Brand Manager: Dolly Womack Product Developer: Christina Holt Marketing Manager: Britney Hermsen Director, Content Design & Delivery: Linda Avenarius Program Manager: Mark Christianson Content Project Managers: Melissa M. Leick, Bruce Gin, Karen Jozefowicz Buyer: Jennifer Pickel Design: Egzon Shaqiri Content Licensing Specialists: Melissa Homer, Beth Thole Cover Design: Jessica Cuevas Cover Image: © Getty Images/Georgijevic Compositor: Aptara®, Inc. Printer: LSC Communications All credits appearing on page or at the end of the book are considered to be an extension of the
  • 31. copyright page. Library of Congress Cataloging-in-Publication Data Names: Gray, Clifford F., author. | Larson, Erik W., 1952 author. Title: Project management : the managerial process / Erik W. Larson, Oregon State University, Clifford F. Gray, Oregon State University. Description: Seventh edition. | New York, NY : McGraw-Hill Education, [2018] | Clifford F. Gray is the first named author on the earlier editions. Identifiers: LCCN 2016040029 | ISBN 9781259666094 | ISBN 1259666093 (alk. paper) Subjects: LCSH: Project management. | Time management. | Risk management. Classification: LCC HD69.P75 G72 2018 | DDC 658.4/04—dc23 LC record available at https://lccn.loc.gov/ 2016040029 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered Erik W. Larson ERIK W. LARSON is professor of project management at the College of Business,
  • 32. Oregon State University. He teaches executive, graduate, and undergraduate courses on project management and leadership. His research and consulting activities focus on project management. He has published numerous articles on matrix management, product development, and project partnering. He has been honored with teaching awards from both the Oregon State University MBA program and the University of Oregon Executive MBA program. He has been a member of the Portland, Oregon, chapter of the Project Management Institute since 1984. In 1995 he worked as a Ful- bright scholar with faculty at the Krakow Academy of Economics on modernizing Polish business education. He was a visiting professor at Chulalongkorn University in Bangkok, Thailand, and at Baden-Wuerttemberg Cooperative State University in Bad Mergentheim, Germany. He received a B.A. in psychology from Claremont McKenna College and a Ph.D. in management from State University of New York at Buffalo. He is a certified project management professional (PMP) and Scrum Master. Clifford F. Gray CLIFFORD F. GRAY is professor emeritus of management at the College of Busi- ness, Oregon State University. He has personally taught more than 100 executive development seminars and workshops. Cliff has been a member of the Project Man- agement Institute since 1976 and was one of the founders of the Portland, Oregon,
  • 33. chapter. He was a visiting professor at Kasetsart University in Bangkok, Thailand, in 2005. He was the president of Project Management International, Inc. (a training and consulting firm specializing in project management) 1977–2005. He received his B.A. in economics and management from Millikin University, M.B.A. from Indiana Univer- sity, and doctorate in operations management from the College of Business, University of Oregon. He is certified Scrum Master. About the Authors vii www.ebook3000.com http://www.ebook3000.org “Man’s mind, once stretched by a new idea, never regains its original dimensions.” Oliver Wendell Holmes, Jr. To my family, who have always encircled me with love and encouragement—my parents (Samuel and Charlotte), my wife (Mary), my sons and their wives (Kevin and Dawn, Robert and Sally) and their children (Ryan, Carly, Connor and Lauren). C.F.G. “We must not cease from exploration and the end of all exploring will be to arrive where we began and to know the
  • 34. place for the first time.” T. S. Eliot To Ann, whose love and support have brought out the best in me. To our girls Mary, Rachel, and Tor-Tor for the joy and pride they give me. And to our grandkids, Mr. B, Livvy, and Xmo, whose future depends upon effective project management. Finally, to my muse, Neil—Walk on! E.W.L viii Our motivation in writing this text continues to be to provide a realistic, socio-technical view of project management. In the past, textbooks on project management focused almost exclusively on the tools and processes used to manage projects and not the human dimension. This baffled us since people not tools complete projects! While we firmly believe that mastering tools and processes is essential to successful project management, we also believe that the effectiveness of these tools and methods is shaped and determined by the prevailing culture of the organization and interpersonal dynamics of the people involved. Thus, we try to provide a holistic view that focuses on both of these dimensions and how they interact to determine the fate of projects. The role of projects in organizations is receiving increasing
