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In This Edition

In This Edition

David Pells,

Managing Editor 

Addison, Texas, USA
________________________________________________________________________

Welcome to the February 2013 edition of the PM World Journal (PMWJ), the 7th issue of the new web-based publication serving the world of professional program and project management (P/PM).  This month’s edition of the PMWJ includes 38 articles, papers, reports and book reviews from 17 different countries, again reflecting the global nature of our readers and contributors.

This month’s edition begins with three Letters to the Editor. Mike O’Brochta in the USA has commented on our January second edition paper on project management credentials by Paul Giammalvo.  Purna Singh in Nepal sent complementary comments about the January advisory article by Shailesh Nepal.  And Pat Weaver in Australia has offered a scathing commentary on the January series article by Paul Dinsmore and Luiz Rocha on enterprise project governance.  If you have any comments or reactions related to anything published in the PMWJ, send us an email to share with the rest of the world.  Sharing knowledge, including reactions and perspective, is the main mission of the PMWJ.

In Tribute is an opportunity to remember and honor project management leaders who have recently died.  This month we pay tribute to Prof Jean-Pierre Debourse in France, who passed away on 14 January.  Please read this article about an extraordinary educator who also championed programme and project management.

Authors in 6 countries have contributed Featured Papers this month.  Dr. Pavel Barseghyan, who spends his time between Armenia and the USA, has authored another important paper entitled “Equilibrium of Human Labor in light of Supply and Demand Model of Microeconomic Theory.”  Alan Stretton, PhD in Australia has authored a paper entitled “A case for refocusing on basic processes/procedures underlying effective project management. Anil Seth in India is the author of “Why Project Engineers Exist”. Bob Prieto in the USA has authored another paper on “Program Tetrahedron – further developing the concept.”  Satya Narayan Dash in India has provided a useful paper entitled “PMBOK Guide 5th Edition and MS Project 2010: A Practical Step-by-Step Approach.”  Paul Giammalvo in Indonesia has provided his long-awaited update on “Project Management Credentials Compared.” These are all serious papers; we hope they are interesting and useful our readers.

Six Series Articles are included this month. Prof Darren Dalcher in the UK has organized an “Advances in Project Management” article and provided an introductory article himself entitled “From Projects to Strategy, and Back AgainAntonio Nieto-Rodriguez in Belgium is the author of an advances series article entitled, “Evidence of the Neglect of Project Management by Senior Executives”.  Antonio is the author of the book “The Focused Organization” published by Gower in 2012.  Another Risk Doctor Briefing by Dr David Hillson in UK is included this month on the subject of “Prerequisites for Effective Enterprise Risk Management.”

Bill Young, PhD, Australian professional leader currently residing in China has provided another article in the series called “Dragons, Camels and Kangaroos: Cultural Intelligence for Project Managers”.  Bill’s article this month is titled “Enter the Dragon – Chinese Business Culture and the West.”  Another article is included in the series launched last month on the subject of “Enterprise Project Governance: How to Manage Projects Successfully Across the Organization,” by Paul Dinsmore and Luiz Rocha in Brazil.  Dinsmore and Rocha are the authors of the outstanding book Enterprise Project Governance, published in the USA by AMACOM in 2012.  Their second article this month is entitled “EPG and Corporate Governance.”

Finally, we introduce another new series of articles this month by Keith Pickavance in UK on the subject of the new contract for complex construction projects from the Chartered Institute of Builders (CIOB). Keith’s first article is entitled “A New Construction Contract for the 21st Century.” These series articles are outstanding articles that should spur deep consideration and perhaps some debate, authored by some of the leading P/PM experts in the world.  We hope you enjoy them.

More…

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About the Author 

david-pellsflag-usaDAVID PELLS

Managing Editor, PMWJ

David L. Pells is Managing Editor of the PM World Journal, a global eJournal for program and project management, and Executive Director of the PM World Library. He is also the president and CEO of PM World, the virtual organization behind the journal and library, and of PM World Services, an executive P/PM advisory firm.  David is an internationally recognized leader in the field of professional project management with more than 35 years of experience on a wide variety of programs and projects, including engineering, construction, defense, energy, transit, high technology, and nuclear security, and project sizes ranging from several thousand to ten billion dollars. He has been an active professional leader in the United States since the 1980s, serving on the board of directors of the Project Management Institute (PMI®) twice.  David was awarded PMI’s Person of the Year award in 1998 and Fellow Award in 1999. He is an Honorary Fellow of the Association for Project Management (APM) in the UK; Project Management Associates (PMA – India); and of the Russian Project Management Association SOVNET.  From June 2006 until March 2012, he was the managing editor of the globally acclaimed PM World Today eJournal.  David has published widely, speaks at conferences and events worldwide, and can be contacted at [email protected].

Jean-Pierre Debourse, Project Management Educator, 1940-2013

In Tribute
________________________________________________________________________

Prof Jean-Pierre Debourse, Project Management Educator Exemplar, passes away in France

Professor Jean-Pierre Debourse, PhD,  Professor Emeritus and Director of Research at the University of Littoral (ULCO) in Dunkirk, France passed away on 14 January 2013.  Well known throughout the European project management community, Prof Debourse was former dean of the ESC Lille (now SKEMA) School of Management where he supported the development of the graduate program in Strategy, Programme and Project Management, one of the world’s most successful and widely recognized graduate schools for project management.

jean-pierre-debourseJean-Pierre Debourse, PhD, MSc was Professor Emeritus and Director of Research, the University of Littoral (ULCO), Dunkirk, France; Founder and Director of a research laboratory on Entrepreneurship and Project Management at ULCO, integrated in the LEM-National Scientific Research Center (CNRS) with team members from 7 Universities; former Dean, ESC Lille School of Management and Professor Emeritus, the University of Lille. With over 40 years of experience in Project Management and Project Management Education, he was a founder of one the first PM Master Degree programs in Europe in 1979, a founder of the Regional Development Agency of the North-Pas de Calais Region, an analyst for the Regional Council of Northern France of the projects competing for the Channel Tunnel, and former CEO of Fonds Régional de Garantie.

From La Voix Du Nord in France (translated from the French)

Jean-Pierre Debourse was first a teacher and management specialist.  Associate of Science in Management, he co-founded the University of Science and Technology of Lille and created many university programs. Decorated in 2004 with the Legion of Honor, Jean-Pierre spent 32 years leading the business school in Lille (ESC, which would become Skema) and IAE. Founder of the Regional Development Agency (RDA), also chair of the salon distance selling and originator of funds to support solutions for regional security problems.

jean-pierre-debourseAmbassador for a region he loved deeply, he also loved Cap Gris Nez, birds, old books, good food and rose gardens; considered rightly as one of the finest connoisseurs of the great northern families in France, he cultivated discretion and humility that earned him honors all his life.  Born in Hazebrouck under bombardment in 1940, bachelor’s degree at 16, he ran at 17 a night shift of 250 workers at the cannery Flanders Steenbecque.

The entrepreneurial spirit always led his life.  He passed away at his home in Lille, France after a long illness at the age of 73.

To read entire memorial, include tributes from two internationally recognized project management leaders, click here.

Enter the Dragon – Chinese Business Culture & the West

SERIES ARTICLE

Dragons, Camels and Kangaroos

A Series on Cultural Intelligence for Programme and Project Management

Article 2 in the series ‘Dragons, Camels and Kangaroos 

By Bill Young 

Melbourne, Australia and Beijing, China
________________________________________________________________________

When you read this title your first question might be: What is the association between these disparate creatures (mythical and real)? The less complex answer is, they are symbolic and immediately conjure up ideas of what they possibly represent. Dragons perhaps China; Camels the Middle East and parts of Africa; Kangaroos, Australia. What has this got to do with the price of fish in Hong Kong! The explanation will be in our series on international cultures. 

Bill Young lectures in international business management at Beijing’s Jiaotong University. He has developed a number of courses focused on international culture and cultural dimensions. After three decades of delivering projects globally and with strong experience in international joint ventures he is convinced that there is a much greater need for the development of Cultural Intelligence. 

In this series Young discusses aspects of local and national cultures in the context of how they impact international business and project management. The series deals with contemporary culture in the global business environment and explores Cultural Dimensions and how they can be utilised to bring about greater project and business success. The series will include articles focused on different national cultures and how through building understanding of the cultures can make a substantial difference to business success. Article 1: Cultural Intelligence – a requisite competency for international projects outlined why this topic is important.

Enter the Dragon – Chinese business culture & the west 

As we close out this Chinese Year of the Dragon I have focused this article on Chinese Culture. In the mid-1970s I trained in Wing Chun kung fu, a time when the iconic Bruce Lee was bringing Chinese martial arts to the international movie screens. By coincidence one of my kung fu Masters also studied under Lee’s teacher the famous Yip Man. Lee was an unintentional ambassador of Chinese culture in his own right. Through his many movies where he visibly displayed ‘culture shock’ he was always in some struggle to attain fairness for others; fighting for oppressed minorities or against racial discrimination. This was my first introduction to Chinese culture.

This article enlarges on the discussion of culture in the previous article: ‘Cultural Intelligence – a requisite competency for international projects’ (Young 2013). It provides some insights into the history and nature of Chinese culture and why it is fundamentally important for Western business people and Project Managers doing business with, and in, China to gain an understanding of Chinese culture; as challenging as it may be to accurately define. It may also be useful for Chinese who are going out to other parts of the world on various business ventures. To be successful conducting international business, either direction, requires cultural competence. Western here loosely referring to the culture of countries that have an origin from Europe / the Americas.

