MEETING THE CHALLENGES OF

PROJECT MANAGEMENT:
A PRIMER

Frank Greenwood

ESI International
Arlington, VA
Published by

ESI International
430 1 Fairfax Drive
Arlington, Virginia 22203

C11998 bv ESI International

All rights resewed. N o part of thls publication may be reproduced,

stored in a retrieval systcm, or transmitted in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise, without
the prior written permission of ESI International.

I?ditor: Angela Weaver

Cover Exea4tion: Claudia Guintu
Layout Execution: Trinh Le

Printed in the United States of America

ISBN 1-890367-08-7
About the Author ................................................................................. iv
About the Reviewer ............................................................................ v
Acknowledgments ............................................................................ vi
Meeting the Challenges of Projcct Management: A Primer .................... 1
Introduction ...................... . . .....................................................1
Summary .................................................................................. 3
#I What Is the Scope of My Project: What Do I Want/Need? ............... 4
Summary 7
#2 What Are the Critical Factors for Your Project
(e.g.. Time. Budget)? .....................................................................8
Summary ................................................................................. 11
#3 What Arc the Major Work Items, Tasks, and Sub-Tasks
to be Performed? Who Will Perform Them? ...................................12
Summary ................................................................................. 15
#4 What Resources Do I Have to Reach My Objective? .......................16
Summary ................................................................................. 19
#5 When Will the Various Tasks be Performed? .................... . . . ........21
Summary ................................................................................. 23
#6 How Do I Monitor the Progress? .................................................. 24
Summary ................................................................................. 27
#7 How Do I Manage the Changes Needed? ......................................... 28
Summary ................................................................................. 31
#8 What Will This Project Cost? .......................................................... 32
Summary ................................................................................. 35
#9 How Do I End the Project? ..............................................................36
Sources ................................................................................................ 38
ABOUT THE AUTHOR
After 10 ycars in t h e international oil industry, Frank
Greenwood returned to the States and carncd a Ph.D. in
Management from the University of California in Los
Angeles.

He taught graduate and undergraduatc courses in

statistics. computer science, and project management. He
worked in five computer centers becoming director of three.
Projects managed included the following: converting a
punched card system t o run o n NCR's first computer- the
Century 100: consolidating two separate centers while
converting both to run on an upgradcd mainframe; and
designing and implementing new applications.

Frank is author or co-author of nine books. He has

worked in the US, West Africa, Canada, Taiwan. Singapore,
and Malaysia. He is a Certified Computing Professional and
is listed in WHO'S WHO in AMERICA and WHO'S WHO in
SCIENCE and ENGINEERING.

Married with thrce grown children, he lives in

Bloomfield Hills, Michigan.
ABOUT THE REVIEWER
Dr. Melvin deGuzman is the Founder a n d President o f
Systems Management International - a consulting a n d
training organization providing organization development,
worker devcloprnent, systems integration, and project
management services t o Fortune 100 companies and
government agencies. He is also a faculty member o f t h e
Johns Hopkins University and a course instructor for EST
International.
 Publishing, while highly competitive, depends on many,
many people. For example:

4 The publishing house and its project managcmcnt

team, its equipment and capital for transforming
the manuscript into a book;

4 Those who trained the author- from the lady in

seventh grade who made him learn about gerunds
t o t h c employers who endured his movement along
t h e learning curve;

+ His parents, who, despite t h e very lean depression

years. saw t o it that he became a college graduate;

4 His spouse, who keeps t h e whole family together;

+ Last, but not least, the readers.

The list is endless. I hercby (inadequately) thank them

all.

-Frank Greenwood
MEETING THE CHALLENGES OF

Much of what you are involved in is a project:

+ Building your summer cabin

+ Planning your wedding
+ Re-engineering your work processes
+ Net orking your computers
+ Establishing your new business

These projects share common features: a budget, a

deadline, and a deliverable ( i . e . , some product o r service or
process that is defined objectively, not subjectively).
A routine, rcpctitivc job is not a candidate for project
management, because the work tends to be identical for
each occurrence. That is, there is n o need for techniques
that were developed t o deal with unique, new projects
(which tend t o be a nonroutine collection of tasks).
w
Project management helps you to:

+ Dcfine your outcomes/deliverables objectively:

+ Estimate t h e resources and time you.11 need:
+ Schedule resources and tasks;
+ Complete your project within budgct and on
schedule; and
+ Anticipate difficulties.
 Put simply, project managcmcnt is taking responsibility
f o r the successful completion of a project.
 Early on: consider some questions, such a s :

4 Why d o this project? Why now?

4 What am I risking? What are my assumptions (i.e.,

bets about the future)7

4 What will it cost?

4 What are the tangible and intangible benefits'!

As a project manager, you seldom get to choose your

projects. Whatever the situation, it is important t o know
who your client is. You need t o identify the one person o r
small group that will be accountable for the project.

