Rashmitha AnuguDiscussion 77 hours agoQ1. What should Mark h.docx

Rashmitha Anugu
Discussion 7
7 hours ago
Q1. What should Mark have done if Jack still was not able to
resolve the problem?
McRoy Aerospace was into building freight planes and refueling
tankers. Be that as it may, they needed to contend in a market of
building business airplane. McRoy could be an effective rival in
the matter of assembling business airplane on the off chance
that they could discover an answer for the issue of having a
instrument for every one of the four sets of entryways in the
airplane.
Jack has been an accomplished specialist and most important
asset for McRoy Aerospace, and Mark was persuaded that Jack
was the one in particular who could discover an answer for the
issue. Mark depended excessively on one representative, which
is constantly dangerous and is never suggested while rivaling
organizations like Boeing and Airbus. In the event that Jack
couldn't think of an answer, Mark could direct or an open test
where workers and ongoing alumni can take an interest and take
care of the issue independently.
Q2. Would it make sense for Mark to assign this problem to
someone else now after Jack could not solve the problem the
second time around?
In the wake of giving Jack adequate time, depending on him,
and pushing him to concoct an answer, it looks bad to drive
Jack further, and it would be a smart thought to relegate this
issue to another person. While rivaling solid contenders like
Boeing, it's better not to depend on one worker. Mark should
locate some other official with exceptional and hands-on
understanding, who is happy to respond to the call and is certain
to think of an answer.
References

Kerzner, Harold. (2013) Project management: a systems
approach to planning, scheduling, and controlling, John Wiley
& Sons. 14-600. Newyork, NY.
Thomaz, J. (2014). Knowledge Management on PMO’s
Perspective: A Systematic Review. European Conference on
Knowledge Management, 1, 233.
Jeevan Manda
Discussion 7
5 days ago
1 reply
Last 3 days ago
What should Mark have done if Jack still was not able to
resolve the problem?
Mark has an extensive measure of want on Jack. He figured Jack
would think about a blueprint for using all comparative doors
for the plane. Many people believe that if a person has a strong
professional skills to expose to some degree of power and
excitement, and deal with several task groups, he or it can be
delegated to a project manager as part of it. He may raise Jack
and his individual coworkers to keep examining for an answer
as long as despite everything they suspected it totally was
feasible, anyway approaching Jack to keep testing for a
response to the issue would are exclusively coherent if Jack still
kept up a practical enthusiasm for doing achieving the work.
Clearly Jack’s previous experience was in the cargo planes and
to expect him to come up with a solution for a new type of
aircraft in which he has no experience is unrealistic, smart
decision from Mark. Once Jack gave up, Mark should have
asked for a detailed report on the work that Jack did. His
findings, significant gains in the study, his insights and gather
all the relevant information that could be passed on to the next
team who would be given the task.Team members in this
process, the initiative in Project management Research, and the

use of e-mail to compile and send; telephone interviews are also
led. In some of the comments, several respondents did not
answer or resolve more than half of the inquiries.
Would it make sense for Mark to assign this problem to
someone else now, after Jack could not solve the problem the
second time around?
As per the assignments it could be a good idea to not trust only
one person, however talented and experienced they may be.
Mark should assign a team of qualified engineers along with
Jack to reopen the study and proceed. They could also look to
hire some experts from competitor companies to take advantage
of their expertise. In this regard, the core competencies of Mark
are presented and summarized for reference purposes. Many
guards, managers, and even the most duties, rather than
extraordinary leaders. While many managers are overly
concerned about maintaining the current situation, individuals
who develop as leaders are more concerned about solving
important decision-making issues, whether they are liked or not.
The corporate would have also probably investigated the
conceivable outcomes that elective laborers of the corporate
may furthermore do the arranging. Most often, there are three
ways for people to learn from their personal experiences about
initiative and the ability to create physical abilities: a shared
understanding of others, books or related materials.
Extraordinary leaders have great souls, as well as the need for
leadership. They have a high desire to control, like to be in the
active position, rather than a sticking person.
References
Gast, A., & Zanini, M. (2012). The social side of strategy.
McKinsey Quarterly, (2), 82-93.
Terwiesch, C., & Ulrich, T. (2010). Idea generation and the
quality of the best idea. Management Science, 56, 591-605.
Kerzner, H. R. (2015) Project Management: A Systems
Approach to Planning, Scheduling, and Controlling (eleventh
Ed). Wiley and Sons. ISBN: 978-1-118-02227-