China with its over 1.3 billion people (mainly the Han ethnic group but with a diverse range of other minorities) has the largest population in the world. Its 4000 – 5000 years of continuous civilization and cultures (including cuisine, music, literature, visual and performing arts) also make it one of the oldest in the world.

China is immensely culturally rich and without question one of the most dynamic and rapidly changing nations in the world today. Its culture is a complex tapestry of history interwoven with the threads and lives of billions of Chinese people down through the ages. This article could never adequately do it justice, but can only attempt to share some experienced insights and contemporary understanding. 

More…

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About the Author

bill-young-bioflag-australiaflag-chinaBill Young

PhD, MBA, M.Eng, B.Eng, CPPD, FIEAust, FAIPM.

President and initiator of the Asia Pacific Federation of Project Management (www.apfpm.org) (2010 – current).

Former President (2007-11) Australian Institute of Project Management.

CEO (1985 – current) PMS Project Management Services P/L

Director (2005 – current) of Professional Solutions Australia Limited

Based in: Melbourne and Beijing: <[email protected]>. 

Bill has worked for 31 years in engineering, business, and project management responsible for a diverse range of chemical processing and mining developments. He has worked in Australia, Europe, Asia, North America, and Africa.

After completing a number of Projects in China since 2005, he moved to China with his family in 2009.  He is a consultant and entrepreneur, and a Professor (part time) for the School of Mechanical & Electronic Control Engineering, BeijingJiaotongUniversity.

Prerequisites for Effective Enterprise Risk Management

SERIES ARTICLE

Dr David Hillson FIRM, HonFAPM, PMI Fellow 

UK
________________________________________________________________________

The term Enterprise Risk Management (ERM) describes a comprehensive and integrated framework for managing risk at all levels within an organisation. Four organisational characteristics are required if ERM is to work properly:

  1. 1.    Defined objectives at all levels. Risk is defined in terms of objectives and without clearly defined objectives it is not possible to identify or manage risk. Objectives exist at various levels in an organisation, forming a hierarchical structure. ERM requires these objectives to be clear (everyone knows and agrees what they are), aligned (all objectives contribute to the overall goal) and coherent (fitting together as a set, both top-down and bottom-up).
  1. 2.    Matching organisation to objectives. Effective organisations have structures that mirror the hierarchy of objectives, with clear mapping between levels. Senior management are responsible for achieving strategic objectives, and front-line staff (project teams, operational groups, supply chain partners etc.) must meet operational and delivery objectives. The levels in between are covered by middle management, and it is often here that objectives lose clarity, alignment and coherence.
  1. 3.    Clear boundaries. Effective ERM requires clear interfaces between levels, for both objectives and the organisation. There must be no uncertainty about whether a particular objective belongs at a particular level or to the level above or below. The organisational hierarchy must be equally clear, with defined lines of responsibility, communication and decision-making authority.
  1. 4.    Risk-aware culture. The organisation needs a fully mature risk-aware culture at all levels, with a commitment to manage risk wherever it is found, and this must be properly resourced and supported. ERM cannot operate effectively if any level within the organisation denies the existence of risk or refuses to take responsibility for managing risk in their area of authority.

What happens if one or more of these four elements are missing in your organisation? Perhaps there are no clear overall objectives, or your organisation is unstructured or has inconsistent boundaries, or the risk culture is immature? Is it possible to implement ERM in these circumstances? 

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About the Author

Dr. David Hillsonflag-ukDr. David Hillson 

Author 

Dr David Hillson CMgr FRSA FIRM FCMI HonFAPM PMI-Fellow is The Risk Doctor (www.risk-doctor.com).  As an international risk consultant, David is recognised as a leading thinker and expert practitioner in risk management. He consults, writes and speaks widely on the topic and he has made several innovative contributions to the field. David’s motto is “Understand profoundly so you can explain simply”, ensuring that his work represents both sound thinking and practical application.

David Hillson has over 25 years’ experience in risk consulting and he has worked in more than 40 countries, providing support to clients in every major industry sector, including construction, mining, telecommunications, pharmaceutical, financial services, transport, fast-moving consumer goods, energy, IT, defence and government. David’s input includes strategic direction to organisations facing major risk challenges, as well as tactical advice on achieving value and competitive advantage from effectively managing risk.

David’s contributions to the risk discipline over many years have been recognised by a range of awards, including “Risk Personality of the Year” in 2010-11. He received both the PMI Fellow award and the PMI Distinguished Contribution Award from the Project Management Institute (PMI®) for his work in developing risk management. He is also an Honorary Fellow of the UK Association for Project Management (APM), where he has actively led risk developments for nearly 20 years.  David Hillson is an active Fellow of the Institute of Risk Management (IRM), and he was elected a Fellow of the Royal Society of Arts (RSA) to contribute to its Risk Commission. He is also a Chartered Fellow of the Chartered Management Institute (CMI) and a Member of the Institute of Directors (IOD).

Dr Hillson can be contacted at [email protected].

From Projects to Strategy, and Back Again

SERIES ARTICLE

Advances in Project Management

By Prof Darren Dalcher

Director, National Centre for Project Management

University of Hertfordshire 

UK
________________________________________________________________________

Introduction to the February PMWJ Article by Antonio Nieto-Rodriguez 

One of the key success factors for project management revolves around the availability of support and buy-in from senior management. Reports on project success and failure typically emphasise executive support as a distinguishing and necessary ingredient.

Embedding major improvement initiatives, such as maturity models and process improvement schemes, into an organisation also depends on harnessing support at a strategic level which is often identified as a critical pre-requisite to the success of such initiatives. Indeed, most attempts to introduce and embed change at an organisational level would depend on the availability of leaders willing to engage, defend, support and champion the initiatives to ensure they survive and thrive.

The discipline is increasingly aware of the need to ‘sell’ project management to corporate executives. In a landmark study published in 2002, Professor Janice Thomas and her colleagues asked why it was so difficult to convince senior executives of the importance of project management. Their PMI study confirms that many project managers pitch the profession too low by focusing on the tactical importance of projects. Senior executives however, are looking for a more strategic focus, concerned with the long-term delivery of value. The study notes that successful sellers emphasise the alignment of project management with corporate strategy and goals and distinct value statements. Ultimately senior executives want to understand the benefits that project management can offer in their particular context.

A number of articles in the series, including the most recent installment, hinted that the theory of project management might be flawed, suggesting alternative ways of looking at how to deliver projects. It might be that the discipline is partly at fault for failing to transmit the correct message. Describing a project as a temporary endeavour with a start and end points, might well be doing the discipline a disservice, by ignoring the need to focus on benefits, the alignment with corporate objectives, and the strategic and organisational context. Presenting projects as a temporary group activity or as the allocation of resources also misses the wider purpose and goal, and more crucially ignores the link to upper level values, priorities and concerns that are likely to be of interest to senior executives. 

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Editor’s note: The PMWJ Advances in Project Management series includes articles by authors of program and project management books published by Gower in the UK.  Each month an introduction to the current article is provided by series editor Prof Darren Dalcher, who is also the editor of the Gower Advances in Project Management series of books on new and emerging concepts in PM.  Prof Dalcher’s article is an introduction to the invited paper this month in the PMWJ by Gower author Dr Lynda Bourne on the subject of “Communicating Upwards with Effect.”  Information about the Gower series can be found at http://www.gowerpublishing.com/advancesinprojectmanagement. 

About the Author 

Darren Dalcher, PhDflag-ukDarren Dalcher, PhD 

Author, Series Editor 

Director, National Centre for Project Management

University of Hertfordshire

UK

Darren Dalcher, Ph.D. HonFAPM, FRSA, FBCS, CITP, FCMI is Professor of Project Management at the University of Hertfordshire, and founder and Director of the National Centre for Project Management (NCPM) in the UK.  He has been named by the Association for Project Management (APM) as one of the top 10 “movers and shapers” in project management in 2008 and was voted Project Magazine’s “Academic of the Year” for his contribution in “integrating and weaving academic work with practice”. Following industrial and consultancy experience in managing IT projects, Professor Dalcher gained his PhD in Software Engineering from King’s College, University of London.  Professor Dalcher has written over 150 papers and book chapters on project management and software engineering. He is Editor-in-Chief of Software Process Improvement and Practice, an international journal focusing on capability, maturity, growth and improvement. He is the editor of the book series, Advances in Project Management, published by Gower Publishing of a new companion series Fundamentals of Project Management.  Heavily involved in a variety of research projects and subjects, Professor Dalcher has built a reputation as leader and innovator in the areas of practice-based education and reflection in project management. He works with many major industrial and commercial organisations and government bodies in the UK and beyond.  He is an Honorary Fellow of the APM, a Chartered Fellow of the British Computer Society, a Fellow of the Chartered Management Institute, and the Royal Society of Arts, and a Member of the Project Management Institute (PMI), the Academy of Management, the Institute for Electrical and Electronics Engineers, and the Association for Computing Machinery. He is a Chartered IT Practitioner. He is a Member of the PMI Advisory Board responsible for the prestigious David I. Cleland project management award and of the APM Professional Development Board.  Prof Dalcher is an academic editorial advisor for the PM World Journal.  He can be contacted at [email protected].