  • 35. attention. Projects are the major tool for implementing and achieving the strategic goals of the organization. In the face of intense, worldwide competition, many organizations have reorganized around a philosophy of innovation, renewal, and organizational learning to survive. This philosophy suggests an organization that is flexible and project driven. Project management has developed to the point where it is a professional discipline having its own body of knowledge and skills. Today it is nearly impossible to imagine anyone at any level in the organization who would not benefit from some degree of expertise in the process of managing projects. Audience This text is written for a wide audience. It covers concepts and skills that are used by managers to propose, plan, secure resources, budget, and lead project teams to suc- cessful completions of their projects. The text should prove useful to students and prospective project managers in helping them understand why organizations have developed a formal project management process to gain a competitive advantage. Readers will find the concepts and techniques discussed in enough detail to be imme- diately useful in new-project situations. Practicing project managers will find the text to be a valuable guide and reference when dealing with typical problems that arise in the course of a project. Managers will also find the text useful
  • 36. in understanding the role of projects in the missions of their organizations. Analysts will find the text useful in helping to explain the data needed for project implementation as well as the opera- tions of inherited or purchased software. Members of the Project Management Insti- tute will find the text is well structured to meet the needs of those wishing to prepare for PMP (Project Management Professional) or CAPM (Certified Associate in Project Management) certification exams. The text has in-depth coverage of the most critical topics found in PMI’s Project Management Body of Knowledge (PMBOK). People at all levels in the organization assigned to work on projects will find the text useful not only in providing them with a rationale for the use of project management processes but also because of the insights they will gain on how to enhance their contributions to project success. Our emphasis is not only on how the management process works, but more impor- tantly, on why it works. The concepts, principles, and techniques are universally Preface ix www.ebook3000.com http://www.ebook3000.org
  • 37. x Preface applicable. That is, the text does not specialize by industry type or project scope. Instead, the text is written for the individual who will be required to manage a variety of projects in a variety of different organizational settings. In the case of some small projects, a few of the steps of the techniques can be omitted, but the conceptual frame- work applies to all organizations in which projects are important to survival. The approach can be used in pure project organizations such as construction, research orga- nizations, and engineering consultancy firms. At the same time, this approach will benefit organizations that carry out many small projects while the daily effort of deliv- ering products or services continues. Content In this and other editions we continue to try to resist the forces that engender scope creep and focus only on essential tools and concepts that are being used in the real world. We have been guided by feedback from practitioners, teachers, and students. Some changes are minor and incremental, designed to clarify and reduce confusion. Other changes are significant. They represent new developments in the field or better ways of teaching project management principles. Below are major changes to the seventh edition. ∙ Learning objectives have been established for each chapter and the corresponding
