Conflict Resolution Using Cognitive Analysis Approach Hashem Al-Tabtabai, Kuwait University, College of Engineering and Petroleum, Civil Engineering Department, PO Box 5969, Safat 13060 Kuwait Alex P. Alex, Kuwait University, College of Engineering and Petroleum, Civil Engineering Department, PO Box 5969, Safat 13060 Kuwait Ahmed Abou-alfotouh, Kuwait University, College of Engineering and Petroleum, Electrical Engineering Department, PO Box 5969, Safat 13060 Kuwait egaprojects require extensive coordination of various activities, each with different degrees of complexity and with different participants. The elaborateness of interactions often produces conflict situations at various stages of the project. The importance of studying the origin and effect of conflict is critical for project participants, because the actions they take in response to conflicting issues can influence the management of both their projects and their organizations. Conflict develops because of various factors. These factors may be classified simply as either “interpersonal” or “managerial.” Interpersonal differences can be attributed to contrasting values, perceptions, and methods. Managerial-level differences can arise from unbalanced views of project goals, lack of coordination, and inefficient communication among the project participants. Conflict at the management level may also arise from differences in practices advocated by respective organizations under individual managerial units. Some may consider the effect of conflict to be constructive; it can lead to new ideas, new information, and novel ways of approaching problems. Simply put: conflict helps rectify “wrong” beliefs and values. Others may consider conflict to be destructive; it may erode organizational performance, create disorder among project team members, and even cause delay in decision-making or result in schedule shifts and cost overruns (Verma, 1996). The ability of project participants to manage conflict for the benefit of their organization is a significant factor in ensuring project success. Each conflict situation should be closely examined so that underlying causes can be recognized in order to achieve resolution as swiftly and completely as possible. Literature reviews in the field of conflict management (Singh & Vlatas, 1991) have identified five conventional approaches to the resolution of conflict. These approaches, with their limitations, are classified as follows: ■ Forcing: This is a typical win-lose type of resolution. The viewpoint of an individual is exercised at the expense of the other, thus creating an apparent removal of any conflict between them. This approach brings feelings of resentment and causes deterioration in the relationship between the persons in conflict. ■ Withdrawal: In this approach, the individuals withdraw from the conflict issues. In actuality, the conflicting issues are avoided. This type of resolution is not effective because the approach does not eliminate the conflict. M ▼ Abstract Within the field of project management, research in the subject of conflict analysis and resolution has received considerable attention. This paper presents the application of cognitive analysis, based on the workings of “human judgment theorists,” to the resolution of representative conflict situations. The employed conflictresolution approach presents cognitive differences between parties as a primary source of conflict. However, it also presents feedback that provides analysis of each individual’s judgment and comparisons with his or her counterpart’s judgment. This feedback, termed “cognitive feedback,” is used as a way to give insight to people in conflict, providing them an opportunity to resolve their conflicts acceptably. The objective of this paper is to establish a systematic methodology for analyzing and resolving conflict. An actual case study of conflict resolution between union and management personnel at a petrochemical plant in Kuwait is used to illustrate the methodology. Both self-understanding and the understanding of one’s counterpart were found to be generally poor before receiving cognitive feedback. The use of cognitive feedback for both groups proved feasible and helped reduce conflict. Keywords: conflict resolution; negotiation; human judgment; cognitive analysis ©2001 by the Project Management Institute 2001, Vol. 32, No. 2, 4–16 8756–9728/01/$5.00 per article + $0.50 per page 4 Project Management Journal March 2001 ■ Smoothing: The emphasis in smoothing is to focus on similarities rather than on differences over issues. Like withdrawal, smoothing may not address the real issues; thus, the differences remain under the surface. ■ Compromising: Bargaining and searching for a solution is the basis of this approach. But a compromise is often attained at the expense of optimum results. This approach often involves third-party intervention, negotiation, and even voting. This resolution is influenced by the relative strength of the parties. ■ Confrontation: This approach involves a rational problemsolving approach. Disputing parties solve their differences by first focusing on the issues, then looking at alternative approaches, and finally selecting the best alternative. This method can be time-consuming and is frequently inappropriate for most communication. These traditional approaches were developed three decades ago. Traditional models consider conflict between individuals to reflect differing views of the “What’s in it for me?” attitude prevalent during this period (Al-Sedairy, 1994). At some point in history, conflict was considered as universally destructive, reflecting the belief that disagreement universally bred contempt. Furthermore, these approaches failed to examine the psychological aspects of conflict, and for that reason have not helped the individuals engaged in conflict to resolve the value differences arising out of the conflict situation. Finally, none of these traditional methods advocate any methodology for modeling the conflict in terms of its intensity and magnitude (Verma, 1996). Judgmental analysis studies by human judgment theorists have argued that cognitive differences between persons are the basis of conflict among individuals (Blake, Hammond, & Meyer, 1975; Hammond, McClelland, & Mumpower, 1980). Their research has produced several theories that study interpersonal conflict and methods to resolve it. These theories differ with the earlier-mentioned traditional conflict-resolution theories for three reasons. First, traditional (motivational) theories have not sufficiently enhanced the ability to analyze, manage, or reduce human conflict. Second, traditional theories require us to look for self-serving behavior in the other person whenever conflict occurs—a process that is divisive and aggravates conflict. Third, preoccupation with differential gain as the prime cause of conflict diverts our attention from other possible causes. The objective of this paper is to introduce a systematic methodology for analyzing and resolving conflict situations, based on the works of human judgment researchers. The paper proposes an alternate conflict-resolution strategy, which argues that cognitive differences among individuals are capable of producing conflict. The proposed strategy, based on the social judgment theory (SJT), argues that the nature of human judgment is such that it provides a prime source of conflict and that many, although not all, disagreements flow from the exercise