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                                                                   MARCH 2012 VOLUME 26, NUMBER 3




                            NETWORK
                            MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.®




HOW SAFE IS THE CLOUD?
STAKEHOLDER REALITY CHECK
WHAT TO KNOW
BEFORE YOU TAKE THE JOB
GANTT AS MOTIVATOR
LEADERSHIP WITHOUT
AUTHORITY
AIRPORT PROJECTS TAKE OFF




MANAGING
               RISK
     WITH NUMBERS
Lead
                     March 2012 | Volume 26, Number 3




                        38
                        Risk by the Numbers
                        No one can see the
Patricia Galloway,
PhD, PMP, Pegasus-
                        future. But quantita-
Global Holdings         tive risk management
Inc., Cle Elum,         can help make it a
Washington, USA
                        little clearer.
                        By Sandra A. Swanson
Features                             MARCH 2012 | VOLUME 26, NUMBER 3




     30 Who’sdata into the handsCloud? party
        Putting
                Guarding the
                                 of a third
            can save money, but the projects raise a
            host of security concerns. Here’s what every
            organization needs to know.
            By Sarah Fister Gale


     44 Perception vs. Reality familiar?
        “It’s just a little tweak.” Sound
            Here’s some advice on breaching the
            disconnect between a stakeholder’s
            perception and how things really stand.
            By Michelle Bowles Jackson


     48 Massits mainframe becomes obsolete, a
        When
             Migration

            city must instigate a program to move its
            departmental IT systems to a new server.
            By Peter Fretty


     56 Six QuestionsJobAsk Before
        You Take the
                      to

            Even in today’s improving labor market,
            it’s tempting to jump at any job offer. But
            while a steady paycheck is an honorable
            goal, it shouldn’t come at the cost of job
            satisfaction, a healthy career trajectory or
            a comfortable corporate culture.
            By Cindy Waxer




                                                                           48
     60 Timecase studies reveal the winning
        Four
              Tamers

            strategies project professionals used to
            combat time constraints—especially as
            circumstances changed.
            By Lisa Tomcko




30                                       44                56                 60
11
                                                             also       March 2012 | VOLUMe 26, NUMBeR 3




                                                                                 Making project ManageMent
                                                                                 indispensable for business results.®


     thE PulSE
     8   Emerging Markets Ready
         for Takeoff
         Developing nations see airport
         project boom                                                        alSO In thIS ISSuE


15
     11 More Projects, Freezes Persist                                       7     Feedback
        IT spending increase doesn’t                                               Revisiting earned value
        necessarily mean more jobs                                                 management

     13 East Africa Looks for             VOICES                             18 Metrics
        Strength in Numbers                                                     Stats on the CIO agenda,
        Five nations hope partnership     20 Peer to Peer                       online shopping and clean
        will bring economic success          Leadership Without Authority       technology
                                             Pat Weaver, PMI-SP, PMP and
     14 Chicago Rail Project Puts a          Roberto Guandique               66 Help Desk
        Lot on the Line                                                         The Rise of VoIP
        High-profile revamp aims to       23 From the Top                       By Peter Fretty
        update transit route                 Regular Checkups
                                             Teresa Knudson, PMP, Mayo       68 Marketplace
     15 Sensing Bridge Problems              Clinic, Rochester, Minnesota,      Books that cover the
        Before It’s Too Late                 USA                                “bagel metaphor” and


20
        Projects seek to curb                                                   project management offices
        infrastructure disasters          26 Project Perspectives
                                             Can This Project Be Saved?      71 Directory of Services
     16 Little Green Schoolhouses                                               Project management
        U.S. schools ramp up              28 In the Trenches                    resources
        sustainability measures              Unclear on the Concept
                                             By Grace Willis, PMP            72 Closing Credit
                                                                                Japan’s 40-year nuclear
                                                                                cleanup
                                          COlumnIStS
                                          24 Trend Watch
                                             Leadership Counsel
                                             By Roberto Toledo, MBA,
                                             PMP, Contributing Editor



24
                                          25 What’s at Stake
                                             The Gantt You Might Not Know
                                             By Lynda Bourne, DPM, PMP




     DOWNLOAD THE PM NETWORK APP and read the magazine on your iPad, iPhone or iPod Touch.


28
NETwORk                                              THE PROFESSIONAL MAGAZINE OF THE PROJECT MANAGEMENT INSTITUTE

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Feedback
EVM, Revisited                                                                       Facebook

I am writing in response to Roger Kent’s comments in the Feedback section of the     can a project manager become the
January edition (page 6). I am amazed that a PMI publication would print—even        next ceo?
in a Feedback column—something that demonstrates such a basic misunder-
standing of professional project management.                                         A better question is: How is a CEO not a project manager?
    Mr. Kent seems to believe that understanding “percent complete” is somehow                                           —Jefferson Nicholson
unobtainable. Professionals believe that knowing what has been completed on
a project, in terms of tangible deliverables, and expressed as a percentage of       I feel that being a project manager is a great path to
planned completion to date, is critical.                                             executive leadership. As a project manager, you’re
    Mr. Kent fails to understand that if these numbers are made up, he has bigger    exposed to many different challenges and varying tech-
problems than a                                                                      nologies, and you are typically a master communicator
failure to apply                                                                     and problem solver. Marry that with some strategic
                                           The notion that EVM only works
earned value man-                                                                    thinking, and you are on your way.
                                           in the context of “very large,
agement (EVM).                             structured projects that last                                                             —Rick Roe
Likewise, tasks that                       over a year and spend more than
are “95 percent                            US$1 million” is nonsensical.                      join the discussion at
complete…for a                                                                                facebook.com/PMinstitute.
long time” are not making any progress while expending money. It doesn’t take
EVM to understand this, though EVM techniques will tend to highlight these is-
sues before they are uncorrectable.
                                                                                     Voices on Project ManageMent blog
    Finally, the notion that EVM only works in the context of “very large, struc-
tured projects that last over a year and spend more than US$1 million” is nonsen-    //Poll//
sical. EVM works for any project that has a budget, can associate that budget with   to what degree have
actual work, has a way to measure the work accomplished and compare it with          you noticed increased
planned accomplishments, and captures actual cost. These are the basis of having     schedule compression
                                                                                     on projects at your
a credible project plan and a credible project management method.
                                                                                     organization?
                                     —Saul Ackovitz, PMP, Reston, Virginia, USA
                                                                                     Extensive 43.5%
          We want to hear from you. Send letters to pmnetwork@imaginepub.com.
                                                                                     Some 43.5%
          Opinions expressed in Feedback are not necessarily those of PM Network.    Not at all 13%
thePul

      US$3.1                                   120 million US$150
           billion
The amount Brazil budgeted to rebuild its
                                               The number of annual passengers the Al
                                               Maktoum International Airport in Dubai,
                                                United Arab Emirates, will be able to        billion
                                                                                         The amount slotted for airport
 airport infrastructure to prepare for the       handle when it’s completed in 2017      projects in developing markets
  2014 World Cup and 2016 Olympics


       8   PM NETWORK March 2012 WWW.PMI.ORG
se                                                            EmErging
                                                              markEts
                                                              rEady
                                                              for
                                                              takEoff
                                                              high-flying economies in emerging
                                                              markets mean an influx of people
                                                              coming and going—further tax-
                                                              ing an already inadequate airport
                                                              infrastructure.
                                                                  Governments from Vietnam to
                                                              Saudi arabia to Kenya are respond-
                                                              ing with a fleet of megaprojects
                                                              to revamp ailing airports or start
                                                              new ones from scratch. roughly
                                                              US$150 billion is slotted for airport
                                                              infrastructure and expansion proj-
                                                              ects in developing regions, accord-
                                                              ing to arabian reach.
                                                                  Nearly one-third of that money
                                                              is being spent in booming Middle
                                                              East markets. That lineup includes
                                                              the luxurious US$10 billion al Mak-
                                                              toum International airport in
IMagE cOuRTEsy Of fOsTER + PaRTNERs




                                      Queen Alia International Airport, Amman, Jordan



                                                                          March 2012 PM NETWORK   9
thePulse

                                       Dubai, United Arab Emirates, which will be able to handle 12 million
                                                                                                                   Up iN The air
                                       tonnes of annual cargo capacity and 120 million passengers upon             A sampling of airport
                                       completion in 2017. In neighboring Qatar, New Doha International            megaprojects around the
                                       Airport is due to open later this year in the capital; it’s billed as the   globe:
                                       first global project designed with the new Airbus A380 in mind.             King abdul aziz
                                           Struggling for a return to normalcy after years of war, Iraq            international, Jeddah,
                                       recently announced it will build a new airport in Mansuriya, with           Saudi Arabia
                                       project planners working under the protection of Iraqi security             al Maktoum
                                       forces, according to AviationPros.com. Karbala also plans to seek           international airport,
  The NighT                            bids later this year for an airport capable of handling 5 million pas-      Dubai, United Arab Emirates
  ShifT                                sengers a year.                                                             New Doha international
  Almost all airport revamp                Not all teams face such extreme conditions, of course. But emerg-       airport, Doha, Qatar
  projects have to take place
                                       ing markets often present daunting project environments plagued
  without disrupting day-to-day                                                                                    Daxing international
  operations.                          by a lack of project management expertise and woefully inadequate           airport, Beijing, China
      Global engineering giant         infrastructures. At the same time, teams are under extreme time
  Bechtel is currently manag-          pressures to accommodate growing airport traffic.                           Dubai international
  ing an expansion project                                                                                         airport (Concourse 3),
  at McCarran Airport in Las               In response to a 15 percent jump in air traffic at Amman, Jor-
                                                                                                                   Dubai, United Arab Emirates
  Vegas, Nevada, USA. To avoid         dan’s Queen Alia International Airport, the government launched
  interfering with the airport’s       a major expansion project. The renovated airport will feature a
  500,000 annual flights—and
  associated stream of baggage         high-tech roof consisting of photovoltaic canopies that harness sun-
                                       light, providing renewable energy and natural ventilation. Slated for
  tractors, passengers and air-
  line employees—the project           completion later in 2012, a new US$600 million terminal should be
                                                                                                                     Although
  team must juggle construc-
  tion equipment, materials and
                                       able to handle 12 million passengers a year, nearly three times the           56 percent
  up to 2,000 workers.
      In response to this chal-
                                       current capacity.                                                             of U.S. com-
  lenge, Bechtel shifted some
                                           China’s four largest airports—including Hong Kong’s—each
                                       saw passenger traffic increase by at least 10 percent, according to
                                                                                                                     panies plan
  of the construction activities
  to the early-morning hours,          Airports Council International. To accommodate that influx, the               to increase
  when the flight schedule was         Chinese government is building Daxing International Airport near              tech spending,
  less aggressive.
      “Obviously, there is always
                                       Beijing. Scheduled for completion in 2017, the nine-runway facility           workers can
  a potential cost impact
  associated with nighttime
                                       will have a capacity of 200 million, staking its claim as the busi-
                                       est airport in the world. The new project would also relieve some
                                                                                                                     expect average
  working,” says Don Wright,           of the pressure on the Beijing Capital International Airport. The             raises of just
  Bechtel’s project manager on
  the Las Vegas expansion. “We
                                       facility is currently over capacity despite construction three years          2.8 percent.
  try to reduce nighttime work         ago of Terminal 3—which by itself is 17 percent larger than London,
                                                                                                                     Source: InformationWeek’s Outlook 2012,
  as much as possible, and we          England’s Heathrow Airport.                                                   and Computer Economics’ 2012 IT Salary
  would always advise contrac-                                                                                       Report

