Quick Quiz

Importance of People and Leadership Skills.

In a recent study, project management experts from various industries were asked to identify the ten most important skills and competencies for effective project managers. Table 1-3 shows the results. Respondents were also asked what skills and competencies were most important in various project situations: Large projects: Leadership, relevant prior experience, planning, people skills, verbal communication, and team-building skills were most important. High uncertainty projects: Risk management, expectation management, leadership, people skills, and planning skills were most important. Very novel projects: Leadership, people skills, having vision and goals, self confidence, expectations management, and listening skills were most important. 25 Notice that a few additional skills and competencies not cited in the top 10 list were mentioned when people thought about the context of a project. To be the most effective, project managers require a changing mix of skills and competencies depending on the project being delivered. Also notice the general emphasis on people and leadership skills. As mentioned earlier, all project managers, especially those working on technical projects, need to demonstrate leadership and management skills. Leadership and management are terms often used interchangeably, although there are differences. Generally, a leader focuses on long-term goals and big-picture objectives, while inspiring people to reach those goals. A manager often deals with the day-to-day details of meeting specific goals. Some people say that, Managers do things right, and leaders do the right things. Leaders determine the vision, and managers achieve the vision. You lead people and manage things. However, project managers often take on the role of both leader and manager. Good project managers know that people make or break projects, so they must set a good example to lead their team to success. They are aware of the greater needs of their stakeholders and organizations, so they are visionary in guiding their current projects and in suggesting future ones. As mentioned earlier, companies that excel in project management grow project leaders, emphasizing development of business and communication skills. Yet good project managers must also focus on getting the job done by paying attention to the details and daily operations of each task. Instead of thinking of leaders and managers as specific people, it is better to think of people as having leadership skills, such as being visionary and inspiring, and management skills, such as being organized and effective. Therefore, the best project managers have leadership and management characteristics; they are visionary yet focused on the bottom line. Above all else, good project managers focus on achieving positive results!

Careers for Information Technology Project Managers.

A recent article suggests that, The most sought-after corporate IT workers in 2010 may be those with no deep-seated technical skills at all. The nuts-and-bolts programming and easy-to-document support jobs will have all gone to third-party providers in the U.S. or abroad. Instead, IT departments will be populated with versatilist those with a technology background who also know the business sector inside and out, can architect and carry out IT plans that will add business value, and can cultivate relationships both inside and outside the company. 26 A recent survey by CIO.com supports this career projection. IT executives listed the skills they predicted would be the most in demand in the next two to five years. Project/ TABLE 1-3 Ten most important skills and competencies for project managers 1. People skills 2. Leadership 3. Listening 4. Integrity, ethical behavior, consistent 5. Strong at building trust 6. Verbal communication 7. Strong at building teams 8. Conflict resolution, conflict management 9. Critical thinking, problem solving 10. Understands, balances priorities Jennifer Krahn, Effective Project Leadership: A Combination of Project Manager Skills and Competencies in Context, PMI Research Conference Proceedings ( July 2006). 25 Introduction to Project Management program management came in first place, followed by business process management, business analysis, and application development. Table 1-4 shows these results, as well as the percentage of respondents who listed the skill as most in demand. Even if you choose to stay in a technical role, you still need project management knowledge and skills to help your team and your organization succeed.

T H E P R O J E C T M A N A G E M E N T P R O F E S S I O N 

The profession of project management is growing at a very rapid pace. To understand this line of work, it is helpful to briefly review the history of project management, introduce you to the Project Management Institute (PMI) and some of its services (such as certification), and discuss the growth in project management software.