of human judgment. Consequently, even if self-serving motives are eliminated, interpersonal conflict will persist. June 2001 Need for Clarification of the Human Judgment Process Research done by human judgment theorists (Brehmer, 1988; Einhorn & Hogarth, 1981; Hammond, Stewart, Brehmer, & Steinman, 1975) has indicated that, unaided, a person faces difficulties in clarifying his or her judgment for the following reasons. Human judgment is a covert process. It is difficult for an individual to accurately describe his or her judgment process. Introspection and observation of the judgment process and guessing at the reasons for them are the only means of uncovering or explaining judgments. Subjective reports of one’s judgment process and the uninformed nature of guessing often lead to inaccuracy. Inaccurate Reporting. People often are unable to accurately describe the principle by which they organize the data to reach a judgment. Most explanations are incomplete at best and misleading at worst. This is due to the variable nature of subjective reporting on the process of judgment. Inconsistency. Human judgment is neither a fully analytical nor an entirely controlled process. Even when people do their best to be consistent, in identical situations they will not necessarily draw identical judgments. Based upon these statements, human judgment theorists have argued that judgment does not always accomplish what is required of it and that many, although not all, disagreements flow from the exercise of human judgment. Human judgment theorists, however, argue that methods can be applied to aid decision-makers in making required judgments as well as improving their judgments in overcoming conflict situations. Cognitive Analysis Approach as a Conflict-Resolution Technique The conflict-resolution technique presented here is based on the assumption that human judgment is a cognitive process (Hammond et al., 1975; Stewart, 1988). In this process, an individual draws a conclusion or makes a judgment (Ys) about a distal or uncertain event (Ye) [depth variable]. The distal event is not visible; it is drawn from data or cues (x , x … x ) [surface variable] that can be perceived or 1 2 n that represent information available for making a judgment. Moreover, individuals do not have access to the distal variable about which they intend to make a judgment, but have access only to the surface variable upon which to base their inferences. This ambiguity between the depth variable and the surface variable [cues] explains the cognitive differences among persons who arrive at a conclusion (i.e., the difference in Ys for each individual). This cognitive difference can be inferred to be the major source of conflict between individuals making differing conclusions about a common task. This approach proposes to resolve the difference that is appearing in the cognitive system, rather than simply concentrating on the difference in the outcome Ys (its difference among individuals in conflict). In this technique, the cues used and the importance attributed to each cue are analyzed Project Management Journal 5 Step 1: Identify the Major Domain and Issues of Conflict Step 2: Generate Conflict Profiles Step 3: Exercise of Judgment Step 4: Judgmental Parameters Step 5: Communicating Cognitive Feedback Step 6: Negotiation Among Conflicting Parties Compromise No Yes Stop Figure 1. Steps of the Conflict-Resolution Process to perceive the real conflict that is inherent in the judgments among individuals. A Systematic Methodology to Conflict Resolution The workings of human judgment theorists can be expanded to construct a systematic approach to the resolution of conflict. 6 This proposed methodology involves identifying and measuring the cues, the distal variable, and the judgments, and finding the relationships among these variables. The following steps (illustrated in Figure 1) explain this methodology. Step 1: Identification of the Conflict Domain. Acknowledgment and establishment of the conflict situation is the first step in any conflict-resolution method. The domain Project Management Journal June 2001 to be resolved is identified and recognized by all parties in conflict. Conflicting parties are requested to identify all the main issues or cues that caused the conflict. These factors are then sorted and categorized, resulting in a maximum of eight cues. Large numbers of cues may lead to inaccurate and inconsistent judgment on the individuals’ parts. This step should ensure that the parties in conflict are informed about the presence of conflict and its scope, and will not retain ambiguity about the conflict domain. Step 2: Generation of Conflict Cases. Hypothetical case profiles are developed, which consist of a mix of cue values representing different conflict situations. The cues are given random values that adequately describe a set of possible conflict situations. Step 3: Exercise of Judgment. The concerned individuals indicate their judgments by rating several profiles on a numerical scale. The practice of judgment may take into consideration two sets of meetings, with the second set containing a number of cases similar to those shown in the first. The objective is to test the reliability of an individual judgment in more than one instance. Step 4: Analysis of the Results. If the judgments a person has made and the information (cues) upon which these judgments were based are known, then a mathematical representation can be developed that relates the judgment to the information. An additive nonlinear polynomial model formed by adding squared terms to the standard linear regression equation (as follows) is adopted to analyze the judgment of conflicting parties. J = a + b1x1 + b2x2 + … + bnxn + b1+n x12 + b2+n x22 + … + bn+n xn2 [1] J is the judgment, xn is the nth cue variable, bn is the regression coefficient for the cue n, and b1+n is the regression coefficient for the square value of cue n. The selection of this additive curvilinear model is based on the assumption that the contribution of any cue is independent of the values of the other cues. The mathematical regression analysis of judgments helps to study the characteristics of each individual by externalizing several judgmental parameters (as follows), which are used to resolve the conflict situation. ■ Relative weight. Sources of disagreement between individuals could be due to the different weights they attach to various aspects of the conflict situation. The weights are based on the standard regression weights adjusted total to 100. The importance given to each cue by the individuals indicates the weight attributed by each judge on each cue to the judgment task. ■ Function form. The relationship between the cues and the judgments can be graphically represented as function forms. A positive linear function indicates that the judgment value increases as the cue value increases, while a negative linear function form indicates that the judgments of desirability are inversely related to that cue. ■ Consistency. The consistency value represents the efficiency of the model in representing the individual deci- June 2001 sions. The judgmental models can be tested for consistency in terms of the correspondence between the statistical model and the actual predictions, and the amount of judgment variance accounted for by the judgment model by measuring the multiple correlation coefficient (R) and the squared multiple correlation (R2), respectively. ■ Reliability. Another