Project Management: The Managerial Process
l8 l8 l8 l8
Copyright © 2021 McGraw-
l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
1
, Project Management: The Managerial Processl8 l8 l8 l8
Chapter 1 l8
Modern Project Management l8 l8
Chapter Outline l8
1. What Is a Project?
l8 l8 l8
A. What a Project Is Not l8 l8 l8 l8
B. Program versus Project l8 l8
C. The Project Life Cyclel8 l8 l8
D. The Project Manager l8 l8
E. Being Part of a Project Team l8 l8 l8 l8 l8
2. Agile Project Management
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3. Current Drivers of Project Management
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A. Compression of the Product Life Cycle l8 l8 l8 l8 l8
B. Knowledge Explosion l8
C. Triple Bottom Line (Planet, People, Profit)
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D. Increased Customer Focus l8 l8
E. Small Projects Represent Big Problems
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4. Project Management Today: A Socio-Technical Approach
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5. Summary
6. Text Overview
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7. Key Terms
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8. Review Questions l8
9. Snapshot from Practice: Discussion Questions
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10. Exercises
11. Case 1.1: A Day in the Life—2019
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12. Case 1.2: The Hokies Lunch Group
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Copyright © 2021 McGraw- l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
2
, Project Management: The Managerial Process l8 l8 l8 l8
Chapter Learning Objectives l8 l8
After reading this chapter you should be able to:
l8 l8 l8 l8 l8 l8 l8 l8
LO 1-1
l8 Understand why project management is crucial in today’s world. l8 l8 l8 l8 l8 l8 l8 l8
LO 1-2
l8 Distinguish a project from routine operations. l8 l8 l8 l8 l8
LO 1-3
l8 Identify the different stages of a project life cycle.
l8 l8 l8 l8 l8 l8 l8 l8
LO 1-4
l8 Describe how Agile PM is different from traditional PM.
l8 l8 l8 l8 l8 l8 l8 l8
LO 1-5
l8
Understand that managing projects involves balancing the technical l8 l8 l8 l8 l8 l8 l8 l8
and sociocultural dimensions of the project.
l8 l8 l8 l8 l8
Review Questions l8
1. Define a project. What are five characteristics which help differentiate projects
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
from other functions carried out in the daily operations of the organization?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
A project is a complex, non-routine, one-
l8 l8 l8 l8 l8 l8
time effort limited by time, budget, resource, and specifications. Differentiating chara
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
cteristics of projects from routine, repetitive daily work are below:
l8 l8 l8 l8 l8 l8 l8 l8 l8
a. A defined lifespan l8 l8
b. A well-defined objective
l8 l8
c. Typically involves people from several disciplines l8 l8 l8 l8 l8
d. A project life cycle
l8 l8 l8
e. Specific time, cost, and performance requirements. l8 l8 l8 l8 l8
2. What are some of the key environmental forces that have changed the way
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l
projects are managed? What has been the effect of these forces on the ma
8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
nagement of projects? l8 l8
Some environmental forces that have changed the way we manage projects are the pr
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
oduct life cycle, knowledge growth, global competition, organization downsizing, tec
l8 l8 l8 l8 l8 l8 l8 l8 l8
hnology changes, time-to- l8 l8
market. The impact of these forces is more projects per organization, project teams res
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
ponsible for implementing projects, accountability, changing organization structures,
l8 l8 l8 l8 l8 l8 l8 l8
need for rapid completion of projects, linking projects to organization strategy and cu
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
stomers, prioritizing projects to conserve organization resources, alliances with exter
l8 l8 l8 l8 l8 l8 l8 l8 l8
nal organizations, and so on.
l8 l8 l8 l8
3. Describe the four phases of the traditional project life cycle. Which phase do you
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
think would be most the difficult one to complete?
l8 l8 l8 l8 l8 l8 l8 l8
Copyright © 2021 McGraw- l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
3
, Project Management: The Managerial Process
l8 l8 l8 l8
1. Defining: Project specifications objectives are defined, and teams are formed with
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
major responsibilities assigned. Much of this is referred to as defining the Scope
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
of a project. l8 l8
2. Planning: The creation of a comprehensive plan that includes schedules, budgets,
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
staffing and risk assessment. l8 l8 l8
3. Executing: Work begins, deliverables are produced, and progress is monitored. l8 l8 l8 l8 l8 l8 l8 l8 l8
4. Closing: Putting the project to bed includes customer delivery, post project review
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
or audit, and redeployment of project team.