 History of Project Management

Although people have worked on projects for centuries, most agree that the modern concept of project management began with the Manhattan Project, which the U.S. military led to develop the atomic bomb in World War II. The Manhattan Project involved many people with different skills at several different locations. It also clearly separated the overall management of the project s mission, schedule, and budget under General Leslie R. Groves and the technical management of the project under the lead scientist, Dr. Robert Oppenheimer. The Manhattan Project lasted about three years and cost almost $2 billion in 1946. In developing the project, the military realized that scientists and other technical specialists often did not have the desire or the necessary skills to manage large projects. For example, after being asked several times for each team member s responsibilities at the new Los Alamos laboratory in 1943, Dr. Oppenheimer tossed a piece of paper with an organization chart on it at his director and said, Here s your damn organization chart. 27 Project management was recognized as a distinct discipline requiring people with special skills and, more importantly, the desire to lead project teams. In 1917, Henry Gantt developed the famous Gantt chart for scheduling work in factories. A Gantt chart is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format. Initially, managers drew Gantt charts by hand to show project tasks and schedule information, and this tool provided a standard format for planning and reviewing all the work on early military projects. Today s project managers still use the Gantt chart as the primary tool to communicate project schedule information, but with the aid of computers, it is no longer necessary to draw the charts by hand and they can be more easily shared and disseminated to project stakeholders. Figure 1-6 displays a Gantt chart created with Microsoft Project, the most widely used project management software today. You will learn more about using Project 2007 in Appendix A. During the Cold War years of the 1950s and 60s, the military continued to be key in refining several project management techniques. Members of the U.S. Navy Polaris missile/ submarine project first used network diagrams in 1958. These diagrams helped managers model the relationships among project tasks, which allowed them to create schedules that were more realistic. Figure 1-7 displays a network diagram created using Microsoft Project. Note that the diagram includes arrows that show which tasks are related and the sequence in which team members must perform the tasks. The concept of determining relationships among tasks is essential in helping to improve project scheduling. This concept allows you to find and monitor the critical path the longest path through a network diagram that determines the earliest completion of a project. You will learn more about Gantt charts, network diagrams, critical path analysis, and other time management concepts in Chapter 6, Project Time Management.

By the 1970s, the U.S. military and its civilian suppliers developed software to assist in managing large projects. Early project management software was very expensive to purchase and it ran exclusively on mainframe computers. For example, Artemis was an early project management software product that helped managers analyze complex schedules for designing aircraft. A full-time employee was often required to run the complicated software, and expensive pen plotters were used to draw network diagrams and Gantt charts. As computer hardware became smaller and more affordable and software included graphical, easy-to-use interfaces, project management software became less expensive and more widely used. This made it possible and affordable for many industries worldwide to use project management software on all types and sizes of projects. New software makes basic tools, such as Gantt charts and network diagrams, inexpensive, easy to create, and available for anyone to update. See the section in this chapter on project management software for more information. In the 1990s, many companies began creating project management offices to help them handle the increasing number and complexity of projects. A Project Management Office (PMO) is an organizational group responsible for coordinating the project management function throughout an organization. There are different ways to structure a PMO, and they can have various roles and responsibilities. Below are possible goals of a PMO:

• Collect, organize, and integrate project data for the entire organization.
• Develop and maintain templates for project documents.
• Develop or coordinate training in various project management topics.
• Develop and provide a formal career path for project managers.
• Provide project management consulting services.
• Provide a structure to house project managers while they are acting in those roles or are between projects.

By the end of the twentieth century, people in virtually every industry around the globe began to investigate and apply different aspects of project management to their projects. The sophistication and effectiveness with which project management tools are being applied and used today is influencing the way companies do business, use resources, and respond to market requirements with speed and accuracy. As mentioned earlier in this chapter, many organizations are now using enterprise or project portfolio management software to help manage portfolios of projects. Many colleges, universities, and companies around the world now offer courses related to various aspects of project management. You can even earn bachelor s, master s, and doctoral degrees in project management. PMI reported in 2008 that of the 280 institutions it has identified that offer degrees in project management, 103 are in mainland China. When Western companies come into China they are more likely to hire individuals who have PMP certification as an additional verification of their skills. In our salary survey, the salary difference in IT, for example, was dramatic. A person with certification could make five to six times as much salary, so there is terrific incentive to get certified and work for these Western companies. 28
The problems in managing projects, the publicity about project management, and the belief that it really can make a difference continue to contribute to the growth of this field. The Project Management Institute Although many professional societies suffer from declining membership, the Project Management Institute (PMI), an international professional society for project managers founded in 1969, has continued to attract and retain members, reporting 277,221 members worldwide by August 31, 2008. A large percentage of PMI members work in the information technology field and more than 13,000 pay additional dues to join the Information Systems Specific Interest Group. Because there are so many people working on projects in various industries, PMI has created specific interest groups (SIGs) that enable members to share ideas about project management in their particular application areas, such as information systems. PMI also has SIGs for aerospace/defense, financial services, healthcare, hospitality management, manufacturing, new product development, retail, and urban development, to name a few. Note that there are also other project management professional societies. See the companion Web site for more information.

Project Management Certification.

Professional certification is an important factor in recognizing and ensuring quality in a profession. PMI provides certification as a Project Management Professional (PMP) someone who has documented sufficient project experience and education, agreed to follow the PMI code of professional conduct, and demonstrated knowledge of the field of project management by passing a comprehensive examination. Appendix B provides more information on PMP certification as well as other certification programs, such as CompTIA s Project certification. The number of people earning PMP certification continues to increase. In 1993, there were about 1,000 certified project management professionals. By December 31, 2008, there were 318,289 active PMPs. 29 Figure 1-8 shows the rapid growth in the number of people earning project management professional certification from 1993 to 2008. Several studies show that organizations supporting technical certification programs tend to operate in more complex information technology environments and are more...