measure of consistency is the reliability measure (the product-moment coefficient). This measure indicates the extent to which a person makes similar judgments when the same information is presented on different occasions. ■ Agreement. The correlation between a set of judgments made by two parties for the same case reflects the overall agreement between them. The value of ra in the lens model, which indicates the degree to which the judgment was correct, will be an index of overall agreement between the two conflicting parties, which ranges from high degree of disagreement (ra = –1.0) to high degree of agreement (ra = +1.0). Step 5: Communication of the Judgment Differences (Cognitive Feedback). Once the judgment parameters are externalized and analyzed for each of the conflicting parties, a comparison between individuals and their counterparts in conflict can be performed. Comparison of weights and function forms will externalize the major source of conflict among individuals, provided the individuals make the judgments consistently. All the conflicting parties are provided with their own judgment characteristics, along with those of their counterparts, and the individuals are encouraged to understand the viewpoint of the other and to reduce, if not eliminate, the conflict that exists among them. Once the judgment differences are communicated, the individuals are encouraged to revise their decisions on the conflict issue by reducing the cognitive difference rather than by discussing only the difference in outcomes. Step 6: Negotiation Among Conflicting Parties. In the negotiation phase, each individual in conflict attempts to reach an agreement on the evaluation of cases that was given to them in previous steps. Evaluation of the acceptability of all cases is requested in order to ascertain the degree to which mutual judgment policies can be developed, based on the provision of the cognitive feedback in comparison to conventional verbal procedures. An Example: Union vs. Management Negotiation The proposed conflict-resolution strategy could be applied to resolve the conflict that can exist between a labor union and the company management, based on the assumption that much of the above-mentioned argument is true. What is at issue is the extent to which the externalization of the parameters of the judgment process can be demonstrated to be of potential value, not only to union-management negotiators, but also to specialists in conflict resolution. A conflict situation between the management and labor union of the Kuwait National Petroleum Company (KNPC) was used to apply the proposed resolution method. The situation was Project Management Journal 7 (1) Number of Promotion Tests None Pass Interview Pass Exam Pass Interview & Exam Outside the Dept. Through a Committee Outside the Dept. Without Their Opinion (2) Selection of Section Head Outside the Dept. With Section Consult. Inside the Dept. (3) Covering Period in Grade 7B 5 7.5 10 12.5 15 (years) (4) Acting Period in Grades 8 & 10 3 6 9 12 15 18 (months) Acceptability of Contracts 1 2 3 5 4 Strongly Recommend to Accept 6 7 Strongly Recommend to Reject Figure 2. A Sample Profile sufficiently controversial (70 days of strike had not relieved the tension) and recent enough that the issues were still clear to the negotiators. Step 1: Identifying Major Issues of Conflict. Two of the five management negotiators and two of the five union negotiators who took part in the negotiation process agreed to participate in the proposed conflict-resolution experiment. The four key issues under negotiation between the labor union and management representatives, are as follows: Issue 1: Promotion tests. The company conducted a variety of certification and evaluation tests for promotion against the wishes of the labor union, which wanted the promotions to be based on seniority. Issue 2: Assignment of departments’ managers. The company wished to assign the department manager from outside that department, while the union preferred to have the manager assigned from within the department. Issue 3: Required years in service in Grade 7B. The number of years necessary to serve in the Grade 7B level at KNPC in order to be promoted to Grade 8 was an additional factor under negotiation. Issue 4: Required period in Grades 8 and 10. The duration, in terms of months, that a worker should serve in Grades 8 and 10 was another factor under negotiation. Time was spent with one management negotiator and one union negotiator to discuss the issues involved in conflict in order to make certain that no issue of importance was omitted. Step 2: Generation of Hypothetical Profiles. Sample negotiation contract scenarios were created, each repre- 8 senting a different combination of values for the four issues. In order to ensure clarity and ease of evaluation, the first and second cues were divided into four scale values (from lowest to highest) and represented in graphic form, as shown in Figure 2. The values for the first and second issues are non-numerical, while the values for the last two issues are numerical. The values for the first issue were: none, pass an interview, pass a written exam, and pass both interview and written exam. The values for the second issue were assignment: from inside the department, from outside the department after department consultation, from outside the department through a committee, and without considering the opinion of the department. The third issue was divided into five scales (from 5–15 years), and the fourth issue was divided into six scales (ranging from 3–18 months). By using different combinations of the four issues, 480 different possible negotiation contracts were produced. To facilitate the process of contract evaluation, 30 such possible contracts were selected on a random basis as a representative sample to illustrate the proposed conflict-resolution strategy. A 7-point evaluation scale, ranging from “strongly accept the contract” to “strongly reject the contract,” was designed with the help of one union representative and one management representative. The aim was for the scale to simulate the type of judgments made during actual negotiations. Step 3: Collecting the Judgments. The participants were given instructions and shown the 20 contracts for the first time. Each participant judged each of the 20 contracts, using the 7-point acceptance-rejection scale. Each participant then made a subjective estimate of the weight (in terms of Project Management Journal June 2001 Issue 1 W= 5 =1 60 W 2 M2 W= 20 5 W= W=40 W=10 U2 3 W= 40 10 W= 4 Note. The width of the line denotes the weights placed on each issue subjectively. Figure 3. Example of How Differential Weights Attached to the Four Contract Issues Were Shown to the Negotiators percentage) that he felt he would place on each of the four issues. Then, after a one-hour break, 10 randomly selected contracts, repeated from the first 20, and 10 new contracts were shown to each participant. Each one judged them using the scale. The purpose was to measure the reliability of a person making judgments when the same information is presented to that person on two different occasions. The authors supervised this training process of the participants, and one of the co-authors was present during data-collection phases to ensure that any questions were answered. Each participant was paired with a member of the other side, thus forming two pairs, coded U1-M1 and U2-M2 (where U = union, M = management). In both sessions, each participant predicted what the counterpart would place on each of the four issues. Step 4: Externalization of Judgmental Parameters. Following the collection of judgments (before the cognitive feedback phase), the judgmental parameters of each negotiator’s contract were derived. These parameters were used to show the participants, in pictorial form, the characteristics of both their judgments and their counterparts’ judgments. The purpose of presenting the results was to help the participants understand the sources of conflict. Interactive computer software programs (a statistical package entitled Policy PC and a spreadsheet in Microsoft Excel) were used to provide key information for each of the negotiators, in regard to that individual’s judgment process as well as that of the counterpart’s. Each negotiator’s contract judgment was analyzed in terms of a special form of multiple regression statistics. The regression analysis was computed separately for each union and management negotiator, using each participant’s judgment as the dependent variable. The independent, or predictor, variables in the June 2001 analysis were the values of the issues, and the squares of the difference of these values, and the mean of each one. Thus, there were eight independent variables in each regression analysis. This procedure permitted the analysis of both linear and quadratic components of judgmental variance. The following judgmental parameters were externalized during the data analysis. 1. Differential weighting system among participants. The weight each participant had given to each issue was displayed graphically. Figure 3 provides an example, in pictorial form, of the differential weighting system, providing a direct visual representation of one source of conflict. In this figure, the largest difference occurs in connection with the promotion issue (Issue 1), to which the union negotiator assigned a higher weight than that assigned by the management negotiator. 2. Comparisons of own weighting system. Figure 4 illustrates the extent to which an individual negotiator misunderstood his weighting system. For example, in this figure, negotiator M1, in making his contract judgments, underestimated the weight system that he attached to the promotion issue. He had subjectively estimated that issue to be 50% significant, while the weight derived from his actual judgment was found to be 34%. 3. Comparison with counterpart’s weighting system. The top two bars in Figure 4 provide an example of self-misunderstanding, while the comparison between the bottom bar and the top bar provides an example of how misunderstanding of one’s counterpart is externalized. The counterpart’s actual weighting system (derived from the analysis of his contract judgments) is compared with the negotiator’s subjective weight estimates for his counterpart. For example, comparison of the bottom bar and the top bar shows that Project Management Journal 9 Model of M1 Model of U1 34 29 23 Subjective Estimate of M1 50 10 10 50 30 70 11 10 30 10 Subjective Estimate of M1 on U1 20 5 5 Model of M2 5 50 25 20 Model of U2 23 13 44 20 Subjective Estimate of M2 40 Top Bar: Weights Derived From Practicing Own Judgments of Contracts 19 60 40 30 5 44 32 Subjective Estimate of U2 Subjective Estimate of U2 on M2 50 17 Subjective Estimate of U1 Subjective Estimate of U1 on M1 15 5 25 47 14 20 10 10 Subjective Estimate of M2 on U2 10 10 40 Middle Bar: Subjective Estimate of Own Weights 5 30 25 Bottom Bar: Subjective Estimate of Counterpart’s Weights Figure 4. Comparison Between Negotiator’s Subjective Report of Issue-Weighting System With Actual Weighting System the negotiator (M1) makes incorrect subjective weight estimates of his counterpart U1. Data shown in Figure 4 represent the degree of misunderstanding that remained between the two negotiators, even after several months of discussion during actual negotiations. 4. Function forms. The function forms used in relating the judgment of each of the participants to each of the four issues were displayed graphically. Figure 5 provides an example of how function forms were shown to negotiators. Opposing curvilinear function forms were found for Issue 1 (the promotion test), and both positive and negative nonlinear function forms were found for the issue, “the department head” (upper right). The notion of an optimal settlement for both the union and management negotiators for the department head issue in the intersection of their function forms can be seen in Figure 5. Step 5: Communicating the Judgmental Differences (Cognitive Feedback). The feedback phase was administered one week after the judgment process. The purpose was to provide cognitive feedback to all the negotiators. Feedback consisted of two parts. In the first part, each participant was shown the data (externalized in Step 4) concerning the negotiator’s own weights for each of the four contract issues, as well as graphs showing the form (curvilinear) of relations between each issue and his evaluations. After receiving this form of feedback about his evaluation, each of the four ne- 10 gotiators (U1 and M1, U2 and M2) reevaluated the contracts and estimated the weights that he used on this occasion. In the second part of this phase, each negotiator observed his counterpart’s weights and graphs of the relations between issues and judgments for each of the four issues. Each negotiator then made new predictions of his counterpart’s evaluations of the contracts and predictions of his counterpart’s weights. No discussion between participants was permitted in this phase, thus ensuring that the feedback was nonverbal. Step 6: Negotiation Phase. A minimum bargaining was suggested to achieve agreement on specific contracts. In the negotiation phase, the conflicting parties were encouraged to negotiate the issues based on the externalized judgment parameters. Figures 7 and 8 provide examples of how function forms were shown to the negotiators. Figure 8 also shows the settlement point reached by the conflicting parties. The illustration shows that negotiators can provide such information, and indicates the form in which it can be displayed. Such information could have been viewed directly by the participants, had they carried out their negotiations at a common site with interactive computer devices. Instead, in our study, the graphs were reproduced separately on paper and shown to the negotiators. Current growth in information technology can be used to connect conflicting parties situated at different locations, using local area networks or the World Wide Web. Project Management Journal June 2001 Issue 1 Issue 2 8 8 6 6 4 4 2 2 0 0 1 2 4 3 1 2 3 Inside M1 U1 Issue 3 4 Outside Without Section Opinion M1 U1 Issue 4 8 8 6 6 4 4 2 2 0 0 5 7.5 M1 10 12.5 15 3 U1 10.5 M1 18 U1 Note. Scales from 1 to 3 indicate to accept, scale 4 indicates neutral, and scales 5 to 7 indicate reject. Figure 5. Function Forms of the U1-M1 Negotiators Before Cognitive Feedback Results of the Conflict Analysis Degree of Union-Management Conflict. Table 1 and Figures 5 and 7 illustrate the degree of conflict between the parties. Both groups initially were in wide disagreement. The before cognitive feedback (BCF) phase data shows that the first pair (U1-M1) were far apart in their judgments of the acceptability of contracts when the correlation between judgment evaluation was negative (–0.1576). Further BCF data also shows that the second pair (U2-M2) were very poor in their judgments of the acceptability of contracts when the correlation was near zero (0.0267). Figure 5 indicates that U1-M1 is in wide disagreement for the first, second, and third issues, while there is slight agreement in the fourth issue, during the BCF phase. In the after cognitive feedback (ACF) phase (see Figure 6), the disagreement still existed in the second and fourth issues, but agreement about the first issue was achieved. Figure 7 indicates that U2-M2 was in wide disagreement for the third and the fourth issues, while there was considerable agreement for the first and second issues, during the BCF phase. The situation could be improved after the feed- June 2001 back, as shown in Figure 8; there was a total agreement in the second and fourth issues, while a slight disagreement still existed in the first and the third issues. Self-Misunderstanding of the Weighting System. Negotiators did not accurately estimate the weight they had placed on each issue. There were wide individual differences among the evaluations of management negotiators with regard to their own weights. Compared to U2, the subjective estimate of U1 was closer to the actual weighting system adopted during the judgment process. However, evaluations of both union negotiators were more closely grouped than those of management. The union negotiators assumed that they had placed a higher weight on the promotional examination issue than they in fact did when evaluating the contracts. They also estimated a lower weight for the department head issue (cue 2) than they actually demonstrated when evaluating the contracts (ACF phase). Self-Understanding of Individual Judgment Policies. Although both union and management representatives agreed prior to the experiment that there were at least four major issues, the judgments made by three of the four participants revealed that Issue 1 was in fact more significant than Project Management Journal 11 Issue 1 Issue 2 8 8 6 6 4 4 2 2 0 0 1 2 4 3 1 2 3 Inside M1 U1 Issue 3 4 Outside Without Section Opinion M1 U1 Issue 4 8 8 6 6 4 4 2 2 0 0 5 7.5 M1 10 12.5 15 3 U1 10.5 M1 18 U1 Note. Scales from 1 to 3 indicate to accept, scale 4 indicates neutral, and scales 5 to 7 indicate reject. Figure 6. Function Forms of the U1-M1 Negotiators After Cognitive Feedback the other issues. As listed in Table 1, Issue 1 (promotional examinations) was important to the union representatives and one representative of management. While Issues 2 and 3 had moderate significance to unions and management, Issue 4 (covering the period) is in fact less significant in both the BCF and ACF phases among the conflicting parties. The above results illustrate how poor the negotiators’ self-understanding can be. The implications for negotiations are clear: deficiencies in self-understanding lead to the unwitting communication of false information. An inaccurate report of one’s own position is, of course, a barrier to the achievement of agreement, despite the best of intentions. Misunderstanding Others. Table 2 shows the predictive accuracy where ra indicates the degree of correlation between predicted evaluation and actual evaluation by a counterpart. G indicates the same value corrected for the inconsistency of the predictor. Both sides proved to be inaccurate. Prior to the exchange of information, M2 and U2 were unable to predict the judgments of the other side with a significant degree of accuracy in both the BCF and ACF phases (see Table 2). The other negotiators’ a priori understanding of their counterparts, therefore, was poor. They had an inaccurate understanding of the other 12 side’s contract evaluation policy. After the feedback phase, the three negotiators’ (M2, U1, and U2) accuracy improved in their predictions. Although two of the negotiators (M1 and U2) were generally inaccurate in their predictions of their counterparts’ evaluations, U2 improved his overall accuracy of prediction between the BCF and ACF phases (see Table 2). These findings illustrate one of the more important contributions of externalization. The negotiators were wrong in being confident that they understood the policies of their counterparts, a belief based on a long period of association and negotiation. In order to improve accuracy, both the target persons and the predictor would have to be much more self-consistent. If the target person changed his evaluation policy before and after the feedback, his evaluations would be more difficult to predict, as was the case with one of the union negotiators. Although self-understanding before the feedback phase was poor, improvement in predictive accuracy appears to have been due largely to the stability of the judgments of the target person at least as much as to the utility of graphics feedback. Intra-Union and Intra-Management Uniformity. A correlation among each group’s judgments was computed Project Management Journal June 2001 Issue 1 Issue 2 8 8 6 6 4 4 2 2 0 0 1 2 4 3 1 2 3 Inside M2 U2 Issue 3 4 Outside Without Section Opinion M2 U2 Issue 4 8 8 6 6 4 4 2 2 0 0 5 7.5 M2 10 12.5 15 3 U2 10.5 M2 18 U2 Note. Scales from 1 to 3 indicate to accept, scale 4 indicates neutral, and scales 5 to 7 indicate reject. Figure 7. Function Forms of the U2-M2 Negotiators Before Cognitive Feedback to learn the level of agreement among each group (see Table 3). A high degree of uniformity existed among union negotiators. Comparisons between the evaluations of union negotiators produced fairly high indications of agreement, especially in the ACF phase. When corrected for inconsistency (see column labeled “G-ACF” in Table 3), it is clear that the union negotiators were in agreement with one another. Union negotiators could have readily substituted for one another without affecting contact evaluations. On the other hand, non-uniformity existed among management negotiators. The correlation between management evaluations was negative, which shows that management negotiators were in wide disagreement among themselves in both the BCF and ACF phases, even when corrected for inconsistency. Self-Consistency. Consistency of contract evaluations would make negotiation much easier, while inconsistency of contract evaluations implies that policies change from the evaluation of one contract to the next. The consistency of each participant’s judgment model was examined by the coefficient of multiple regression (R) and the square multiple correlation coefficient (R2), as shown in Table 4. Self- June 2001 consistency was generally high. The participants were quite self-consistent at the BCF phase; however, all negotiators were less consistent in the ACF phase. Reliability. The reliability test, which is a measure of consistency, was computed by presenting the participants with two pairs of similar case profiles on two different occasions. The reliability measures of these persons are reported in the last column of Table 4. The reliability measures of the negotiators indicate reliability ranges from very good (R = 0.9323) to poor (R = 0.5343). Changes in Policy. Changes occurred in the evaluation policy. The models of all participants exhibited some changes before and after the feedback periods, as shown in Table 1. The change can be attributed to the role of feedback in terms of both sides’ judgmental parameters. Access to such information made a change on the part of the management negotiators that led to increased agreement. Another example in the changes in policy can be found by