  • 38. segment has been marked in the text. ∙ Chapter 16 Oversight has been eliminated and critical information on project matu- rity models is now part of Chapter 14. ∙ Chapter 18 Project Management Career Paths has been eliminated and essential information from this chapter is now in Chapter 1. ∙ A new set of network exercises have been developed for Chapter 6. ∙ A new set of crashing exercises have been developed for Chapter 9 which introduce crashing concepts in a developmental way. ∙ The Chapter 2 Appendix on Request for Proposal is now part of Chapter 12. ∙ Terms and concepts have been updated to be consistent with the sixth edition of the Project Management Body of Knowledge (2015). ∙ New student exercises and cases have been added to chapters. ∙ The Snapshot from Practice boxes feature a number of new examples of project management in action as well as new Research Highlights that continue to promote practical application of project management. ∙ The Instructor’s Manual contains a listing of current YouTube videos that corre- spond to key concepts and Snapshots from Practice. Overall the text addresses the major questions and challenges the authors have
  • 39. encountered over their 60 combined years of teaching project management and con- sulting with practicing project managers in domestic and foreign environments. These questions include: What is the strategic role of projects in contemporary organiza- tions? How are projects prioritized? What organizational and managerial styles will improve chances of project success? How do project managers orchestrate the complex network of relationships involving vendors, subcontractors, project team members, senior management, functional managers, and customers that affect project success? What factors contribute to the development of a high- performance project team? What project management system can be set up to gain some measure of control? How do managers prepare for a new international project in a foreign culture? Preface xi Project managers must deal with all these concerns to be effective. All of these issues and problems represent linkages to an integrative project management view. The chapter content of the text has been placed within an overall framework that inte- grates these topics in a holistic manner. Cases and snapshots are included from the experiences of practicing managers. The future for project managers appears to be promising. Careers will be determined by success in managing
  • 40. projects. Student Learning Aids Student resources include study outlines, online quizzes, PowerPoint slides, videos, Microsoft Project Video Tutorials and web links. These can be found in Connect. Acknowledgments We would like to thank Scott Bailey for building the end-of- chapter exercises for Connect and Tracie Lee for reviewing them; Pinyarat Sirisomboonsuk for revising the PowerPoint slides; Oliver F. Lehmann for providing access to PMBOK study questions; Ronny Richardson for updating the Instructor’s Manual; Angelo Serra for updating the Test Bank; and Pinyarat Sirisomboonsuk for providing new Snapshot from Practice questions. Next, it is important to note that the text includes contributions from numerous stu- dents, colleagues, friends, and managers gleaned from professional conversations. We want them to know we sincerely appreciate their counsel and suggestions. Almost every exercise, case, and example in the text is drawn from a real-world project. Special thanks to managers who graciously shared their current project as ideas for exercises, subjects for cases, and examples for the text. Shlomo Cohen, John A. Drexler, Jim Moran, John Sloan, Pat Taylor, and John Wold, whose work is printed,
  • 41. are gratefully acknowledged. Special gratitude is due Robert Breitbarth of Interact Management, who shared invaluable insights on prioritizing projects. University stu- dents and managers deserve special accolades for identifying problems with earlier drafts of the text and exercises. We are indebted to the reviewers of past editions who shared our commitment to elevating the instruction of project management. The reviewers include Paul S. Allen, Rice University; Denis F. Cioffi, George Washington University; Joseph D. DeVoss, DeVry University; Edward J. Glantz, Pennsylvania State University; Michael Godfrey, University of Wisconsin–Oshkosh; Robert Key, University of Phoenix; Dennis Krum- wiede, Idaho State University; Nicholas C. Petruzzi, University of Illinois–Urbana/ Champaign; William R. Sherrard, San Diego State University; S. Narayan Bodapati, Southern Illinois University at Edwardsville; Warren J. Boe, University of Iowa; Burton Dean, San Jose State University; Kwasi Amoako- Gyampah, University of North Carolina–Greensboro; Owen P. Hall, Pepperdine University; Bruce C. Hartman, University of Arizona; Richard Irving, York University; Robert T. Jones, DePaul University; Richard L. Luebbe, Miami University of Ohio; William Moylan, Lawrence Technological College of Business; Edward Pascal, University of Ottawa; James H. Patterson, Indiana University; Art Rogers, City University; Christy Strbiak, U.S. Air Force Academy; David A. Vaughan, City University; and
