The definitive guide to project management : the fast track to getting the job done on time and on budget

377 Pages·2007·19.344 MB·English

by  Sebastian Nokes, Sean Kelly

About the authors Can you manage without this tried and Now the perfect companion Whatever your
for anyone sitting the PMI’s
tested guide?
Sebastian Nokes is a practicing project involves,
PMBOK exams
project and programme manager who
also advises corporations, government If you could deliver your projects on time, within budget, and in line with the if you deliver it
bodies and professional service firms
customer’s expectations, would you? Of course you would. This book shows
on project and programme you how to master the techniques of effective project management so that on time and on
management, decision making
your projects deliver what you want, every time. The book is ideal for project
and information management. He
managers to use as a ready reference and problem solver while engaged in budget, you’ll
has led major projects in the
managing projects. And this new edition now follows the world’s most popular
investment banking, nuclear and high DT
and most reliable methodology for project management from the Project get noticed.
technology sectors. Sebastian has
Management Institute (PMI), and so it is an ideal companion for anyone preparing
previously worked for IBM and Credit
for the Institute’s exams, both PMP and CAPM. EH
Suisse First Boston and is currently a The only way to get new things done,
partner at Aldersgate Partners LLP, a The Definitive Guide to Project Management shows you, step by step, how to to innovate and reap the benefits of
F
management consulting firm. deliver your projects in the right way at the right time, from scoping the project E innovation, is through project
through to risk management, quality control and prioritisation. As well as management. The heart of project
I
Sean Kelly is a serving British Army outlining all the processes and techniques you will need to become a successful management is doing different things
G UIDE TO
officer with wide experience in both project manager, it can help you gain that extra edge by showing you how to N at the right times so that the end result
the public and private sectors. manage one of the most important components of any project, the people, P ROJECT is what is wanted. This means knowing
His previous employers include and how to navigate the politics that often surround important projects. Since what is required, what inputs you need
Deutsch Bank, OCL and Hoechst. He business operates in the real world, which is unpredictable, it also shows you how I to get there, what processes must be
was awarded the MBE in 2002 for his to spot potential problems and how to cope with any difficulties that do crop up. T performed, and in what order. To cover
role in the worldwide operations that M ANAGEMENT all this ground and to help you learn in
followed 9/11. He is currently This is an extremely practical book and you can put its advice into practice the most effective and logical way,
I
commanding a British Army Regiment immediately. Inside you will find key questions, templates and action checklists The Definitive Guide to Project
and working with a number of leading to help you at each stage of your well-executed project. V Management is structured around the
training providers across Great Britain. THE FAST TRACK TO GETTING THE nine key knowledge areas of project
This best-selling book provides a unique single reference source for project management as followed in the Project
E JOB DONE ON TIME AND ON BUDGET
managers and anyone else who needs to know about project management. It Management Institute’s Project

provides top tips and easy-to-apply guidance in all key aspects of project Management Body of Knowledge
SEBASTIAN NOKES AND SEAN KELLY
management. With The Definitive Guide to Project Management, you can deliver (PMBOK) certificate:
results on time, every time.
• Project Integration Management
NOW FULLY COMPLIANT WITH • Project Scope Management
• Project Time Management
THE PMI’S PMBOK EXAMS. • Project Cost Management
• Project Quality Management
• Project Human Resource Management
• Project Communication Management
• Project Risk Management
2ND EDITION • Project Procurement Management
MANAGEMENT
Visit our website at
www.pearson-books.com Visit our website at
www.pearson-books.com
DESIGNED BY
r&d&c 2ND EDITION
An imprint of Pearson Education
TheDefinitiveGuideToProjectManag1 1 5/3/07 15:46:13
DGPM_A01.QXD 11/3/07 11:09 AM Page i
the definitive
guide to
project management
DGPM_A01.QXD 11/3/07 11:09 AM Page ii
In an increasingly competitive world,we believe it’s quality of
thinking that gives you the edge – an idea that opens new
doors,a technique that solves a problem,or an insight that
simply makes sense of it all.The more you know,the smarter
and faster you can go.
That’s why we work with the best minds in business and finance
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global market.
Under a range of leading imprints,including Financial Times
Prentice Hall,we create world-class print publications and
electronic products bringing our readers knowledge,skills and
understanding,which can be applied whether studying or at work.
To find out more about Pearson Education publications,or tell
us about the books you’d like to find,you can visit us at
www.pearsoned.co.uk
DGPM_A01.QXD 11/3/07 11:09 AM Page iii
the definitive
guide to project
management
the fast track to getting the
job done on time and on budget
Second Edition