Efficient than companies that do not support certification. Likewise, organizations that support PMP certification see the value of investing in programs to improve their employees knowledge in project management. Many employers today require specific certifications to ensure their workers have current skills, and job seekers find that they often have an advantage when they earn and maintain marketable certifications. A 2006 Certification Magazine survey of over 35,000 IT workers from 197 countries found that average salaries for workers in project management were among the highest for all IT specialties. IT workers with a PMP certification earned among the highest salaries for all IT workers who hold professional certifications. 30 As information technology projects become more complex and global in nature, the need for people with demonstrated knowledge and skills in project management will continue. Just as passing the CPA exam is a standard for accountants, passing the PMP exam is becoming a standard for project managers. Some companies require that all project managers be PMP certified. Project management certification is also enabling professionals in the field to share a common base of knowledge. For example, any person with PMP certification can list, describe, and use the nine project management knowledge areas. Sharing a common base of knowledge is important because it helps advance the theory and practice of project management. PMI also offers additional certifications, including new ones in scheduling, risk, and program management. See Appendix B of this text for detailed information on certification.
Ethics in Project Management Ethics, loosely defined, is a set of principles that guide our decision making based on personal values of what is right and wrong. Making ethical decisions is an important part of our personal and professional lives because it generates trust and respect with other people. Project managers often face ethical dilemmas. For example, several projects involve different payment methods. If a project manager can make more money by doing a job poorly, should he or she do the job poorly? No! If a project manager is personally opposed to the development of nuclear weapons, should he or she refuse to manage a project that helps produce them? Yes! Ethics guide us in making these types of decisions. PMI approved a new Code of Ethics and Professional Conduct effective January 1, 2007. This new code applies not only to PMPs, but to all PMI members and individuals who hold a PMI certification, apply for a PMI certification, or serve PMI in a volunteer capacity. It is vital for project management practitioners to conduct their work in an ethical manner. Even if you are not affiliated with PMI, these guidelines can help you conduct your work in an ethical manner, which helps the profession earn the confidence of the public, employers, employees, and all project stakeholders. The PMI Code of Ethics and Professional Conduct includes short chapters addressing vision and applicability, responsibility, respect, fairness, and honestly. A few excerpts from this document include the following:-

As practitioners in the global project management community:

2.2.1 We make decisions and take actions based on the best interests of society, public safety, and the environment. 2.2.2 We accept only those assignment that are consistent with our background, experience, skills, and qualifications. 2.2.3 We fulfill the commitments that we undertake we do what we say we will do.3.2.1 We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful. 3.2.2 We listen to others points of view, seeking to understand them. 3.2.3 We approach directly those persons with whom we have a conflict or disagreement. 4.2.1 We demonstrate transparency in our decision-making process. 4.2.2 We constantly reexamine our impartiality and objectivity, taking corrective action as appropriate. 4.3.1 We proactively and fully disclose any real or potential conflicts of interest to appropriate stakeholders. 5.2.1 We earnestly seek to understand the truth. 5.2.2 We are truthful in our communications and in our conduct. 31 In addition, PMI added a new series of questions to the PMP certification exam in March 2002 to emphasize the importance of ethics and professional responsibility. See Appendix B for information on the PMP exam.
(http://project-management-software-review.toptenreviews.com) for links to many companies that provide project management software. There are also several free or open-source tools available. For example, Open Workbench (www.openworkbench.org), dot Project (www.dotproject.net), and Task Juggler (www.taskjuggler.org) are all free online project management tools. Remember, however, that these tools are developed, managed, and maintained by volunteers. They also often run on limited platforms and may not be well supported. As mentioned earlier, there are many reasons to study project management, particularly as it relates to information technology projects. The number of information technology projects continues to grow, the complexity of these projects continues to increase, and the profession of project management continues to expand and mature. As more people study and work in this important field, the success rate of information technology projects should improve.

Project Management Software.