  • 42. Ronald W. Witzel, Keller Graduate School of Management. Nabil Bedewi, Georgetown University; Scott Bailey, Troy University; Michael Ensby, Clarkson University; Eldon Larsen, Marshall University; Steve Machon, DeVry University–Tinley Park; William Matthews, William Patterson www.ebook3000.com http://www.ebook3000.org xii Preface University; Erin Sims, DeVry University–Pomona; Kenneth Solheim, DeVry University–Federal Way; and Oya Tukel, Cleveland State University. Gregory Anderson, Weber State University; Dana Bachman, Colorado Christian University; Alan Cannon, University of Texas, Arlington; Susan Cholette, San Francisco State; Michael Ensby, Clarkson University; Charles Franz, University of Missouri, Columbia; Raouf Ghattas, DeVry University; Robert Groff, Westwood College; Raffael Guidone, New York City College of Technology; George Kenyon, Lamar University; Elias Konwufine, Keiser University; Rafael Landaeta, Old Dominion University; Muhammad Obeidat, Southern Polytechnic State University; Linda Rose, Westwood College; Oya Tukel, Cleveland State University; and Mahmoud Watad, William Paterson University. Victor Allen, Lawrence Technological University; Mark
  • 43. Angolia, East Carolina University; Alan Cannon, University of Texas at Arlington; Robert Cope, Southeastern Louisiana University; Kenneth DaRin, Clarkson University; Ron Darnell, Amberton University; Jay Goldberg, Marquette University; Mark Huber, University of Georgia; Marshall Issen, Clarkson University; Charles Lesko, East Carolina University; Lacey McNeely, Oregon State University; Donald Smith, Texas A&M University; Peter Sutanto, Prairie View A&M University; Jon Tomlinson, University of Northwestern Ohio. We thank you for your many thoughtful suggestions and for making our book better. Of course we accept responsibility for the final version of the text. In addition, we would like to thank our colleagues in the College of Business at Oregon State University for their support and help in completing this project. In par- ticular, we recognize Lacey McNeely, Prem Mathew, Keith Leavitt and Pauline Schlip- zand for their helpful advice and suggestions. We also wish to thank the many students who helped us at different stages of this project, most notably Neil Young, Saajan Patel, Katherine Knox, Dat Nguyen, and David Dempsey. Mary Gray deserves special credit for editing and working under tight deadlines on earlier editions. Special thanks go to Pinyarat (“Minkster”) Sirisomboonsuk for her help in preparing the last four editions. Finally, we want to extend our thanks to all the people at McGraw-Hill Education for
  • 44. their efforts and support. First, we would like to thank Dolly Womack, and Christina Holt, for providing editorial direction, guidance, and management of the book’s devel- opment for the seventh edition. And we would also like to thank Melissa Leick, Jennifer Pickel, Egzon Shaqiri, Bruce Gin, and Karen Jozefowicz for managing the final production, design, supplement, and media phases of the seventh edition. Erik W. Larson Clifford F. Gray xiii Guided Tour Established Learning Objectives Learning objectives have been added to this edition to help stu- dents target key areas of learning. Learning objectives are listed both at the beginning of each chapter and are called out as mar- ginal elements throughout the narrative in each chapter. End-of-Chapter Content Both static and algorithmic end-of-chapter content, including Review Questions and Exercises, are now assignable in Connect. SmartBook The SmartBook has been updated with new highlights and probes for optimal student learning.
  • 45. Snapshots The Snapshot from Practice boxes have been updated to include a number of new exam- ples of project management in action. New questions based on the Snapshots are also now assignable in Connect. New and Updated Cases Included at the end of each chapter are between one and five cases which demonstrate key ideas from the text and help students understand how Project Management comes into play in the real world. New cases have been added across several chapters in the 7th edition. 26 Organization Strategy and Project Selection2 LEARNING OBJECTIVES After reading this chapter you should be able to: 2-1 Explain why it is important for project managers to understand their organization’s strategy. 2-2 Identify the significant role projects contribute to the strategic direction of the organization. 2-3 Understand the need for a project priority system. 2-4 Apply financial and nonfinancial criteria to assess the value of projects. 2-5 Understand how multi-criteria models can be used to select projects.