comparing Figures 7 and 8. Function forms of U2 and M2 were opposite in nature at the BCF phase, while they showed higher agreement after receiving cognitive feedback in the ACF phase. Project Management Journal 13 Issue 1 Issue 2 8 8 6 6 4 4 2 2 0 0 1 2 4 3 1 2 3 Inside M2 U2 Issue 3 4 Outside Without Section Opinion M2 U2 Issue 4 8 8 6 6 4 4 2 2 0 0 5 7.5 M2 10 12.5 15 3 U2 10 M2 18 U2 Note. Scales from 1 to 3 indicate to accept, scale 4 indicates neutral, and scales 5 to 7 indicate reject. * Indicates the values of final agreement Figure 8. Function Forms of the U2-M2 Negotiators After Cognitive Feedback The Use of Cognitive Feedback as an Aid to Reduce Conflict It can be concluded that the use of feedback can lead to better agreement. The purpose of cognitive aid is to provide each individual the opportunity to modify the judgment values if he or she desires to do so after viewing a complete judgment analysis of his or her own judgment and that of a counterpart. Cognitive aid also allows for a comparison of actual judgments made against the predicted judgments. The feedback helps the persons in conflict to understand their judgment process, how they arrived at a decision, and also how colleagues perceive the same situation. Table 1 illustrates that the second pair (U2-M2), after receiving feedback, achieved a better agreement level. The results indicate that the use of the proposed methodology and procedures led to more agreement among conflicting parties. The conflicting parties, based on the negotiations, arrived at a final compromise on the issues. The negotiated settlement was to (1) conduct an exam and an interview for promotion, (2) select a department head from within the department, (3) make the covering period in Grade 7B three 14 to five years, and (4) make the acting period in Grades 8–10 10 months. Figure 8 also shows the above settlement points marked for each of the cues. Discussion and Concluding Observations The aim of this research was to establish a methodology for externalizing the judgment process of conflicting parties. The cognitive-analysis approach is applied to reduce the conflict found between the parties. The identified conflicting issues were classified into four broad factors to act as cues. The possible ranges of each of the cues were fixed after discussions with the conflicting parties. Judgments were collected and analyzed with multiple regression techniques. The function form of each cue for each of the participants, along with the weight attached for each cue as perceived by each, was computed. The judgmental analysis results (i.e., the variation in the weights produced, the participants’ different function forms for each issue, and the consistency measures) provide evidence of conflict among individuals. It also provides insight about the cognitive differences be- Project Management Journal June 2001 Negotiator Cue 1 Cue 2 Cue 3 Cue 4 S O S O S O S O M1 M2 50 15 34 23 10 5 29 44 10 40 23 13 30 40 14 20 U1 U2 50 60 47 44 10 20 25 5 30 10 17 19 10 10 11 32 M1 M2 50 10 49 28 20 40 33 28 15 20 12 24 15 30 6 20 U1 U2 50 60 14 24 10 10 24 33 20 10 44 33 20 20 19 10 BCF ACF BCF = Before Cognitive Feedback ACF = After Cognitive Feedback Table 1. Comparison of Subjective (S) and Objective (O) Weights (in percent) for Each Negotiator for Each Issue ra Predictor G BCF ACF BCF ACF M1 M2 –0.4186 0.8833 0.5488 0.0086 –0.5809 0.9898 0.6051 0.0132 U1 U2 0.8109 0.3914 0.7060 0.5869 0.9230 0.4718 0.7942 0.6429 BCF = Before Cognitive Feedback ACF = After Cognitive Feedback ra = Degree of Correlation Table 2. Predictive Accuracy ra Management Pair M1–M2 Union Pair U1–U2 G BCF ACF BCF ACF –0.3794 –0.2073 –0.470427 –0.25704 0.5442 0.8734 0.63716 0.9779 BCF = Before Cognitive Feedback ACF = After Cognitive Feedback ra = Degree of Correlation Table 3. Intra-Union and Intra-Management Uniformity tween the parties. An attempt is made to reduce, if not eliminate, the conflict among the participants by giving cognitive feedback about their judgments and the judgments of their counterparts. The conflict developed between the union and management could be analyzed by the proposed cognitive-analysis approach. The results of this research show that the proposed methodology could be useful for negotiation and resolution June 2001 of conflict. Exchange of cognitive feedback among the labor union and management participants has enabled them to achieve a modest amount of agreement. It is important to observe that the criterion for agreement used here is far more stringent than that applied to ordinary negotiation. Cognitive feedback helps conflicting parties gain insight about the tradeoffs among different cues, weights, and function forms, relating cues to judgment and consistency in exercising their Project Management Journal 15 Negotiator R2 R Reliability BCF ACF BCF ACF M1 M2 0.721 0.869 0.907 0.653 0.519 0.755 0.823 0.426 0.7597 0.8792 U1 U2 0.879 0.830 0.889 0.913 0.772 0.688 0.791 0.834 0.9323 0.5343 BCF = Before Cognitive Feedback ACF = After Cognitive Feedback Table 4. Consistency of Contract Evaluations judgments. This feedback helps them to refine their judgment skills, and also to modify different values and beliefs they had about the conflict domain. Cognitive feedback provides maximum information on the reasons why the parties are in conflict, as well as areas that need to be negotiated to reach an agreement. The proposed cognitive analysis approach helped the project participants involved in conflict to concentrate on the real differences that triggered the conflict among their colleagues and themselves, rather than only discussing the effects of the situation under conflict. The proposed conflict-resolution technique can be effectively applied when important decisions have to be reached by project team members of different domains, such as a construction contractor and a consultant. References Al-Sedairy, S.T. (1994). Management of conflict. International Journal of Project Management, 12 (3), 143–151. Blake, W.M., Hammond, K.R., & Meyer, G.M. (1975). An alternate approach to labour-management relations. ASQ, 311–327. Brehmer, B. (1988). The development of social judgment theory. In B. Brehmer & C.R.B. Joyce (Eds.), Human judgment: The SJT view (pp. 13–40). Amsterdam: North-Holland. Einhorn, H., & Hogarth, R. (1981). Behavioral decision theory: Processes of judgment and choice. Annual Review of Psychology, 32, 53–88. Hammond K.R., McClelland, G.H., & Mumpower, J.M. (1980). Human judgment and decision making: Theories, methods, and procedures. New York: Praeger. Hammond, K.R., Stewart, T.R., Brehmer, B., & Steinman, D.O. (1975). Social judgment theory. In M. Kaplan & S. Shwartz (Eds.), Human judgment and decision processes (pp. 271–312). New York: Academic Press. Singh, A., & Vlatas, D.A. (1991). Using conflict management for better decision making. Journal of Management in Engineering, 7 (1), 70–82. Stewart, T.R. (1988). Judgment analysis: Procedures. In B. Brehmer & C.R.B. Joyce (Eds.), Human judgment: The SJT view (pp. 41–74). Amsterdam: North-Holland. Verma, V. (1996). Human resources skills for the project manager. Upper Darby, PA: Project Management Institute. 