Project Management in Spain: Monthly report End of January 2013

REPORT FROM THE PM PROFESSION

spain

By Alfonso Bucero MSc, PMP, PMI Fellow

International Correspondent and Contributing Editor

PM World Journal

Madrid, Spain
________________________________________________________________________

PMI Madrid Chapter is still increasing its membership

pmi-madrid-chapter
·         Counting on 327 members on 2012, PMI Madrid Chapter has been the Chapter with the highest growth of PMI worldwide (PMI have 266 Chapters over the world).

pmi-chapter-evolution

More…

To read entire report, click here for (English) or (Spanish)

About the Author

alfonso-buceroflag-spainAlfonso Bucero 

International Correspondent

Editorial Advisor – Spain

Alfonso Bucero, MSc, PMP, PMI Fellow, is an International Correspondent and Contributing Editor for the PM World Journal in Madrid, Spain. Mr. Bucero is also founder and Managing Partner of BUCERO PM Consulting.  Alfonso was the founder, sponsor and president of the PMI Barcelona Chapter until April 2005, and belongs to PMI’s LIAG (Leadership Institute Advisory Group).  He was the past President of the PMI Madrid Spain Chapter, and now nominated as a PMI EMEA Region 8 Component Mentor. Alfonso has a Computer Science Engineering degree from Universidad Politécnica in Madrid and is studying for his Ph.D. in Project Management. He has 29 years of practical experience and is actively engaged in advancing the PM profession in Spain and throughout Europe. He received the PMI Distinguished Contribution Award on October 9th, 2010 and the PMI Fellow Award on October 22nd 2011.  Mr. Bucero can be contacted at [email protected].

Project Management Credentials Compared: A Follow Up Analysis

FEATURED PAPER

By Paul D. Giammalvo 

Jakarta, Indonesia
________________________________________________________________________

INTRODUCTION

Back in December of 2010, I attempted to create a “scoring model” that would enable some sort of rational and meaningful comparison between the various credentials common in the world of project management.  The initial study consisted of those credentials having a reasonable degree of global recognition, including those of PMI, IPMA, AIPM, AACE, INCOSE and APM/OGC. (Reference PM World Journal Volume 2, Issue 1 January 2013, Second Edition https://pmworldjournal.net/article/project-management-credentials-compared-a-preliminary-analysis/ )

To recap, this scoring model was based on the total “end to end” “level of effort” required to qualify for, prepare, take and earn each of the credentials, applying the principle of “earned hours” for fulfilling each of the requirements. The underlying assumption being that the more stringent and tough the requirements, the more likely the credential was to reliably and accurately validate “COMPETENCY”.

As a baseline, I selected the US “Professional Engineer” license (PE) as the benchmark of excellence, as it is a well-recognized and highly regarded professional level “license to practice” which established both the MINIMUM acceptable level to begin to practice (as an Engineer In Training- EIT)) as well as an upper threshold, which was the MINIMUM acceptable level to obtain a license to practice as an independent Professional Engineer. (PE)  As this scale does not have a true zero, it only provides us with the ability to create an interval scale. That is, lacking a true zero point, we can plot the relative standings of each credential, but we are unable to say with any reliability by how much one credential was “tougher” or “easier” to obtain, when compared against any another.

To further support the efforts to establish a true ratio rather than merely an interval scoring model, I researched to find a metric which had a true zero point.   For that, I looked to the contemporary writings of Malcolm Gladwell, who, in his book “Outliers” made a strong case that to become “PROFESSIONALLY COMPETENT” at anything, one had to dedicate at minimum of 10,000 hours of serious, professional level practice and progressively more challenging experience before one could master his/her sport or profession, be it music, basketball, auto racing, commercial piloting or project management.

With Gladwell having provided not only a true zero point, but also a minimum threshold of hours, it provides us with a way not only to create an interval scale measure of the various credentials but also to create a true ratio scale- that is, we can see whether one credential requires half the level of effort of the other or twice as much level of effort to obtain it, the inference being, the more rigorous the process, the more likely the credential is to actually measure competency.

The scoring model I created in 2010 was published in the December issue of the now defunct PM World Today/PM Forum e-Journal.  It was also made available under creative commons license from our website download page. (http://tinyurl.com/c59awm3 or here http://tinyurl.com/ceq77vs )   During the past two years, there have been over 8,000 downloads of the narrative/Excel spread sheet based version and during the past 2 years, received some 25 comments/suggestions for improvements on the model. This update incorporates those inputs.

As with the original publication, I do not see this as a final end product, but merely a progression to help us understand the process of measuring and assessing competency in applied project and program management.  Accordingly, I am actively seeking graduate or PhD level researchers who would be willing to pick this early research and conduct a more rigorous, scholarly assessment.

However, in the meantime, I think readers will find this update to the initial research to be interesting and if nothing else, I hope it stimulates a robust dialog about what professional organizations purporting to represent the practice of project management can and should be doing to “raise the bar” consistent with other professions.

More…

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About the Author 

paul-giammaivoflag-usa-indonesiaDr. Paul D. Giammalvo

Jakarta, Indonesia 

Dr. Paul D. Giammalvo, CDT, CCE (#1240), MScPM, MRICS, is Senior Technical Advisor (Project Management) to PT Mitratata Citragraha. (PTMC), Jakarta, Indonesia. www.build-project-management-competency.com. He is also an adjunct professor, Project and Program Management, at the Center for Advanced Studies in Project, Program and Portfolio Management (www.casr3pm.edu.sn) and develops and teaches graduate level curricula in Asset and Project Management for Western Australia University, Perth. www.blendedlearning.ecm.uwa.edu.au  For 17+ years, he has been providing Project Management training and consulting throughout South and Eastern Asia, the Middle East and Europe.  He is also active in the Global Project Management Community, serving as an Advocate for and on behalf of the global practitioner. He does so by playing an active professional role in the Association for the Advancement of Cost Engineering International, (AACE); Construction Specifications Institute (CSI) and the Construction Management Association of America, (CMAA). He also sat on the Board of Directors of the Global Alliance for Project Performance Standards (GAPPS), www.globalpmstandards.org, Sydney, Australia and is active as a regional leader in the International Guild of Project Controls. http://www.planningplanet.com/guild  He has spent 18 of the last 35 years working on large, highly technical international projects, including such prestigious projects as the Alyeska Pipeline and the Distant Early Warning Site (DEW Line) upgrades in Alaska.  Most recently, he worked as a Senior Project Cost and Scheduling Consultant for Caltex Minas Field in Sumatra and Project Manager for the Taman Rasuna Apartment Complex for Bakrie Brothers in Jakarta.  His current client list includes AT&T, Ericsson, Nokia, Lucent, General Motors, Siemens, Chevron, Conoco-Philips, Unocal, BP, Dames and Moore, SNC Lavalin, Freeport McMoran, Petronas, Pertamina, UN Projects Office, World Bank Institute and many other multi-national companies and NGO organizations.  Dr. Giammalvo holds an undergraduate degree in Construction Management, his Master of Science in Project Management through the George Washington University and was awarded his PhD in Project and Program Management through the Institute Superieur De Gestion Industrielle (ISGI) and Ecole Superieure De Commerce De Lille (ESC-Lille- now SKEMA School of Management) under the supervision of Dr. Christophe Bredillet, CCE, IPMA A Level.  Paul can be contacted at [email protected].

Sustainability in Project Management: Reality Bites

SECOND EDITION

A.J. Gilbert Silviusab [1], Ron Schipperb & Snezana Nedeskia

aHU University of Applied Sciences Utrecht, Utrecht
bVan Aetsveld Projects and Change Management, HM Amersfoort

The Netherlands
________________________________________________________________________

Abstract

The relationship between project management and sustainable development is rapidly gaining interest from both practitioners and academics. Studies on the integration of the concepts of sustainability into project management, approach this topic mostly from a conceptual, logical or moral point of view. Given the fact that the relationship between sustainability and project management is still an emerging field of study, these approaches make sense. However, they do not diminish the need for more empirical studies to understand how the concepts of sustainable development are implemented in practice.

This paper reports an analysis of 56 case studies on the integration of the concepts of sustainability in the way organizations initiate, develop and manage projects. The research question of the study was: To what extent, do organizations consider the concepts of sustainability in the initiation, development and management of projects? The study uses the maturity model for sustainability integration that was presented at the 2010 IPMA World Congress for the assessment of the level of sustainability consideration.

The study found an overall average level of sustainability consideration in the actual situation of 25.9%. For the desired situation, this score is almost 10 percent higher, showing an ambition to take sustainability more into consideration. The study also showed that the way sustainability currently is considered, shows the traditional ‘less bad’ approach to sustainability integration and not a more modern social responsibility approach.

