9/21/2021

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 Two

Project Management
Growth: Concepts and
Definitions

Excerpted from Project Management 12E

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

1
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Learning outcomes:
After successful studying this chapter You should be able to:
● Describe the evolution process of EPM (history),
● Discuss some benefits of project management,
● Explain some barriers to project management implementation
and how to overcome them,
● Differentiate between a program and a project,
● Explain what is meant by informal project management,
● Identify success and failure in project management,
● Describe the project life-cycle phases and closure to a life-cycle,
● Define the term “project management methodology”,
● Discuss critical success factors (CSFs) and key performance
indicators (KPIs) for PMs.

Excerpted from Project Management 12E

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

When to Use Project Management

• Are the jobs complex?

• Are there dynamic environmental considerations?
• Are the constraints tight?
• Are there several activities to be integrated?
• Are there several functional boundaries to be
crossed?

Excerpted from Project Management 12E

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

2
 9/21/2021

The Need For Restructuring

• Accomplish tasks that could not be effectively
handled by the traditional structure

• Accomplish onetime activities with minimum

disruption to routine business

Excerpted from Project Management 12E

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

Restructuring Problems
• Project priorities and competition for talent may
interrupt the stability of the organization and
interfere with its long-range interests by upsetting
the normal business of the functional organization.

• Long-range planning may suffer as the company gets

more involved in meeting schedules and fulfilling the
requirements of temporary projects.

Excerpted from Project Management 12E

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

3
 9/21/2021

Restructuring Problems (continued)

• Shifting people from the project to project

may disrupt the training of new employees
and specialists. This may hinder their growth
and development within their fields of
specialization.

Excerpted from Project Management 12E

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

Imperatives/ Essentials

• The time span between project initiation and

completion appears to be increasing.
• The capital committed to the project prior to the use
of the end item appears to be increasing.
• As technology increases, the commitment of time
and money appears to become inflexible.

Excerpted from Project Management 12E

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

4
 9/21/2021

Imperatives (Continued)
• Technology requires more and more specialized
manpower.
• The predictable counterpart of specialization is
organization.

The above five “imperatives” identify the necessity for

more effective planning, scheduling, and control.

Excerpted from Project Management 12E

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

Obstacles
• Unstable economy
• Shortages
• Soaring costs
• Increased complexity
• Heightened competition
• Technological changes
• Societal Concerns
• Consumerism
• Ecology
• Quality of work

Excerpted from Project Management 12E

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

5
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Results of NOT Controlling Obstacles

• Decreased Profits
• Increased manpower needs
• Cost overruns, schedule delays, and penalty
occurring earlier and earlier
• An inability to cope with new technology
• R&D results too late to benefit existing product lines
• Temptation to make hasty decisions that prove to be
costly

Excerpted from Project Management 12E

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

Results of NOT Controlling Obstacles

(Continued)

• Management insisting on earlier and greater return

on investment
• Greater difficulty in establishing on-target objectives
in real time
• Problems in relating cost to technical performance
and scheduling during the execution of the project

Excerpted from Project Management 12E

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

6
 9/21/2021

Project Management Growth

• Technology increasing at an astounding rate

• More money invested in Research &
Development (R&D)
• More information available
• Shortening of project life cycles

Excerpted from Project Management 12E

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

Early Reasons For Failure

• There was no need for project management.

• Employees were not informed about how
project management should work.
• Executives did not select the appropriate
projects or project managers for the first few
projects.

Excerpted from Project Management 12E

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

7
 9/21/2021

Early Reasons for Failure

(Continued)

• There was no attempt to explain the effect of

the project management organizational
structure on the wage and salary
administration program.
• Employees were not convinced that
executives were in total support of the change
(to project management).

Excerpted from Project Management 12E

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

Integrative Responsibility
• Total accountability assumed by a single
person
• Project rather than functional dedication
• A requirement for coordination across
functional interfaces
• Proper utilization of integral planning and
control

Excerpted from Project Management 12E

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

8
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Advantages
• Easy adaptation to an ever-changing environment
• Ability to handle a multidisciplinary activity within a
specified period of time
• Horizontal as well as vertical work flow
• Better orientation toward customer problems
• Easier identification of activity responsibilities
• A multidisciplinary decision-making process
• Innovation in organizational design