6 http://technomag.bmstu.ru/doc/700457.html
ffirs.qxd 1/3/13 3:48 PM Page i
PROJECT
MANAGEMENT
ffirs.qxd 1/3/13 3:48 PM Page i
Dr. Kerzner’s 16 Points to Project
Management Maturity
1. Adopt a project management methodology and use it
consistently.
2. Implement a philosophy that drives the company toward
project
management maturity and communicate it to everyone.
3. Commit to developing effective plans at the beginning of
each project.
4. Minimize scope changes by committing to realistic
objectives.
5. Recognize that cost and schedule management are
inseparable.

6. Select the right person as the project manager.
7. Provide executives with project sponsor information, not
project
management information.
8. Strengthen involvement and support of line management.
9. Focus on deliverables rather than resources.
10. Cultivate effective communication, cooperation, and trust to
achieve
rapid project management maturity.
11. Share recognition for project success with the entire project
team and
line management.
12. Eliminate nonproductive meetings.
13. Focus on identifying and solving problems early, quickly,
and cost
effectively.
14. Measure progress periodically.
15. Use project management software as a tool—not as a
substitute for
effective planning or interpersonal skills.
16. Institute an all-employee training program with periodic
updates based
upon documented lessons learned.
ffirs.qxd 1/3/13 3:48 PM Page ii

P RO J E C T
MANAGEMENT
A Systems Approach to
Planning, Scheduling,
and Controlling
E L E V E N T H E D I T I O N
H A R O L D K E R Z N E R , P h . D .
Senior Executive Director for Project Management
The International Institute for Learning
New York, New York
ffirs.qxd 1/3/13 3:48 PM Page iii
Cover illustration: xiaoke ma/iStockphoto
This book is printed on acid-free paper.
Copyright © 2013 by John Wiley & Sons, Inc. All rights
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Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Library of Congress Cataloging-in-Publication Data:
Kerzner, Harold.
Project management : a systems approach to planning,
scheduling, and controlling / Harold Kerzner, Ph. D. Senior
Executive
Director for Project Management, the International Institute for
Learning, New York, New York. — Eleventh edition.

pages cm
Includes bibliographical references and index.
ISBN 978-1-118-02227-6 (cloth); ISBN 978-1-118-41585-6
(ebk); ISBN 978-1-118-41855-0 (ebk); ISBN 978-1-118-43357-
7
(ebk); ISBN 978-1-118-48322-0 (ebk); ISBN 978-1-118-48323-
7 (ebk) 1. Project management. 2. Project management—Case
studies. I. Title.
HD69.P75K47 2013
658.4’04 —dc23
2012026239
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
ffirs.qxd 1/3/13 3:48 PM Page iv
http://www.copyright.com
http://www.wiley.com/go/permissions
http://www.wiley.com
http://booksupport.wiley.com
To
Dr. Herman Krier,

my Friend and Guru,
who taught me well the
meaning of the word “persistence”
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Contents
Preface xxiii
1 OVERVIEW 1
1.0 Introduction 1
1.1 Understanding Project Management 2
1.2 Defining Project Success 7
1.3 Success, Trade-Offs, and Competing Constraints 8
1.4 The Project Manager–Line Manager Interface 9
1.5 Defining the Project Manager’s Role 14
1.6 Defining the Functional Manager’s Role 15
1.7 Defining the Functional Employee’s Role 18
1.8 Defining the Executive’s Role 19
1.9 Working with Executives 19
1.10 Committee Sponsorship/Governance 20
1.11 The Project Manager as the Planning Agent 23
1.12 Project Champions 24
1.13 The Downside of Project Management 25
1.14 Project-Driven versus Non–Project-Driven Organizations
25