16 Hashem Al-Tabtabai, Ph.D., is an associate professor of the Civil Engineering Department at Kuwait University. He received B.S. and M.S. degrees in civil engineering from North Carolina State University and a Ph.D. from Colorado University at Boulder. His research focuses on advanced information technology in project management, project control, cost estimation, cost management, and cost control. He is a member of PMI®. Alex P. Alex received his B.E. degree in civil engineering and M. Tech degree in engineering management from Manipal Institute of Technology, Mangalore University, India. He is currently an engineer at the Civil Engineering Department, Kuwait University, and is also affiliated with many private-sector firms in Kuwait offering professional construction management services. His research interests are in modeling and optimizing complex decision systems in project management, cost estimation, project scheduling, resource allocation, and risk management using computational intelligence techniques. Project Management Journal Ahmed Abou-alfotouh received B.S. and M.S. (honors) degrees in electrical engineering from Kuwait University. He is currently a research and teaching assistant at Kuwait University. His research interests are in project management, artificial neural networks, and power systems. June 2001 Contemporary Project Management FOURTH EDITION Timothy J. Kloppenborg • Vittal Anantatmula • Kathryn N. Wells Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 MS Project 2016 Instructions in Contemporary Project Management 4e Chapter MS Project 3 MS Project 2016 Introduction Ribbon, Quick Access Toolbar, view panes, Zoom Slider, Shortcuts, Scheduling Mode Selector Setting Up Your First Project Auto schedule, start date, identifying information, summary row Create Milestone Schedule Key milestones, zero duration, must finish on, information 7 Set Up a Work Breakdown Structure (WBS) Understand the WBS definitions and displays Enter WBS Elements (tasks), Create the outline, Insert WBS Code Identifier column, Hide or show subtasks detail 8 Using MS Project for Critical Path Schedules Set Up the Project Schedule Set or update the project start date, Define organization’s working and nonworking time Build the Network Diagram and Identify the Critical Path Enter tasks and milestones, edit the timescale, understand and define task dependencies, assign task duration estimates, identify the critical path, understand the network diagram view Display and Print Schedules 9 Define Resources Resource views, max units, resource calendars Assigning Resources Basic assignment, modify an assignment Identify Overallocated Resources Resource usage and Detailed Gantt views together Overallocated Resources Finding overallocated resources, dealing with overallocations Crashing a Critical Path Activity 10 Develop Bottom-up Project Budget Assignment costs, task costs, various cost perspectives Develop Summary Project Budget 12 Baseline the Project Plan First time baseline, subsequent baselines, viewing variances 14 Using MS Project to Monitor and Control Projects What Makes a Schedule Useful? How MS Project recalculates based on reported actuals, current and future impacts of variances, define the performance update process (who, what, when) Steps to Update the Project Schedule Acquire performance data, set and display status date, Enter duration-based performance data, reschedule remaining work, revise future estimates 15 Close Project Creating project progress reports, sharing reports, export a report to MS Excel, archive project work, capture and publish lessons learned Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. PMBOK® Guide 6e Coverage in Contemporary Project Management 4e The numbers refer to the text page where the process is defined. Project management (PM) processes and knowledge areas 10–11 Project life cycle 7–10, 62–64 Projects and strategic planning 33–37 Organizational influences 102–110 Portfolio and program management 37–42 ® PMBOK Guide, 6th ed. Coverage Knowledge Areas Project Integration Management Initiating Process Group Develop Project Charter 60–79 Planning Process Group Develop Project Management Plan 409–410 Executing Process Group Monitoring & Controlling Process Group Closing Process Group Direct and Manage Project Work 459–460 Manage Project Knowledge 192–193, 504–508 Monitor and Control Project Work 460–462 Perform Integrated Change Control 229–232, 462–463 Close Project or Phase 503, 508–511 Project Scope Management Plan Scope Management 211–212 Collect Requirements 212–216 Define Scope 216–220 Create WBS 220–229 Validate Scope 500–501 Control Scope 475–476 Project Schedule Management Plan Schedule Management 246 Define Activities 249–253 Sequence Activities 253–255 Estimate Activity Durations 255–258 Develop Schedule 259–267 Control Schedule 476–480 Project Cost Management Plan Cost Management 329–330 Estimate Costs 330–341 Determine Budget 342–344 Control Costs 345, 476–480 Project Quality Management Plan Quality Management 401–404 Manage Quality 404–406, 469–474 Control Quality 406–409, 469–474 Project Resources Management Plan Resource Management 290–295 Estimate Activity Resources 290 Aquire Resources 138–141 Develop Team 141–157 Manage Team 157–161 Control Resources 476 Project Communications Management Plan Communications Management 188–192 Manage Communications 193–199, 465–467 Monitor Communications 467–468 Project Risk Management Plan Risk Management 360–366 Identify Risks 75, 366–368 Perform Qualitative Risk Analysis 75, 368–372 Perform Quantitative Risk Analysis 372–373 Plan Risk Responses 75, 373–377 Implement Risk Responses 464–465 Monitor Risks 463–464 Project Procurement Management Plan Procurement Management 431–433, 438–441 Conduct Procurements 434–438 Control Procurments 441 Plan Stakeholder Engagement 184–186 Manage Stakeholder Engagement 187–188 Monitor Stakeholder Engagement 188 Project Stakeholder Management Identify Stakeholders 75–77, 178–184 ® Guide), 6th ed. (Newtown Square, PA: Project Management Source: Adapted from A Guide to the Project Management Body of Knowledge (PMBOK Institute, Inc., 2017): 31. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contemporary Project Management ORGANIZE LEAD PLAN PERFORM FOURTH EDITION TIMOTHY J. KLOPPENBORG Xavier University VITTAL ANANTATMULA Western Carolina University KATHRYN N. WELLS Keller Williams Real Estate Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contemporary Project Management, Fourth Edition 2019 2015 Timothy J. Kloppenborg Cengage Learning Customer & Sales Support, 1-800-354-9706 www.cengage.com/permissions permissionrequest@cengage.com 2017947974 978 1 337 40645 1 Cengage Learning 20 02210 40 125 www.cengage.com. www.cengage.com www.cengagebrain.com Printed in the United States of America Print Number: 01 Print Year: 2017 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. MS Project 2016 Instructions in Contemporary Project Management 4e Chapter MS Project 3 MS Project 2016 Introduction Ribbon, Quick Access Toolbar, view panes, Zoom Slider, Shortcuts, Scheduling Mode Selector Setting Up Your First Project Auto schedule, start date, identifying information, summary row Create Milestone Schedule Key milestones, zero duration, must finish on, information 7 Set Up a Work Breakdown Structure (WBS) Understand the WBS definitions and displays Enter WBS Elements (tasks), Create the outline, Insert WBS Code Identifier column, Hide or show subtasks detail 8 Using MS Project for Critical Path Schedules Set Up the Project Schedule Set or update the project start date, Define organization’s working and nonworking time Build the Network Diagram and Identify the Critical Path Enter tasks and milestones, edit the timescale, understand and define task dependencies, assign