That person o r group must be influential enough and

dedicated enough t o commit the time and energy needed for
your project to succeed. Once this is accomplished, you
and the client then negotiate a written agreement on the
client's objectives (the requirements and specifications of
t h e product o r deliverable and the desired end date) and on
your authority and responsibility.
 As you plan, you create a basis for monitoring your
projcct: Planning and control are opposite sides of t h e
same coin. Your plan must include methods t o ensure the
plan is operating effectively and the project remains
focused on t h e objectives. Also, remember that
experienced project managers know that change is
inevitable, s o they must forever be prepared to replan.

The process of planning (in contrast to drawing u p your

finished plan) is critical. You can sit alone a t your desk
and in. say, a half-hour write out your plan. This is just a
small start. You havc t o negotiate the plan with everyone
involved: otherwise, there will be no acceptance of, nor
commitment to, your plan. In other words, you have t o
involve all concerned in your planning process if you
expect their support. In contrast, the "ready-fire-aim"
approach guarantees big trouble for you.

Usually, the factors that everyone needs t o agree on

include:

+ Goal- W h a t do you o r your client wantineed?

This is typically some deliverable: a product,
process o r service that is defined objectively, such
as your completed summer cabin or your operating
(profitable) small business.

+ Schedule- What tasks and sub-tasks must be

done? What are the major milestones along t h e
way? When, and in what ordcr, should these tasks
be finished and milestones reached?

+ Budget- What resources are available t o you?

Normally, everybody has t o agree about money,
schedule, and person-hours.
+ Contingencies- What a r e the threats that ma!
operate against your plan? Should any occur, how
a
will you react ?

+ Phase-Out- How will you end your project? You

do not want it just dangling there. Agree on what
"finished" means. Write out a description o f the
product/process/service that is t o be produced a s a
result of completing your project. Obviously, you
want to end on schedule and within budget, and
you want to eliminate subjective analysis after
completion.
 Give careful thought to these five areas of your project:

+ First. Why am I doing this projcct? Do t h e

benefits justify t h e costs?

Are there better placcs t o invest the time, effort, and

resources that this project will cost?

Remember t o factor risks into your evaluation, because

comparing t h e rewards t o t h e risks can help you decide
what to do. Remember, t o o , that your management abilities
will be tested, specifically:

- Yozrr plannzng abrlities:

- Your capability lo get work done through others

and t o manage conflicts;

- Your self-dzsc~plrne,such as managlng your tzme

and handllng stress; and

- Your negotiating skills (e.g., scope, costs,

schedules).
 + Second, What a r e the tasks and sub-tasks to be
accomplished?

How a r e they t o be achieved? W h o will do these tasks?

Ideally; after you negotiate a project plan, put it down o n
paper and have everyone involved " sign-off" (accept) t h e
plan in writing. If your boss has made you manager of this
project (i.c., you are not working for yourself), negotiate a
written agreement that identifies your client and dcscribes
your responsibilities and authority. Tread carefully.
Employees are often saddled with a n assignment that is
budgeted with very few resourccs and very little time.

+ Third, What will it cost? A logical approach i s t o

get a good handle on all t h e tasks. Then, translate
these into person-hours necessary to get the tasks
done. Multiply t h c person-hours by the
appropriate dollar charge-out rate. Add it all up,
grind in a safety factor, and you have your cost
estimate.

+ Fourth, What's the schedule'? To determine your

project's schedule, you need to know the
following:

- Tasks that must be done;

- Sequence of these tasks;
- Duration of these tasks;
- Resources required.

+ Fifth, What a r e the risks? You need t o minimize

the consequences of adverse events by:

- Identifyzng the potential risks;

- Analyzing them; and
- Determining how yo!, will respond ( e . g . ,
pzrrchase insurance, zlse a szrhcontractor).
 It is also helpful t o note the difference betxvcen bcing
task-oriented and being process-oriented. Task-oriented
project managers concentrate on a limited range of tasks
and thereby tend t o limit themselves. In contrast; process-
oriented individuals develop the ability to negotiate, to
analyze problems, t o build a consensus, and to juggle
different balls in the air simultaneously. They concentrate
on the process o f being a project manager and don't restrict
themselves t o thinking in terms o f the individual tasks
making u p that particular project.
 Make a list of all the activities that must be performed
t o create your end product/service/process. This list is
called t h e Work Breakdown Structure (WBS). From this
WBS flow t h e schedule, the rcsource allocation, and t h e
budget.