  tors if overtime was expected
  or required so they could plan       Will Brazil Be Ready?
  accordingly. Often, the con-         The 2008 Summer Olympics provided some of the impetus for
  struction costs for overtime         Beijing’s Terminal 3, and preparation for the 2014 World Cup and
  were significantly less than
  the costs of disrupting pas-         2016 Olympics is putting host Brazil in a similar spot. Hundreds of
  sengers and airlines during          thousands of visitors are expected to descend for each event, putting
  daytime hours.”                      more strain on an overburdened airport infrastructure.
                                           So far, the US$3.1 billion revamp has had a bumpy flight. In early
                                       2011, the Brazilian Audit Court criticized government officials for
                                       missing deadlines, not controlling costs and lacking transparency.
                                       Even soccer legend Pele, an ambassador to the World Cup, piled on,
                                       saying “Brazil is not ready.” An upgrade of the Viracopos-Campinas
                                       Airport near São Paulo suffered a significant schedule setback after
                                       project planners failed to obtain necessary environmental licenses.

  10   PM NETWORK MaRch 2012 WWW.PMI.ORG
Delays in the bidding process also hampered          how to schedule, given the rigid deadlines and
construction work at northeastern Brazil’s busiest   booming traffic. “Brazil has a short timeframe
airport, in Salvador.                                to deliver significant capacity and efficiency
     Experienced multinational partners are look-    upgrades to their airport infrastructure,” she says.
ing to help, drawing on their earlier experiences        Because the government requires consor-
with similar ventures. ICN Gateway, a network of     tia tendering for concessions at the airports
Australian construction companies and suppliers,     in Guarulhos, Campinas and Brasilia to have
is looking to fill that role in Brazil—again with    at least one team member with experience in
the Olympics as a common thread. The company         operation of airports with more than 5 million
is going in armed with experience preparing the      passengers per year, most Brazilian consor-
country’s infrastructure for the Sydney Olympics     tia will need a global partner in their team,
in 2000 and Melbourne’s 2006 Commonwealth            Ms. Costa-Wong says. Likewise, she says
Games.                                               multinationals hoping to get a foot in the door
     To land any large airport contract, companies   in Brazil will benefit from partnering with local
need to prove their project management exper-        firms.
tise, says Candida Costa-Wong, ICN’s interna-            If emerging markets can manage the myriad
tional business capability adviser in Melbourne,     challenges that airport projects pose, the sky’s the
Victoria, Australia. Companies also must know        limit. —Louis La Plante




                                      IT Job ouTlook:

                                                                       More
                                                                       Projects,
                                                                       Freezes Persist
                                                                        U.S. companies plan to launch more IT
                                                                        projects in 2012—but that doesn’t necessarily
                                                                        mean a jump in job openings or salaries.
                                                                            Even as a talent war rages in Silicon Valley,
                                                                        career prospects remain sluggish overall. Infor-
                                                                        mationWeek’s Outlook 2012 report found that
                                                                        56 percent of the 605 U.S.-based tech profes-
                                                                        sionals surveyed planned increased tech spend-
                                                                        ing, and three-quarters reported heightened
                                                                        demand for new IT projects. However, the
                                                                        survey also found that hiring freezes will persist
                                                                        for nearly one-third of companies, and 36 per-
                                                                        cent said they’ll only fill openings for existing
                                                                        positions. The survey posits that outsourcing,
                                                                        virtualization and cloud computing are allow-
                                                                        ing companies to get by with smaller staffs.
                                                                            Overall IT compensation also remains
                                                                        flat, according to a tracking survey by Janco

                                                                                                                   March 2012 PM NETWORK   11
thePulse

                                       Different Skills, Different Fates
                                       Not all IT project professionals                         computing skills will have no        and oil and gas sectors—are
                                       are mired in a soft job market.                          trouble finding work.                struggling to fill roles, he says.
                                           “In the IT world, there are                             IT project managers frus-             “The ideal mix is someone
                                       always skill shortages in the                            trated with the U.S. market          who is bilingual with a project
                                       growth technologies, and                                 may also want to look beyond         management background and
                                       many IT organizations have no                            their home borders.                  knowledge of finance or engi-
                                       choice but to pay up for those                              “Many clients come to us          neering,” Mr. Shanahan says.
                                       skills or turn to service provid-                        who are developing projects              In Brazil, IT project man-
                                       ers for in-demand expertise—                             worldwide, and they’re looking       agers who speak English,
                                       and pay a premium,” according                            for project managers who can         Portuguese and Spanish can
                                       to Computer Economics’ 2012                              run big integrated projects,”        virtually write their own tick-
                                       IT Salary Report.                                        says Keric Shanahan, Experis,        ets, he says. “It’s taking 60 to
                                           Dice.com predicts that                               Atlanta, Georgia, USA.               90 days to fill many of these
                                       IT professionals with .Net,                                 Companies in Brazil and           high-tech roles, and the more
                                       mobile application develop-                              India—particularly in the            specific the request, the longer
                                       ment, virtualization and cloud                           finance, mining and metals,          it takes.”




                                                Associates and eJobDescription.com. The                             experience should find opportunities. Proj-
                                                total mean compensation for IT professionals                        ect management ranked number five on IT
                                                across North America increased only 0.81 per-                       recruitment website Dice.com’s list of priority
                                                cent last year to US$78,229 from US$77,604                          skills to hire for 2012, for example.
           “The best                            at the beginning of 2011. And even that came                            IT project managers looking to build their
       opportunities                            with a major caveat: The bump only put com-                         marketability should focus on honing their
              require                           pensation back to January 2008 levels.                              business analytic skills and demonstrating

         people who                                 Overall, 2012 doesn’t look all that promis-
                                                ing on the salary front. Computer Economics’
                                                                                                                    the strategic value they’ll bring to a project,
                                                                                                                    says Keric Shanahan, PMP, director of global
            can wear                            2012 IT Salary Report revealed that the aver-                       project management at Experis, an engineer-
       that business                            age pay raise for U.S. IT workers will be a less-                   ing, IT and finance resourcing firm in Atlanta,
         hat and not                            than-dazzling 2.8 percent, with little variance                     Georgia, USA.
          only run a                            for experience or position.                                             “The best opportunities,” he says, “require
                                                    Despite the mediocre market, project                            people who can wear that business hat and not
         project, but                           professionals with the right combination                            only run a project, but justify the requirements
          justify the                           of technical skills and project management                          that go into it.” —Sarah Fister Gale
       requirements
              that go                           Down and Out
             into it.”                          IT employment in the United States remains flat.
                                             EmploymEnT (in Thousands)




          —Keric Shanahan, PMP, Experis,
                   Atlanta, Georgia, USA                                 3,200


                                                                         3,000


                                                                         2,800


                                                                         2,600
                                                                                 2000   2001   2002   2003   2004    2005    2006        2007        2008         2009        2010

                                                                                               u.s. naTional novEmbEr EmploymEnT for iT by yEar
                                                                                                                                 Source: U.S. Bureau of Labor Statistics/Janco Associates


  12   PM NETWORK March 2012 WWW.PMI.ORG
East Africa Looks for                                                                                              Uganda
                                                                                                                                            Kenya


          Strength in Numbers
                                                                                                                         Rwanda
                                                                                                                       Burundi



          More than three decades after its first attempt             Not everyone is quite so bull-                                  Tanzania       Indian Ocean
          fizzled, the East African Community (EAC) is            ish on the prospects of the EAC
          once again positioning itself as an economic pow-       becoming a new project hot spot—
          erhouse in Africa. By combining forces, Kenya,          especially within the hoped-for schedule.
          Rwanda, Tanzania, Burundi and Uganda aim to                 The EAC leadership’s timeline for
          pull in investment to support and sustain eco-          regional integration is highly unrealistic, says
          nomic growth—and projects—across the region.            Mark Bohlund, senior economist, Sub-Saharan
              The EAC was first founded in 1967, but dis-         Africa at IHS Global Insight, London, England.
          banded 10 years later due to intense political          “The East African Common Market Protocol is
          infighting. It was revived in 2000, and in recent       nowhere near implemented, and when the leader-
          years, the consortium has seen steady economic          ship set those targets, they took little notice of their
          growth. Combined real GDP increased 5.9 percent         ability to meet them,” he explains.
          in 2010, compared to a 4.9 percent global rate.             The European Union took close to 50 years to
          In 2012, the World Bank predicts EAC econo-             achieve similar results, he says, “and they had supe-
          mies will expand between 5 and 7.6 percent, with        rior capacity during that time.”
          Rwanda and Tanzania leading the pack.                       The EAC region is also under renewed pres-
              That kind of growth is a powerful step toward       sure to deal with rising security issues, including
          the EAC’s goal of establishing a common currency        piracy, cyber crime, terrorism, human trafficking
                                                                                                                             Traffic
          this year and forming a political federation in 2015.
          A single currency—patterned after the euro—
                                                                  and money laundering. Beatrice Kiraso, EAC
                                                                  deputy secretary general in charge of politi-              Jams Stall
          could ease regional companies’ concerns about           cal federation, has said she’s worried that the            Growth?
          exchange rates and spur project activity.               threats, if left unaddressed, could greatly under-         Whether project investors
                                                                                                                             come or not could depend on
              The group has already opened up borders of all      mine regional integration.                                 the ability of East Africa Com-
          member states for labor and capital, and has a cus-         There are also economic realities to contend           munity countries to address
          toms union, common market, legislative assembly,        with. Burundi remains one of the world’s poor-             their abysmal infrastructure.
                                                                                                                             Investments in infrastructure
          bank and court. There are even calls to let South       est nations, still recovering from the wounds of a         in Sub-Saharan Africa have
          Sudan and the Democratic Republic of the Congo          decade-long civil war.                                     averaged about US$10 billion
          join the bloc.                                              Still, Mr. Bohlund says the nation has made            per year, which is only half
                                                                                                                             of what is needed to support
              As things stand, the efforts have sparked a         progress in improving its business environment
                                                                                                                             sustained economic growth,
          jump in intraregional trade from US$1.8 billion         over the past year; the World Bank ranked it eighth        according to the World Bank
          in 2005 to US$2.7 billion in 2008, according to a       on its 2012 list of the top business reformers.            Group.
          report in Financial Times. “The EAC is the fastest-         Rwanda, too, has made tremendous strides                   Port and transportation
                                                                                                                             network projects could make
          growing of all the Africa regional economic com-        in improving its business landscape. The World             or break the community’s
          munities,” Donald Deya, CEO of the Pan African          Bank’s Ease of Doing Business index ranked the             future, argues IHS Global
          Lawyers Union, told the U.K. financial newspaper.       country 45th in 2012, taking into account 10 cat-          Insight’s Mark Bohlund. 	
                                                                                                                                 Projects such as the mas-
              The potential for even more growth is signifi-      egories, including ease of securing construction           sive retrofit of the dilapidated
          cant: The EAC nations have more than 133 million        permits, access to electricity, credit availability and    Kenya-Uganda railways by
          people, with a combined GDP of US$80 billion.           protection for investors.                                  the Rift Valley Railways con-
                                                                                                                             sortium must be completed
              “We want to make business easier for the                “This makes Rwanda attractive for foreign
                                                                                                                             for the region to sustain any
          business community and to also make life easier         investors in spite of its small size and lack of           economic growth, he says. “If
          for East Africans,” Owora Richard Othieno, head         natural resources,” Mr. Bohlund says. “Many com-           they are successful with these
          of the EAC’s Department of Corporate Com-               panies can use Rwanda as a base for project opera-         kinds of projects, it should
                                                                                                                             have large implications for
          munication and Public Affairs, told Public Radio        tions due to its superior business environment.”           the cost of doing business in
          International.                                              Kenya, on the other hand, ranked 109th, falling        this region.”