Excerpted from Project Management 12E

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

Project Management Evolution

• Biblical Project Management

• Military Project Management
• Space Exploration
• Heavy Construction
• Other

Excerpted from Project Management 12E

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

9
 9/21/2021

Life Cycle Phases for Project

Management Maturity

Executive
Embryonic Management
Acceptance

Line
Management Growth Maturity
Acceptance

Excerpted from Project Management 12E

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

Life Cycle Phases for Level 2

Project Management Maturity
Embryonic
• Recognize need Executive
• Recognize Management
benefits
Acceptance
• Recognize
Lineapplications
• Recognize Growth
Management what Maturity
must
Acceptance be done

Excerpted from Project Management 12E

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

10
 9/21/2021

Life Cycle Phases for Level 2

Project Management Maturity
Executive
Management
Embryonic Acceptance
• Visible executive
support
• Executive
Line understanding of
project management
Management Growth Maturity
• Project sponsorship
Acceptance • Willingness to
change way of doing
business
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

Life Cycle Phases for Level 2

Project Management Maturity
Line Management
Acceptance
• Line management Executive
support Management
• Line management Acceptance
commitment
• Line management
Line
education
Management Growth Maturity
• Willingness to release
Acceptance
employees for project
management training
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

11
 9/21/2021

Life Cycle Phases for Level 2

Project Management Maturity

Growth
Executive
Embryonic
• Development Management
of a
methodology Acceptance
• Use of life cycle phases
• Commitment to planning
Line • Minimization of “creeping
Managementscope”Growth Maturity
Acceptance• Selection of a project
tracking system

Excerpted from Project Management 12E

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

Life Cycle Phases for Level 2

Project Management Maturity
Maturity
• Development of a
Embryonic management cost/
schedule control
system
• Integrating cost and
schedule control
Line • Developing an
Management Maturity
Growth educational
Acceptance program to enhance
project
management skills
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

12
 9/21/2021

Driving Forces for Maturity

• Capital projects
• Customer expectations
• Competitiveness
• Executive understanding
• New product development
• Efficiency and effectiveness

Excerpted from Project Management 12E

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

The Components of Survival

Efficiency and Capital
Effectiveness Projects

New Product Customer

SURVIVAL Expectations
Development

Executive Competitiveness
Understanding

Excerpted from Project Management 12E

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

13
 9/21/2021

The Speed of Maturity

Non-Project-
Driven
Internal
Efficiencies & and Hybrid Project-Driven
Effectiveness Organizations Organizations

Customer
Expectation
s
Competitiveness

Fast Slow
Speed of Maturity
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

Benefits of Project Management

Past View Present View

• Project management will • Project management
require more people and allows us to accomplish
add to the overhead more work in less time
costs. and with fewer people.

• Profitability may • Profitability will increase.

decrease.

Excerpted from Project Management 12E

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

14
 9/21/2021

Benefits of Project Management

Past View Present View

• Project management will • Project management will
increase the number of provide better control of
scope changes. scope changes.

• Project management • Project management

creates organizational makes the organization
instability and increases more efficient and
conflicts. effective.

Excerpted from Project Management 12E

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

Benefits of Project Management

Past View Present View

• Project management is • Project management will
really “eye wash” for the allow us to work more
customer’s benefit. closely with our customers.

• Project management will • Project management

create problems. provides a means for
problem solving.

Excerpted from Project Management 12E

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

15
 9/21/2021

Benefits of Project Management

Past View Present View

• Only large projects need • All projects will benefit
project management. from project
management.
• Project management will
increase quality • Project management
problems. increases quality.

Excerpted from Project Management 12E

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

Benefits of Project Management

Past View Present View

• Project management will • Project management will
create power and authority eliminate the majority of
problems. the power struggles.

• Project management • Project management

focuses on sub- allows people to make
optimization by looking at good company decisions.
only the project.

Excerpted from Project Management 12E

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

16
 9/21/2021

Benefits of Project Management

Past View Present View

• Project management • Project management
delivers products to a delivers solutions to a
customer. customer.

• The cost of project • Project management will

management may make increase our business.
us uncompetitive.