Begin by asking: "What major work assignments must

be accomplished t o complete this project?" A WBS to
design and install a new software package, for example,
may include the following tasks: assess requirements,
design, program, test, and implement.

Next, for each major work assignment ask: "What tasks

must be done t o accomplish this work assignment?" These
tasks a r e work items for which primary responsibility can
b e assigned t o somcone and for which duration and cost can
be estimated. To develop your WBS, you move from major
categories of work (which map require several weeks) t o
tasks and sub-tasks that may take. say. a few hours. Keep
breaking t h e work into tasks until yon reach the level whcrc
you have clear completion criteria and time and cost
estimates for doing t h e work.

You will know your work breakdown structure i s

complete when:

+ It is broken down t o the level of detail that allows

you, the project manager, t o control t h e project by
using adequate cost estimates, scheduled start
dates, reasonable duration estimates, and
responsibility assignments.

+ Each task results in a clear-cut deliverable.

+ Someone is responsible f o r completing each task

on time. within budget, and at the specified quality
level.

Creating t h e WBS is often easiest using group sessions

that involve a l l the concerned people. Begin b y
brainstorming. Write all submitted ideas on a blackboard
or on separate sticky notes, allowing no discussion
(especially n o negative observations). Seek quantity, not
quality. Set a time limit. Then, eliminate, group, and
polish your list o f tasks and sub- tasks. Again, t h e WBS is
a deliverable-oriented listing o f project components that
organizes and defines t h e project. If it's not listed in t h e
WBS, it is not part of your project.
 The terminology may vary from project to project. but
WBS levels can be described as: project goal; major
milestones, activities, tasks. and sub-tasks. Although the
WBS defines t h e tasks logically, putting these tasks in
sequence requires a network showing when the tasks begin
and end in relation t o each other and t o the calendar.
 We now assume that you have crcatcd a deliverable-
oriented listing of project elements that organizes and
defines your project (i.e.. your Work Breakdown Structure).
You have successfully identified t h e tasks t o be
accomplished.

Nest. prepare a task analysis matrix. On the left margin

of a piece of paper, list all of these tasks. Across t h e top.
write headings such a s : planned duration, planned start
date, planned finish date, cstimated cost, actual duration,
and actual cost. Enter the appropriate information, as
available.

Also? for each task, show who is rcsponsible. For a big

project, it is helpful to note such matters as: w h o helps the
responsible individual, who must be consulted a n d kept
informed, and who has final approval.

The task analysis matrix lays out what must be done,

when, by whom, and a t what cost. Log information as it
becomes available, thereby keeping up with what is going
on. You allocate your resources this way (e.g., people,
money, time, tools, equipment. supplies) and construct a
colitrol tool a t the same time.
 Choosing capablc people and getting their commitment
t o your project is critical. Decide what skills a r e needed
and think about who is good a t what, who wants to do what,
and who can and cannot work together. In a large project,
your team probably will be made up o f a combination of
suppliers, vendors, and employccs. Internal and external
members all need t o agree on their roles and
responsibilities.

Commitment ( a s noted earlier, in t h e discussion about

planning) is formalized and documented by getting
everyone t o accept your plan in writing after a reasonable
amount of discussions and negotiations.

I n managing a project, handling interpersonal

relationships is usually more difficult than handling the
tasks, the schedules, or the costs. Keep your team informed
a s your project moves forward, s o people feel part of
things. Strive t o recognize and reward good performance.
 If you are working a s project leader for someone else's
project. you need that person's support. Serve hislher
interests. Pay attention to that person's needs, and don't
give pat answers or give the impression that you know
it all.
 You now have enough information t o develop a calendar
showing when tasks need t o begin and end in relation t o
one anothcr. Your WBS specifies t h e content o f each task.
Next, organize these tasks sequentially in a network s o you
can display the sequence of task execution and t h e
relationship of work activities t o each othcr.

You can create a network by going back to your WBS.

Make separate sticky notcs or individual magnetized labels
for a magnetic board for each work task. Begin moves
them about in terms of the immediate predecessors for each
activity. The sequence of your network usually follows t h e
order o f major work assignments. Once the labels for your
work activities are arranged. draw arrows connecting the
tasks t o show the flow or t o show that some work can be
done a t the samc time a s another task.