                                                                                                                                    March 2012 PM NETWORK   13




PMN0312 1-17.indd 13                                                                                                                                        2/22/12 11:46 AM
thePulse

  three positions from the year before. But its advanced economy, size, location and                            in neighboring countries. “Tanzania is afraid
  thriving private sector give it many distinct advantages over its peers, Mr. Bohlund                          Kenyans will buy up its land, and Uganda fears
  says. Its strong banking sector and prime location on the Indian Ocean make it the                            Kenyans will take all their skilled labor jobs,” Mr.
  business and transportation hub for the entire region. “If you want to go to East                             Bohlund says.
  Africa, the easiest way is to go through Kenya,” he notes.                                                        Yet part of the bloc’s power is based on making
      Kenya may in fact be too strong. Its advanced economy could create tension                                the most of each member’s individual strengths.
  among other members, particularly when it brings its own citizens to run projects                             Both Tanzania and Uganda, for example, have
                                                                                                                huge oil deposits, making them attractive destina-
                                                                                                                tions for mining and energy projects. In January,
  Real GDP Growth Rates                                                                                         Tanzania announced that it had begun working
                                                                                                                on strategies to prepare the economy to better
   Partner State          2005       2006            2007          2008           2009            2010
                                                                                                                accommodate natural gas investments. The gov-
   Burundi                  0.9       5.5             3.6            4.5           3.5             3.9
                                                                                                                ernment is planning a major project to construct
   Tanzania                 7.4       6.7             7.1            7.4           6.0             7.0
                                                                                                                a gas pipeline from Mnazi Bay in Mtwara to Dar
   Uganda                  10.0       7.0             8.1           10.4           3.9             5.6
                                                                                                                es Salaam to be operational by the end of 2012,
   Kenya                    5.7        6.1            7.0             1.7          2.6             5.6
                                                                                                                according to Daily Monitor.
   Rwanda                   7.2       6.5             7.9           11.2            6.1            7.5
   EAST AFRICA              6.2       6.4             6.7            7.0           4.4             5.9              They may have joined forces, but each nation
                                                                                                                is wisely carving out its own niche.
                                                                                     Source: Partner States
                                           Note: Rates for Uganda were computed using GDP in local currency     —Sarah Fister Gale




                                                                                                              RIDERS


  Chicago
                                                                                                              GOAL: Complete the project without alienating
                                                                                                              commuters


  Rail Project
                                                                                                              CHALLENGE: The team has already exceeded the
                                                                                                              federally required efforts to inform the public during
                                                                                                              the planning and early construction stages. Follow-


  Puts a Lot
                                                                                                              ing the model of a decade-long CTA project to reno-
                                                                                                              vate the Brown Line completed in 2009, the Red
                                                                                                              Line team holds frequent community meetings.

  On the Line                                                                                                     “Input from public stakeholders—community
                                                                                                              leaders, elected officials, residents and transit
                                                                                                              riders—can inform decisions about project scope,
                                                                                                              scheduling and phasing,” says CTA spokeswoman.
  Every weekday, more than 250,000 rail                                                                       Catherine A. Hosinski.
  commuters ride the Red Line that connects
  the north and south sides of Chicago, Illinois,
  USA. Running 24 hours a day, seven days a
  week, it’s the city’s busiest line. Given that
  kind of traffic, the Chicago Transit Author-
  ity (CTA) decided to launch a US$1 billion
  mega makeover that covers track replace-
                                                               TRACK
  ment, station upgrades and power system                      GOAL: Replace dilapidated tracks over the approximately
  enhancements. Now the agency just needs                      10-mile (16-kilometer) stretch between 18th and 95th
                                                               streets to eliminate so-called “slow zones” where trains
  to figure out how to do all that within bud-                  must operate at 15 miles (24 kilometers) per hour, instead
  get, on schedule—and with minimal disrup-                    of the optimal 55 (89)
  tion to the city’s stakeholders.                             CHALLENGE: The Red Line travels through residential and
                                                               business areas, restricting the times that crews can labor
                                                               on the project. And because the line runs at grade on the
                                                               median of a major expressway, work must be scheduled
                                                               within space limitations and coordinated with the state
                                                               transportation department that oversees the expressway.


  14   PM NETWORK MARCH 2012 WWW.PMI.ORG
SENSING BRIDGE                                                              loads, weather, and other issues that cause damage or deterioration.”
                                                                                                               The issue is figuring out which bridges are fine and which ones

                               PROBLEMS BEFORE                                                             need repair.
                                                                                                               Making the wrong choice could lead to sudden closure of a criti-

                               IT’S TOO LATE                                                               cal transportation link—or worse, a collapse. In 2007, the eight-lane
                                                                                                           Interstate 35 bridge over the Mississippi River in Minneapolis, Min-
                                                                                                           nesota, USA, collapsed during evening rush hour, killing 13 people
                               Cash-strapped U.S. municipalities are playing a dangerous game              and injuring 145. It was the fifth-busiest bridge in the state, and was
                               with aging bridge infrastructure, often postponing maintenance proj-        out of commission for more than a year.
                               ects until absolutely necessary. But they now have a new weapon:                Using sensors can help municipalities better manage risk and align
                               high-tech tracking sensors that can better pinpoint those bridges in        maintenance funds with the bridges in the greatest need of repair.
                               need of immediate renovation.                                                   “Traditional metrics rely on visual inspections,” Dr. Sanayei says,
                                    “Using these sensors, we can increase safety, reduce risk and save     but that information should be complemented with sensors placed
                               millions of dollars annually by focusing investments on those bridges       around the structure to track strains and stresses associated with
                               that require fixing,” says Masoud Sanayei, PhD, a professor in the          everyday usage that cannot be easily found with visual inspections.
                               department of civil and environmental engineering at Tufts Univer-              Dr. Sanayei and his team are completing a pilot project to test the
                               sity in Medford, Massachusetts, USA.                                        technology on a bridge in Barre, Massachusetts. With support from
                                   “Just because a bridge is old doesn’t mean it will collapse,” he        the National Science Foundation, the team installed more than 200
                               explains. “It depends on how well it’s been built and maintained, traffic   sensors on the span. The data collected will then be compared to a




                                                                                                                                        STATIONS
                                                                                                                                        GOAL: Revamp aging and sometimes run-
                                                                                                                                        down stations, including adding elevators and
                                                                                                                                        rehabbing the platform and mezzanine at the
                                                                                                                                        69-year-old Clark and Division stop
                                                                                                                                        CHALLENGE: The work could entail multiple
                                                                                                                                        and simultaneous speed restrictions, single-
                                                                                                                                        track operations and temporary track closures—
                                                                                                                                        all while the station stays operational. That
                                                                                                                                        means the project team must develop not only
                                                                                                                                        service plans that reflect the multiple construc-
                                                                                                                                        tion projects, but also new service contingency
                                                                                                                                        plans for any unplanned interruptions, says Ms.
                                                                                                                                        Hosinski.
IMAGES COURTESY OF WIKIPEDIA




                                                                                                                         SUBWAY
                                                                                                                         GOAL: Upgrade the ventilation system on the underground
                                                                                                                         portion of the Red Line that runs through downtown
                                                                                                                         CHALLENGE: The bulk of Chicago tourists visit sometime
                                                                                                                         during May through October—and most of them congregate
                                                                                                                         downtown. Those additional passengers require the project
                                                                                                                         team to schedule accordingly and communicate any changes.