Excerpted from Project Management 12E

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

Project Management Costs versus

Benefits
Cost of Project
Management Additional
Profits from
Better Project
Management

$ Pegged

? Time
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

17
 9/21/2021

Industry Classification
(by Project Management Utilization)

Project -Driven Hybrid Non-

Project-Driven
• PM has P&L • Production driven
but with many • Very few projects
responsibility
projects • Profitability from
• PM is a
• Emphasis on new production
recognized
product develop. • Large brick walls
profession
• Short product life • Long life cycle
• Multiple career Present
cycles Past products
paths
• Income comes • Marketing-orient.
from projects • Need for rapid
develop. process

Project Program Product

Management Management Management

Excerpted from Project Management 12E

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

From Hybrid to Project-Driven

1960-1990 1990-Present
Hybrid Hybrid

Traditional Project Modern Project

Management Management
• Entrance via project- • Entrance via
driven divisions
such as Management marketing, sales,
Information system
(MIS) and R&D engineering, and
R&D
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

18
 9/21/2021

Recessionary Effects
Characteristics
Recession Layoffs R&D Training Solutions Results of the
Sought Recessions

• Return to status quo

1979-1983 Blue Eliminated Eliminated Short Term • No project
Collar management support
• No allies for
project management

• Change way of doing

1989-1993 White Focused Focused Long Term business
Collar • Risk management
• Examine lessons
learned

Excerpted from Project Management 12E

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

New Processes Supporting Project

Management
1960- 1991-
1985 1985 1990 1992 1993 1994

Empower-
Total
Concurrent ment and Life
No Quality Re-
Engineering Self- Cycle
Allies Manage- Engineering
Directed Costing
ment
Teams

Increasing Support

Excerpted from Project Management 12E

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

19
 9/21/2021

New Processes Supporting Project

Management (Continued)
1995 1996 1997-
1998 1999 2000

Project
Scope Co- Multi-
Risk Offices
Change Management Located national
And
Control Teams Teams
COEs

Increasing Support

Excerpted from Project Management 12E

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

New Processes Supporting Project

Management (Continued)
2001 2002 2003 2004 2005
Strategic Six
Maturity Planning Intranet Capacity Sigma
Models For Status Planning Project
Project Reports Models Mgmt.
Management

Increasing Support

Excerpted from Project Management 12E

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

20
 9/21/2021

New Processes Supporting Project

Management (Continued)
2006 2007 2008 2009
Virtual Lean Best Capacity
Project Project Practice Planning
Teams Teams Libraries Models

Increasing Support

Excerpted from Project Management 12E

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

New Processes Supporting Project

Management (Continued)
2010 2011 2012 2013

From Triple Advances in

Complex Committee
to New Metrics
Projects Governance
Competing and
Constraints Dashboards

Increasing Support

Excerpted from Project Management 12E

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

21
 9/21/2021

2010 2011 2013

From Triple Advances in

Complex Committee
to New Metrics
Projects Governance
Competing and
Constraints Dashboards

Increasing Support

Excerpted from Project Management 12E

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

New Processes Supporting Project

Management (Continued)
2014 2015 2016- 2018
2017
Value- Global Merger &
Driven Project Acquisition
Project Management Project
& Cultures
?
Mgt. Mgmt.

Increasing Support

Excerpted from Project Management 12E

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

22
 9/21/2021

Definitions: Systems
• Air Force
– A composite of equipment, skills, and
techniques capable of performing and/or
supporting an operational role. A complete
system includes related facilities, equipment,
material services, and personnel required for
its operation to the degree that it can be
considered as a self-sufficient unit in its
intended operational and/or support
environment.

Excerpted from Project Management 12E

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

Definitions: Systems (continued)

• NASA
– One of the principal functioning entities
comprising the project hardware within a
project or program. The meaning may vary to
suit a particular project or program area.
Ordinarily, a “system” is the first major
subdivision of project work (spacecraft
systems, launch vehicle systems).

Excerpted from Project Management 12E

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

23
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Definitions: Programs
• Air Force
– The integrated, time-phased tasks necessary to
accomplish a particular purpose.
• NASA
– A series of undertakings that continue over a period
of time (normally years) and that are designed to
accomplish a broad, scientific or technological goal
in the NASA long-range plan (lunar and planetary
exploration, manned spacecraft systems).

Excerpted from Project Management 12E

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

Definitions: Projects
• NASA/Air Force
– A project is within a program as an
undertaking with a scheduled beginning
and end, and which normally involves
some primary purpose.

Excerpted from Project Management 12E

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

24
 9/21/2021

KINDS OF PROJECTS
Once a group of tasks is selected and considered to be
a project, the next step is to define the kinds of
projects encountered. There are four categories of
projects:
INDIVIDUAL PROJECTS
Short-duration projects normally assigned to a single
individual, who may be acting as a project manager
and/or a functional manager.

