Project Management:

A Systems Approach to
Planning, Scheduling, and Controlling
Twelfth Edition

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Chapter One
Overview

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Overview of Project Management

CO
E
TI M

ST
RESOURCES

PERFORMANCE/TECHNOLOGY

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Project Characteristics
• Have a specific objective (which may be unique or one of
a kind) to be completed within certain specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman resources (i.e., money,
people, equipment)

• Be multifunctional (cut across several functional lines)

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Project Management
• Project planning
– Definition of work requirements
– Definition of quantity and quality of work
– Definition of resources needed
• Project monitoring
– Tracking progress
– Comparing actual outcome to predicted outcome
– Analyzing impact
– Making adjustments

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
PROJECT MANAGEMENT IS THE ART OF CREATING THE ILLUSION THAT ANY OUTCOME IS THE RESULT OF A
SERIES OF PREDETERMINED, DELIBERATE ACTS WHEN IN FACT IT WAS
DUMB LUCK !

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 The Talent Triangle
• Technical project management
• Leadership
• Strategic and business management

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Multiple Boss Reporting
PM = Project Manager
SPONSOR GM APM = Assistant Project Manager
LM = Line or Functional Manager

P LM LM LM
M

APM

APM

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
WHY USE PROJECT MANAGEMENT?

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Project management and
productivity are related!

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
MATURITY IN PROJECT MANAGEMENT IS LIKE
A THREE-LEGGED STOOL.

THE LEGS REPRESENT THE:

• Project manager
• Line manager(s)
• Executive management (i.e., project sponsor)

Maturity cannot exist without stability

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
The Three-Legged Stool

Senior
Management
Project (i.e., Sponsor)
Manager
Line
Management

Excerpted from Project Management 1E by

Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
TOP OF THE THREE-LEGGED STOOL

ORGANIZATIONAL ORGANIZATIONAL
STRUCTURE BEHAVIOR

TOOLS &
TECHNIQUES

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Critical Questions
• How important is project management training?
• Part-time project management–
is it good or bad?

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Role of the
Project Manager

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Negotiating for
Resources

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
The Project Kickoff
Meeting

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Establishing the
Project’s Policies and
Procedures

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Laying Out the Project
Workflow and Plan

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Establishing
Performance Targets

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Obtaining Funding

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Executing the Plan

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Acting as the
Conductor

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Putting Out Fires

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Counseling and
Facilitation

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Encouraging the Team
to Focus on Deadlines

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Monitoring Progress
by “Pounding the
Pavement”

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Evaluating
Performance

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Develop
Contingency Plans

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Briefing the
Project Sponsor

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Briefing the Team

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Briefing the Customer

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Closing Out
the Project

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Why Is a Project Management System Necessary?

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Project Management

Co
m

st
Ti

Resources
Quality/Technology
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Benefits
• Identification of functional responsibilities to
ensure that all activities are accounted for,
regardless of personnel turnover
• Minimizing the need for continuous
improvement
• Identification of time limits for scheduling
• Identification of a methodology for trade-off
analysis
• Measurement of accomplishment against plans

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Benefits (continued)
• Early identification of problems so that
corrective action can follow
• Improved estimating capability for future
planning
• Knowing when objectives cannot be met or
will be exceeded

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Obstacles
• Project complexity
• Customer’s special requirements and scope
changes
• Organizational restructuring
• Project risks
• Changes in technology
• Forward planning and pricing

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Humor

Project management is the art of creating the

illusion that any outcome is the result of a series
of predetermined, deliberate acts when, in fact,
it was dumb luck.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Classical Management
• Planning
• Organizing
• Staffing
• Controlling
• Directing
Which of the above is usually NOT
performed by the project manager?

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Resources
• Money
• Manpower
• Equipment
• Facilities
• Materials
• Information/technology

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Successful Culture
• A good daily working relationship between the
project manager and those line managers who
directly assign resources to projects
• The ability of functional employees to report
vertically to their line manager at the same
time they report horizontally to one or more
project managers

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Interface Management
• Managing human interrelationships within the
project team
• Managing human interrelationships between the
project team and the functional organization
• Managing human interrelationships between the
project team and senior management
• Managing human interrelationships between the
project team and the customer’s organization,
whether an internal or external organization

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 As part of interface
management, the project
manager’s role also includes
integration management.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Integration Management

Integration
Management
Resources
· Capital
· Materials
· Equipment
Products
Inputs · Integrated Services Outputs
Facilities Processes
· Information
Profits
· Personnel

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 The Functional Role
• The functional manager has the responsibility
to define how the task will be done and where
the task will be done (i.e., the technical
criteria).
• The functional manager has the responsibility
to provide sufficient resources to accomplish
the objective within the project’s constraints
(i.e., who will get the job done).