                                                                                                                                                         MARCH 2012 PM NETWORK     15
thePulse

                                                                                                          them is fairly small, whereas if the problem is left
                                                                                                          undiscovered it can lead to more costly problems.”
                                                                                                              Dr. Kalantari founded his company, Resen-
                                                                                                          sys—a startup funded by the University of Mary-
                                                                                                          land—to commercialize a technology that uses
                                                                                                          wireless sensors installed on bridges to track strain,




                                                                                                                                                                   IMaGE cOuRTEsy Of WIKIPEdIa
                                                                                                          vibration, tilt, temperature and other conditions.
                                                                                                          The devices transmit data to servers using cellular
                                                                                                          networks so bridge conditions can be tracked in
                                                                                                          real time. A central computer analyzes the data
                                                                                                          and instantly warns officials of possible trouble.
                                                                                                              In February, Dr. Kalantari wrapped up a pilot
                            The Interstate 35 Mississippi River bridge after the 1 August 2007 collapse   project, with support from the Maryland State
                                                                                                          Highway Administration, that used more than a
     baseline of what a healthy bridge looks like.                                                        dozen sensors to monitor conditions and measure
         Being able to more accurately assess risk and select bridge maintenance projects is              structural parameters of highway bridges. After
     vital in a country where one in four bridges were deemed either structurally deficient               18 months of tracking results and conducting
     or functionally obsolete by the American Society of Civil Engineers. The organization                follow-up evaluations, the project demonstrated
     called for a US$17 billion annual investment in 2009 (the last year for which figures are            that every time the sensors detected an issue, the
     available), yet only US$10.5 billion is spent annually on bridge construction and main-              location and scope of the problem detected were
     tenance projects.                                                                                    accurate.
         Sensors could help make the most of those limited funds.                                             U.S. President Barack Obama has made a
         “The most up-front benefit of the technology is the cost savings in maintenance                  vigorous appeal for additional infrastructure
     projects,” says Mehdi Kalantari, PhD, research scientist at the University of Maryland               spending, but the sensors could be another way to
     in College Park, Maryland, USA. “If you can discover issues early enough, the cost to fix            bridge the gap. —Sarah Fister Gale




                        Little Green Schoolhouses
                        The next generation of U.S. students won’t just learn about              in Wallingford, Connecticut, USA. The 31,325-square-
                        sustainability—they’ll live it every day in the classroom.               foot (2,910-square-meter) alumni-funded structure
                        Schools across the country are looking to launch thousands               targets LEED platinum status, and includes labs,
                        of projects to retrofit or completely rebuild facilities in the          adjacent greenhouses and 14 dorm rooms. Designed
                        coming years.                                                            by Robert A.M. Stern Architects, the building will be
                            “It’s a big goal, but it’s also a tremendous opportu-                powered by a 250-kilowatt photovoltaic array, a
                        nity to transform the entire design and construction                     roof-mounted solar water-heating system, a geother-
   Educational          industry for schools, as well as the schools themselves,”                mal heat pump, a water-recycling system and waste
       facilities       says Rachel Gutter, director of the U.S. Green Building                  vegetable oil.
  have a higher         Council (USGBC) Center for Green Schools, Washing-                           Slated to be operational by the 2012-2013 school year,
 percentage of          ton, D.C., USA.                                                          the center will be home to roughly 20 students in a com-
                            Progress has been steady. As of 2011, 2,292 schools from             petition to maintain a net-zero environment. Students
 LEED-certified
                        kindergarten through 12th grade had either registered or                 will not only be able to track their usage via a building
   green space
                        become certified through the USGBC LEED (Leadership in                   dashboard, but on their smartphones as well, according to
     than any           Energy and Environmental Design) program. That number                    Fast Company magazine.
         other          was nearly double among universities, with 1,370 buildings                   Of course, not every school can line up project fund-
       market           certified and another 2,982 registered.                                  ing from generous alumni—so the up-front cost of new
        sector.             One of the most ambitious is a US$20 million proj-                   construction or retrofits can be a tough sell to schools
                        ect at Choate Rosemary Hall, an upscale prep school                      on a tight budget. However, Ms. Gutter says most

     16   PM NETWORK March 2012 WWW.PMI.ORG
[metrics]                                  The laTesT
                                           sTaTisTics, surveys
                                           and sTudies




InsIde the CIO’s AgendA
Where they’re spendIng
more than half of CIos said their project investments would include:                                                                                   As most
wIndows 7                           server                           networK-Based                                 dAtA                                CIOs are
mIgrAtIOn vIrtualIzatIon                                              seCurIty                                 proteCtIon
                                                                                                                                                       direct
                                                                                                                                                       reports to

38%
of CIos were plannIng to
launCh data Center Con-
                                                                        of those,
                                                                        67 perCent
                                                                        Intend
                                                                        to adopt
                                                                        server
                                                                        vIrtualIza-
                                                                                                                                                       the CEO
                                                                                                                                                       or have a
                                                                                                                                                       seat at the
solIdatIon projeCts In 2012
                                                                        tIon.
                                                                                                                                                       executive
                                                                                                                                                       table, the

25%                                                                                                                                                    salary
                                                                        of those,
                                                                        55 perCent
                                                                        are Imple-
                                                                        mentIng
                                                                        software
                                                                                                                                                       and com-
saId they’ll IntroduCe
Cloud ComputIng
                                                                        as a servICe
                                                                        (saas).                                                                        pensation
                                                                                                                                                       needs
                                                                                                                                                       to be in
                 source: techtarget. results based on a survey of 2,642 global It professionals and business analysts published in january.




                                                                                                                                                       line with
the BOttOm LIne                                                                                                                                        [that of]
US$144,000                                                                 the average base salary of
                                                                           senior It executives in 2011
                                                                                                                                                       the busi-
                                                                                                                                                       ness line
                                                                                                                                                       leaders
                          The portion of                                                                                                               reporting
                          IT executives
                          who took on
                                                                                                           The portion of
                                                                                                           IT executives                               at that
                          new roles in
                          2011 in pursuit
                                                                                                           who reported
                                                                                                           a decrease in                               level.
     45%                  of greater
                          compensation
                                                                              17%                          compensation
                                                                                                           in 2011
                                                                                                                                                       —daniel m. ryan, CIo, City of Battle Creek,
                                                                                                                                                       michigan, usa




                                              source: CIo/It strategy media group. results based on a survey of more than 1,700 global It executives and professionals conducted in november 2011.


18   pm networK March 2012 www.pmI.org
taken to the
        the CryStal Ball                                                                                                                                     CleanerS




         49%                                                     the portion of executives in developing mar-
                                                                                                                                                             US$8.99 billion
                                                                                                                                                             The global spending on clean
                                                                 kets who expected the global economy to get
                                                                                                                                                             tech investments in 2011, a
                                                                 worse in the first six months of 2012
                                                                                                                                                             13 percent jump over 2010




         39%                                                     the portion of executives in developing mar-
                                                                 kets who expected their own economies to
                                                                 get worse in the first six months of 2012

        Source: Economic Conditions Snapshot, McKinsey Quarterly. Results based on a survey of 2,299 global executives across industries conducted
        in December 2011.
                                                                                                                                                              The increase
                                                                                                                                                              in clean tech
                                                                                                                                                              investments
                                                                                                                                                                in North
                                                                                                                                                                 America


Career ConneCtionS                                                                                                                                                  +
                                                                                                                                                                30%
                                                                                                                                                                                             -
     92% of our U.K. program and project management practitioners have a
     LinkedIn account

                                                                                                                                                                                        30%
                                                                                                                                                                                            The
                                                                                                                                                                                        decrease in
                                                                                                                                                                                        clean tech
     55% of those had been approached                                                                                                                                                  investments
     about a job opportunity through the                                                                                                                                                 in Europe
     social media network in the 12 months                                                                                                                                               and Israel
     prior to the survey

Source: 2012 Arras People Programme and Project Management Census, Arras People. Results based on an ongoing survey of 1,000 U.K. project                    Source: Quarterly Investment Monitor Report,
and program management practitioners who were actively looking for a new position in 2011.                                                                   Cleantech Group




Shopping networkS
The average number of consumer online purchases per person per month:


                                                                                                                                                                    90 perCent
                                                                                                                                         netherlandS: 2.6




                                                                                                                                                                    Of ChINESE
                                                                                                             FranCe: 2.6




                                                                                                                                                                    ONlINE
  China: 8.4




                                           USa: 5.2




                                                                               Uk: 4.3




                                                                                                                                                                    ShOPPERS
                                                                                                                                                                    USE SOCIAl
                                                                                                                                                                    MEDIA.

“Today’s global retailers have a huge opportunity to enhance the mechanisms necessary
to keep up with shoppers who are demanding more customization in terms of delivery
and returns, product choice and number of channels from which to choose.”
                                                                      Source: Customers Take Control, PwC. Results based on a survey of 7,005 consumers across three continents published in December 2011.


                                                                                                                                                                       March 2012 PM NETWORK            19
Voice

             Can you be a true project leader if you don’t have the power
Peer to
 Peer




             embedded in an organizational hierarchy?
             Two project professionals discuss what it takes to be


      Leadership Without
      Authority
                         Pat Weaver, PMI-SP, PMP: Some project managers are completely responsible for the on-
                         time, on-budget performance of work—but many organizations refuse to give them any control
                         over the people needed to do the work. The project manager is blamed for not achieving time
                         and cost outcomes.
                            This is a failure of organizational governance, which is the responsibility of executives,
                         and it’s all too common. A project manager with brilliant leadership capabilities, managing

      20   PM NETWORK March 2012 WWW.PMI.ORG
Pat Weaver, PMI-SP, PMP, is managing
                                                                                       director of Mosaic Project Services pty Ltd.,
                                                                                       a project management training and con-
                                                                                       sulting company in Melbourne, Australia.




                                                                                       Roberto Guandique is an Atlanta, Georgia,
                                                                                       USA-based partner at RTI (RealTech
                                                                                       International Inc.), an IT consulting and
                                                                                       training firm.




                                                                        and initiative. He or she does not need anybody to present the
                                                                        mantle of “authority.”

                                                                        Mr. Weaver: Leadership without management backup tends
                                                                        to create a mob on the rampage in one form or another. How-
                                                                        ever, far too many project managers rely on authority and have
                                                                        unhappy, unproductive workers in their team. The only way
                                                                        you become a true leader is if others decide to follow you. Your
                                                                        power, authority, position and management skills are largely
to make decisions or aren’t                                             irrelevant.

                                                                        Mr. Guandique: Yes, Mr. Weaver, nobody becomes a leader
an effective leader.                                                    without followers. But the true leader does not want followers;
                                                                        he or she wants to teach others how to be leaders. When I teach
                                                                        our junior people, I am trying to teach them to become inde-
                                                                        pendent, to give them autonomy. What I am trying not to do
  upwards, can sometimes overcome these hurdles, but good               is to have them depend on me to do what they are supposed to
  governance should be focused on removing those obstacles in           do themselves. This might seem like a paradox, but I think that
  the first place.                                                      every leader wants that.

  Roberto Guandique: Neither authority nor position will make           Mr. Weaver: Mr. Guandique, you’re correct—effective leader-
  you a leader. I see many professionals who, because they have         ship is embedded in the motivations of the people who elect to
  been given authority by someone higher up, think they are lead-       be your followers, and one of the key motivators is autonomy.
  ers. If that were the case, any fool with authority could be called   Good followers and good team members are also good leaders in
  a leader.                                                             their own right or aspire to become good leaders.
      When I was new in my career, I thought you needed author-
  ity to be a leader, but not anymore. If a person needs authority      Mr. Guandique: I have seen project managers who act domi-
  to lead, he or she is not a leader but a manager. A leader leads by   neering in order to be in control. It’s sad—many of the more
  pure charisma, dedication, engagement, knowledge, experience          experienced project managers are the ones who try to apply this

                                                                                                                        March 2012 PM NETWORK   21
Those who rely on
                                   authority or position are
                                   the worst leaders—and
                                   the most common.
                                           —Roberto Guandique, RTI, Atlanta, Georgia, USA



“behavioral leadership style,” and most of the time
with negative results.