Keywords: Project Management; Sustainability; Sustainable development; Maturity 

1. Introduction

The relationship between project management and sustainable development is rapidly gaining interest from both practitioners and academics. Silvius (2012) reports over 85 publications and studies on the topic. The nature of these studies is mostly interpretive, giving meaning to how the concepts of sustainability could be interpreted in the context of projects (for example Barnard et al, 2011; Maltzman and Shirley, 2010; Gareis et al., 2011, Oehlmann, 2011). Some publications add a normative angle, prescribing how sustainability should be integrated into projects (for example, Silvius et al., 2012; Labuschagne and Brent, 2006). These studies approach the integration of the concepts of sustainability into project management from a conceptual, logical or moral point of view. Given the fact that the relationship between sustainability and project management is still an emerging field of study (Gareis et al. 2009), these approaches make sense. However, they do not diminish the need for more empirical studies to understand how the concepts of sustainable development are implemented in practice. The study reported in this paper aims to do just that. It reports an analysis of 56 case studies that were performed over the years 2010 and 2011. The study builds upon the maturity model for sustainability integration that was presented at the 2010 IPMA World Congress in Istanbul (Silvius and Schipper, 2010). Based on the concepts of sustainability, the maturity model assesses the level of consideration of sustainability in projects and project management, in terms of resources, business processes, business model and products/services. It thereby answers the following research question: To what extent, do organizations consider the concepts of sustainability in the initiation, development and management of projects?

More…

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Editor’s note:  Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. This paper was originally presented at the 26th IPMA World Congress, Greece, published in the Congress Proceedings and video recorded (http://pmgreece.gr/video.pdf).  Paper  republished here with permission of the author and PM Greece, organizers of the 26th IPMA World Congress

About the Authors 

flag-netherlandsaj-gilbert-silviusA.J. Gilbert Silvius 

Gilbert Silvius (1963) is professor at HU University of Applied Sciences Utrecht in the Netherlands. He is Program Director of the first Master of Project Management programme in the Netherlands. This innovative programme focuses on project management from an organizational change perspective. The Master of Project Management has a special focus on the integration of the concepts of sustainability in projects and project management. Also in research, Gilbert focuses on sustainability in projects and project management.  In addition to being an established academic, Gilbert is an experienced project manager with over 20 years of experience in various business and IT projects. As a principal consultant at Van Aetsveld, Project and Change Management, he advises numerous organizations on the development of their project managers and their project management capabilities.  Gilbert is a member of IPMA, PMI and the ISO/PC 236 that develops the ISO 21500 guideline on project management. In the Dutch IPMA national association, Gilbert is board representative for higher education.

flag-netherlandsron-schipperRon P.J. Schipper 

Ron Schipper (1971) is project manager and principal consultant at Van Aetsveld, a leading consulting firm in project and change management in the Netherlands. He has more than 15 years of experience as a project manager in realising (organizational) change in various organizations. As well as executing projects, he is interested in developing the profession of project management and transferring this knowledge to other people in the Netherlands and developing countries. As sustainability emerges as a theme for the world, his attention has focused on the implications for projects and project management. Ron is also an external examiner in the Master of Informatics programme at HU University of Applied Sciences Utrecht in the Netherlands. E-Mail: [email protected] 

snezana-nedeski flag-netherlandsSnezana Nedeski

Snezana Nedeski has a MSc in International Business from Maastricht University. During this time she also taught the class ‘Sustainability in Project Management’ at the School of Applied Sciences in Utrecht. Her interest in this topic led to additional research in this area, and several co-authored conference and journal papers. Her goal is to implement this theory in the future, starting with a tech startup in Amsterdam where she will be part of the management team and will aim to create a platform for sustainability principles. While implementing the theory in practice in this setting, she hopes to continue theoretical research on an academic level as well.  E-Mail: [email protected]


[1] Corresponding author. Tel.: +31 88 481 6335. E-mail address: [email protected]

Return on Investment from Project Management Education: a case of British Project Management Professional Development Programme

SECOND EDITION

by Mehmood Alam, Andrew Gale and Mike Brown

University of Manchester                             

UK

________________________________________________________________________

Abstract

Expenditure on project management education represents an investment for which there would be the expectation of a beneficial return to the investing organisation. However, corporate sponsorship for project management education programmes appears to have been to date a leap of faith. This paper presents the Return on Value (ROV) concept towards education and training evaluation, derived from a 4 years investigation into the effectiveness of a case study modular distance delivered Project Management Professional Development Programme (PMPDP).

A qualitative comparison of knowledge, application and job performance of PMPDP delegates and graduates with the control group is reported. Findings which are based upon 35 structured interviews explore differences between the knowledge levels, the way it is applied and changes in job performance of the two groups. The majority of these changes are central to individuals leading to tangible benefits for the companies. The extent to which there is a financial return arising from professional development programmes is difficult to assess. The paper draws upon the difficulties in quantifying benefits of such programmes. Suggestions are made how best to measure the effectiveness of CPD programmes.

1.         Introduction

Due to the influence of numerous variables of improved organisational performance, project management education and training has not lent itself readily to evaluation. Alongside, the complexities in establishing clear causal relationships between education, training, and benefits are existing theoretical training evaluation models which do not appear applicable for measuring financial return on investment (Thiry 2004). However, to meet the competitive realities of the global economy, organisations invest heavily in project management (PM) training and professional development without really being sure that the investment is adding value (Daley 2001).

The paper, through briefly explaining the Phillips (2003) Return on Investment (ROI) model, presents the Return on Value (ROV) model which seems to be a more practical approach to evaluate the effectiveness of continuing professional development programmes. Using this approach, the paper investigates the effectiveness of the case study programme – Project Management Professional Development programme (PMPDP) from an industrial perspective.  This is achieved by employing a control group and comparing their knowledge, application and its effects on their job performance with that of the delegates and graduates of the PMPDP. Practical difficulties in measuring the financial return on investment made through the PMPDP are discussed and recommendations made.

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Editor’s note:  Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. This paper was originally presented at the 26th IPMA World Congress, Greece, published in the Congress Proceedings and video recorded (http://pmgreece.gr/video.pdf).  Paper  republished here with permission of the author and PM Greece, organizers of the 26th IPMA World Congress

About the Authors

mehmood-alamflag-ukDr Mehmood Alam

Lead author

Dr Mehmood Alam, BEng, MSc, PhD, MAPM, MIMechE, MCMI is an aerospace engineer by profession, Dr Alam is working as a Project Manager for AMEC United Kingdom where he is project managing a portfolio of Civil Nuclear Design and Consultancy projects. Having an undergraduate degree in aerospace engineering, Dr Alam completed with a distinction an MSc in Engineering Project Management and a PhD in the same discipline from The University of Manchester in 2009.  Besides his professional profile, Dr Alam supports The University of Manchester in the role of an Academic Visitor. He has published more than 15 international academic and practitioner based papers in different international journals. Dr Alam holds certification of the APM, CMI and IMechE and is also member of the Editorial Board of International Journal of Information Technology Project Management (IJITPM).  He can be contacted at [email protected].

andrew-galeflag-ukProf Andrew Gale

Co-author

Andrew Gale, BSc(Hons), PhD, CEng, FICE, MCIOB, MACostE is professor of project management at the University of Manchester, UK.  A graduate of Brunel and BathUniversities, he spent 13 years in industry (UK and Middle East) prior to his academic career. Chartered engineer experienced in collaborating with Russian higher education institutions and industry developing of masters education in project managers. He has significant professional and academic experience in the Middle East and Asia Pacific. He is employed by Rolls-Royce, E.on and Ove Arup & Partners to undertake academic consultancy. He is a member of the Senate of the BritishUniversity in Dubai (BUiD) and leads an academic collaboration with the Faculties of Engineering and Business at BUiD. He is Leader of the Management of Projects Expert Group, comprising 15 academic staff and 40 PhD students, in MACE, and is Programme Director for the MSc Project Management Professional Development Programme (PMPDP), a flexible modular programme led by an industrial consortium comprising: Rolls-Royce, AMEC, Goodrich, EDS, Sellafield and E.on. He is a very experienced university lecturer and has nearly 30 years of experience in undertaking educational needs analysis in the UK and overseas, teaching project management in all its aspects. He is very experienced in designing and delivering courses for mature students and to those for whom English is not their first language. He manages research on people, organisation and culture aspects of project management and has published over 140 articles and papers.   Since joining UMIST (now The University of Manchester) in 1990 he has secured and managed over £2.3 million worth of research and consultancy grants. His research focus is on the application of project management in engineering, infrastructure, construction and aerospace sectors covering design, manufacture, construction and services. Examples of the issues that he is currently investigating include: project complexity, project risk management, design change support tools and project managing carbon footprints. He leads a research partnership with Rolls-Royce Risk Function, investigating the application of risk management strategies and tools in the context of projects, programmes and the enterprise. He is co-vice-chair of the Global Accreditation Centre Board-Project Management Institute in the United States. He is also currently External Examiner at the University of Limerick, Ireland and visiting Professor at Glasgow Caledonian University, Scotland. 

mike-brownflag-ukMike Brown

Co-author

Mike Brown, BSc(Hons), MSc, CMgr, FCMI ,FAPM is Director of Project and Programme Management and Head of Head of The Centre of Competence for Project and Programme Management Rolls-Royce plc.  Mike holds an MSc in Engineering Construction Project Management gained in 1982 from Cranfield School of Management.  Is a Chartered Manager, Fellow of the Chartered Management Institute and a Fellow of the Association for Project Management. Mike is Honorary Visiting Professor in the School of Mechanical, Aerospace and Civil Engineering, The University of Manchester. He has 35 years experience in the management of pharmaceutical, refinery, petrochemical, power and change projects and programmes for M W Kellogg, C E Lummus, Balfour Beatty and Rolls-Royce. He is also currently the Consortium Programme Director for the Project Management Professional Development Programme at University of Manchester – a modular, distance learning, education programme in the management of projects, in which Rolls-Royce, AMEC, Goodrich and EDS are Consortium members.  He is Chair of the British Standards Institute Committee MS/2, which is responsible for the UK’s Project Management Standard BS6079.  Email mailto:[email protected]

On the subject of the January Series Article: Enterprise Project Governance, How to Manage Projects Successfully Across the Organization. What is Enterprise Project Governance? By Paul Dinsmore & Luiz Rocha

LETTER TO THE EDITOR

11 January 2013

 

Dear Editor,

The basic premise of this title is fundamentally flawed; the governance of any organisation, commercial, not for profit or government is undertaken by the Board of Directors or their equivalent. The governance functions associated with portfolio management are:

  • Requiring the organisation’s management to implement effective portfolio management
  • Requiring effective assurance from management that the organisation has implemented effective portfolio management
  • Ensuring an effective and implementable strategic plan is established for use in portfolio management decision making.