STAFF PROJECTS
These projects that can be accomplished by one
organizational unit, say a department. Staff (or a task
force) is developed from each section involved. This
works best when one functional unit is involved.

Excerpted from Project Management 12E

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

SPECIAL PROJECTS
Very often special projects occur that require that certain
primary functions and/or authority be assigned
temporarily to other individuals or unit. These works best
for short-duration projects. Long-term projects can lead to
severe conflicts.

MATRIX OR AGGREGATE PROJECTS

These projects require specific (or specialized) input from a
large number of functional (or business) units and usually
control vast resources.

Excerpted from Project Management 12E

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

25
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Successes vs. Failures

Failures

Successes
Projects

MATURITY EXCELLENCE
2 YEARS 5 YEARS

Time
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

Evolution of Policies,
Procedures and Guidelines
Checklists
Life Policy and Guidelines General with
Cycle Procedure per Project Periodic
Phases Manuals Life Cycle Guidelines Review
Phase Points

1970s Early 1980s Mid-1980s Late 1980s 1990s

CONVENTIONAL PROJECT MANAGEMENT Project

Management
with Concurrent
LEGEND Engineering

Excerpted from Project Management 12E

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

26
 9/21/2021

DEFINITION OF A PROJECT LIFE CYCLE

CONCEPTUAL FEASIBILITY AND DETAILED IMPLEMENTATION CONVERSION
PHASE PRELIMINARY PLANNING PHASE PHASE OR TERMINATION
PLANNING PHASE PHASE
RESOURCES

Resources
Utilized

* PMO
PMO

TIME

Excerpted from Project Management 12E

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

Success: Point or Cube?

Cost

Time
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

27
 9/21/2021

The Definition of Success

Excerpted from Project Management 12E

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

Success
• Definition of Success
– Primary factors
• Within time
• Within cost
• Within quality
• Accepted by the customer

Excerpted from Project Management 12E

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

28
 9/21/2021

Success
Secondary factors:
• Customer reference
• Follow-on work
• Financial success
• Technical superiority
• Strategic alignment
• Regulatory agency relations
• Health and safety
• Environmental protection
• Corporate reputation
• Employee alignment
• Ethical conduct

Excerpted from Project Management 12E

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

Success
• Critical Success Factors (CSFs)
[Focuses on the deliverables]

• Key Performance Indicators (KPIs)

[Focuses on the execution metrics of
the process]

Excerpted from Project Management 12E

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

29
 9/21/2021

Definitions
Factor Traditional Definition Future Definition
Project A temporary endeavor A collection of sustainable
undertaken to create a business value scheduled for
unique product, service, or realization
result

Program Achieving a set of business A collection of projects designed

goals through the to achieve a business purpose
coordinated management of and create sustainable business
interdependent projects over value within the established
a finite period of time competing constraints
Success Completion of the projects or Achieving the desired business
programs within the triple value within the competing
constraints of time, cost, and constraints
scope

Excerpted from Project Management 12E

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

Key Performance Indicators

These are shared learning topics
that allow us to maximize what we
do right and correct what we do
wrong.

Excerpted from Project Management 12E

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

30
 9/21/2021

Components of Failure
None Actual Planned Achievable Perfection
A B C D E

Accomplishment Perceived
Failure

Actual Failure
Planning
Failure
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

Components of Failure
None Actual Planned Achievable Perfection
A B C D E

Accomplishment
Perceived Failure

Actual
Failure
Planning
Failure
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

31
 9/21/2021

Degrees of Success & Failure

Complete Partial Partial Complete

Success Success Failure Failure

Excerpted from Project Management 12E

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

Degrees of Success & Failure

• The expected business

value is achieved within
Complete all of the competing
Success constraints.

Excerpted from Project Management 12E

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

32
 9/21/2021

Degrees of Success & Failure

• Some or all of the

expected business value
Partial is achieved but not
Success within all of the
competing constraints.

Excerpted from Project Management 12E

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

Degrees of Success & Failure

• The only achievable

business value is some
Partial intellectual property that
Failure may be useful on future
projects.