Mr. Weaver: The fight to climb up the corporate
ladder in most Western corporations and bureau-
cracies, such as those in the United Kingdom, the
United States and Australia, does encourage selfish behaviors.            who people are following. Following can take many forms: the
Then, after succeeding in the corporate jungle, those same                person who is asked for advice to solve complex problems, the
people must become holistic, generous and supportive to be                person who is asked to help in negotiations or discussions, the
really effective top-level executives. It’s a hard task, and only a       person who is listened to in a meeting.
few succeed.                                                                 Leaders do not need to rely on power or authority; in fact,
                                                                          leaders can manage without formal authority if their followers
Mr. Guandique: If a leader is constantly living to the “Super-            are happy to follow.
man syndrome” created by some societies, he or she burns out
and the organization collapses. Leaders need to create other              Mr. Guandique: Sometimes the “I have 30 years’ experi-
leaders so they can take care of other personal and professional          ence and I have seen it all” mentality is the cause of failed
matters.                                                                  leadership in projects as well. We need to renew the way we
    A leader can be anybody who shows initiative to lead. Leader-         approach leadership in project management. Young, inexpe-
ship can be taught, but not everybody who goes to leadership              rienced project managers are more open to new paradigms,
training school becomes a leader. He or she must know the                 and eventually I believe they will be the
responsibility and sacrifice of leading.                                  ones who will change the approach to
                                                                          leadership.
Mr. Weaver: Leadership can be taught—but not in school. Core
traits include integrity and trust, which are innate, as well as great    Mr. Weaver: I completely disagree with
communication skills and efficient management capabilities, par-          Mr. Guandique on this point. Many of the            Join the
ticularly delegation. The last three can be taught or improved.           important traits that help leaders lead tend        discussion in
                                                                          to accumulate with age. Where older people          the Career
                                                                                                                              Central
Mr. Guandique: With so many employees, managers and “wan-                 can be at a disadvantage is cultural—what
                                                                                                                              group on
nabes” pretending to be leaders these days, how do we recognize           worked 20 years ago probably won’t be               LinkedIn.
a true leader?                                                            much use today.
    In my opinion, a leader does not try to blind us with his or              But the traits of any effective leader
her brilliance; a true leader makes us see ourselves so we can get        include a burning desire to keep on learn-
better. Few project managers I know have shown this capability.           ing, linked with flexibility, adaptability and the ability to
Those who rely on authority or position are the worst leaders—            develop rapport with and motivate their followers. Stuck-in-
and the most common.                                                      the-mud project managers who want to do the same things
                                                                          they did 10, 20 or even 30 years ago aren’t leaders—and aren’t
Mr. Weaver: If someone has to tell you they are a great leader,           very good managers. Great leaders are continually adapting to
they probably are not! To identify a leader, you just have to see         the needs of the situation and the needs of their followers. PM