You can have only one label a t t h e beginning and one at

the end of your project. All your tasks must fit between
those t w o labels. Don't worry about time estimates or
about making your network to scale. For now: you a r e just
illustrating t h e relationships between the tasks. Every task
must be connected t o other tasks o r to the beginning or
ending labels. Tasks that have scveral predecessors
deserve special attention, because much must be done
beforc they can start. It sometimes helps to show the
places in the network where you will evaluate whether t o
continue the project. When your network is acceptable t o
all concerned, you can move on to time estimates.
 You can now forecast the person- hours and elapsed time
required completing each task. Your forecast should
consider such factors a s waiting f o r approvals, downtime.
and waiting for shipments. Refine your network to show
the start and end times for each t a s k . Adjust start dates for
those tasks that can begin before t h e i r predecessors a r e
100% complete. Give all concerned a copy of t h e network
and negotiate their agreement. Plot actual progress t o
monitor your project.
#6 How Do I MONITOR THE
PROGRESS?
You may have been asking yourself: "What if ..." as you
move through your project. What i f a key person gets sick',
What if a certain delivery is delayed? What if a strike
directly affects your plans?

A few critical tasks have a crucial effect on your

project. This concept is often called the 80120 rule: 80% of
your results depend on 20% o f t h e input factors. For
example, 80% of your sales c o m e from 20% of your
salesmen; 80% of your personnel problems come from 20%
of your people: 80% of your costs come from 20% o f your
budget items.

Accordingly, identify t h e 20% o f your project's tasks

that have a n 80% impact on its completion. Apply " what
if" analysis t o these critical tasks. asking yourself how you
will manage if something interferes with them. Develop a
plan for each of these twenty- percenters.

Projects seldom proceed a s planned. Keep your eyes on

your schedule, budget, and potential problems. Regularly
discuss these matters with all involved. Agree o n what t h e
problems are, their effects on t h e whole project, and t h e
recommended actions t o resolve t h e m . Keep a log o f t h e
completion status, budget position, and items t h a t need
special attention. And remember: Don't shoot t h e
messengers who bring you t h e bad news. They a r e very
valuable information sources.
 As a project manager. you may be required to submit
regular written rcports. One of t h e specified progress
measures used in these reports is " earned value." Earned
value analysis, in its various forms, is the most commonly
used method o f performance measurement. It integrates
scope, cost, and schedule measures t o help you assess
project performance.

Earned value analysis involves calculating three key

values for each activity:

4 Budget- also called thc budgeted cost of work

scheduled (BCWS)-is that portion of the
approved cost estlmate intended t o he spent on tlie
activity during a given period.

+ Actual cost- also called t h e actual cost of work

performed (ACWP)-is the total of direct and
indirect costs incurred in accomplishing work on
the activity during a given period.

+ Earned value- also called t h e budgeted cost o f

work performed (BCWP)--is a percentage o f t h e
total budget cqual to t h e percentage of the work
actually completed.

Thcse three values a r e used in combination to measure

whether or not work is being accomplished a s planned. T h e
following a r e the most commonly used measures:

4 Cost variance (CV=BCWP minus ACWP)

4 Schedule variance (SV=BCWP minus BCWS)
+ Cost performance index (CPI= BCWP divided by
ACWP)
 Typically, management requires regular reports on t h e
following:

+ Current status:
+ Differences between planned vs. actual;
+ Action taken on t h e diffcrences; and
+ Revised plan.

Your main goals a r e to prevent problen~s,t o solve

problems, and to get results.
 How Do I MANAGE THE

Be prepared for the inevitable changes in your project:

t o the end product/service/process (i.e., your project goal),
t o the schedule, cost. and resource availability.

Wcll-intentioned team members making " minor"

changes to your project without consulting anyone can
cause big problems. Your client may decide on certain
modifications that may result in extra expenses. Even your
own management may require changes a t some point.
Changes are inevitable.

T o effectively handle thesc changes, develop a change

management process. In an effective change management
process, team members should d o the following:

+ Describe the proposed change t o t h e project

manager.

+ Estimate the impact o n the project goal, schedule,

and cost.

+ Inform all of what is planned, asking f o r reactions

+ Analyze their suggestions.

+ Obtain approval or rejection of the change

 As project manager, you may be espected t o design a
change procedure that is formal, requiring paperwork and
approval requirements beyond those suggested above.

Some typical change considerations are:

Schedule-

+ How long is the delay'?

+ Can we make up t h e time. perhaps by adding

resources?