Unlike the cobbler neglecting to make shoes for his own children, the project management and software development communities have definitely responded to the need to provide more software to assist in managing projects. The Project Management Center, a Web site for people involved in project management, provides an alphabetical directory of more than 300 project management software solutions (www.infogoal.com/pmc). This site and others demonstrate the growth in available project management software products, especially Web based tools. Deciding which project management software to use has become a project in itself. This section provides a summary of the basic types of project management software available and references for finding more information. In Appendix A, you will learn how to use Microsoft Project 2007, the most widely used project management software tool today Many people still use basic productivity software such as Microsoft Word and Excel to perform many project management functions, including determining project scope, time, and cost, assigning resources, preparing project documentation, and so on. People often use productivity software instead of specialized project management software because they already have it and know how to use it. However, there are hundreds of project management software tools that provide specific functionality for managing projects. These project management software tools can be divided into three general categories based on functionality and price:

Low-end tools:

 These tools provide basic project management features and generally cost less than $200 per user. They are often recommended for small projects and single users. Most of these tools allow users to create Gantt charts, which cannot be done easily using current productivity software. Top Ten Reviews listed Minute Man ($49.95) and Project Kickstart ($199.95) in their list of top 10 project management software tools for 2008. 32 Basecamp (www.basecamphq.com) is another popular tool with low-end through high end versions ranging in price from $24 to $149 per month. Several companies provide add-in features to Excel (see www.business-spreadsheets.com) to provide basic project management functions using a familiar software product. Midrange tools: A step up from low-end tools, midrange tools are designed to handle larger projects, multiple users, and multiple projects. All of these tools can produce Gantt charts and network diagrams, and can assist in critical path analysis, resource allocation, project tracking, status reporting, and so on. Prices range from about $200 to $600 per user, and several tools require additional server software for using workgroup features. Microsoft Project is still the most widely used project management software today in this category, and there is also an enterprise version, as described briefly below and in Appendix A. In the summer of 2008, Top Ten Reviews listed Microsoft Project as the number one choice ($599), along with Milestones ($249). A product called Copper also made the top ten list, with a price of $999 for up to 50 users. As noted earlier, this text includes a trial version of Project 2007 as well as one of VPMi Express, a totally Web-based tool. Note that students and educators can purchase software like Microsoft Project 2007 at reduced prices from sites like www.journeyed.com ($59.98 for Project 2007 Standard in October 2008), and anyone can download a trial version from Microsoft s Web site. Many other suppliers also provide trial versions of their products. High-end tools: Another category of project management software is high-end tools, sometimes referred to as enterprise project management software. These tools provide robust capabilities to handle very large projects, dispersed workgroups, and enterprise and portfolio management functions that summarize and combine individual project information to provide an enterprise view of all projects. These products are generally licensed on a per-user basis, integrate with enterprise database management software, and are accessible via the Internet. In mid-2002, Microsoft introduced the first version of their Enterprise Project Management software, and in 2003, they introduced the Microsoft Enterprise Project Management solution, which was updated in 2007 to include Microsoft Office Project Server 2007 and Microsoft Office Project Portfolio Server 2007A. Several inexpensive, Web-based products that provide enterprise and portfolio management capabilities are also on the market. For example, VPMi Enterprise Online (www.vcsonline.com) is available for a low monthly fee per user (see the front cover of this text for free trial information). See the Project Management Center Web site (www.infogoal.com/pmc) or Top Ten Reviews

Chapter Summary

There is a new or renewed interest in project management today as the number of projects continues to grow and their complexity continues to increase. The success rate of information technology projects has more than doubled since 1995, but still only about a third are successful in meeting scope, time, and cost goals. Using a more disciplined approach to managing projects can help projects and organizations succeed. A project is a temporary endeavor undertaken to create a unique product, service, or result. An information technology project involves the use of hardware, software, and/or networks. Projects are unique, temporary, and developed incrementally; they require resources, have a sponsor, and involve uncertainty. The triple constraint of project management refers to managing the scope, time, and cost dimensions of a project. Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Stakeholders are the people involved in or affected by project activities. A framework for project management includes the project stakeholders, project management knowledge areas, and project management tools and techniques. The nine knowledge areas are project integration management, scope, time, cost, quality, human resource, communications, risk, and procurement management. There are many tools and techniques in each knowledge area. There are different ways to define project success, and project managers must understand the success criteria for their unique projects. A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Project portfolio management involves organizing and managing projects and programs as a portfolio of investments that contribute to the entire enterprise s success. Portfolio management emphasizes meeting strategic goals while project management focuses on tactical goals. Studies show that executive support is crucial to project success, as are other factors like user involvement, an experienced project manager, and clear business objectives. Project managers play a key role in helping projects and organizations succeed. They must perform various job duties, possess many skills, and continue to develop skills in project management, general management, and their application area, such as information technology. Soft skills, especially leadership, are particularly important for project managers. The profession of project management continues to grow and mature. In the U.S., the military took the lead in project management and developed many tools such as Gantt charts and network diagrams, but today people use project management in virtually every industry around the globe. The Project Management Institute (PMI) is an international professional society that provides certification as a Project Management Professional (PMP) and upholds a code of ethics. Today, hundreds of project management software products are available to assist people in managing projects.