Once the governance framework is decided by the governing Board, the hard work of implementing effective portfolio management is a management processes.

In short, Directors or their equivalent govern, Managers manage. This is the unequivocal view of governments, the OECD, stock exchanges world-wide, various ISO Standards, various Institutes of Company Directors and the Association for Project Management in the UK.  The various laws, standards, definitions and guidelines all agree the Board has the exclusive responsibility to govern all aspects of the organisation and this includes the governance of project and program management activities. Effective governance of project and program management by the Board ensures that the organization’s management is keeping the organization’s portfolio of projects and programs aligned to the organization’s objectives, and that they are being delivered efficiently and the work is sustainable.

Governance and management are different processes with different objectives but are closely coupled and within an organisation are totally interdependent. The connection between the two systems is made by a few very senior managers, including the CEO (or to use the old UK title ‘Managing Director’) and other Executive Directors. These people provide the link between the governance functions of the Board and the management of the organisation.

When these executives are operating in a governance role as a Director, they contribute to the governance of the organisation and bring the ‘lessons’ learned by management into the governance debate; when they are operating as the top tier of the management hierarchy they are the managers responsible for implementing the governance principles within the organisation. The role of all other managers is to manage the organisation within the framework established by the Board.

Unsurprisingly, in virtually every area of operation within an organisation from finance to HR to manufacturing and sales, there seems to be little or no confusion over this division, most managers know their job is to manage!  The two exceptions to this are IT and project management.

There is a relatively small group of academics in these domains happily cross quoting each other supported by managers on an ego trip that want to make any complex decision or leadership role in both IT and project management into a ‘governance role’.  The problem is if you extend an identical argument to other aspects of the business eventually ‘management’ disappears and everything becomes ‘governance’.

If the proposition raised in Paul Dinsmore & Luiz Rocha’s first article that defines ‘Enterprise project governance’ as ‘a framework residing under the umbrella of top management and corporate governance aimed at ensuring the alignment of the corporate portfolio and its programs and projects with overall strategy’ is correct, then every decision to invest money to achieve the organisations strategy is ‘governance’ including decisions by PR and Marketing managers when they decide where to invest money in the next advertising campaign.  But strangely enough, PR and marketing managers think they are doing PR and Marketing management when they decide to invest $2 million in the next TV commercial. Their decision is guided by the governance framework laid down by the Board, including ethical principles and organisational strategy, but the actual negotiations, decisions and implementation are pure management.

Similarly, deciding on the projects and programs to start, those to continue and those to either not start or terminate is Portfolio Management, and the PMI Standard for Portfolio Management provides a very good starting point as to what is involved. Strangely, the PMI standard also agrees that yes the selected investments should be aimed at optimising the achievement of the organisations objectives as defined in its strategy and yes risks and rewards need to be balanced and the overall NPV of the portfolio optimised. But making and implementing the decisions to achieve this is the role of management; the role of governance is to seek assurance management are doing their role ‘properly’.

This is not new; the functions of management were defined by Henri Fayol (1841 – 1925). His work was one of the first comprehensive statements of a general theory of management in which five primary functions and 14 principles of management were defined.  Fayol’s functions of management are:

1.   to forecast and plan,

2.   to organize

3.   to command or direct

4.   to coordinate

5.   to control (French: contrôller: in the sense that a manager must receive feedback about a process in order to make necessary adjustments and must analyse the deviations.)

Inherent in these functions is the need to make and implement effective decisions to create value. The primary output from management can be defined as information and instructions that have to be communicated to others. The communication is firstly to the workers so they understand what has to be produced, where and when; secondly to the governing body to provide assurance that the right decisions have been made and the right things are being produced in the right ways applying the organisation’s policy framework correctly.

The governance system operates at a higher level and is responsible for governing the organisation to create sustainable success for the organisation’s owners. This is of necessity, a multi-faceted process that requires the careful balancing of different, frequently contradictory, objectives from different stakeholder groups.

The governance function has two key aspects; the first is deciding what the organisation should be and how it should function. These governance decisions are communicated to management for implementation and the primary outputs from this part of the governance system are:

  • The strategic objectives of the organisation framed within its mission, values and ethical framework.
  • The policy framework the organisation is expected to operate within.
  • The appointment of key managers to manage the organisation.

The second aspect of the governance system is oversight and assurance. The governing body should pro-actively seek assurance from its management that the strategic objectives and policies are being correctly achieved or implemented. The assurance and oversight functions include:

  • Agreeing the organisations current strategic plan (in conjunction with executive management). The strategic plan describes how the strategic objectives will be achieved.
  • Suggesting or approving changes to the strategic plan to respond to changing circumstances.
  • Requiring effective assurance from management that the organisations policy framework is being adhered to.
  • Requiring effective assurance from management that the organisations resources are being used as efficiently as practical in pursuit of its strategic objectives.
  • Communicating the relevant elements of the assurances received from management to appropriate external stakeholders.
  • Assurance to the organisation’s owners the strategy and policies are being adhered to by management and the organisation as a whole.
  • Assurance to a wider stakeholder community (including regulatory authorities) the organisation is operating properly.

If the overall management domain of project, program and portfolio management ever hopes to be taken seriously, we need to focus on improving the management processes involved in our area of interest and stop pretending they are somehow special or different to any other management process by applying grandiose titles to the work that are basically wrong.

What is needed in many organisations is much better middle and senior level management of the PPP domain focused on achieving better alignment with strategy and an improved return on the organisation’s investment in its project and programs; achieving a good ROI is a management KPI, not a governance measure.

This commentary is based on a series of papers and articles that can be accessed from: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#OrgGov

Patrick Weaver, FAICD  (Fellow of the Australian Institute of Company Directors).

Mosaic Project Services

Melbourne, Australia

[email protected]

Top-Gun Project Managers; 8 Strategies for Reaching the Top of the PM Profession

BOOK REVIEW

topgun-project-managersBook Title: Top-Gun Project Managers; 8 Strategies for Reaching the Top of the PM Profession

Author: Richard Morreale

Publisher: Multi-Media Publications Inc.

List Price: US$29.95

Format: soft cover; 188 pages

Publication Date:  2011

ISBN-13: 978-1-55489-113-9

Reviewer: Al Vasquez, PMP

Review Date:  November 2012
________________________________________________________________________

Introduction to the Book

This book is a tutorial of how to apply the knowledge obtained as part of the Project Management Professional (PMP) certification process and from previous project management experience.  While it is aligned with the Project Management Body of Knowledge (PMBOK Guide) published by the Project Management Institute (PMI®), it goes broader into how to apply those principles in real-world projects. 

Overview of Book’s Structure

The book is divided into 9 general sections:

  1. Successful Project Background
  2. Strategy 1 – Know Your Outcome
  3. Strategy 2 – Plan the Achievement
  4. Strategy 3 – Organize for Success
  5. Strategy 4 – Gain and Maintain Commitment
  6. Strategy 5 – Take Massive Action
  7. Strategy 6 – Monitor and Control Achievement
  8. Strategy 7 – Stay Focused
  9. Strategy 8 – Have Fun

Highlights: What’s New in this Book?

The material covered in this book is very consistent with PMBOK guide. It provides a high level review of project management topics.

Highlights: What I liked!

Richard Morreale has the rare ability to roll the PMBOK standards into a practical approach for project management.  An ability like this is uncommon and few are the individuals that can pull it off.  It requires:

  • Significant real life project management experience.
  • Intimate knowledge of project management norms, methods, processes and practices.
  • Ability to break down the experiences into individual elements of project management norms, methods, processes and practices.
  • Ability to analyze what did and did not work.
  • Present observations/recommendations in laymen’s terms, irrelevant of PM background.

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About the Reviewer

Al Vasquez, Captain US Navy (Retired)

M.S. System Technology, PMP

Born and raised in Texas, Al Vasquez received a Naval Reserve Officer Training Corps (NROTC) scholarship and was then commissioned into the U.S. Navy where he served for 26 years and retired as a Captain. Primarily assigned to ships at sea, Al received a Master of Science degree in Systems Technology and served in multiple Department of Defense Project and Program Manager assignments in WashingtonD.C.  A designated Space Systems Architect and Space Plans Policy expert, Al’s final Navy challenge was as a project manager for the Navy enterprise-level Y2K office.  Upon retirement, Al became, and still is, a VP Operations for a Dallas-based technology and communications company.  He is a certified PMP.  Email:  [email protected]

Editor’s note:  This book review was the result of cooperation between the publisher, PM World Inc and the Dallas Chapter of the Project Management Institute (www.pmidallas.org). Publishers provide books to PM World, books are delivered to the PMI Dallas Chapter where they are given to chapter members who commit to providing a book review in a standard format; the reviews are published in the PM World Journal and PM World Library.  Since PMI Dallas Chapter members are generally mid-career professionals, they represent the intended audience for most PM books.  If you are an author or publisher of a book related to program or project management, and would like the book reviewed through this program, please contact [email protected].