Excerpted from Project Management 12E

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

33
 9/21/2021

Degrees of Success & Failure

• The project may have

been canceled or simply
Complete not completed, and no
Failure business value, benefits
or intellectual property is
indicated. Also, the end
result may not have
performed correctly.
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

Risk Planning

Poor Risk
Management
Performance

Technical
Inability

Time
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

34
 9/21/2021

Mitigation Strategies Available

Technical Risk Financial Risk
Assessment Assessment
and Forecasting

Project Project Project

Objectives Planning Execution

Market Risk
Assessment Schedule Risk
and Forecasting Assessment

Numerous Opportunities for Trade-offs Limited

Resulting from Risk Analyses
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

The starting point in the

development of any project
management methodology is
the implementation of a
stage-gate process.

Excerpted from Project Management 12E

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

35
 9/21/2021

Stages
• Groups of series or parallel activities
(based upon the risks of the project)

• Managed by cross-functional teams

• To reach a predetermined deliverable

established by management

Excerpted from Project Management 12E

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

Gates
• Structured decision points at the end of
each stage
• Number of gates must be limited

Excerpted from Project Management 12E

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

36
 9/21/2021

Gatekeepers
• Individuals (i.e., sponsors) or groups of
individuals assigned by senior
management
• Empowered to enforce the structured
process (including change management)
• Authorized to evaluate performance and
make decisions
• And willing to provide the team necessary
technical and business information

Excerpted from Project Management 12E

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

Gatekeeper’s Decisions
• Proceed to next gate with the original
objectives
• Proceed to the next gate with revised
objectives
• Delay making a gate decision until
further information is obtained
• Terminate the project

Excerpted from Project Management 12E

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

37
 9/21/2021

Stage-Gate Failures
• Assigning gatekeepers and not
empowering them to make decisions
• Assigning gatekeepers who are afraid
to terminate a project
• Failure to provide the team with
information critical to gate reviews
• Allowing the team to focus more on the
gates than on the stages

Excerpted from Project Management 12E

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

Methodology Inputs
People

Project
Work Management Tools
(Tasks)
Methodology

Organization

Excerpted from Project Management 12E

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

38
 9/21/2021

Methodologies Can Fail

Methodologies can fail when they:
 Are abstract and high level
 Contain insufficient narratives to support these
methodologies
 Are not functional or do not address crucial areas
 Ignore the industry standards and best practices
 Look impressive but lack real integration into the business
 Use nonstandard project conventions and terminology
 Compete for similar resources without addressing this
problem
 Don’t have any performance metrics
 Take too long to complete because of bureaucracy and
administration

Excerpted from Project Management 12E

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

Resistance to Change
High

Neutral

Low I.T.
Sales Finance H.R. Eng.
Marketing Procurement Manu. R&D
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

39
 9/21/2021

Change Process
Support
Support for Change

Denial
Exploration

Resistance
Resistance

Time
Excerpted from Project Management 12E
by Harold Kerzner. Copyright 2017 by John
Wiley & Sons, Inc. All rights reserved.

Types of Cultures
• Cooperative

• Non-cooperative

• Isolated (large companies)

• Fragmented (multinational)

Excerpted from Project Management 12E

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

40
 9/21/2021

Integrated Processes for

The 21st Century
Project Management

Concurrent Total Quality

Engineering Management

Change Risk
Management Management

Excerpted from Project Management 12E

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

Integrated Processes
(Past, Present, and Future)
Yrs: 1990-2000 Current Yrs: 2000-2017
Integrated Integrated Integrated
Processes Processes Processes
• Project • Supply chain
management management
• Total quality • Business
management processes
• Concurrent • Feasibility
engineering studies
• Scope change • Cost-benefit
management analyses (ROI)
• Risk management • Capital
budgeting

Excerpted from Project Management 12E

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

41
 9/21/2021

Knowledge Repositories
Project Knowledge
Base (PKB) or Technical
Integration of Business Knowledge Base (TKB)
Processes into the EPM
Methodology
Quantity of Information

Knowledge
Repositories
PM Best (PM and
Practices Business
PM Best Libraries Knowledge)
Practices

Time

Excerpted from Project Management 12E

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

Multi-project Management
• Are the project objectives the same?
– For the good of the project?
– For the good of the company?
• Is there a distinction between large and small
projects?
• How do we handle conflicting priorities?
– Critical versus critical projects
– Critical versus noncritical projects
– Noncritical versus noncritical projects

Excerpted from Project Management 12E

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

42