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Value-Driven Project Management


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Table of Contents

Preface vii Acknowledgments xi International Institute for Learning, Inc. (IIL) xii Chapter 1: HOW PROJECT MANAGEMENT HAS CHANGED 1 Why Traditional Project Management May Not Work 2 Today's View of Project Management 8 Changing Views of Project Management 16 Recognizing the Need for Change 46 Chapter 2: CHANGING OUR DEFINITION OF PROJECT SUCCESS 49 Changing Times 50 Not Meeting the Triple Constraint 52 Defining Project and Program Success 54 Redefining the Triple Constraint Success Criteria 56 Definition of Success 58 Chapter 3: THE IMPORTANCE OF VALUE 61 Success 62 Types of Value 64 Return on Investment (ROI) 66 Types of Business Values 68 Changing Values 70 Chapter 4: THE STAKEHOLDERS' VIEW OF VALUE 103 Stakeholder Perception 104 Classification of Stakeholders 106 The Sydney, Australia, Opera House 108 Apple's Lisa Computer 112 Denver International Airport 116 Balancing Stakeholders' Needs 120 Traditional Conflicts over Values 122 Project Management Value Conflicts 124 Value Perceptions within a Project 126 Chapter 5: THE COMPONENTS OF SUCCESS 129 Four Cornerstones of Success 130 Categories of Success 132 Categories of Values 134 Deciding on the Quadrant 138 Internal Values 140 Financial Values 142 Future Values 144 Customer-Related Values 146 Reasons for Internal Value Failure 148 Reasons for Financial Value Failure 150 Reasons for Future Value Failure 152 Reasons for Customer-Related Value Failure 154 Antares Solutions 156 General Electric (Plastics Group) 158 Asea Brown Boveri (ABB) 160 Westfield Group 162 Computer Associates Technology Services 164 Convergent Computing 166 Motorola 168 Automotive Suppliers Sector 170 Banking Sector 172 Commodity Products (Manufacturing) Sector 174 Large Companies 176 Small Companies 178 Chapter 6: SUCCESS AND BEST PRACTICES 181 From Values to Best Practices 182 Two Components of Success 184 Redefining Value Metrics (CSFs and KPIs) 186 The Need for Changing Metrics 188 Project Management Office Involvement 190 Discovery of Best Practices 192 The Debriefing Pyramid 194 Disclosure of Best Practices 196 Levels of Success in Obtaining Values 198 Project Management Knowledge 200 Project Management Benchmarking 202 Sharing Values during Benchmarking 204 Intellectual Property Cost versus Value 206 Implementation Failures 208 Chapter 7: THE VALUE CONTINUUM 211 The Timing of Values 212 The Value Continuum 214 Barriers along the Continuum 216 Activities to Speed Up the Value Continuum 218 The Value Continuum and the Project Management Maturity Model 220 Value Management Life-Cycle Phases 222 Value Identification Phase: Business Case 224 Business Drivers Phase: Business Drivers 226 Measurement Phase: Key Performance Indicators 228 Value Realization Phase: Value (Benefits) 230 Customer Satisfaction Management Phase: Continuous Improvement 232 Chapter 8: ASSIGNING VALUE THROUGH OBJECTIVES 235 Types of Performance Reports 236 Benefits and Value at Completion 238 Determining Benefits (Value) at Completion 240 Establishing the Business Objectives 242 Estimating Approaches 246 Project Plans 248 Business Plans 250 Canceling Projects 252 Marrying Project and Program Management 254 Chapter 9: VALUE LEADERSHIP AND SENIOR MANAGEMENT 257 The Evolution of Leadership 258 Measurements and Triggers 260 What Executives Want to Hear 262 Critical Issues for the Selling Process 264 Threats that Executives Face 266 Project Management Success versus Maturity 268 Conclusions 270 Index 273

About the Author

HAROLD D. KERZNER, PH.D., is Senior Executive Director at the International Institute for Learning, Inc., a global learning solutions company that conducts training for leading corporations throughout the world. He is a globally recognized expert on project, program, and portfolio management, total quality management, and strategic planning. Dr. Kerzner is the author of bestselling books and texts, including the acclaimed Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Tenth Edition. FRANK P. SALADIS, PMP, is a Senior Consultant and Trainer for the International Institute for Learning, Inc. and editor of the newsletter, a global project management publication. Mr. Saladis was awarded the 2006 Linn Stuckenbruck Person of the Year Award by the Project Management Institute. The award recognizes people who have made significant contributions to the Institute as leaders in project management. Mr. Saladis is the originator of International Project Management Day, held each year to celebrate and recognize project managers from around the world. INTERNATIONAL INSTITUTE FOR LEARNING, INC. (IIL) is a global leader in professional training and comprehensive consulting services in the areas of project, program, and portfolio management, PRINCE2 (R), business analysis, Microsoft (R) Office Project and Project Server, and Lean Six Sigma. IIL is an IIBA- endorsed education provider, a PMI (R) charter global registered education provider, and a member of PMI's Silver Alliance Circle, and Corporate Council.

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