PMP Practice Makes Perfect

BOOK REVIEW

pmp-practice-makes-perfectBook Title:  PMP Practice Makes Perfect

Authors:  John A. Estrella, Charles Duncan, Sami Zahran, James L. Haner, and Rubin Jen

Publisher:  John Wiley & Sons, Inc.

List Price:   US$39.99

Format:  soft cover; 370 pages

Publication Date:   2012

ISBN: 978-1-1181-6976-6

Reviewer:      Cone Smith

Review Date:              October 2012 

________________________________________________________________________

Introduction to the Book

PMP Practice Makes Perfect is a compellation of quick review questions and practice tests based on the PMBOK Guide, 4th edition and the Project Management’s Institute’s Code of Ethics and Professional Conduct.  The book is an excellent resource for review of the test material and contains representative test material that will help those preparing to take the PMP exam.

Overview of Book’s Structure

The book’s introduction covers a number of topics.  These topics include the merits of becoming PMP certification, the pathway to the PMP certification, and an explanation of how to use the book was designed to meet the needs of a wide variety of readers and how those readers can best use the book to prepare for the exam.

Chapter 1 is a quick review test which has a similar distribution of questions as the PMP certification exam.  Chapter 2 is quick review solution to Chapter 1.  The review solution indicates the chapter and page in the PMBOK where the solutions can be found.  This feature provides an excellent reference to the PMBOK which provides for more detailed review of the material.  Additionally, it provides which questions are relevant to the PMI Code of Ethics and Professional Conduct.

Chapters 3, 5, 7, and 9 are practice tests and chapters 4, 6, 8, and 10 are Answers to the practice test in each of the preceding chapters.  That is chapter 4 provides the answers to questions in chapter 3 and so on.  The questions are detailed and precise and provide a rigorous review of the material.  The answers to each question provide a somewhat detailed answer and a reference to the page in PMBOK on which the topic can be found.

Highlights: What’s New in this Book

This particular study guide provides 4 practice test all containing 205 questions.  All tests provide different questions over the same material of the exam.  Also, the Solutions guides provide specific detail and reference pages to the source material for further review. 

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Editor’s note:  This book review was the result of cooperation between the publisher, PM World Inc and the Dallas Chapter of the Project Management Institute (www.pmidallas.org). Publishers provide books to PM World, books are delivered to the PMI Dallas Chapter where they are given to chapter members who commit to providing a book review in a standard format; the reviews are published in the PM World Journal and PM World Library.  Since PMI Dallas Chapter members are generally mid-career professionals, they represent the intended audience for most PM books.  If you are an author or publisher of a book related to program or project management, and would like the book reviewed through this program, please contact [email protected].

Enterprise Project Governance
How to Manage Projects Successfully Across the Organization

SERIES ARTICLE

EPG and Corporate Governance 

By Paul Dinsmore & Luiz Rocha 

Rio de Janeiro, Brazil
________________________________________________________________________

This is the second article of the series Enterprise Project Governance (EPG): How to Manage Projects Successfully Across the Organization. It will cover how the concept of EPG is ingrained into corporate governance adding project  traceability and  accountability to the basics of corporate governance.

EPG evolved in part due to the cascading changes that affected overall corporate governance beginning in the 1990s. Pressures from the marketplace, governments and regulatory agencies placed a disconcerting spotlight on company boards to ensure that decisions and corresponding actions are fully traceable from the top down.  Since a major part of organizational survival depends on new projects, EPG adds a measure of traceability and corresponding accountability to the basics of corporate governance.

The increasing focus on corporate governance can be traced to the stock market collapse of the late 1980s which precipitated numerous corporate failures through the early 1990s. The concept started becoming more visible in 1999 when the Organization for Economic Co-operation and Development (OECD) released its “Principles of Corporate Governance”. Since then, over 35 codes or statements of principles on corporate governance have been issued in OECD countries.

In 2001 and 2002, high profile corporate failures plagued major institutions. In the US, Enron, WorldCom, Xerox, AOL Time Warner, Tyco, and Arthur Andersen were in deep trouble. In Europe the same emerged with Ahold, Bertelsmann, Vivendi, SK Corporation, Elf-Aquitaine, Londis and Parmalat. The scandals in the US led to the refinement of existing corporate governance aimed at protecting investors by improving the accuracy and reliability of corporate disclosures. The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. In the UK, in 2003, the Higgs Report zeroed in on the same critical issues.

Corporate governance emerged from the shadows of boardrooms and is in common use not just in companies but also in the public sector, charities and universities. It has become shorthand for the way an organization is run, and is classically composed of committees charged with responsibility for regulatory compliance, auditing, business risk, hiring and firing the CEO, and the administration of the board of directors’ activities. The demand of shareholders and other stakeholders for good governance is strong and continuing. The evolution of corporate governance was prompted by cycles of scandals followed by reactive corporate reforms and government regulations intended to improve the practice. Investors, unions, government and assorted pressure groups are increasingly likely to condemn businesses that fail to follow the rules of good practice.

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This series includes articles by Paul Dinsmore and Luiz Rocha, authors of the book Enterprise Project Governance, published by AMACOM in the USA in 2012.  The articles are extracts and summaries of key topics from their book, providing information and guidance on one of the most important aspects of portfolio, program and project management today – governance.  For information about the book, go to http://www.amacombooks.org/book.cfm?isbn=9780814417461

About the Authors 

paul-dinsmoreusa-brazilPaul C. Dinsmore

Paul Dinsmore is President of Dinsmore Associates, and a highly respected specialist in project management and organizational change. A certified project management professional (PMP), he has received the Distinguished Contribution Award and Fellow Award from the Project Management Institute (PMI®). He regularly consults and speaks in North America, South America, Europe and Africa.  Paul is the author and / or editor of numerous articles and 18 books, including the AMA Handbook of Project Management. Mr. Dinsmore resides in Rio de Janeiro, Brazil. 

luiz-rochaflag-brazilLuiz Rocha

Luiz Rocha has 35+ years of experience in the industry and business consulting. Luiz worked with Andersen Consulting and Delloite in the USA and Europe when he had the opportunity to manage multi-cultural and geographically dispersed projects in Latin America, North America and Europe. In Brazil he worked with Dinsmore Associates and Petrobras. Luiz is an engineer by background, MSc. in industrial engineering from UFRJ – Brazil, PMP-PMI and IPMA certifications. He is also a published author with two previous books, Business Metamorphosis, in Brazil, and Mount Athos, a Journey of Self-Discovery, in the USA. Luiz can be contacted at [email protected].

What to Expect in Argentina 2013 for the Project Management Profession

REPORTS

By Ana María Rodríguez, MSE, PMP

Senior Contributing Editor 

Rosario, Argentina
________________________________________________________________________

Year 2013 is already on its second month. Not much is happening yet in Argentina, since we are in the middle of the summer season and there is not much activity in these months. Most professionals are planning and organizing their year, and human resources departments are developing training plans for their companies. So it is a good time to share some thoughts on what to expect this year in our profession.

But first, here are some conclusions about 2012. It was expected to have the Gross Product Income (GPI)  growing almost 5%, and it merely grew a 2,2%. The easiest analysis will say that this is a consequence of the worldwide economic crisis and the lower growth of the Brazilian economy, considering that Brazil is the main business partner for Argentina. However, it must be said that political decisions also affected the economy, giving uncertainty to investors and buyers. Most of them decided to maintain business in Argentina at low risk levels, and of course this leads to a lower level of economic activity.

Some of the strongest measures that the Government of Mrs. Cristina Fernandez de Kirchner implemented in 2012 are: Nationalization of YPF, the main petroleum and oil producer in the country, a former government agency that was sold to Repsol (Spanish investors); new measures to control imports and exports; and a good amount of measures pointed to prevent citizens and companies from obtaining foreign currency, mainly American dollars.

For those in the Project Management profession, all these measures brought uncertainty in aspects such as continuity of investment for ongoing projects, possibility to import goods required for the development of the project, or obstacles to hire international consultants or offer services abroad due to the control of foreign currency.

Just some examples of the impact of political measures on projects in Argentina:

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About the Author

ana-maria-rodriguezflag-argentinaANA MARIA RODRIGUEZ 

Senior Contributing Editor

Rosario, Argentina 

Ana Maria Rodriguez  is founder and manager of ERA Project Management, offering training and consulting services in Argentina. She is also an adjunct professor of project management at the Universidad Nacional de Rosario. Colombian by birth, Ms. Rodriguez graduated with a Civil Engineering Degree from Pontificia Universidad Javeriana in Bogota, Colombia and from the University of Texas at Austin, USA with a Masters Degree in Construction Engineering and Project Management (MSE).  She also holds the Project Management Professional (PMP®) credential from the Project Management Institute (PMI®). Ms Rodriguez has implemented Project Management best practices and managed projects both in the government sector and in the engineering and construction private sector. Ms. Rodriguez was part of the Board of Directors of the PMI Buenos Aires Argentina Chapter (PMIBA) for several years, and is an active volunteer there. She is also founding member of PMI Nuevo Cuyo Chapter. Ms. Rodriguez welcomes contact at [email protected], also at www.erapm.com.ar

IPMA Examines Future Skills Needs

REPORTS

By Ed Naughton

Member IPMA E&T Board 

Dublin, Ireland
________________________________________________________________________

These are exciting times for IPMA and there is a spritely step in the spring foot of those officers involved these days.