1.15 Marketing in the Project-Driven Organization 28
1.16 Classification of Projects 30
1.17 Location of the Project Manager 30
1.18 Differing Views of Project Management 32
1.19 Public-Sector Project Management 34
1.20 International Project Management 38
1.21 Concurrent Engineering: A Project Management Approach
38
1.22 Added Value 39
1.23 Studying Tips for the PMI® Project Management
Certification Exam 40
Problems 42
Case Study
Williams Machine Tool Company 44
vii
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2 PROJECT MANAGEMENT GROWTH: CONCEPTS
AND DEFINITIONS 47
2.0 Introduction 47
2.1 General Systems Management 48
2.2 Project Management: 1945–1960 48
2.5 Resistance to Change 59
2.6 Systems, Programs, and Projects: A Definition 64
2.7 Product versus Project Management: A Definition 66
2.8 Maturity and Excellence: A Definition 68
2.9 Informal Project Management: A Definition 69

2.10 The Many Faces of Success 70
2.11 The Many Faces of Failure 73
2.12 The Stage-Gate Process 76
2.13 Project Life Cycles 78
2.14 Gate Review Meetings (Project Closure) 83
2.15 Engagement Project Management 84
2.16 Project Management Methodologies: A Definition 85
2.17 Enterprise Project Management Methodologies 87
2.18 Methodologies Can Fail 91
2.19 Organizational Change Management and Corporate
Cultures 94
2.20 Project Management Intellectual Property 100
2.21 Systems Thinking 101
Problems 107
Case Study
Creating a Methodology 108
3 ORGANIZATIONAL STRUCTURES 111
3.0 Introduction 111
3.1 Organizational Work Flow 113
3.2 Traditional (Classical) Organization 114
3.3 Developing Work Integration Positions 117
3.4 Line-Staff Organization (Project Coordinator) 121
3.5 Pure Product (Projectized) Organization 122
3.6 Matrix Organizational Form 125
3.7 Modification of Matrix Structures 132
3.8 The Strong, Weak, or Balanced Matrix 136
3.9 Center for Project Management Expertise 136
3.10 Matrix Layering 137

viii CONTENTS
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3.11 Selecting the Organizational Form 138
3.12 Structuring the Small Company 143
3.13 Strategic Business Unit (SBU) Project Management 146
3.14 Transitional Management 147
3.15 Barriers to Implementing Project Management in Emerging
Markets 149
3.16 Seven Fallacies that Delay Project Management Maturity
156
Problems 161
Case Studies
Jones and Shephard Accountants, Inc. 166
Coronado Communications 168
4 ORGANIZING AND STAFFING THE PROJECT OFFICE
AND TEAM 171
4.1 The Staffing Environment 172
4.2 Selecting the Project Manager: An Executive Decision 174
4.3 Skill Requirements for Project and Program Managers 178
4.4 Special Cases in Project Manager Selection 184
4.5 Selecting the Wrong Project Manager 184
4.6 Next Generation Project Managers 188
4.7 Duties and Job Descriptions 189
4.8 The Organizational Staffing Process 193
4.9 The Project Office 199

4.10 The Functional Team 204
4.11 The Project Organizational Chart 205
4.12 Special Problems 208
4.13 Selecting the Project Management Implementation Team
210
4.14 Mistakes Made by Inexperienced Project Managers 213
Problems 216
5 MANAGEMENT FUNCTIONS 223
5.1 Controlling 225
5.2 Directing 225
5.3 Project Authority 230
5.4 Interpersonal Influences 237
5.5 Barriers to Project Team Development 240
5.6 Suggestions for Handling the Newly Formed Team 243
Contents ix
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5.7 Team Building as an Ongoing Process 246
5.8 Dysfunctions of a Team 247
5.9 Leadership in a Project Environment 250
5.10 Life-Cycle Leadership 252
5.11 Value-Based Project Leadership 255
5.12 Organizational Impact 257
5.13 Employee–Manager Problems 259
5.14 Management Pitfalls 262