  • 46. 2-6 Apply an objective priority system to project selection. 2-7 Understand the need to manage the project portfolio. OUTLINE 2.1 The Strategic Management Process: An Overview 2.2 The Need for a Project Priority System 2.3 A Portfolio Management System 2.4 Selection Criteria 2.5 Applying a Selection Model 2.6 Managing the Portfolio System Summary C H A P T E R T W O Lar66093_ch02_026-065.indd 26 10/4/16 4:52 PM 28 Chapter 2 Organization Strategy and Project Selection alignment even more essential for success. Ensuring a strong link between the strategic plan and projects is a difficult task that demands constant attention from top and mid- dle management. The larger and more diverse an organization, the more difficult it is to create and
  • 47. maintain this strong link. Companies today are under enormous pressure to manage a process that clearly aligns projects to organization strategy. Ample evidence still sug- gests that many organizations have not developed a process that clearly aligns project selection to the strategic plan. The result is poor utilization of the organization’s resources—people, money, equipment, and core competencies. Conversely, organiza- tions that have a coherent link of projects to strategy have more cooperation across the organization, perform better on projects, and have fewer projects. How can an organization ensure this link and alignment? The answer requires inte- gration of projects with the strategic plan. Integration assumes the existence of a stra- tegic plan and a process for prioritizing projects by their contribution to the plan. A crucial factor to ensure the success of integrating the plan with projects lies in the creation of a process that is open and transparent for all participants to review. This chapter presents an overview of the importance of strategic planning and the process for developing a strategic plan. Typical problems encountered when strategy and proj- ects are not linked are noted. A generic methodology that ensures integration by creat- ing very strong linkages of project selection and priority to the strategic plan is then discussed. The intended outcomes are clear organization focus, best use of scarce orga- nization resources (people, equipment, capital), and improved communication across
  • 48. projects and departments. Why Project Managers Need to Understand Strategy Project management historically has been preoccupied solely with the planning and exe- cution of projects. Strategy was considered to be under the purview of senior manage- ment. This is old-school thinking. New-school thinking recognizes that project management is at the apex of strategy and operations. Aaron Shenhar speaks to this issue when he states, “. . . it is time to expand the traditional role of the project manager from an operational to a more strategic perspective. In the modern evolving organization, proj- ect managers will be focused on business aspects, and their role will expand from getting the job done to achieving the business results and winning in the marketplace.”1 There are two main reasons why project managers need to understand their organiza- tion’s mission and strategy. The first reason is so they can make appropriate decisions and adjustments. For example, how a project manager would respond to a suggestion to modify the design of a product to enhance performance will vary depending upon whether his company strives to be a product leader through innovation or to achieve operational excellence through low cost solutions. Similarly, how a project manager would … Informative RubricINFORMATIVE SPEECH GRADING RUBRICIntrodutionNot PresentAttemptedAverageExcellentAttention GetterNo attention
  • 49. getter is usedAttention getter is present but not effectiveAttention getter gets the audience involvedAttention getter grabs the audience and makes audience want to listenEstablish CredibilitySpeaker makes no attempt to share a personal connection to the topicSpeaker gives a vague reason for why they are connected to this topicSpeaker establishs a clear connection between them and the topic but doesn't give a reason why they care about the topicSpeaker clearly establishs connection with the topic and why it's important to themCentral Idea No thesis statement spokenThesis statement is present but could be vague or stated as an incomplete sentence OR just wrongThesis statement presented in a complete sentence and clearly indicates the central idea of the speechStrong thesis statement sets the tone and direction for the speech. Is expressed ina complete declarative sentence and is both clear and creativePreview the SpeechNo preview of the main pointsPreview alludes to the main pointsPreview tells the audience the main points will be covered but either fails to use transitions or uses somewhat confusing phrasingStates the main points using clear concise phrasingBodyMain Point 1No clear first main pointMain point is present doesn't support thesis, unclear and not supportedMain point is clear but weakly supports thesis or is not