22   PM NETWORK March 2012 WWW.PMI.ORG
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  • 1. PM MARCH 2012 VOLUME 26, NUMBER 3 NETWORK MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.® HOW SAFE IS THE CLOUD? STAKEHOLDER REALITY CHECK WHAT TO KNOW BEFORE YOU TAKE THE JOB GANTT AS MOTIVATOR LEADERSHIP WITHOUT AUTHORITY AIRPORT PROJECTS TAKE OFF MANAGING RISK WITH NUMBERS
  • 2.
  • 3. Lead March 2012 | Volume 26, Number 3 38 Risk by the Numbers No one can see the Patricia Galloway, PhD, PMP, Pegasus- future. But quantita- Global Holdings tive risk management Inc., Cle Elum, can help make it a Washington, USA little clearer. By Sandra A. Swanson
  • 4.
  • 5. Features MARCH 2012 | VOLUME 26, NUMBER 3 30 Who’sdata into the handsCloud? party Putting Guarding the of a third can save money, but the projects raise a host of security concerns. Here’s what every organization needs to know. By Sarah Fister Gale 44 Perception vs. Reality familiar? “It’s just a little tweak.” Sound Here’s some advice on breaching the disconnect between a stakeholder’s perception and how things really stand. By Michelle Bowles Jackson 48 Massits mainframe becomes obsolete, a When Migration city must instigate a program to move its departmental IT systems to a new server. By Peter Fretty 56 Six QuestionsJobAsk Before You Take the to Even in today’s improving labor market, it’s tempting to jump at any job offer. But while a steady paycheck is an honorable goal, it shouldn’t come at the cost of job satisfaction, a healthy career trajectory or a comfortable corporate culture. By Cindy Waxer 48 60 Timecase studies reveal the winning Four Tamers strategies project professionals used to combat time constraints—especially as circumstances changed. By Lisa Tomcko 30 44 56 60
  • 6.
  • 7. 11 also March 2012 | VOLUMe 26, NUMBeR 3 Making project ManageMent indispensable for business results.® thE PulSE 8 Emerging Markets Ready for Takeoff Developing nations see airport project boom alSO In thIS ISSuE 15 11 More Projects, Freezes Persist 7 Feedback IT spending increase doesn’t Revisiting earned value necessarily mean more jobs management 13 East Africa Looks for VOICES 18 Metrics Strength in Numbers Stats on the CIO agenda, Five nations hope partnership 20 Peer to Peer online shopping and clean will bring economic success Leadership Without Authority technology Pat Weaver, PMI-SP, PMP and 14 Chicago Rail Project Puts a Roberto Guandique 66 Help Desk Lot on the Line The Rise of VoIP High-profile revamp aims to 23 From the Top By Peter Fretty update transit route Regular Checkups Teresa Knudson, PMP, Mayo 68 Marketplace 15 Sensing Bridge Problems Clinic, Rochester, Minnesota, Books that cover the Before It’s Too Late USA “bagel metaphor” and 20 Projects seek to curb project management offices infrastructure disasters 26 Project Perspectives Can This Project Be Saved? 71 Directory of Services 16 Little Green Schoolhouses Project management U.S. schools ramp up 28 In the Trenches resources sustainability measures Unclear on the Concept By Grace Willis, PMP 72 Closing Credit Japan’s 40-year nuclear cleanup COlumnIStS 24 Trend Watch Leadership Counsel By Roberto Toledo, MBA, PMP, Contributing Editor 24 25 What’s at Stake The Gantt You Might Not Know By Lynda Bourne, DPM, PMP DOWNLOAD THE PM NETWORK APP and read the magazine on your iPad, iPhone or iPod Touch. 28
  • 8. NETwORk THE PROFESSIONAL MAGAZINE OF THE PROJECT MANAGEMENT INSTITUTE Publication & MeMbershiP PM Network (ISSN 1040-8754) is published monthly by the Project Management Institute. PM Network is printed in the USA by Quad Graphics, Sussex, wisconsin. Periodical postage paid PMI Staff contrIbutIng edItorS at Newtown Square, PA 19073-3299 and at additional mailing offices. Canadian agreement #40030957. Postmaster: Send address changes to PM Network, 14 Campus Boulevard, New- Vice President, Brand Management Alfonso Bucero, PMP, Bucero PM Con- town Square, PA 19073-3299 USA. Phone +1 610 356 4600, fax +1 610 482 9971. Lesley Bakker; lesley.bakker@pmi.org sulting The mission of PM Network is to facilitate the exchange of information among professionals in the field of project and program management, provide them with practical tools and techniques, Publisher Sheilina Somani, PMP, Positively and serve as a forum for discussion of emerging trends and issues. All articles in PM Network are Donn Greenberg; donn.greenberg@pmi.org the views of the authors and are not necessarily those of PMI. Project Management Subscription rate for members is US$42/year and is included in the annual dues. PMI is Editor in Chief Roberto Toledo, MBA, PMP, Alpha PM a nonprofit professional organization dedicated to advancing the state of the art of project management. Membership in PMI is open to all at an annual dues of US$119. For information Dan Goldfischer; dan.goldfischer@pmi.org Consulting on PMI programs and membership, or to report change of address or problems with your sub- Publications Production Supervisor Neal Whitten, PMP, The Neal Whitten scription, contact: Barbara Walsh; barbara.walsh@pmi.org Group Periodicals Associate Natasha Pollard; natasha.pollard@pmi.org 2012 PMI board of dIrectorS Project ManageMent institute Reader Feedback: editorial@pmi.org Chair 14 Campus Boulevard / Newtown Square, PA 19073-3299 USA Peter Monkhouse, BSc(Eng), MBA, Tel +1 610 356 4600; Fax +1 610 482 9971 Bookstore: bookstore@pmi.org E-mail: customercare@pmi.org PEng, PMP Toll-free: 1 855 746 7879 (United States) / 1 855 746 7879 (Canada) / 1 800 563 0665 (Mexico) +1 416 702 9574, PMi asia Pacific service centre advertISIng SaleS peter.monkhouse@bod.pmi.org Singapore For advertising information, contact: Tel: +65 6496 5501 / E-mail: customercare.asiapac@pmi.org Vice Chair J.T. 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  • 9. Feedback EVM, Revisited Facebook I am writing in response to Roger Kent’s comments in the Feedback section of the can a project manager become the January edition (page 6). I am amazed that a PMI publication would print—even next ceo? in a Feedback column—something that demonstrates such a basic misunder- standing of professional project management. A better question is: How is a CEO not a project manager? Mr. Kent seems to believe that understanding “percent complete” is somehow —Jefferson Nicholson unobtainable. Professionals believe that knowing what has been completed on a project, in terms of tangible deliverables, and expressed as a percentage of I feel that being a project manager is a great path to planned completion to date, is critical. executive leadership. As a project manager, you’re Mr. Kent fails to understand that if these numbers are made up, he has bigger exposed to many different challenges and varying tech- problems than a nologies, and you are typically a master communicator failure to apply and problem solver. Marry that with some strategic The notion that EVM only works earned value man- thinking, and you are on your way. in the context of “very large, agement (EVM). structured projects that last —Rick Roe Likewise, tasks that over a year and spend more than are “95 percent US$1 million” is nonsensical. join the discussion at complete…for a facebook.com/PMinstitute. long time” are not making any progress while expending money. It doesn’t take EVM to understand this, though EVM techniques will tend to highlight these is- sues before they are uncorrectable. Voices on Project ManageMent blog Finally, the notion that EVM only works in the context of “very large, struc- tured projects that last over a year and spend more than US$1 million” is nonsen- //Poll// sical. EVM works for any project that has a budget, can associate that budget with to what degree have actual work, has a way to measure the work accomplished and compare it with you noticed increased planned accomplishments, and captures actual cost. These are the basis of having schedule compression on projects at your a credible project plan and a credible project management method. organization? —Saul Ackovitz, PMP, Reston, Virginia, USA Extensive 43.5% We want to hear from you. Send letters to pmnetwork@imaginepub.com. Some 43.5% Opinions expressed in Feedback are not necessarily those of PM Network. Not at all 13%
  • 10. thePul US$3.1 120 million US$150 billion The amount Brazil budgeted to rebuild its The number of annual passengers the Al Maktoum International Airport in Dubai, United Arab Emirates, will be able to billion The amount slotted for airport airport infrastructure to prepare for the handle when it’s completed in 2017 projects in developing markets 2014 World Cup and 2016 Olympics 8 PM NETWORK March 2012 WWW.PMI.ORG
  • 11. se EmErging markEts rEady for takEoff high-flying economies in emerging markets mean an influx of people coming and going—further tax- ing an already inadequate airport infrastructure. Governments from Vietnam to Saudi arabia to Kenya are respond- ing with a fleet of megaprojects to revamp ailing airports or start new ones from scratch. roughly US$150 billion is slotted for airport infrastructure and expansion proj- ects in developing regions, accord- ing to arabian reach. Nearly one-third of that money is being spent in booming Middle East markets. That lineup includes the luxurious US$10 billion al Mak- toum International airport in IMagE cOuRTEsy Of fOsTER + PaRTNERs Queen Alia International Airport, Amman, Jordan March 2012 PM NETWORK 9
  • 12. thePulse Dubai, United Arab Emirates, which will be able to handle 12 million Up iN The air tonnes of annual cargo capacity and 120 million passengers upon A sampling of airport completion in 2017. In neighboring Qatar, New Doha International megaprojects around the Airport is due to open later this year in the capital; it’s billed as the globe: first global project designed with the new Airbus A380 in mind. King abdul aziz Struggling for a return to normalcy after years of war, Iraq international, Jeddah, recently announced it will build a new airport in Mansuriya, with Saudi Arabia project planners working under the protection of Iraqi security al Maktoum forces, according to AviationPros.com. Karbala also plans to seek international airport, The NighT bids later this year for an airport capable of handling 5 million pas- Dubai, United Arab Emirates ShifT sengers a year. New Doha international Almost all airport revamp Not all teams face such extreme conditions, of course. But emerg- airport, Doha, Qatar projects have to take place ing markets often present daunting project environments plagued without disrupting day-to-day Daxing international operations. by a lack of project management expertise and woefully inadequate airport, Beijing, China Global engineering giant infrastructures. At the same time, teams are under extreme time Bechtel is currently manag- pressures to accommodate growing airport traffic. Dubai international ing an expansion project airport (Concourse 3), at McCarran Airport in Las In response to a 15 percent jump in air traffic at Amman, Jor- Dubai, United Arab Emirates Vegas, Nevada, USA. To avoid dan’s Queen Alia International Airport, the government launched interfering with the airport’s a major expansion project. The renovated airport will feature a 500,000 annual flights—and associated stream of baggage high-tech roof consisting of photovoltaic canopies that harness sun- light, providing renewable energy and natural ventilation. Slated for tractors, passengers and air- line employees—the project completion later in 2012, a new US$600 million terminal should be Although team must juggle construc- tion equipment, materials and able to handle 12 million passengers a year, nearly three times the 56 percent up to 2,000 workers. In response to this chal- current capacity. of U.S. com- lenge, Bechtel shifted some China’s four largest airports—including Hong Kong’s—each saw passenger traffic increase by at least 10 percent, according to panies plan of the construction activities to the early-morning hours, Airports Council International. To accommodate that influx, the to increase when the flight schedule was Chinese government is building Daxing International Airport near tech spending, less aggressive. “Obviously, there is always Beijing. Scheduled for completion in 2017, the nine-runway facility workers can a potential cost impact associated with nighttime will have a capacity of 200 million, staking its claim as the busi- est airport in the world. The new project would also relieve some expect average working,” says Don Wright, of the pressure on the Beijing Capital International Airport. The raises of just Bechtel’s project manager on the Las Vegas expansion. “We facility is currently over capacity despite construction three years 2.8 percent. try to reduce nighttime work ago of Terminal 3—which by itself is 17 percent larger than London, Source: InformationWeek’s Outlook 2012, as much as possible, and we England’s Heathrow Airport. and Computer Economics’ 2012 IT Salary would always advise contrac- Report tors if overtime was expected or required so they could plan Will Brazil Be Ready? accordingly. Often, the con- The 2008 Summer Olympics provided some of the impetus for struction costs for overtime Beijing’s Terminal 3, and preparation for the 2014 World Cup and were significantly less than the costs of disrupting pas- 2016 Olympics is putting host Brazil in a similar spot. Hundreds of sengers and airlines during thousands of visitors are expected to descend for each event, putting daytime hours.” more strain on an overburdened airport infrastructure. So far, the US$3.1 billion revamp has had a bumpy flight. In early 2011, the Brazilian Audit Court criticized government officials for missing deadlines, not controlling costs and lacking transparency. Even soccer legend Pele, an ambassador to the World Cup, piled on, saying “Brazil is not ready.” An upgrade of the Viracopos-Campinas Airport near São Paulo suffered a significant schedule setback after project planners failed to obtain necessary environmental licenses. 10 PM NETWORK MaRch 2012 WWW.PMI.ORG