SEBASTIAN NOKES AND SEAN KELLY
DGPM_A01.QXD 11/3/07 11:09 AM Page iv
PEARSON EDUCATION LIMITED
Edinburgh Gate
Harlow CM20 2JE
United Kingdom
Tel: [phone]
Fax: [phone]
Website: www.pearsoned.co.uk
First published 2003
Second edition published in Great Britain 2007
© Aldersgate Partners LLP 2003
© Casnus Limited 2007
ISBN: 978 0 273 71097 4
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Nokes, Sebastian.
The definitive guide to project management : the fast track to getting the job done on
time and on budget / Sebastian Nokes and Sean Kelly. -- 2nd ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-273-71097-4
1. Project management--Handbooks, manuals, etc. I. Kelly, Sean, 1960-II. Title.
HD69.P75N65 2007
658.4’04--dc22
2006053299

All rights reserved; no part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without either the prior
written permission of the Publishers or a licence permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd,
Saffron House, 6–10 Kirby Street, London EC1N 8TS. This book may not be lent,
resold, hired out or otherwise disposed of by way of trade in any form
of binding or cover other than that in which it is published, without the
prior consent of the Publishers.
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Typeset by 30
Printed and bound in Great Britain by Ashford Colour Press, Hampshire
The Publishers’ policy is to use paper manufactured from sustainable forests.
The authors may be contacted at [email protected]
DGPM_A01.QXD 11/3/07 11:09 AM Page v
about the authors
Sebastian Nokes and Sean Kelly have worked together on a number of strategic projects and
programmes.
SEBASTIAN NOKES
Sebastian Nokes is a practicing project and programme manager who also advises corporations,
government bodies and professional service firms on project and programme management, decision
making and information management. He has led major projects in the investment banking, nuclear and
high technology sectors. He is currently a partner at Aldersgate Partners LLP, a management consulting
firm, and previously worked for IBM and Credit Suisse First Boston. He was educated at Eton College and
London University (Birkbeck, SOAS, Imperial and LBS) and has served as an officer in the 2nd Goorkha
Rifles and the Royal Air Force. Sebastian has written or edited a number of books and articles on project
management and other business topics. He lives in London and works in the UK, Europe and Asia/Pacific.
His current interests include how to change the mindset and culture of management teams to enhance
project performance, and how to structure major strategic projects in large organizations. His current
research work focuses on valuing projects and securitization.
SEAN KELLY
Sean Kelly is a serving British Army officer with wide experience in both the public and private sectors.
He was educated in the UK and Australia and his past employers include Deutsch Bank, OCL and
Hoechst. His current areas of interest are the practical implications of implementing a complex
information strategy and risk transfer in public–private partnerships. He has worked as a Project
Manager in the US, Europe, Africa and the Far East. His qualifications include MA, MBA and PMP.
As the first officer sent to the UK Ministry of Agriculture, Food and Fisheries during the Foot and Mouth