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Functional Obstacles
• Unlimited work requests (especially during
competitive bidding)
• Predetermined deadlines
• All requests having a high priority
• Limited number of resources
• Limited availability of resources
• Unscheduled changes in the project plan
• Unpredicted lack of progress
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Functional Obstacles
(continued)

• Unpredicted lack of progress

• Unplanned absence of resources
• Unplanned breakdown of resources
• Unplanned loss of resources
• Unplanned turnover of personnel

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Most projects also have a
project sponsor, who may or
may not reside at the executive
level of management.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 The Project Sponsor Interface
Project Sponsor:
Priority Projects Senior Management

Project Sponsor:
Maintenance Projects Lower/Middle Management

Relationship:
· Objective setting
Project · Up-front planning
Sponsor · Project organization
· Key staffing
Project · Master plan
Manager · Policies
· Monitoring execution
· Priority-setting
Project Project · Conflict resolution
Manager · Executive-client contact
Team

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Project Necessities
• Complete task definitions
• Resource requirement definitions (and
possibly skill levels needed)
• Major timetable milestones
• Definition of end-item quality and reliability
requirements
• The basis for performance measurement

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Results of Good Planning
• Assurance that functional units will understand their
total responsibilities towards achieving project needs
• Assurance that problems resulting from scheduling
and allocation of critical resources are known
beforehand
• Early identification of problems that may jeopardize
successful project completion so that effective
corrective action and re-planning can occur to
prevent or resolve problems

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Promises Made???
• Promotion
• Grade
• Salary
• Bonus
• Overtime
• Responsibility
• Future work assignments

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
Project Managers vs. Champions
Project Managers Project Champions
 Prefer to work in groups  Prefer working individually
 Committed to their managerial  Committed to technology
and technical responsibilities
 Committed to the corporation  Committed to the profession
 Seek to achieve the objective  Seek to exceed the objective
 Are willing to take risks  Are unwilling to take risks; try to
test everything
 Seek what is possible  Seek perfection
 Think in terms of short time  Think in terms of long time
spans spans
 Manage people  Manage things
 Are committed to and pursue  Are committed to and pursue
material values intellectual values

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Project Management in
Non-Project-Driven Groups
• Projects may be few and far between.
• Not all projects have the same project management
requirements, and therefore they cannot be
managed identically. This difficulty results from poor
understanding of project management and a
reluctance of companies to invest in proper training.
• Executives do not have sufficient time to manage
projects themselves, yet refuse to delegate authority.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Project Management in
Non-Project-Driven Groups
(Continued)

• Projects tend to be delayed because approvals most

often follow the vertical chain of command. As a result,
project work stays too long in functional departments.
• Because project staffing is on a “local” basis, only a
portion of the organization understands project
management and sees the system in action.
• There exists heavy dependence on subcontractors and
outside agencies for project management expertise.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 High-Level Reporting
• The project manager is charged with getting results from the
coordinated efforts of many functions. He or she should,
therefore, report to the person who directs all those
functions.
• The project manager must have adequate organizational
status to do his or her job effectively.
• To get adequate and timely assistance in solving problems
that inevitably appear in any important project, the project
manager needs direct and specific access to an upper echelon
of management .

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 High-Level Reporting
(Continued)

• The customer, particularly in a competitive

environment, will be favorably impressed if his
or her project manager reports to a high
organizational echelon.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Low-level Reporting
• It is organizationally and operationally inefficient to
have too many projects, especially small ones,
diverting senior executives from more vital concerns.
• Although giving a small project a high place in the
organization may create the illusion of executive
attention, its real result is to foster executive neglect
of the project.
• Placing a junior project manager too high in the
organization will alienate senior functional executives
on whom he or she must rely for support.

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
THE TIP-OF-THE-ICEBERG SYNDROME
DELEGATION
OF AUTHORITY TO
PROJECT MANAGER

EXECUTIVE
MEDDLING

LACK OF UNDERSTANDING OF HOW PROJECT

MANAGEMENT SHOULD WORK

LACK OF TRAINING IN COMMUNICATIONS /

INTERPERSONAL SKILLS

MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILL

SURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.
 Project vs. Functional Influences
Relative Influence

Project Influence
in Decision Making

Functional Influence Dual Influence

In Decision Making

Functional Matrix Project

Organization Organization Organization

Excerpted from Project Management 12E

by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.