January saw the commencement of a new regime at the world’s first professional PM organization. A new executive board takes up office with a stunning line-up of high profile personnel who were elected at the t council of delegates meeting in Baku last September.

In keeping with the name of the organization – International Project Management Association – this is a truly international board comprised of individuals from Croatia, UK,  Spain , Germany, Portugal,  Australia, the USA and chaired by Roberto Mori from Italy.

The keenly fought elections, not only for the main board, but also for the sub-boards is a true reflection of the appetite within the 57 country organization to, promote and expand the IPMA approach to the development of the project and programme management discipline.

The powerful IPMA Education Training Board comprises of 6 members  who have been selected from a pool of highly qualified candidates. This board is chaired by Dr. John-Paris  Pantouvakis from Greece and is made up of three University professors and three private sector individuals with vast experience of operating at the highest level of business.

More…

To read entire report (click here)

About the Author

ed-naughtonflag-irelandED NAUGHTON 

Institute of Project Management 

Dublin, Ireland 

Ed Naughton, BE, C. Eng., F.I.E.I, IPMA-a, PMP, is the founder and current Director General of the Institute of Project Management of Ireland, the leading authority on the PM profession in Ireland.  On the international front, Ed was responsible for initiating cooperation agreements with both the PMI (Project Management Institute) USA and the IPMA (International Project Management Association). He is Ireland’s representative on the IPMA council of delegates, and a former Vice President-Marketing for the IPMA. He was also the first PMP registered in Ireland.  Ed has researched, published and presented many articles and papers on project management and is the author of the Irish Project Management Competence Baseline. During his thirty year career, Ed has worked as a project manager and/or project management consultant on a large variety of high profile domestic and international assignments. Ed Naughton is a graduate of University College Dublin (BE, civil), a Fellow of the Institute of Engineers of Ireland, a Chartered Engineer (Ireland), a Professional Engineer in Canada, and holds an IPMA Level A certification.  He is former founder and editor of the quarterly international publication “Project Management Practice”. One of Ireland’s most respected experts on the topic of modern project management, Ed is an executive advisor to PM World in Ireland.  Ed Naughton lives in Dublin and can be contacted at [email protected].

Project Management Report from Greece

REPORTS 

By Theofanis Giotis

International Correspondent 

Athens, Greece
________________________________________________________________________

project-management-congress-2012

7th Annual Project Management Congress, Athens, Greece, Thursday 29th of November 2012

“Project Management’s critical contribution in times of crisis”

The Greek Chapter of Project Management Institute (PMI-GREECE), in partnership with NetWeek magazine organized for the 7th consecutive year, the annual Project Management Congress (www.pmcongress.gr) with 170+ participants. This congress is scheduled to take place on the last Thursday of November for the next 100 years.

This year, the congress analyzed “Project Management’s critical contribution in times of crisis”.  The congress started with Mark Langley’s opening speech that was presented to the congress by Chris Kindermans. Also Theofanis Giotis, President of PMI-GREECE addressed the congress with “Worldwide Evolution in Project Management”. Then, Dr. George Diakonikolaou, the Chairman of the Congress, presented the speakers.

Three international keynote speakers along with a series of Greek Project Managers, experts, and stakeholders presented at the congress. The international keynote speakers were:

Alexander Matthey, PMP®, CEO of 3PM Experts, VP Program Management Office at Abu Dhabi Ports Company

Prof. David Adamson, FICE, Hon. FRIBA, MA, C.Eng, Dip HM,  CambridgeUniversity, UCL, UWE

Chris Kindermans, PMP®, Principal, Proyecta bvba, Member of PMI’s EMAG

More…

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About the Author 

Theofanis-Giotis-bioflag-greeceTHEOFANIS GIOTIS 

Athens, Greece 

Mr. Theofanis Giotis (BA, MSc, MCT, PMP®), is Founder and owner of 12PM Consulting (2009), Co-Founder and CEO of ITEC Training S.A. (1988), and Co-Founder and CEO of ITEC Total Solutions S.A. (1995). He is Co-Founder and President of PMI GREECE Chapter (Greek Chapter of Project Management Institute) since 2005. He is President of IAMCP GREECE (Greek Chapter of International Association of Microsoft Certified Partners). Finally he is the Acting President of IIBA GREECE (Greek Chapter of International Institute of Business Analysis).  Mr. Giotis holds a BA in Economics from Kapodistriakon University of Athens, Greece, an MSc in Management (Operational Degree) from Lancaster University, UK, and a Computer Programming/Systems Analysis degree from ACE College, Athens, Greece. He was certified as a PMP® in 2004, he has graduated from Leadership Institute Masters Class (PMI LIMC 2007) and has passed 80+ professional certifications (PMP®, MCT, MCT, MCSE, MCSD, MCDBA, IT Project+, CTT+, MMI).  Mr. Giotis has 24+ years of experience in Project and Program Management, ICT, Economics, Operational Research (O.R.) and Management. Since 1987, as an entrepreneur, consultant and trainer, Theofanis has envisioned, planned, and managed hundreds of IT/TELCO projects in the EMEA region.  In 1992, Theofanis was part of a team that setup the first PMO in Greece for a €200.000.000 project. Since 1987 he has gained more than 22.000 consulting/training hours experience in the field of ICT and Project Management. Mr. Giotis has given 150+ presentations in ICT and Project Management, has published 110+ articles for Project Management and has taught 90+ Project Management courses with 1200+ attendees certifying 35% of all Greek PMPs. Mr. Giotis is an adjunct professor at University of Piraeus, Aristotle University of Thessaloniki and BCA College teaching Management Information Systems (MIS), Project Management, Portfolio Management and Enterprise Project Management at MBA level.  He is a member of PMI Information Systems SIG, PMI Troubled Projects SIG, PMI Education SIG, PMI Training SIG, Washington DC PMI Chapter, PMI-GREECE Chapter and Frankfurt PMI Chapter. Theofanis is a member of ROTARY, PMI, ISACA, AMACON, EEDE and EEEE. Also he is member of the Board of Directors at Rotary Club of Kifissia and member of the PMI R.E.P. Advisory Group.  Theofanis lives in Athens, Greece and can be contacted at [email protected] or [email protected].

Managing Projects In Three Dimensions

COMMENTARY

 By Ed Fern 

California, USA
________________________________________________________________________

The most common cause of project failure is the failure to properly initiate the project.  A common misconception is that projects have three dimensions represented by a triangle; cost, schedule, and scope.  In truth this two dimensional form conceals a three dimensional pyramid with the other three lines being threats, opportunities, and priorities.  Unless and until all six of these elements are understood, the construction of a final project plan is farce.  While to sponsor or sponsors of the project have an image of the finished product in their minds, it is unlikely that they have a clear understanding of the implications inherent in converting that image into reality.  It is the job of the project manager to provide the sponsor with information about those implications so that the sponsor can be detailed in defining the scope of the project.

(see paper for diagram)

Project sponsors initiate projects because they have identified an opportunity they wish to take advantage of.  The size of the opportunity, coupled with the intensity of the desire to take advantage of it, define the other dimensions of a reasonable project.  The project manager must define what deliverables must be achieved to take advantage of the opportunity.  This achievement will require spending time, money, and facing threats and the project manager must define these.  The sponsor must then determine how long he is willing to wait, how much money he is willing to spend, and what threats he is willing to face in the process.  If the opportunity has sufficient priority to make the six lines meet in four places, then a project should be initiated.

The scope line is fragmented into individual requirements.  Some requirements are mandatory and must be included without regard to their impact on the other dimensions.  Some are highly desirable but optional, depending on their impact on the other dimensions.  They have high priority but not sufficiently high to make them mandatory.  Others are to be included in the finished product of the project only if they have little impact on cost, schedule, opportunity, and threat.  They have low priority.  Priority must form the backbone of the project plan and priorities must be assigned by the project sponsor.

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About the Author

ed-fernflag-usaEd Fern

Edward J. (Ed) Fern is President of Time-to-Profit a Project Management training firm providing services on four continents.  He has held director level positions with Sprint, Control Data Corporation, TRW, and Infonet Services Corporation. He earned an MS in Technology Management from Pepperdine University in 1992 and his Project Management Professional designation in 1998.  Ed has conducted project management seminars in forty-six cities in fourteen countries on four continents.  He is the author of the book Time-to-Profit Project Management: A Primer for Project Managers in Commercial Product Development and co-author of Six Steps to the Future: How Mass Customization Is Changing Our World, both published in English, Russian, Romanian and Brazilian Portuguese.  His E-mail address is [email protected].

