Table of Contents
Enabling Business and Project Strategy 5
Project Management Methodologies and Processes 7
Constructing and Adapting a PM Toolbox 9
Secure Strategic Alignment 10
Customize the PM Toolbox 12
Continuously Improve the PM Toolbox 20
References 21
The Benefits Map 25
Enabling Benefits Management 26
Developing a Benefits Map 28
Using a Benefits Map 29
Variations 30
Benefits 31
Economic Methods 31
Payback Time 31
Net Present Value 31
Internal Rate of Return 33
Using Economic Methods 33
Benefits of Economic Methods 34
Scoring Models 34
Developing a Scoring Model 34
Using a ScoringModel 39
Benefits 40
Voting Models 40
Developing a VotingModel 41
Using the Voting Model 42
Benefits 45
Pairwise Ranking 46
Developing a Pairwise Ranking Tool 47
Using the Pairwise Ranking Matrix 48
Benefits 49
The Alignment Matrix 49
Developing the AlignmentMatrix 50
Variations 51
Benefits 52
References 52
Checklist Questions for Project Initiation 55
Developing Checklist Questions for Project Initiation 56
Using the Checklist Questions 57
The Goals Grid 57
Developing a Goals Grid 58
Using the Goals Grid 59
Benefits 60
Responsibility Matrix 60
Developing a Responsibility Matrix 61
Using the Responsibility Matrix 63
Benefits 64
Complexity Assessment 64
Developing the Complexity Assessment 65
Using the Complexity Assessment 67
Benefits 67
The Project Business Case 68
Developing the Project Business Case 68
Using the Project Business Case 70
Benefits 71
The Project Charter 71
Developing a Project Charter 71
Using a Project Charter 76
Variations 77
Benefits 77
References 78
The Elicitation Plan 84
Developing an Elicitation Plan 86
Using the Elicitation Plan 89
Benefits 90
Requirements Specification 91
Specifying a Requirement Using Planguage 91
Using the Requirements Specificiation 93
Benefits 96
The Product Requirements Document 96
Developing a Product Requirements Document 97
Using the PRD 101
Benefits 102
Requirements Ambiguity Checklist 102
Using the Requirements Ambiguity Checklist 104
Benefits 106
Requirements Baseline 106
Establishing a Requirements Baseline 107
Establish a Requirements Change Board 107
Benefits 108
References 109
Project SWOT Analysis 111
Performing a Project SWOT Analysis 112
Using a Project SWOT Analysis 116
Benefits 117
The Scope Statement 118
Developing a Scope Statement 118
Using a Scope Statement 124
Variations 124
Benefits 125
The Work Breakdown Structure 126
Constructing a Project WBS: A Top-Down
Approach 128
Establish the WBS Level of Detail 130
Constructing a ProjectWBS: A Bottom-Up Approach 134
Using the WBS 135
Benefits 136
The Product Breakdown Structure 137
Constructing a Product Breakdown Structure 137
Using the PBS 141
Benefits 141
References 142
The Gantt Chart 146
Developing a Gantt Chart 146
Using the Gantt Chart 149
Benefits 149
The Milestone Chart 150
Developing aMilestone Chart 151
Using theMilestone Chart 153
Benefits 154
The Critical Path Method Diagram 154
Constructing a CPM Diagram 155
Using the CPM Diagram 160
Benefits 161
Variations 161
The Time-Scaled Arrow Diagram 162
Developing a TAD 162
Using a TAD 167
Benefits 168
The Critical Chain Schedule 168
Developing a Critical Chain Schedule 169
Using the Critical Chain Schedule 172
Benefits 173
The Hierarchical Schedule 173
Constructing a Hierarchical Schedule 174
Using a Hierarchical Schedule 176
Benefits 177
Line of Balance 177
Developing a Line-of-Balance Schedule 178
Using the LOB 180
Benefits 181
Choosing Your Scheduling Tools 181
References 183
The Cost-Planning Map 185
Developing a Cost-Planning Map 186
Using the Cost-Planning Map 191
Benefits 191
Analogous Estimate 191
Developing an Analogous Estimate 192
Using an Analogous Estimate 193
Benefits 193
Parametric Estimate 194
Developing Parametric Estimates 194
Using Parametric Estimates 198
Benefits 198
Bottom-up Estimate 199
Developing Bottom-Up Estimates 200
Using Bottom-Up Estimates 202
Benefits 202
The Cost Baseline 203
Developing a Cost Baseline 203
Using the Cost Baseline 207
Benefits 208
Choosing a Cost-Planning Tool 211
References 211
Project Scope Control System 217
Establishing a Project Scope Control System 217
Using the Project Scope Control System 220
Benefits 223
Project Change Request 223
Developing a Project Change Request 224
Using the Project Change Request 228
Benefits 229
The Project Change Log 229
Developing a Project Change Log 230
Using the Project Change Log 232
Benefits 233
The Scope Control Decision Checklist 233
Developing a Scope Control Decision Checklist 233
Using the Scope Control Decision Checklist 234
Benefits 235
References 235
The Burn Down Chart 239
Developing the Burn Down Chart 239
Using the Burn Down Chart 240
Benefits 242
The Slip Chart 243
Developing the Slip Chart 244
Using the Slip Chart 246
Benefits 246
The Buffer Chart 247
Developing the Buffer Chart 248
Using the Buffer Chart 249
Benefits 250
The Jogging Line 251
Constructing a Jogging Line 252