adequately developed using supporting materialsMaint point is clear, supports thesis, and is well developed using a variety of supporting materialsMain Point 2No clear second main pointMain point is present doesn't support thesis, unclear and not supportedMain point is clear but weakly supports thesis or is not adequately developed using supporting materialsMaint point is clear, supports thesis, and is well developed using a variety of supporting materialsMain Point 3No clear third main pointMain point is present doesn't support thesis, unclear and not supportedMain point is clear but weakly supports thesis or is not adequately developed using supporting materialsMaint point is clear, supports thesis, and is well developed using a variety of supporting materialsTransitionsNo clear transitions usedPartial transitions
  • 50. are usedSome transitions are includedAll transitions are presentConclusionSignal End to ConclusionNo signal is presentVague attempt to indicate a transition to conclusionSpeaker indicates a transition to conclusion but it blends into the rest of the speech and is rushedSpeaker clearly indicates the beginning of the conclusion through use of transition statements, vocal tone, gesutres, and/or a brief pauseRestate ThesisNo attempt to restate the thesisThesis or topic is mentionedThesis is restatedThesis is clearly restated with impactReview Main PointsNo review of main pointsAlludes to some of the main pointsRefers to all main points but doesn't restate themClearly restates all the main points and the significanceMemorable CloserNo closerWeak attempt to close, doesn't bring closure and have impact on the end of the speechCloser effectively ends the speech but has average impactCloser referred back to attention getter effectively and memorably ended the speech Informative Evaluation FormInstructor Evaluation of Informative SpeechGive this form to your instructor before you give your speech. WITH A TYPED, DOUBLE SPACE, 12 point font copy of your speech outlineIntroductionNot PresentAttemptedAverageExcellent___/60Attention GetterEstablish CredibilityCentral IdeaPreview the Speech024.5-27.528-3131.5-35BodyNot PresentAttemptedAverageExcellent___/90Main Point 1Main Point 2Main Point 3Transitions028-31.532-35.536- 40ConclusionNot PresentAttemptedAverageExcellent___/50Signal EndRestate ThesisReview Main PointsMemorable Closer017.5-19.520- 2222.5-25Point Deductions and AdditionsState name and what your SPS is before you start your speech: deduct 2 pointsMissing instructor evaluation form: deduct 5 pointsNot providing a copy of your typed speech outline to the instructor before you give your speech: deduct 10 pointsProject enthusiasm with your topic and delivery: add 5 pointsTOTAL SCORE_____/200Student NameTopic
  • 51. Persuasive RubricPERSUASIVE SPEECH GRADING RUBRICINTRODUCTIONNot PresentAttemptedAverageExcellentAttention GetterNo attention getter is usedAttention getter is present but not effectiveAttention getter gets the audience involvedAttention getter grabs the audience and makes audience want to listenEstablish CredibilitySpeaker makes no attempt to share a personal connection to the topicSpeaker gives a vague reason for why they are connected to this topicSpeaker establishs a clear connection between them and the topic but doesn't give a reason why they care about the topicSpeaker clearly establishs connection with the topic and why it's important to themCentral Idea No thesis statement spokenThesis statement is present but could be vague or stated as an incomplete sentence OR just wrongThesis statement presented in a complete sentence and clearly indicates the central idea of the speechStrong thesis statement sets the tone and direction for the speech. Is expressed ina complete declarative sentence and is both clear and creativePreview the SpeechNo preview of the main pointsPreview alludes to the main pointsPreview tells the audience the main points will be covered but either fails to use transitions or uses somewhat confusing phrasingStates the main points using clear concise phrasingBODYMain Point 1No clear first main pointMain point is present doesn't support thesis, unclear and not supportedMain point is clear but weakly supports thesis or is not adequately developed using supporting materialsMaint point is clear, supports thesis, and is well developed using a variety of supporting materialsMain Point 2No clear second main pointMain point is present doesn't support thesis, unclear and not supportedMain point is clear but weakly supports thesis or is not adequately developed using supporting materialsMaint point is clear, supports thesis, and is well developed using a variety of supporting materialsMain Point 3No clear third main pointMain point is present doesn't support thesis, unclear and not supportedMain point is clear but weakly supports thesis or is not adequately developed using