When failure to plan project portfolios is a good thing

COMMENTARY

By Dr. Dirk Jungnickel

and

Abid Mustafa 

UAE

Winston Churchill once remarked: “He who fails to plan is planning to fail.” There are number of other variations of this famous saying, and all of them imply that without proper planning success cannot be achieved.  However, there are situations in the real world, especially in project portfolio management (PPM) where the exact opposite holds true.

Now you may be wondering why professional PPM practitioners would allow this to happen. After all, many of us recognise PPM as an indispensable practice that is essential to aligning the company’s strategy to its performance. Or in other words, PPM practitioners help companies to answer and manage the question: Are we doing the right things? And this goes against the very moral fibre of portfolio managers to intentional plan for the failure of project portfolios.

There are compelling circumstances when PPM practitioners have to face the reality and actually plan for failure, before things can improve. This usually occurs in business environments that are predominantly shaped by a ubiquitous blend of inhibiting factors that include: shareholders and executives interested only in the top line, companies are cash rich and face very little competition, and markets are subsidized by governments.

Emerging markets neatly fit the forgoing description and portfolio managers often interact with executives who sense the need for PPM but have very little faith in the project portfolio methodology.

One may argue that enough has been done to convince the executive team about the benefits and importance of PPM. Others may contend that the language employed to communicate PPM is flawed and requires an executive parlance.

We would like to counter such assertions by stating that a strong PPM benefits argument underpinned by  excellent statistics such as ‘Implementing a PPM tool produces an expected overall return of 255%’ (Forrester Research) or ‘Projects hitting expected ROI are 52% more likely with a PPM tool’ (Aberdeen Group) are likely to fall on deaf ears. The outcome is the same, even if top consultancies are employed to sell the case on the behalf PPM’s proponents. The same set of arguments applies to using lexicons peppered with words and terms that executives can understand and digest. As long as the company is not feeling the financial pinch the executive appetite for PPM remains dormant.

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About the Authors

dirk-jungnickel

flag-uaeDirk Jungnickel

Dr. Dirk Jungnickel is an accomplished telecoms specialist whose areas of expertise include:  IT, Operations and project management.  He is currently SVP for Corporate programme management and Risk, and Operational Business intelligence for a leading operator in the MENA region.

 

abid-mustafa

flag-uaeAbid Mustafa

Abid Mustafa is a seasoned professional with 18 years’ experience in the IT and Telecommunications industry, specializing in enhancing corporate performance through the establishment and operation of executive PMOs and delivering tangible benefits through the management of complex transformation programs and projects. Currently, he is working as a director of corporate programs for a leading telecoms operator in the MENA region.  Mr. Mustafa is based in Dubai and can be contacted at [email protected].

Gemba Kaizen, A commonsense approach to a continuous improvement strategy 2nd Edition

BOOK REVIEW 

gemba-kaizenBook Title:  Gemba Kaizen, A commonsense approach to a continuous improvement strategy 2nd Edition

Author:  Masaaki Imai

Publisher:  McGraw-Hill

List Price:   US$ 40.00

Format:  Hard cover; 426 pages

Publication Date:   2012

ISBN: 978-0-07-179035-2

Reviewer:      Lakshmi Subramanian

Review Date:              December 2012
________________________________________________________________________

Introduction to the Book 

Gemba Kaizen: A Commonsense approach to a continuous improvement strategy, is the Second Edition to author Masaaki Imai’s first book Kaizen: The Key to Japan’s Competitive Success published in 1986. Most of us would have heard the term “Kaizen” – meaning continuous improvement. Gemba means the workplace, where all the action happens. The author has outlined the importance of Gemba Kaizen – continuous improvements in the workplace, where it matters. The Gemba Kaizen principles and philosophy are pretty much a way of life, which yields dramatic results, if done right. The book has several success stories which make it a very interesting read.

Overview of Book’s Structure

The book is divided into 14 chapters starting with an Introduction to Kaizen, Gemba Kaizen, the focus on Quality Cost Delivery in the Gemba, Standards – Setting and Improving, The 5 Steps of Workplace Organization, Muda (Waste), the Foundation of the House of Gemba – discipline, Visual Management, Roles of Supervisors and Managers, Just in Time (JIT) and Total Flow Management (TFM), The CEO’s role in Kaizen and Going to the Gemba. This is followed by Case Studies from several industries detailing what issues existed, and how Gemba Kaizen principles helped in improving and maintaining standards in everyday activities yielding high productivity, higher customer satisfaction, increased profits, reduced costs and other benefits.

Each of these chapters also discusses cases to elucidate the importance of the topic of discussion and where it applies. Most of the success stories are related to manufacturing industries; however, it is not difficult to draw parallels to the concepts in other industries.

Highlights: What’s New in this Book

This book gives information, examples, principles, guidelines, ideas and confidence that one can implement Gemba Kaizen at any workplace. The book prescribes a low cost, common sense approach to improving workplace performance on a whole in all areas. It is unbelievable how simple it is to just observe the Gemba and set standards and make improvements, provided there is buy-in and active participation by upper management. Gemba Kaizen requires a major change in mindset of the workforce at all levels, because it is not a short term effort and needs to be followed with discipline in order to maintain the standards. 

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About the Reviewer

lakshmi-subramanianflag-indiaLakshmi Subramanian

Lakshmi Subramanian, PMP, has 10 years of varied and valuable experience serving the IT and IT Enabled Services industry. She has a Bachelors in Commerce, Masters in Computer Applications and Diploma in Business Management and is a proud member of the Dallas PMI Chapter. Lakshmi is currently working as an IT Project Manager for a Telecom Major in the Dallas-Fort Worth area in Texas, USA. Lakshmi can be contacted at [email protected].

Editor’s note:  This book review was the result of cooperation between the publisher, PM World Inc and the Dallas Chapter of the Project Management Institute (www.pmidallas.org). Publishers provide books to PM World, books are delivered to the PMI Dallas Chapter where they are given to chapter members who commit to providing a book review in a standard format; the reviews are published in the PM World Journal and PM World Library.  Since PMI Dallas Chapter members are generally mid-career professionals, they represent the intended audience for most PM books.  If you are an author or publisher of a book related to program or project management, and would like the book reviewed through this program, please contact [email protected].

Customer-Centric Project Management

BOOK REVIEW

customer-centric-project-manangementBook Title:  Customer-Centric Project Management

Author:  Elizabeth Harrin & Phil Peplow

Publisher:  Gower Publishing Limited

List Price:   US$44.95

Format:  soft cover; 115 pages

Publication Date:   2012

ISBN: 978-1-4094-4312-4

Reviewer:      Conrado Morlan, PgMP, PMP

Review Date:              January, 2013
________________________________________________________________________

Introduction to the Book

The book introduces the customer-centric process to support projects, a concept that may be known by many project management professionals but is not widely used. The customer-centric focus will foster frequent communication with customers (stakeholders) during the project to address issues that would impact their satisfaction immediately instead of waiting till the end of the project at the time the lessons learned are consolidated.

The customer-centric process uses the tool Exceed, a spreadsheet in which the top three issues, communication, pro-activity and quality of project delivery are scored by the stakeholders. The customer-centric process applies to projects in any industry and the main purpose is to set a collaborative environment between the project manager who is delivering the project and the stakeholders that will be using the service or product produced by the project.

Overview of Book’s Structure

The book is organized in nine chapters. In the first four chapters introduces the concept of customer-centric process and the tool Exceed, the importance of considering the active collaboration of customers (stakeholders) and measuring the performance of the project based on the level of customer satisfaction.

Chapter five and six discusses the experiences of customer-centric projects and how Exceed supported the project management cycle.

The last three chapters provide additional information about the importance of customer-centric projects, a guide on how to move your organization to a customer-centric supported by Exceed and how to make the customer-centric process sustainable.

Highlights: What’s New in this Book

The introduction of the customer-centric process, how can be implemented in projects and the support tool Exceed. 

Project management professional will find useful how the suggested process will attract project stakeholders to be more active in the project discussions and highlight the areas of improvement that need to be addressed during the project that had a great impact on stakeholders satisfaction 

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About the Reviewer

conrado-morlanflag-usaConrado Morlan 

Conrado Morlan, PgMP, PMP, is a global program and project manager with more than twenty years of experience leading information technology projects for multinational companies in North America, Mexico, South America and Europe. Mr. Morlan’s experience spans the Information Technology, Retail, Finance and Telecommunication industries and he has a wide breath of knowledge in project management topics including leading and managing multi-cultural and virtual teams.  Mr. Morlan was one of the first individuals to achieve the PgMP credential in Latin America and was the recipient of the PMI 2011 Distinguished Contribution Award for his activities and influence in championing Project Management to Spanish-speaking practitioners and organizations.

Mr. Morlan has spoken at several conferences in USA, Mexico and Central America and is a frequent collaborator with Voices on Project Management, PMI official blog.

You can reach Mr. Morlan at [email protected] and follow him @thesmartpms

Editor’s note:  This book review was the result of cooperation between the publisher, PM World Inc and the Dallas Chapter of the Project Management Institute (www.pmidallas.org). Publishers provide books to PM World, books are delivered to the PMI Dallas Chapter where they are given to chapter members who commit to providing a book review in a standard format; the reviews are published in the PM World Journal and PM World Library.  Since PMI Dallas Chapter members are generally mid-career professionals, they represent the intended audience for most PM books.  If you are an author or publisher of a book related to program or project management, and would like the book reviewed through this program, please contact [email protected].