l8 l8 l8 l8 l8 l8
problematic. Disagreements at the customer acceptance can lead to rework, tension a
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
nd in many cases litigation. Veteran project managers answer to this question would b
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
e ―It all depends‖.
l8 l8 l8
4. What kinds of projects is Agile PM best suited for and why?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
R&D work, technological breakthroughs, and creative endeavors.
l8 l8 l8 l8 l8 l8
5. The technical and sociocultural dimensions of project management are two sides
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
to the same coin. Explain.
l8 l8 l8 l8
The technical and sociocultural dimensions of project management are two sides of t
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
he same coin because successful project managers are skillful in both areas. The poin
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
t is successful project managers need to be very comfortable and skillful in both areas.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
Snapshot from Practice: Discussion Questions l8 l8 l8 l8
1.1 The Project Management Institute
l8 l8 l8 l8
1. If you were a student interested in pursuing a career in project management how
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
important do you think being CAPM would be? l8 l8 l8 l8 l8 l8 l8
There is no data available on the value of the CAPM in the job market. Experts suggest at
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
a minimum it demonstrates a strong interest in project management and a good understan
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
ding of the project management processes. Given the growing demand for people to wor
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
k on projects, the CAPM may just separate you from other applicants.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
2. How valuable do you think being a certified PMP is?
l8 l8 l8 l8 l8 l8 l8 l8 l8
Reliable data is hard to find. PMI reported that the median salary for a PMP is $108,200.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
Non-
certified project managers, on the other hand, showed a median income of $91,000. Acc
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
ording to a different survey, eighty percent of high-
l8 l8 l8 l8 l8 l8 l8 l8
performing projects used PMP certified project managers.
l8 l8 l8 l8 l8 l8
1.3 London Calling: Seattle Seahawks versus Oakland Raiders
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Copyright © 2021 McGraw- l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
4
l8 l8 l8 l8
Copyright © 2021 McGraw-
l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
1
, Project Management: The Managerial Processl8 l8 l8 l8
Chapter 1 l8
Modern Project Management l8 l8
Chapter Outline l8
1. What Is a Project?
l8 l8 l8
A. What a Project Is Not l8 l8 l8 l8
B. Program versus Project l8 l8
C. The Project Life Cyclel8 l8 l8
D. The Project Manager l8 l8
E. Being Part of a Project Team l8 l8 l8 l8 l8
2. Agile Project Management
l8 l8
3. Current Drivers of Project Management
l8 l8 l8 l8
A. Compression of the Product Life Cycle l8 l8 l8 l8 l8
B. Knowledge Explosion l8
C. Triple Bottom Line (Planet, People, Profit)
l8 l8 l8 l8 l8
D. Increased Customer Focus l8 l8
E. Small Projects Represent Big Problems
l8 l8 l8 l8
4. Project Management Today: A Socio-Technical Approach
l8 l8 l8 l8 l8
5. Summary
6. Text Overview
l8
7. Key Terms
l8
8. Review Questions l8
9. Snapshot from Practice: Discussion Questions
l8 l8 l8 l8
10. Exercises
11. Case 1.1: A Day in the Life—2019
l8 l8 l8 l8 l8 l8
12. Case 1.2: The Hokies Lunch Group
l8 l8 l8 l8 l8
Copyright © 2021 McGraw- l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
2
, Project Management: The Managerial Process l8 l8 l8 l8
Chapter Learning Objectives l8 l8
After reading this chapter you should be able to:
l8 l8 l8 l8 l8 l8 l8 l8
LO 1-1
l8 Understand why project management is crucial in today’s world. l8 l8 l8 l8 l8 l8 l8 l8
LO 1-2
l8 Distinguish a project from routine operations. l8 l8 l8 l8 l8
LO 1-3
l8 Identify the different stages of a project life cycle.
l8 l8 l8 l8 l8 l8 l8 l8
LO 1-4
l8 Describe how Agile PM is different from traditional PM.
l8 l8 l8 l8 l8 l8 l8 l8
LO 1-5
l8
Understand that managing projects involves balancing the technical l8 l8 l8 l8 l8 l8 l8 l8
and sociocultural dimensions of the project.