5.15 Communications 265
5.16 Project Review Meetings 274
5.17 Project Management Bottlenecks 275
5.18 Cross-Cutting Skills 276
5.19 Active Listening 277
5.20 Project Problem-Solving 278
5.21 Brainstorming 288
5.22 Project Decision-Making 293
5.23 Predicting the Outcome of a Decision 301
5.24 Facilitation 303
5.25 Handling Negative Team Dynamics 306
5.26 Communication Traps 307
5.27 Proverbs and Laws 309
5.28 Human Behavior Education 311
5.29 Management Policies and Procedures 312
Problems 318
Case Studies
The Trophy Project 327
Communication Failures 329
McRoy Aerospace 332
The Poor Worker 333
The Prima Donna 334
The Team Meeting 335
Leadership Effectiveness (A) 337
Leadership Effectiveness (B) 341
Motivational Questionnaire 347
6 MANAGEMENT OF YOUR TIME AND STRESS 355
6.1 Understanding Time Management 356
6.2 Time Robbers 356

6.3 Time Management Forms 358
x CONTENTS
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6.4 Effective Time Management 359
6.5 Stress and Burnout 360
Problems 363
Case Study
The Reluctant Workers 364
7 CONFLICTS 365
7.1 Objectives 366
7.2 The Conflict Environment 367
7.3 Types of Conflicts 368
7.4 Conflict Resolution 371
7.5 Understanding Superior, Subordinate, and Functional
Conflicts 372
7.6 The Management of Conflicts 374
7.7 Conflict Resolution Modes 375

Problems 379
Case Studies
Facilities Scheduling at Mayer Manufacturing 382
Telestar International 383
Handling Conflict in Project Management 384
8 SPECIAL TOPICS 391
8.1 Performance Measurement 392
8.2 Financial Compensation and Rewards 399
8.3 Critical Issues with Rewarding Project Teams 405
8.4 Effective Project Management in the Small Business
Organization 408
8.5 Mega Projects 410
8.6 Morality, Ethics, and the Corporate Culture 411
8.7 Professional Responsibilities 414
8.8 Internal Partnerships 417
8.9 External Partnerships 418
8.10 Training and Education 420
8.11 Integrated Product/Project Teams 422
8.12 Virtual Project Teams 424
8.13 Breakthrough Projects 427
Contents xi
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xii CONTENTS
8.14 Managing Innovation Projects 427
8.15 Agile Project Management 430
Problems 437
Case Study
Is It Fraud? 440
9 THE VARIABLES FOR SUCCESS 443
9.1 Predicting Project Success 444
9.2 Project Management Effectiveness 448
9.3 Expectations 449
9.4 Lessons Learned 450
9.5 Understanding Best Practices 451
9.6 Best Practices versus Proven Practices 458
Problems 460
Case Study
Radiance International 460
10 WORKING WITH EXECUTIVES 463
10.1 The Project Sponsor 464

10.2 Handling Disagreements with the Sponsor 474
10.3 The Collective Belief 475
10.4 The Exit Champion 476
10.5 The In-House Representatives 477
10.6 Stakeholder Relations Management 478
10.7 Politics 486
Problems 488
Case Studies
Corwin Corporation 491
The Prioritization of Projects 499
The Irresponsible Sponsors 500
Selling Executives on Project Management 502
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11 PLANNING 505
11.1 Validating the Assumptions 508
11.2 Validating the Objectives 509
11.3 General Planning 510