crisis of 2001, he was responsible for project managing how and where the military could assist. This
led to the deployment of thousands of servicemen. He was awarded the MBE in 2002 for his role in the
worldwide operations that followed 9/11. He is currently commanding a British Army Regiment and
working with a number of leading training providers across Great Britain.
v
DGPM_A01.QXD 11/3/07 11:09 AM Page vi
acknowledgements
The authors gratefully acknowledge all those whose advice, examples or other assis-
tance have contributed to this book. We most especially thank the clients of Alder-
sgate Partners LLP and we recognize the trust that they place in us, and we also
thank all of those who have attended our training courses, either public or in-house
corporate courses.
While cautioning that all faults and other deficiencies in the book are solely the
responsibility of the authors – and one hardly appreciates how important that state-
ment is until one has tried to write a book – we would like to thank also our col-
leagues at Aldersgate, all of whom have contributed, in various ways, to the book,
and to our friends at Pearson Education in the UK, USA and elsewhere, Digby Law
in Sydney and TypingNZ in New Zealand. Thanks to: Professor Chris Higson, Peter
Robin, Guy Treweek, Dr. Diana Burton, Dr. Stephen Coulson, Andrew Howard,
Steve Bullen, David Tulloch, and Debra Palmer; Richard Stagg, Steve Temblett,
Laura Blake, Liz Gooster and Lesley Pummell; and Stephen Digby in Australia and
Kim Megson in New Zealand.
We thank and acknowledge the assistance given by the Project Management
Institute, both to us in preparing this book and more widely, and we thank Dou-
glas Murray, Leslie Higham, Diana Humphrey and the team at the PMI. Figures and
text in this book that are acknowledged as being from the PMBOK Guide are from
®
A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Third Edition,
Project Management Institute, Inc., 2004. Copyright and all rights reserved. Mate-
rial from this publication has been reproduced with the permission of PMI.
Our particular thanks go to Tony Gamby, JP Rangaswami, Cedric Burton, Mike
Stone, Jeremy Havard, the Revd. Gordon Taylor, Aziz Muzakhanov, Louis Plowden-
Wardlaw, Julian Fidler, Peter Burditt, Paul Najsarek, Mark Kerr, Paul Leighton, David
Maitland, Dillon Dhanecha, M ike Baker, Kennedy Frazer, Tegwen Wallace, Graham
Mackintosh, Nick McLeod-Clark, Dave Hastings, Dave Best, Steve Holland, Mark
Dutton, Nicola Smith, Mike Molinaro, Emma Ross, Jonathan Webb, Gareth Moss,
Adrian Cory, Frances Kinsella and Andrew Ward.
We also thank Andrew Munro, Patrick Smith, Alan Greenwood, Dominic Allen,
Jennifer Johnson, Mark Goodman, Graeme Graas, Aaron Dover, Ian Major, David
Kriel and Philip Stromeyer, Jesus Rodriguez, and Heidi Peel.
A number of individual and organizations have helped in various ways with the
production of the book. Humphrey and Bella Nokes provided extensive use of their
houses in Switzerland, Andrew and Vicky de Pree of theirs in New Zealand, Dave
and Vee Burton of their houses also in New Zealand, and Chris Booton and Gina of
theirs in Melbourne – all of which were delightful and productive places in which
to get thinking and writing done in a way that is simply not possible in the office
in London. Vaughan Smith and the Frontline Club in London, the Cornell Club
and its staff in New York, the Wellington Club and its staff in Wellington have all
helped in bringing this book into being. Tina Arthur is invaluable in logistic sup-
port and much wise advice has come from Rachel Sheard.
vi
DGPM_A01.QXD 11/3/07 11:09 AM Page vii
contents
About the authors v
Acknowledgements vi
Preface to the Second Edition xiii
List of figures xiv
An introductory case study xvii
1 Introduction 1
Aims of this chapter 2
What’s new about the new edition? 3
What do project managers really want? 3
Emerging standards for project management 4
Project management is founded on common sense 5
How readers can use this book 6
What kinds of project is this book aimed at? 6
Project management’s nine knowledge areas 7
Projects as a distinct class of activity 8
Managing projects 15
The project management lifecycle 16
Summary 17
Notes 18
2 Project organization, people and management 19
Aims of this chapter 20
Structure of this chapter 20
First thoughts 20
Main kinds of organization and consequences for project management 22
Project management system 27
Project organization and project roles 29
Managing the project team 39
Project lifecycle 49
Summary 60
Further reading 60
Notes 61
vii
DGPM_A01.QXD 11/3/07 11:09 AM Page viii
Contents
3 Project management processes 63
Aims of this chapter 64
Process groups – rationale and general principles 64
The initiating process group 70
The planning process group 74
The executing process group 77
The monitoring and controlling process group 79
The closing process group 81
Summary 83
Notes 84
4 Project integration management 85
Aims of this chapter 86
What is project integration management? 86
The role of integration in project management 87
A first look at project integration management 88
Processes and process groups of integration management 91
Develop project charter 94
Develop preliminary project scope statement 103
Develop project management plan 104
Project initiation 115
Direct and manage project execution 119
Other project integration management tools and techniques 122
Summary 139

Further reading 140
Notes 141
5 Project scope management 143
Aims of this chapter 144
What is project scope management? 144
Principles of project scope management 145
Scope planning 147
Scope definition 148
Create work breakdown structure 149
Scope verification 151
Scope creep 152
Scope control 154
viii
DGPM_A01.QXD 11/3/07 11:09 AM Page ix
Contents
Scope management process in action 155
Summary 156
6 Project time management 159
Aims of this chapter 160
What is time management? 160
Time management in projects 160
Trading time 161
Project time management process group 162
Activity definition 163
Activity sequencing 166
Activity resource estimating 169
Activity duration estimating 171
Schedule development 173
Schedule control 177
Meetings and time management 179
Summary 181
7 Cost management 183
Aims of this chapter 184
Costs matter 184
Key concepts 185
The importance of costs and financial knowledge 185
Scope and cost 186

Five rules of thumb for estimating costs 187
A specialist task 188
Cost management process groups 188
Cost estimating 189
Cost budgeting 195
Cost control 196
Summary 198
Further reading 198
Notes 199
8 Quality management 201
Aims of this chapter 202
An introduction to the concept of quality 202
ix