Using the Jogging Line 255
Variations 256
Benefits 256
The Milestone Prediction Chart 257
Constructing theMilestone Prediction Chart 258
Using theMilestone Prediction Chart 260
Benefits 260
B-C-F Analysis 261
Performing the B-C-F Analysis 262
Using the B-C-F Analysis 264
Benefits 265
Schedule Crashing 265
Performing Schedule Crashing 265
Using Schedule Crashing 269
Benefits 269
Choosing Your Schedule Management Tools 269
References 270
Cost Management Plan 275
Developing the CostManagement Plan 275
Using the Cost Management Plan 276
The Budget Consumption Chart 276
Developing the Budget Consumption Chart 277
Using the Budget Consumption Chart 278
Variations 279
Benefits 279
Earned Value Analysis 280
Performing Earned Value Analysis 281
Using Earned Value Analysis 292
Variations 293
Benefits 293
Milestone Analysis 294
Performing aMilestone Analysis 295
Using theMilestone Analysis 297
Benefits 297
Choosing Your Cost Management Tools 297
References 298
Scrum Basics 302
Product Backlog and Sprint Backlog 304
Information on the Backlogs 304
Populating Backlogs 304
Benefits 306
Release Planning 307
The Release-Planning Event 308
Initial Draft Release Plan 309
Final Release Plans 309
HIP Sprint 310
Release Planning versus Sprint Planning 310
Benefits 311
The Daily Scrum Meeting 311
Organizing a Daily ScrumMeeting 312
Benefits 312
Sprint Task Board 313
Using the Sprint Task Board 313
Benefits 314
The Sprint Burn Down Chart 315
Developing a Sprint Burn Down Chart 315
Using a Sprint Burn Down Chart 316
Benefits 317
The Sprint Retrospective Meeting 317
Organizing a Sprint Retrospective
Meeting 318
Using a Sprint RetrospectiveMeeting 318
Benefits 320
Concluding Remarks 320
References 321
Project Reporting Checklist 325
Developing the Project Reporting Checklist 326
Using the Project Reporting Checklist 326
Benefits 326
The Project Strike Zone 328
Developing the Project Strike Zone 328
Using the Project Strike Zone 330
Benefits 332
The Project Dashboard 332
Designing a Project Dashboard 334
Using the Project Dashboard 335
Benefits 336
The Summary Status Report 337
Developing a Summary Status Report 337
Using the Summary Status Report 342
Benefits 343
The Project Indicator 343
Developing the Project Indicator 345
Using the Project Indicator 346
Variations 346
Benefits 348
Choosing Your Reporting Tools 349
References 349
Contributed by Tim Rahschulte, PhD Understanding Project Closure 351
Project Closing Activities 353
Project Closure Plan and Checklist 356
Developing the Plan and Checklist 358
Using the Closure Plan and Checklist 362
Benefits 362
The Project Closure Report 363
Developing the Project Closure Report 363
Using the Project Closure Report 365
Benefits 365
Postmortem Review 366
Conducting the Postmortem Review 366
Using the Postmortem Review 369
Variations 371
Benefits 372
Concluding Remarks 373
References 373
Risk Management Plan 378
Developing a RiskManagement Plan 378
Using the Risk Management Plan 385
Benefits 386
The Risk Identification Checklist 387
Developing a Risk Identification Checklist 387
Using a Risk Identification Checklist 389
Benefits 389
The Risk Register 390
Creating a Risk Register 390
Using the Risk Register 393
Benefits 394
The Risk Assessment Matrix 394
Developing a Risk AssessmentMatrix 395
Using the Risk AssessmentMatrix 397
Variations 398
Benefits 398
Monte Carlo Analysis 399
Performing a Monte Carlo Analysis 400
Using the Monte Carlo Analysis 408
Benefits 409
The Decision Tree 409
Analyzing the Decision Tree 410
Using Decision Trees 413
Benefits 414
The Risk Dashboard 414
Developing the Risk Dashboard 414
Using the Risk Dashboard 418
Benefits 418
Choosing Your Risk Management Tools 420
References 420
The Stakeholder Management Plan 423
Developing a Stakeholder Management Plan 424
Using the StakeholderManagement Plan 427
Benefits 427
The Stakeholder Map 428
Developing a Stakeholder Map 428
Using the StakeholderMap 431
Benefits 431
The Stakeholder Analysis Table 431
Developing a Stakeholder Analysis Table 433
Using the Stakeholder Analysis Table 434
Benefits 435
The Stakeholder Evaluation Matrix 436
Developing a Stakeholder Evaluation Matrix 438
Using the Stakeholder EvaluationMatrix 439
Variations 441
Benefits 443
The Stakeholder Strategy Matrix 444
Developing a Stakeholder Strategy Matrix 444
Using the Stakeholder StrategyMatrix 446
Benefits 447
Choosing Your Stakeholder Management Tools 447
References 449
Final Thoughts on The PM Toolbox 449
PREFACE
Much has changed since the publication of the first edition of this book, as the field of project management (PM) is continually evolving. Part of that evolution has involved a new approach for selecting project management tools froman ad-hoc “choose as you use” approach to a more systematic approach of creating a PM Toolbox that can be applied to many project situations. From this perspective, we feel fortunate to have been part of the recent project management evolution.