11.4 Life-Cycle Phases 513
11.5 Proposal Preparation 516
11.6 Kickoff Meetings 516
11.7 Understanding Participants’ Roles 519
11.8 Project Planning 519
11.9 The Statement of Work 521
11.10 Project Specifications 526
11.11 Milestone Schedules 528
11.12 Work Breakdown Structure 529
11.13 WBS Decomposition Problems 536
11.14 Work Breakdown Structure Dictionary 540
11.15 Role of the Executive in Project Selection 541
11.16 Role of the Executive in Planning 546
11.17 The Planning Cycle 546
11.17 Work Planning Authorization 547
11.19 Why Do Plans Fail? 548
11.20 Stopping Projects 549
11.21 Handling Project Phaseouts and Transfers 550
11.22 Detailed Schedules and Charts 551
11.23 Master Production Scheduling 554
11.24 Project Plan 556
11.25 Total Project Planning 561
11.26 The Project Charter 565
11.27 Project Baselines 566
11.28 Verification and Validation 570
11.29 Requirements Traceability Matrix 571
11.30 Management Control 572
11.31 The Project Manager–Line Manager Interface 575
11.32 Fast-Tracking 577
11.33 Configuration Management 578
11.34 Enterprise Project Management Methodologies 579
11.35 Project Audits 582
Problems 586

12 NETWORK SCHEDULING TECHNIQUES 597
12.1 Network Fundamentals 600
Contents xiii
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12.2 Graphical Evaluation and Review Technique (GERT) 604
12.3 Dependencies 605
12.4 Slack Time 606
12.5 Network Replanning 612
12.6 Estimating Activity Time 616
12.7 Estimating Total Project Time 617
12.8 Total PERT/CPM Planning 618
12.9 Crash Times 620
12.10 PERT/CPM Problem Areas 623
12.11 Alternative PERT/CPM Models 626
12.12 Precedence Networks 627
12.13 Lag 630
12.14 Scheduling Problems 632
12.15 The Myths of Schedule Compression 632
12.16 Understanding Project Management Software 634
12.17 Software Features Offered 634
12.18 Software Classification 636
12.19 Implementation Problems 637
12.20 Critical Chain 638
Problems 643

Case Studies
Crosby Manufacturing Corporation 656
The Invisible Sponsor 658
13 PROJECT GRAPHICS 661
13.1 Customer Reporting 662
13.2 Bar (Gantt) Chart 663
13.3 Other Conventional Presentation Techniques 670
13.4 Logic Diagrams/Networks 673
Problems 675
14 PRICING AND ESTIMATING 677
14.1 Global Pricing Strategies 678
14.2 Types of Estimates 679
14.3 Pricing Process 682
14.4 Organizational Input Requirements 684
14.5 Labor Distributions 686
xiv CONTENTS
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14.6 Overhead Rates 690
14.7 Materials/Support Costs 692
14.8 Pricing Out the Work 695
14.9 Smoothing Out Department Man-Hours 696
14.10 The Pricing Review Procedure 698

14.11 Systems Pricing 700
14.12 Developing the Supporting/Backup Costs 701
14.13 The Low-Bidder Dilemma 705
14.14 Special Problems 705
14.15 Estimating Pitfalls 706
14.16 Estimating High-Risk Projects 707
14.17 Project Risks 708
14.18 The Disaster of Applying the 10 Percent
Solution
to Project Estimates 712
14.19 Life-Cycle Costing (LCC) 714
14.20 Logistics Support 719
14.21 Economic Project Selection Criteria: Capital Budgeting
720
14.22 Payback Period 720
14.23 The Time Value of Money 721
14.24 Net Present Value (NPV) 722
14.25 Internal Rate of Return (IRR) 723
14.26 Comparing IRR, NPV, and Payback 724
14.27 Risk Analysis 724
14.28 Capital Rationing 725
14.29 Project Financing 726

Problems 730
Case Study
The Estimating Problem 734
15 COST CONTROL 737
15.1 Understanding Control 741
15.2 The Operating Cycle 744
15.3 Cost Account Codes 745
15.4 Budgets 750
15.5 The Earned Value Measurement System (EVMS) 752
15.6 Variance and Earned Value 754
15.7 The Cost Baseline 773
15.8 Justifying the Costs 775
15.9 The Cost Overrun Dilemma 778
15.10 Recording Material Costs Using Earned Value
Measurement 779
15.11 The Material Accounting Criterion 782
Contents xv
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15.12 Material Variances: Price and Usage 783
15.13 Summary Variances 784
15.14 Status Reporting 785
15.15 Cost Control Problems 792
15.16 Project Management Information Systems 793
15.17 Enterprise Resource Planning 793
15.18 Project Metrics 794
15.19 Key Performance Indicators 800
15.20 Value-Based Metrics 806
15.21 Dashboards and Scorecards 812
15.22 Business Intelligence 815
15.23 Infographics 816
Problems 820
Case Studies
The Bathtub Period 838
Franklin Electronics 839
Trouble in Paradise 841
16 TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT

845
16.1 Methodology for Trade-Off Analysis 848
16.2 Contracts: Their Influence on Projects 865
16.3 Industry Trade-Off Preferences 866
16.4 Conclusion 869
17 RISK MANAGEMENT 871
17.1 Definition of Risk 873
17.2 Tolerance for Risk 875
17.3 Definition of Risk Management 876
17.4 Certainty, Risk, and Uncertainty 877
17.5 Risk Management Process 883
17.6 Plan Risk Management (11.1) 884
17.7 Risk Identification (11.2) 885
17.8 Risk Analysis (11.3, 11.4) 892
17.9 Qualitative Risk Analysis (11.3) 897

17.10 Quantitative Risk Analysis (11.4) 903
17.11 Probability Distributions and the Monte Carlo Process
904
17.12 Plan Risk Response (11.5) 913
xvi CONTENTS
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17.13 Monitor and Control Risks (11.6) 919
17.14 Some Implementation Considerations 920
17.15 The Use of Lessons Learned 921
17.16 Dependencies Between Risks 925
17.17 The Impact of Risk Handling Measures 930
17.18 Risk and Concurrent Engineering 933
Problems 940
Case Studies
Teloxy Engineering (A) 948
Teloxy Engineering (B) 948

The Risk Management Department 949
18 LEARNING CURVES 953
18.1 General Theory 954
18.2 The Learning Curve Concept 954
18.3 Graphic Representation 956
18.4 Key Words Associated with Learning Curves 958
18.5 The Cumulative Average Curve 958
18.6 Sources of Experience 960
18.7 Developing Slope Measures 963
18.8 Unit Costs and Use of Midpoints 964
18.9 Selection of Learning Curves 965
18.10 Follow-On Orders 966
18.11 Manufacturing Breaks 966
18.12 Learning Curve Limitations 968
18.13 Prices and Experience 968
18.14 Competitive Weapon 970
Problems 972
19 CONTRACT MANAGEMENT 975

19.1 Procurement 976
19.2 Plan Procurements 978
19.3 Conducting the Procurements 981
19.4 Conduct Procurements: Request Seller Responses 983
19.5 Conduct Procurements: Select Sellers 983
19.6 Types of Contracts 987
19.7 Incentive Contracts 991
19.8 Contract Type versus Risk 994
Contents xvii
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19.9 Contract Administration 995
19.10 Contract Closure 998
19.11 Using a Checklist 999
19.12 Proposal-Contractual Interaction 1000
19.13 Summary 1003

Case Studies
The Scheduling Dilemma 1009
To Bid or Not to Bid 1011
The Management Reserve 1012
20 QUALITY MANAGEMENT 1015
20.1 Definition of Quality 1017
20.2 The Quality Movement 1019
20.3 Comparison of the Quality Pioneers 1022
20.4 The Taguchi Approach 1023
20.5 The Malcolm Baldrige National Quality Award 1026
20.6 ISO 9000 1027
20.7 Quality Management Concepts 1029
20.8 The Cost of Quality 1032
20.9 The Seven Quality Control Tools 1035
20.10 Process Capability (CP) 1052
20.11 Acceptance Sampling 1054
20.12 Implementing Six Sigma 1054
20.13 Lean Six Sigma and DMAIC 1056
20.14 Quality Leadership 1057
20.15 Responsibility for Quality 1058
20.16 Quality Circles 1058
20.17 Just-In-Time Manufacturing (JIT) 1059