  • 52. supporting materialsMaint point is clear, supports thesis, and is well developed using a variety of supporting materialsSourcesSources are not orally citedFewer than 3 sources are cited or sources were missing several parts of the citationAt least 3 quality sources are cited orally but citations are missing at least one componenet of a good citationAt least 3 quality sources are cited orally, including the publication, date, person, and credentials when possibleTransitionsNo clear transitions usedPartial transitions are usedSome transitions are includedAll transitions are presentDELIVERYEnthusiasticStudent shows no enthusiasm or attempts to engage the audienceStudent relies heavily on outline and shows little enthusiasm or energyStudent explains outline adequately and shows some excitement about speech topicStudent is very conversational, visually excited about speech topic, and clearly engages the audienceVocal Delivery, Volume, Rate, OtherSpeaker cannot be heard or understoodSpeaker is somewhat audible, uses little vocal variety, is monotone, speaks too slowly or quicklySpeaker is mostly audible, uses some vocal variety and only occassionally speaks too quickly or too slowlySpeaker is easy to understand and uses vocal variety in a way that clearly enhances the speechNonverbal Delivery, Gestures, Body Movement, Facial ExpressionSpeaker makes no attempt to use gestures or chance facial expressionSpeaker occassionally attempts gestures but facial expression rarely changesSpeakers uses some appropriate gestures and facial expression, and body movement is usually purposeful with only occasional swaying, rockingSpeaker uses appropriate gestures, facial expressions, and body movement that clearly enhances the messageEye ContactSpeaker reads entire speech from outline and makes little to no eye contact with audienceSpeaker frequently reads from notes and only occassional eye contactSpeakers occassionally refers to notes and makes some eye contact with various members of the audienceSpeaker maintains eye contact with all parts of room and only occasionally glances at note
  • 53. cardsCONCLUSIONSignal End to ConclusionNo signal is presentVague attempt to indicate a transition to conclusionSpeaker indicates a transition to conclusion but it blends into the rest of the speech and is rushedSpeaker clearly indicates the beginning of the conclusion through use of transition statements, vocal tone, gesutres, and/or a brief pauseRestate ThesisNo attempt to restate the thesisThesis or topic is mentionedThesis is restatedThesis is clearly restated with impactReview Main PointsNo review of main pointsAlludes to some of the main pointsRefers to all main points but doesn't restate themClearly restates all the main points and the significanceMemorable CloserNo closerWeak attempt to close, doesn't bring closure and have impact on the end of the speechCloser effectively ends the speech but has average impactCloser referred back to attention getter effectively and memorably ended the speech Persuasvie Evaluation FormInstructor Evaluation of Persuasive SpeechGive this form to your instructor before you give your speech. WITH A TYPED, DOUBLE SPACE, 12 point font copy of your speech outlineIntroductionNot PresentAttemptedAverageExcellent___/45Attention GetterEstablish CredibilityCentral IdeaPreview the Speech031.5-35.536-4040.5-45BodyNot PresentAttemptedAverageExcellent___/50Main Point 1Main Point 2Main Point 3SourcesTransitions035-39.540-44.545- 50ConclusionNot PresentAttemptedAverageExcellent___/30Signal EndRestate ThesisReview Main PointsMemorable Closer021-23.524- 26.527-30DeliveryNot PresentAttemptedAverageExcellent___/25EnthusiasticVocal Delivery, Volume, Rate, OtherNonverbal delivery, Gestures, Body Movement, Facial ExpressionEye Contact017.5-19.520- 2222.5-25Overall EffectivenessNot PresentAttemptedAverageExcellent__/25TopicRhetorical SensitivityPurposeOverall Organization017.5-19.520-2222.5- 25Point Deductions State name and what your SPS is before you
  • 54. start your speech: deduct 2 pointsMissing instructor evaluation form: deduct 5 pointsNot providing a copy of your typed speech outline to the instructor before you give your speech: deduct 10 pointsSpeech was just too short to meet all the guidelines: deduct 5 pointsTOTAL SCORE_____/175Student NameTopic Speech Outline Name: Topic: Specific Purpose Statement: Introduction The introduction needs to be written out so you can make sure it meets the 4 objectives of the introduction. Doesn’t mean you read the introduction word for word. You need to practice giving the speech so you can give good eye contact to the audience and not on your paper. What’s the connective going to be? (The connectives don’t need to be written as part of your outline) I. Main Point 1 a. Subpoints (is where you’ll use supporting materials) b. Subpoints c. Subpoints What’s the connective going to be? II. Main Point 2 a. Subpoints b. Subpoints c. Subpoints What’s the connective going to be? III. Main Point 3 a. Subpoints b. Subpoints c. Subpoints What’s the connective going to be? Conclusion Like the introduction, the conclusion needs to be written out.
  • 55. Leave the speech with something memorable or impact. Attach References