We also feel fortunate to have had the opportunity to work firsthand with many project managers and project office directors as they set about the task of creating their initial PM Toolboxes based on the teachings of this text. Our personal understanding of how project management is evolving and how it affects the needs for PMtools has been greatly enhanced. This new understanding became the basis for the changes introduced in this second edition.
The most significant changes in this edition are in four areas. First, we have focused the content of the book on the fundamental project management practice areas to create more depth in content. Next, we have maintained the traditional view of project management tools but have also provided a contemporary set of tools that reflect the changes in PMpractices. Then, to strengthen an area that has created some of the most positive reader feedback,we have enhanced the various tips, tricks, and examples found throughout the book. Finally, we worked to create a stronger message concerning the importance of creating a PM Toolbox that enables stronger alignment between business strategy and project execution, between strategic goals and project deliverables, and between the work of senior leaders and project managers. This book has established itself as both educational lecture material and an industry practice reference, which we hope to maintain with this second edition. Our heartfelt thanks to the existing and future readers of this book;we hope you find it both enjoyable and useful to read.
Conventional wisdom holds that project management (PM) tools are enabling devices that assist a project manager in reaching an objective or, more specifically, a project deliverable or outcome. While this traditional role of PM tools is more than meaningful, we believe that there is greater opportunity to provide value to an organization and its project managers. In particular, each PMtool can be part of a set of tools that makes up a project manager’s PM Toolbox. The PM Toolbox, then, serves a higher purpose: (1) to increase efficiency of the project players, (2) to provide the right information to support problem-solving and decision-making processes, and (3) to help establish and maintain alignment among business strategy, project strategy, and project execution outcomes. Project management tools support the practices, methods, and various processes used to effectively manage a project.1 They are enabling devices for the primary players on a project: the project manager, the specialists who make up the project team, the executive leadership team, and the governance body.
PMtools include procedures, techniques, and job aids by which a project deliverable is produced or project information is created. Similarly, A Guide to the Project Management Body of Knowledge and other sources use the phrase “tools and techniques” in place of what we define as PM tools.2
PM tools may be either qualitative or quantative in nature. To illustrate, consider two examples: the team charter and Monte Carlo analysis. They differ in the type of information they process. The team charter provides a systematic procedure to process qualitative information about authorizing a team to implement a project. Monte Carlo analysis is a risk-planning tool that uses an algorithm to quantify risks. The heart of both the qualitative and quantitative groups of tools—and all PMtools belong to one of these groups—is in their systematic procedure.
Note that we don’t talk about software tools here. True, many PM tools that we discuss in this book exist in a software format. However, our focus is not on tool formats. Rather,we concentrate on the substance of PMtools: the use of tools to manage projects more effectively and efficiently.
The design of a PM Toolbox should mirror the approach an organization takes for establishing standardized project management methodologies and processes. A highly standardized set of methods and processes will in turn require an equally high level of standardization of the PM Toolbox. Less standardization introduces more variability in PM Toolbox design and use, and therefore more possibility for inconsistent results. In practice, as organizations strive to grow and mature, project execution efficiency and repeatability become increasingly important as the leaders of the organization look for consistency in achieving business results. Thismeans that project managers must be armed with the right tools—those that support the business strategy, project strategy, and project management methodologies and processes. It also means that the same tools should be used across the gamut of projects with limited exceptions. Standardization of a firm’s PM Toolbox does not happen overnight. Rather, it is an evolutionary process. In a practical sense, PM Toolboxes will look quite ad hoc at first. The tendency is to begin building the PM Toolbox with existing tools due to a project manager’s familiarity with them. So the early-stage PM Toolbox has more to do with familiarity of use than with standardization. As a firm begins to mature its project management practices, standardization of methodologies and processes begins to take hold. This is when the PM Toolbox also begins to become more standardized, as well as more aligned with the project strategy and the business strategy of the firm. Construction of a PM Toolbox should be systematically driven, meaning that PM tools are a vital part of an organization’s overall project execution mechanism. However, project execution must first be aligned to company strategy to be most effective. When this is the case, the PMToolbox becomes strategically aligned aswell, as illustrated in Figure 1.1.
As illustrated by the downward arrow, business strategy drives the project strategy, which in turn drives methods and processes, which influences the PM Toolbox design. For this downward flow to work, the PM Toolbox supports the project management methodology and processes implemented by an organization. The methodology and process in turn helps to implement the project strategy, which supports and is aligned to the business strategy of a company in its quest for growth (upward arrow).