20.18 Total Quality Management (TQM) 1061
21 MODERN DEVELOPMENTS IN PROJECT MANAGEMENT
1069
21.1 The Project Management Maturity Model (PMMM) 1070
21.2 Developing Effective Procedural Documentation 1074
21.3 Project Management Methodologies 1078
21.4 Continuous Improvement 1079
21.5 Capacity Planning 1080
21.6 Competency Models 1082
21.7 Managing Multiple Projects 1084
21.8 End-of-Phase Review Meetings 1085
xviii CONTENTS
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Case Study
Honicker Corporation 1086

22 THE BUSINESS OF SCOPE CHANGES 1089
22.1 Need for Business Knowledge 1091
22.2 Timing of Scope Changes 1092
22.3 Business Need for a Scope Change 1093
22.4 Rationale for Not Approving a Scope Change 1094
Case Study
Kemko Manufacturing 1094
23 THE PROJECT OFFICE 1097
23.1 Present-Day Project Office 1098
23.2 Implementation Risks 1099
23.3 Types of Project Offices 1100
23.4 Networking Project Management Offices 1101
23.5 Project Management Information Systems 1101
23.6 Dissemination of Information 1103
23.7 Mentoring 1104
23.8 Development of Standards and Templates 1105
23.9 Project Management Benchmarking 1105
23.10 Business Case Development 1106

23.11 Customized Training (Related to Project Management)
1107
23.12 Managing Stakeholder Relations 1108
23.13 Continuous Improvement 1109
23.14 Capacity Planning 1109
23.15 Risks of Using a Project Office 1110
23.16 Project Portfolio Management 1111
Case Study
The Project Management Lawsuit 1116
24 MANAGING CRISIS PROJECTS 1119
24.1 Understanding Crisis Management 1119
24.2 Ford versus Firestone 1121
24.3 The Air France Concorde Crash 1122
24.4 Intel and the Pentium Chip 1123
24.5 The Russian Submarine Kursk 1123
24.6 The Tylenol Poisonings 1124
Contents xix
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24.7 Nestlé’s Marketing of Infant Formula 1127
24.8 The Space Shuttle Challenger Disaster 1129
24.9 The Space Shuttle Columbia Disaster 1130
24.10 Victims Versus Villains 1131
24.11 Life-Cycle Phases 1132
24.12 Project Management Implications 1133
25 FUTURE OF PROJECT MANAGEMENT 1135
25.0 Changing Times 1135
25.1 Complex Projects 1139
25.2 Complexity Theory 1144
25.3 Scope Creep 1145
25.4 Project Health Checks 1151
25.5 Managing Troubled Projects 1155
26 THE RISE, FALL, AND RESURRECTION OF IRIDIUM:
A PROJECT MANAGEMENT PERSPECTIVE 1167
26.1 Naming the Project “Iridium” 1169
26.2 Obtaining Executive Support 1170
26.3 Launching the Venture 1170

26.4 The Iridium System 1172
26.5 The Terrestrial and Space-Based Network 1172
26.6 Project Initiation: Developing the Business Case 1173
26.7 The “Hidden” Business Case 1175
26.8 Risk Management 1175
26.9 The Collective Belief 1177
26.10 The Exit Champion 1177
26.11 Iridium’s Infancy Years 1178
26.12 Debt Financing 1181
26.13 The M-Star Project 1182
26.14 A New CEO 1183
26.15 Satellite Launches 1183
26.16 An Initial Public Offering (IPO) 1184
26.17 Signing Up Customers 1184
26.18 Iridium’s Rapid Ascent 1185
26.19 Iridium’s Rapid Descent 1187
26.20 The Iridium “Flu” 1191
26.21 Searching for a White Knight 1192
26.22 The Definition of Failure (October, 1999) 1192
26.23 The Satellite Deorbiting Plan 1193
26.24 Iridium is Rescued for $25 Million 1194
26.25 Iridium Begins to Grow 1194
xx CONTENTS

ftoc.qxd 1/3/13 3:50 PM Page xx
26.26 Shareholder Lawsuits 1195
26.27 The Bankruptcy Court Ruling 1195
26.28 Autopsy 1196
26.29 Financial Impact of the Bankruptcy 1197
26.30 What Really Went Wrong? 1198
26.31 Lessons Learned 1200
26.32 Conclusion 1202
Appendix A.

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