4 Is there a penalty clause in any of the agreemcnts'?

Is it negotiable?

Costs-

+ Are costs more than the amount budgeted?

+ What can we do to limit t h e costs'!

+ Can lost time be made up by adding resources?

+ Can we find the money'?

Goal-

+ Can a small design change solve the problem?

+ Will this reduce costs or shorten the schedule?

+ Will t h e client accept the design change?

+ Will this modify the product/process/service to be
delivered'?

+ Is it acceptable to the client?

+ What a r e t h e costs and benefits of this change?

 You made a rough " guessestimate" of costs before
deciding t o d o your project.

Now you have identified t h e tasks to be done (your

Work Breakdown Structure) and you have your network
schedule showing the sequence o f tasks and the relationship
o f work a c t ~ v ~ t i to
e s each other and t o the calendar. Yo11
a r e ready to d o your project budget.

Begin with thc time it will takc t o complete each task

(i.e.. t h c time spent actually working, not clapsed calendar
t i m e ) . If it takcs 10 hours f o r a person t o do a job a t 100%
capacity, allow 11 hours for that job (for personal breaks,
etc.). When you have your time estimate, multiply i t by t h e
charge-out rates for the various job categories assigned to
that task. Add any other costs, such as supplies and
equipment rental. Then repeat t h i s for all tasks until you
have a project total. As project manager, your accountants
will want you t o add overhead and burdcn allowances t o
your budget. Remembering Murphy's Law- anything that
can g o wrong, will g o wrong- you will want t o add a
reserve of, perhaps. 5% f o r contingencies. I f you think
Murphy was a n optimist, add 10%.
 Create a spreadsheet t o keep track of your costs. Show
your total project budgeted amount a t the top. Use P for
budgcted (planned) expenditures and A for actual amount
spent. Your title might be: COSTS BY MONTH. Down
the left margin, list your cost categories, such a s labor,
supplies. and equipment, allowing one row for each.
Across the top, show the months. Each month will have
two columns, P and A. At the bottom you may want t o have
one row for the total for each month and another row
showing accumulative expenditures. Log t h e figures as you
get them, negotiating a n y operating corrections with the
individuals in charge o f t h e tasks that a r e running over
budget.
COSTS BY MONTH

Total Budgeted Amount: P = planned A = actual

$100,000

Labor
Supplies
Equipment
I
MONTH TOTAL
CUMULATIVE
#9 How Do I END THE
PROJECT?
As an article in the Westinghouse Company in-house
newsletter said: " There comes a timc in every project when
you shoot t h e engineers and release t h e product."

The project is complete when t h e goal has been reached

(unless it was canceled prematurely), and all t h e tasks have
been done. Final project activities often include the
following:

4 Checking that all tasks and milestones have been

met (hold back 5% o r 10% o f any contracted
amount until you are satisfied with the results):

4 Disposition of team members (when you are

working f o r a corporation and several employees
have been temporarily assigned to the project);

+ Turnover t o client (perhaps including training),

always with formal acceptance;

4 Clearance o f final bills and charges, closing t h e

project books;

+ Giving credit t o your team and all concerned

through thank-you letters a n d other forms of
recognition; and,

4 Celebrating the successful project conclusion.

 In addition t o the above, you may also:

+ Preparc a final report;

+ Conduct a post-project review with your client;

and,

+ Conduct a post-project review with your project

team, documenting the lessons learned t o help you
with future assignments.

This primer was designed t o get you "up and running"

on your project, s o you can get it done properly.

When t h e author first started earning a living i n the

late 1950s, project management courses were almost
nonexistcnt. In a n early assignment convcrting a punehed-
card information system t o run on N C R ' s first computer
(the Century l o o ) , hc carned scars that could have been
avoidcd had he used the appropriate project management
tools.

Indeed in the succccding years h e spent working in

international oil, information technology, and the academia,
project management training gave him t h e skills t o handle
projects with more efficiency and confidence.
 The author draws freely from t h c following sources:

1. Joan Knutson and Ira Bitz. Project Management:

How to Plan and Manage Successful Projects, AMACOM.
1991.

2 . Larry Johnson, Project Managemenl. CareerTrack,

1994; a series of 4 videotapes and a workbook.

3. Project Management I n s t ~ t u t e Standards

, Committee.
A Gzl~deto the Pro,lect Management Body of Knowledge.
PMI. 1996.

4 . Thomas Belanger. S~tccess~f ul

Project Management
AMA; a self-study course.

5 . James Lcwis. Project Planning, Scheduling &

Control. McGraw-Hill. 1995.