  • 13. Delays in the bidding process also hampered how to schedule, given the rigid deadlines and construction work at northeastern Brazil’s busiest booming traffic. “Brazil has a short timeframe airport, in Salvador. to deliver significant capacity and efficiency Experienced multinational partners are look- upgrades to their airport infrastructure,” she says. ing to help, drawing on their earlier experiences Because the government requires consor- with similar ventures. ICN Gateway, a network of tia tendering for concessions at the airports Australian construction companies and suppliers, in Guarulhos, Campinas and Brasilia to have is looking to fill that role in Brazil—again with at least one team member with experience in the Olympics as a common thread. The company operation of airports with more than 5 million is going in armed with experience preparing the passengers per year, most Brazilian consor- country’s infrastructure for the Sydney Olympics tia will need a global partner in their team, in 2000 and Melbourne’s 2006 Commonwealth Ms. Costa-Wong says. Likewise, she says Games. multinationals hoping to get a foot in the door To land any large airport contract, companies in Brazil will benefit from partnering with local need to prove their project management exper- firms. tise, says Candida Costa-Wong, ICN’s interna- If emerging markets can manage the myriad tional business capability adviser in Melbourne, challenges that airport projects pose, the sky’s the Victoria, Australia. Companies also must know limit. —Louis La Plante IT Job ouTlook: More Projects, Freezes Persist U.S. companies plan to launch more IT projects in 2012—but that doesn’t necessarily mean a jump in job openings or salaries. Even as a talent war rages in Silicon Valley, career prospects remain sluggish overall. Infor- mationWeek’s Outlook 2012 report found that 56 percent of the 605 U.S.-based tech profes- sionals surveyed planned increased tech spend- ing, and three-quarters reported heightened demand for new IT projects. However, the survey also found that hiring freezes will persist for nearly one-third of companies, and 36 per- cent said they’ll only fill openings for existing positions. The survey posits that outsourcing, virtualization and cloud computing are allow- ing companies to get by with smaller staffs. Overall IT compensation also remains flat, according to a tracking survey by Janco March 2012 PM NETWORK 11
  • 14. thePulse Different Skills, Different Fates Not all IT project professionals computing skills will have no and oil and gas sectors—are are mired in a soft job market. trouble finding work. struggling to fill roles, he says. “In the IT world, there are IT project managers frus- “The ideal mix is someone always skill shortages in the trated with the U.S. market who is bilingual with a project growth technologies, and may also want to look beyond management background and many IT organizations have no their home borders. knowledge of finance or engi- choice but to pay up for those “Many clients come to us neering,” Mr. Shanahan says. skills or turn to service provid- who are developing projects In Brazil, IT project man- ers for in-demand expertise— worldwide, and they’re looking agers who speak English, and pay a premium,” according for project managers who can Portuguese and Spanish can to Computer Economics’ 2012 run big integrated projects,” virtually write their own tick- IT Salary Report. says Keric Shanahan, Experis, ets, he says. “It’s taking 60 to Dice.com predicts that Atlanta, Georgia, USA. 90 days to fill many of these IT professionals with .Net, Companies in Brazil and high-tech roles, and the more mobile application develop- India—particularly in the specific the request, the longer ment, virtualization and cloud finance, mining and metals, it takes.” Associates and eJobDescription.com. The experience should find opportunities. Proj- total mean compensation for IT professionals ect management ranked number five on IT across North America increased only 0.81 per- recruitment website Dice.com’s list of priority cent last year to US$78,229 from US$77,604 skills to hire for 2012, for example. “The best at the beginning of 2011. And even that came IT project managers looking to build their opportunities with a major caveat: The bump only put com- marketability should focus on honing their require pensation back to January 2008 levels. business analytic skills and demonstrating people who Overall, 2012 doesn’t look all that promis- ing on the salary front. Computer Economics’ the strategic value they’ll bring to a project, says Keric Shanahan, PMP, director of global can wear 2012 IT Salary Report revealed that the aver- project management at Experis, an engineer- that business age pay raise for U.S. IT workers will be a less- ing, IT and finance resourcing firm in Atlanta, hat and not than-dazzling 2.8 percent, with little variance Georgia, USA. only run a for experience or position. “The best opportunities,” he says, “require Despite the mediocre market, project people who can wear that business hat and not project, but professionals with the right combination only run a project, but justify the requirements justify the of technical skills and project management that go into it.” —Sarah Fister Gale requirements that go Down and Out into it.” IT employment in the United States remains flat. EmploymEnT (in Thousands) —Keric Shanahan, PMP, Experis, Atlanta, Georgia, USA 3,200 3,000 2,800 2,600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 u.s. naTional novEmbEr EmploymEnT for iT by yEar Source: U.S. Bureau of Labor Statistics/Janco Associates 12 PM NETWORK March 2012 WWW.PMI.ORG
  • 15. East Africa Looks for Uganda Kenya Strength in Numbers Rwanda Burundi More than three decades after its first attempt Not everyone is quite so bull- Tanzania Indian Ocean fizzled, the East African Community (EAC) is ish on the prospects of the EAC once again positioning itself as an economic pow- becoming a new project hot spot— erhouse in Africa. By combining forces, Kenya, especially within the hoped-for schedule. Rwanda, Tanzania, Burundi and Uganda aim to The EAC leadership’s timeline for pull in investment to support and sustain eco- regional integration is highly unrealistic, says nomic growth—and projects—across the region. Mark Bohlund, senior economist, Sub-Saharan The EAC was first founded in 1967, but dis- Africa at IHS Global Insight, London, England. banded 10 years later due to intense political “The East African Common Market Protocol is infighting. It was revived in 2000, and in recent nowhere near implemented, and when the leader- years, the consortium has seen steady economic ship set those targets, they took little notice of their growth. Combined real GDP increased 5.9 percent ability to meet them,” he explains. in 2010, compared to a 4.9 percent global rate. The European Union took close to 50 years to In 2012, the World Bank predicts EAC econo- achieve similar results, he says, “and they had supe- mies will expand between 5 and 7.6 percent, with rior capacity during that time.” Rwanda and Tanzania leading the pack. The EAC region is also under renewed pres- That kind of growth is a powerful step toward sure to deal with rising security issues, including the EAC’s goal of establishing a common currency piracy, cyber crime, terrorism, human trafficking Traffic this year and forming a political federation in 2015. A single currency—patterned after the euro— and money laundering. Beatrice Kiraso, EAC deputy secretary general in charge of politi- Jams Stall could ease regional companies’ concerns about cal federation, has said she’s worried that the Growth? exchange rates and spur project activity. threats, if left unaddressed, could greatly under- Whether project investors come or not could depend on The group has already opened up borders of all mine regional integration. the ability of East Africa Com- member states for labor and capital, and has a cus- There are also economic realities to contend munity countries to address toms union, common market, legislative assembly, with. Burundi remains one of the world’s poor- their abysmal infrastructure. Investments in infrastructure bank and court. There are even calls to let South est nations, still recovering from the wounds of a in Sub-Saharan Africa have Sudan and the Democratic Republic of the Congo decade-long civil war. averaged about US$10 billion join the bloc. Still, Mr. Bohlund says the nation has made per year, which is only half of what is needed to support As things stand, the efforts have sparked a progress in improving its business environment sustained economic growth, jump in intraregional trade from US$1.8 billion over the past year; the World Bank ranked it eighth according to the World Bank in 2005 to US$2.7 billion in 2008, according to a on its 2012 list of the top business reformers. Group. report in Financial Times. “The EAC is the fastest- Rwanda, too, has made tremendous strides Port and transportation network projects could make growing of all the Africa regional economic com- in improving its business landscape. The World or break the community’s munities,” Donald Deya, CEO of the Pan African Bank’s Ease of Doing Business index ranked the future, argues IHS Global Lawyers Union, told the U.K. financial newspaper. country 45th in 2012, taking into account 10 cat- Insight’s Mark Bohlund. Projects such as the mas- The potential for even more growth is signifi- egories, including ease of securing construction sive retrofit of the dilapidated cant: The EAC nations have more than 133 million permits, access to electricity, credit availability and Kenya-Uganda railways by people, with a combined GDP of US$80 billion. protection for investors. the Rift Valley Railways con- sortium must be completed “We want to make business easier for the “This makes Rwanda attractive for foreign for the region to sustain any business community and to also make life easier investors in spite of its small size and lack of economic growth, he says. “If for East Africans,” Owora Richard Othieno, head natural resources,” Mr. Bohlund says. “Many com- they are successful with these of the EAC’s Department of Corporate Com- panies can use Rwanda as a base for project opera- kinds of projects, it should have large implications for munication and Public Affairs, told Public Radio tions due to its superior business environment.” the cost of doing business in International. Kenya, on the other hand, ranked 109th, falling this region.” March 2012 PM NETWORK 13 PMN0312 1-17.indd 13 2/22/12 11:46 AM
  • 16. thePulse three positions from the year before. But its advanced economy, size, location and in neighboring countries. “Tanzania is afraid thriving private sector give it many distinct advantages over its peers, Mr. Bohlund Kenyans will buy up its land, and Uganda fears says. Its strong banking sector and prime location on the Indian Ocean make it the Kenyans will take all their skilled labor jobs,” Mr. business and transportation hub for the entire region. “If you want to go to East Bohlund says. Africa, the easiest way is to go through Kenya,” he notes. Yet part of the bloc’s power is based on making Kenya may in fact be too strong. Its advanced economy could create tension the most of each member’s individual strengths. among other members, particularly when it brings its own citizens to run projects Both Tanzania and Uganda, for example, have huge oil deposits, making them attractive destina- tions for mining and energy projects. In January, Real GDP Growth Rates Tanzania announced that it had begun working on strategies to prepare the economy to better Partner State 2005 2006 2007 2008 2009 2010 accommodate natural gas investments. The gov- Burundi 0.9 5.5 3.6 4.5 3.5 3.9 ernment is planning a major project to construct Tanzania 7.4 6.7 7.1 7.4 6.0 7.0 a gas pipeline from Mnazi Bay in Mtwara to Dar Uganda 10.0 7.0 8.1 10.4 3.9 5.6 es Salaam to be operational by the end of 2012, Kenya 5.7 6.1 7.0 1.7 2.6 5.6 according to Daily Monitor. Rwanda 7.2 6.5 7.9 11.2 6.1 7.5 EAST AFRICA 6.2 6.4 6.7 7.0 4.4 5.9 They may have joined forces, but each nation is wisely carving out its own niche. Source: Partner States Note: Rates for Uganda were computed using GDP in local currency —Sarah Fister Gale RIDERS Chicago GOAL: Complete the project without alienating commuters Rail Project CHALLENGE: The team has already exceeded the federally required efforts to inform the public during the planning and early construction stages. Follow- Puts a Lot ing the model of a decade-long CTA project to reno- vate the Brown Line completed in 2009, the Red Line team holds frequent community meetings. On the Line “Input from public stakeholders—community leaders, elected officials, residents and transit riders—can inform decisions about project scope, scheduling and phasing,” says CTA spokeswoman. Every weekday, more than 250,000 rail Catherine A. Hosinski. commuters ride the Red Line that connects the north and south sides of Chicago, Illinois, USA. Running 24 hours a day, seven days a week, it’s the city’s busiest line. Given that kind of traffic, the Chicago Transit Author- ity (CTA) decided to launch a US$1 billion mega makeover that covers track replace- TRACK ment, station upgrades and power system GOAL: Replace dilapidated tracks over the approximately enhancements. Now the agency just needs 10-mile (16-kilometer) stretch between 18th and 95th streets to eliminate so-called “slow zones” where trains to figure out how to do all that within bud- must operate at 15 miles (24 kilometers) per hour, instead get, on schedule—and with minimal disrup- of the optimal 55 (89) tion to the city’s stakeholders. CHALLENGE: The Red Line travels through residential and business areas, restricting the times that crews can labor on the project. And because the line runs at grade on the median of a major expressway, work must be scheduled within space limitations and coordinated with the state transportation department that oversees the expressway. 14 PM NETWORK MARCH 2012 WWW.PMI.ORG
  • 17. SENSING BRIDGE loads, weather, and other issues that cause damage or deterioration.” The issue is figuring out which bridges are fine and which ones PROBLEMS BEFORE need repair. Making the wrong choice could lead to sudden closure of a criti- IT’S TOO LATE cal transportation link—or worse, a collapse. In 2007, the eight-lane Interstate 35 bridge over the Mississippi River in Minneapolis, Min- nesota, USA, collapsed during evening rush hour, killing 13 people Cash-strapped U.S. municipalities are playing a dangerous game and injuring 145. It was the fifth-busiest bridge in the state, and was with aging bridge infrastructure, often postponing maintenance proj- out of commission for more than a year. ects until absolutely necessary. But they now have a new weapon: Using sensors can help municipalities better manage risk and align high-tech tracking sensors that can better pinpoint those bridges in maintenance funds with the bridges in the greatest need of repair. need of immediate renovation. “Traditional metrics rely on visual inspections,” Dr. Sanayei says, “Using these sensors, we can increase safety, reduce risk and save but that information should be complemented with sensors placed millions of dollars annually by focusing investments on those bridges around the structure to track strains and stresses associated with that require fixing,” says Masoud Sanayei, PhD, a professor in the everyday usage that cannot be easily found with visual inspections. department of civil and environmental engineering at Tufts Univer- Dr. Sanayei and his team are completing a pilot project to test the sity in Medford, Massachusetts, USA. technology on a bridge in Barre, Massachusetts. With support from “Just because a bridge is old doesn’t mean it will collapse,” he the National Science Foundation, the team installed more than 200 explains. “It depends on how well it’s been built and maintained, traffic sensors on the span. The data collected will then be compared to a STATIONS GOAL: Revamp aging and sometimes run- down stations, including adding elevators and rehabbing the platform and mezzanine at the 69-year-old Clark and Division stop CHALLENGE: The work could entail multiple and simultaneous speed restrictions, single- track operations and temporary track closures— all while the station stays operational. That means the project team must develop not only service plans that reflect the multiple construc- tion projects, but also new service contingency plans for any unplanned interruptions, says Ms. Hosinski. IMAGES COURTESY OF WIKIPEDIA SUBWAY GOAL: Upgrade the ventilation system on the underground portion of the Red Line that runs through downtown CHALLENGE: The bulk of Chicago tourists visit sometime during May through October—and most of them congregate downtown. Those additional passengers require the project team to schedule accordingly and communicate any changes. MARCH 2012 PM NETWORK 15