l8 l8 l8 l8 l8
Review Questions l8
1. Define a project. What are five characteristics which help differentiate projects
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
from other functions carried out in the daily operations of the organization?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
A project is a complex, non-routine, one-
l8 l8 l8 l8 l8 l8
time effort limited by time, budget, resource, and specifications. Differentiating chara
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
cteristics of projects from routine, repetitive daily work are below:
l8 l8 l8 l8 l8 l8 l8 l8 l8
a. A defined lifespan l8 l8
b. A well-defined objective
l8 l8
c. Typically involves people from several disciplines l8 l8 l8 l8 l8
d. A project life cycle
l8 l8 l8
e. Specific time, cost, and performance requirements. l8 l8 l8 l8 l8
2. What are some of the key environmental forces that have changed the way
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l
projects are managed? What has been the effect of these forces on the ma
8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
nagement of projects? l8 l8
Some environmental forces that have changed the way we manage projects are the pr
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
oduct life cycle, knowledge growth, global competition, organization downsizing, tec
l8 l8 l8 l8 l8 l8 l8 l8 l8
hnology changes, time-to- l8 l8
market. The impact of these forces is more projects per organization, project teams res
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
ponsible for implementing projects, accountability, changing organization structures,
l8 l8 l8 l8 l8 l8 l8 l8
need for rapid completion of projects, linking projects to organization strategy and cu
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
stomers, prioritizing projects to conserve organization resources, alliances with exter
l8 l8 l8 l8 l8 l8 l8 l8 l8
nal organizations, and so on.
l8 l8 l8 l8
3. Describe the four phases of the traditional project life cycle. Which phase do you
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
think would be most the difficult one to complete?
l8 l8 l8 l8 l8 l8 l8 l8
Copyright © 2021 McGraw- l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
3
, Project Management: The Managerial Process
l8 l8 l8 l8
1. Defining: Project specifications objectives are defined, and teams are formed with
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
major responsibilities assigned. Much of this is referred to as defining the Scope
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
of a project. l8 l8
2. Planning: The creation of a comprehensive plan that includes schedules, budgets,
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
staffing and risk assessment. l8 l8 l8
3. Executing: Work begins, deliverables are produced, and progress is monitored. l8 l8 l8 l8 l8 l8 l8 l8 l8
4. Closing: Putting the project to bed includes customer delivery, post project review
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
or audit, and redeployment of project team.
l8 l8 l8 l8 l8 l8
problematic. Disagreements at the customer acceptance can lead to rework, tension a
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
nd in many cases litigation. Veteran project managers answer to this question would b
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
e ―It all depends‖.
l8 l8 l8
4. What kinds of projects is Agile PM best suited for and why?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
R&D work, technological breakthroughs, and creative endeavors.
l8 l8 l8 l8 l8 l8
5. The technical and sociocultural dimensions of project management are two sides
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
to the same coin. Explain.
l8 l8 l8 l8
The technical and sociocultural dimensions of project management are two sides of t
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
he same coin because successful project managers are skillful in both areas. The poin
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
t is successful project managers need to be very comfortable and skillful in both areas.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
Snapshot from Practice: Discussion Questions l8 l8 l8 l8
1.1 The Project Management Institute
l8 l8 l8 l8
1. If you were a student interested in pursuing a career in project management how
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
important do you think being CAPM would be? l8 l8 l8 l8 l8 l8 l8
There is no data available on the value of the CAPM in the job market. Experts suggest at
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
a minimum it demonstrates a strong interest in project management and a good understan
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
ding of the project management processes. Given the growing demand for people to wor
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
k on projects, the CAPM may just separate you from other applicants.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
2. How valuable do you think being a certified PMP is?
l8 l8 l8 l8 l8 l8 l8 l8 l8
Reliable data is hard to find. PMI reported that the median salary for a PMP is $108,200.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
Non-
certified project managers, on the other hand, showed a median income of $91,000. Acc
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
ording to a different survey, eighty percent of high-
l8 l8 l8 l8 l8 l8 l8 l8
performing projects used PMP certified project managers.
l8 l8 l8 l8 l8 l8
1.3 London Calling: Seattle Seahawks versus Oakland Raiders
l8 l8 l8 l8 l8 l8 l8
Copyright © 2021 McGraw- l8 l8 l8
Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGra
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
w-Hill.
4