  • 18. thePulse them is fairly small, whereas if the problem is left undiscovered it can lead to more costly problems.” Dr. Kalantari founded his company, Resen- sys—a startup funded by the University of Mary- land—to commercialize a technology that uses wireless sensors installed on bridges to track strain, IMaGE cOuRTEsy Of WIKIPEdIa vibration, tilt, temperature and other conditions. The devices transmit data to servers using cellular networks so bridge conditions can be tracked in real time. A central computer analyzes the data and instantly warns officials of possible trouble. In February, Dr. Kalantari wrapped up a pilot The Interstate 35 Mississippi River bridge after the 1 August 2007 collapse project, with support from the Maryland State Highway Administration, that used more than a baseline of what a healthy bridge looks like. dozen sensors to monitor conditions and measure Being able to more accurately assess risk and select bridge maintenance projects is structural parameters of highway bridges. After vital in a country where one in four bridges were deemed either structurally deficient 18 months of tracking results and conducting or functionally obsolete by the American Society of Civil Engineers. The organization follow-up evaluations, the project demonstrated called for a US$17 billion annual investment in 2009 (the last year for which figures are that every time the sensors detected an issue, the available), yet only US$10.5 billion is spent annually on bridge construction and main- location and scope of the problem detected were tenance projects. accurate. Sensors could help make the most of those limited funds. U.S. President Barack Obama has made a “The most up-front benefit of the technology is the cost savings in maintenance vigorous appeal for additional infrastructure projects,” says Mehdi Kalantari, PhD, research scientist at the University of Maryland spending, but the sensors could be another way to in College Park, Maryland, USA. “If you can discover issues early enough, the cost to fix bridge the gap. —Sarah Fister Gale Little Green Schoolhouses The next generation of U.S. students won’t just learn about in Wallingford, Connecticut, USA. The 31,325-square- sustainability—they’ll live it every day in the classroom. foot (2,910-square-meter) alumni-funded structure Schools across the country are looking to launch thousands targets LEED platinum status, and includes labs, of projects to retrofit or completely rebuild facilities in the adjacent greenhouses and 14 dorm rooms. Designed coming years. by Robert A.M. Stern Architects, the building will be “It’s a big goal, but it’s also a tremendous opportu- powered by a 250-kilowatt photovoltaic array, a nity to transform the entire design and construction roof-mounted solar water-heating system, a geother- Educational industry for schools, as well as the schools themselves,” mal heat pump, a water-recycling system and waste facilities says Rachel Gutter, director of the U.S. Green Building vegetable oil. have a higher Council (USGBC) Center for Green Schools, Washing- Slated to be operational by the 2012-2013 school year, percentage of ton, D.C., USA. the center will be home to roughly 20 students in a com- Progress has been steady. As of 2011, 2,292 schools from petition to maintain a net-zero environment. Students LEED-certified kindergarten through 12th grade had either registered or will not only be able to track their usage via a building green space become certified through the USGBC LEED (Leadership in dashboard, but on their smartphones as well, according to than any Energy and Environmental Design) program. That number Fast Company magazine. other was nearly double among universities, with 1,370 buildings Of course, not every school can line up project fund- market certified and another 2,982 registered. ing from generous alumni—so the up-front cost of new sector. One of the most ambitious is a US$20 million proj- construction or retrofits can be a tough sell to schools ect at Choate Rosemary Hall, an upscale prep school on a tight budget. However, Ms. Gutter says most 16 PM NETWORK March 2012 WWW.PMI.ORG
  • 19.
  • 20. [metrics] The laTesT sTaTisTics, surveys and sTudies InsIde the CIO’s AgendA Where they’re spendIng more than half of CIos said their project investments would include: As most wIndows 7 server networK-Based dAtA CIOs are mIgrAtIOn vIrtualIzatIon seCurIty proteCtIon direct reports to 38% of CIos were plannIng to launCh data Center Con- of those, 67 perCent Intend to adopt server vIrtualIza- the CEO or have a seat at the solIdatIon projeCts In 2012 tIon. executive table, the 25% salary of those, 55 perCent are Imple- mentIng software and com- saId they’ll IntroduCe Cloud ComputIng as a servICe (saas). pensation needs to be in source: techtarget. results based on a survey of 2,642 global It professionals and business analysts published in january. line with the BOttOm LIne [that of] US$144,000 the average base salary of senior It executives in 2011 the busi- ness line leaders The portion of reporting IT executives who took on The portion of IT executives at that new roles in 2011 in pursuit who reported a decrease in level. 45% of greater compensation 17% compensation in 2011 —daniel m. ryan, CIo, City of Battle Creek, michigan, usa source: CIo/It strategy media group. results based on a survey of more than 1,700 global It executives and professionals conducted in november 2011. 18 pm networK March 2012 www.pmI.org
  • 21. taken to the the CryStal Ball CleanerS 49% the portion of executives in developing mar- US$8.99 billion The global spending on clean kets who expected the global economy to get tech investments in 2011, a worse in the first six months of 2012 13 percent jump over 2010 39% the portion of executives in developing mar- kets who expected their own economies to get worse in the first six months of 2012 Source: Economic Conditions Snapshot, McKinsey Quarterly. Results based on a survey of 2,299 global executives across industries conducted in December 2011. The increase in clean tech investments in North America Career ConneCtionS + 30% - 92% of our U.K. program and project management practitioners have a LinkedIn account 30% The decrease in clean tech 55% of those had been approached investments about a job opportunity through the in Europe social media network in the 12 months and Israel prior to the survey Source: 2012 Arras People Programme and Project Management Census, Arras People. Results based on an ongoing survey of 1,000 U.K. project Source: Quarterly Investment Monitor Report, and program management practitioners who were actively looking for a new position in 2011. Cleantech Group Shopping networkS The average number of consumer online purchases per person per month: 90 perCent netherlandS: 2.6 Of ChINESE FranCe: 2.6 ONlINE China: 8.4 USa: 5.2 Uk: 4.3 ShOPPERS USE SOCIAl MEDIA. “Today’s global retailers have a huge opportunity to enhance the mechanisms necessary to keep up with shoppers who are demanding more customization in terms of delivery and returns, product choice and number of channels from which to choose.” Source: Customers Take Control, PwC. Results based on a survey of 7,005 consumers across three continents published in December 2011. March 2012 PM NETWORK 19
  • 22. Voice Can you be a true project leader if you don’t have the power Peer to Peer embedded in an organizational hierarchy? Two project professionals discuss what it takes to be Leadership Without Authority Pat Weaver, PMI-SP, PMP: Some project managers are completely responsible for the on- time, on-budget performance of work—but many organizations refuse to give them any control over the people needed to do the work. The project manager is blamed for not achieving time and cost outcomes. This is a failure of organizational governance, which is the responsibility of executives, and it’s all too common. A project manager with brilliant leadership capabilities, managing 20 PM NETWORK March 2012 WWW.PMI.ORG
  • 23. Pat Weaver, PMI-SP, PMP, is managing director of Mosaic Project Services pty Ltd., a project management training and con- sulting company in Melbourne, Australia. Roberto Guandique is an Atlanta, Georgia, USA-based partner at RTI (RealTech International Inc.), an IT consulting and training firm. and initiative. He or she does not need anybody to present the mantle of “authority.” Mr. Weaver: Leadership without management backup tends to create a mob on the rampage in one form or another. How- ever, far too many project managers rely on authority and have unhappy, unproductive workers in their team. The only way you become a true leader is if others decide to follow you. Your power, authority, position and management skills are largely to make decisions or aren’t irrelevant. Mr. Guandique: Yes, Mr. Weaver, nobody becomes a leader an effective leader. without followers. But the true leader does not want followers; he or she wants to teach others how to be leaders. When I teach our junior people, I am trying to teach them to become inde- pendent, to give them autonomy. What I am trying not to do upwards, can sometimes overcome these hurdles, but good is to have them depend on me to do what they are supposed to governance should be focused on removing those obstacles in do themselves. This might seem like a paradox, but I think that the first place. every leader wants that. Roberto Guandique: Neither authority nor position will make Mr. Weaver: Mr. Guandique, you’re correct—effective leader- you a leader. I see many professionals who, because they have ship is embedded in the motivations of the people who elect to been given authority by someone higher up, think they are lead- be your followers, and one of the key motivators is autonomy. ers. If that were the case, any fool with authority could be called Good followers and good team members are also good leaders in a leader. their own right or aspire to become good leaders. When I was new in my career, I thought you needed author- ity to be a leader, but not anymore. If a person needs authority Mr. Guandique: I have seen project managers who act domi- to lead, he or she is not a leader but a manager. A leader leads by neering in order to be in control. It’s sad—many of the more pure charisma, dedication, engagement, knowledge, experience experienced project managers are the ones who try to apply this March 2012 PM NETWORK 21
  • 24. Those who rely on authority or position are the worst leaders—and the most common. —Roberto Guandique, RTI, Atlanta, Georgia, USA “behavioral leadership style,” and most of the time with negative results. Mr. Weaver: The fight to climb up the corporate ladder in most Western corporations and bureau- cracies, such as those in the United Kingdom, the United States and Australia, does encourage selfish behaviors. who people are following. Following can take many forms: the Then, after succeeding in the corporate jungle, those same person who is asked for advice to solve complex problems, the people must become holistic, generous and supportive to be person who is asked to help in negotiations or discussions, the really effective top-level executives. It’s a hard task, and only a person who is listened to in a meeting. few succeed. Leaders do not need to rely on power or authority; in fact, leaders can manage without formal authority if their followers Mr. Guandique: If a leader is constantly living to the “Super- are happy to follow. man syndrome” created by some societies, he or she burns out and the organization collapses. Leaders need to create other Mr. Guandique: Sometimes the “I have 30 years’ experi- leaders so they can take care of other personal and professional ence and I have seen it all” mentality is the cause of failed matters. leadership in projects as well. We need to renew the way we A leader can be anybody who shows initiative to lead. Leader- approach leadership in project management. Young, inexpe- ship can be taught, but not everybody who goes to leadership rienced project managers are more open to new paradigms, training school becomes a leader. He or she must know the and eventually I believe they will be the responsibility and sacrifice of leading. ones who will change the approach to leadership. Mr. Weaver: Leadership can be taught—but not in school. Core traits include integrity and trust, which are innate, as well as great Mr. Weaver: I completely disagree with communication skills and efficient management capabilities, par- Mr. Guandique on this point. Many of the Join the ticularly delegation. The last three can be taught or improved. important traits that help leaders lead tend discussion in to accumulate with age. Where older people the Career Central Mr. Guandique: With so many employees, managers and “wan- can be at a disadvantage is cultural—what group on nabes” pretending to be leaders these days, how do we recognize worked 20 years ago probably won’t be LinkedIn. a true leader? much use today. In my opinion, a leader does not try to blind us with his or But the traits of any effective leader her brilliance; a true leader makes us see ourselves so we can get include a burning desire to keep on learn- better. Few project managers I know have shown this capability. ing, linked with flexibility, adaptability and the ability to Those who rely on authority or position are the worst leaders— develop rapport with and motivate their followers. Stuck-in- and the most common. the-mud project managers who want to do the same things they did 10, 20 or even 30 years ago aren’t leaders—and aren’t Mr. Weaver: If someone has to tell you they are a great leader, very good managers. Great leaders are continually adapting to they probably are not! To identify a leader, you just have to see the needs of the situation and the needs of their followers. PM 22 PM NETWORK March 2012 WWW.PMI.ORG