task duration estimates, identify the critical path, understand the network diagram view Display and Print Schedules 9 Define Resources Resource views, max units, resource calendars Assigning Resources Basic assignment, modify an assignment Identify Overallocated Resources Resource usage and Detailed Gantt views together Overallocated Resources Finding overallocated resources, dealing with overallocations Crashing a Critical Path Activity 10 Develop Bottom-up Project Budget Assignment costs, task costs, various cost perspectives Develop Summary Project Budget 12 Baseline the Project Plan First time baseline, subsequent baselines, viewing variances 14 Using MS Project to Monitor and Control Projects What Makes a Schedule Useful? How MS Project recalculates based on reported actuals, current and future impacts of variances, define the performance update process (who, what, when) Steps to Update the Project Schedule Acquire performance data, set and display status date, Enter duration-based performance data, reschedule remaining work, revise future estimates 15 Close Project Creating project progress reports, sharing reports, export a report to MS Excel, archive project work, capture and publish lessons learned Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. PMBOK® Guide 6e Coverage in Contemporary Project Management 4e The numbers refer to the text page where the process is defined. Project management (PM) processes and knowledge areas 10–11 Project life cycle 7–10, 62–64 Projects and strategic planning 33–37 Organizational influences 102–110 Portfolio and program management 37–42 ® PMBOK Guide, 6th ed. Coverage Knowledge Areas Project Integration Management Initiating Process Group Develop Project Charter 60–79 Planning Process Group Develop Project Management Plan 409–410 Executing Process Group Monitoring & Controlling Process Group Closing Process Group Direct and Manage Project Work 459–460 Manage Project Knowledge 192–193, 504–508 Monitor and Control Project Work 460–462 Perform Integrated Change Control 229–232, 462–463 Close Project or Phase 503, 508–511 Project Scope Management Plan Scope Management 211–212 Collect Requirements 212–216 Define Scope 216–220 Create WBS 220–229 Validate Scope 500–501 Control Scope 475–476 Project Schedule Management Plan Schedule Management 246 Define Activities 249–253 Sequence Activities 253–255 Estimate Activity Durations 255–258 Develop Schedule 259–267 Control Schedule 476–480 Project Cost Management Plan Cost Management 329–330 Estimate Costs 330–341 Determine Budget 342–344 Control Costs 345, 476–480 Project Quality Management Plan Quality Management 401–404 Manage Quality 404–406, 469–474 Control Quality 406–409, 469–474 Project Resources Management Plan Resource Management 290–295 Estimate Activity Resources 290 Aquire Resources 138–141 Develop Team 141–157 Manage Team 157–161 Control Resources 476 Project Communications Management Plan Communications Management 188–192 Manage Communications 193–199, 465–467 Monitor Communications 467–468 Project Risk Management Plan Risk Management 360–366 Identify Risks 75, 366–368 Perform Qualitative Risk Analysis 75, 368–372 Perform Quantitative Risk Analysis 372–373 Plan Risk Responses 75, 373–377 Implement Risk Responses 464–465 Monitor Risks 463–464 Project Procurement Management Plan Procurement Management 431–433, 438–441 Conduct Procurements 434–438 Control Procurments 441 Plan Stakeholder Engagement 184–186 Manage Stakeholder Engagement 187–188 Monitor Stakeholder Engagement 188 Project Stakeholder Management Identify Stakeholders 75–77, 178–184 ® Guide), 6th ed. (Newtown Square, PA: Project Management Source: Adapted from A Guide to the Project Management Body of Knowledge (PMBOK Institute, Inc., 2017): 31. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Brief Contents Preface xx About the Authors xxix PART PART PART 1 Organizing Projects 1 Introduction to Project Management 2 Project Selection and Prioritization 32 3 Chartering Projects 60 2 Leading Projects 4 Organizational Capability: Structure, Culture, and Roles 100 5 Leading and Managing Project Teams 136 6 Stakeholder Analysis and Communication Planning 176 3 Planning Projects 7 Scope Planning 210 8 Scheduling Projects 9 Resourcing Projects 286 2 244 10 Budgeting Projects 11 Project Risk Planning 358 12 Project Quality Planning and Project Kickoff 386 PART 4 328 Performing Projects 13 Project Supply Chain Management 14 Determining Project Progress and Results 456 15 Finishing the Project and Realizing the Benefits Appendix Appendix Appendix Appendix Appendix A B C D E 426 498 PMP and CAPM Exam Prep Suggestions 522 Agile Differences Covered 527 Answers to Selected Exercises 532 Project Deliverables 537 Strengths Themes As Used in Project Management Index 539 [Available Online] v Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Project Customer Tradeoff Matrix 1.2 Foundational Elements Life Cycle and Development Approach Elevator Pitch 2.4 Organizational Systems 3.4 Project Manager Competencies Selecting Projects Integration Leader Roles and Responsibilities Project Selection and Prioritization Matrix Project Resource Assignment Matrix 4.1 Develop Project Charter Charter Assumptions Log 4.2 Develop Project Management Plan 5.1 Plan Scope Management Scope 5.2 Collect Requirements Requirements Documents Scope 6.1 Plan Schedule Management Schedule Activities 7.1 Plan Cost Management Quality 8.1 Plan Quality Management Resources 9.1 Plan Resource Management 10.1 Plan Communications Management Communication 12.1 Plan Procurement Management Procurement 13.1 Identify Stakeholders Stakeholder Register Duration Estimates 7.3 Determine Budget Network 6.3 Sequence Activities 6.5 Develop Schedule Schedule Baseline Cost Baseline Quality Mgt. Plan RACI Team Charter Communications Matrix 11.1 Plan Risk Management Risk Stakeholders 7.2 Estimate Costs Scope Statement Activity List Milestone List 6.4 Estimate activity Durations Cost 5.4 Create WBS 9.2 Estimate Activity Resources 11.2 Identify Risks Risk Register 11.3 Perform Qualitative Risk Analysis Bid Documents Make or Buy Analysis Resource Requirements 11.5 Plan Risk Responses 11.4 Perform Quantitative Risk Analysis 13.2 Plan Stakeholder Stakeholders Engagement Engagement Assessment Matrix Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Realizing s PM Plan Baselines Life Cycle and Development Approach 4.5 Monitor and Control Project Work 4.3 Direct and Manage Project Work 4.4 Manage Project Knowledge s Analysis Lessons Learned Register 4.7 Close Project Closure Documents or Phase Customer Feedback Transition Plan 4.6 Perform Integrated Change Control Retrospectives Scope Baseline with WBS 5.5 Validate Scope 5.6 Control Scope 6.6 Control Schedule Resource Histogram Project Crashing 7.4 Control Costs Quality Reports 8.2 Manage Quality 8.3 Control Quality Scope Backlog Burn Down/Up Charts Earned Value Analysis Quality Measurements 9.3 Acquire Resources 9.4 Develop Team Team Assessments Team Assignments 9.6 Control Resources 9.5 Manage Team 10.2 Manage Communications Agendas Minutes Issues Log Meeting Evaluation 10.3 Monitor Communications Change Requests Progress Report 11.6 Implement Risk Responses 11.7 Monitor Risks 12.2 Conduct Procurements 12.3 Control Procurements 13.3 Manage Stakeholder Engagement Source Selection Matrix 13.4 Monitor Stakeholder Engagement Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xx About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxix PART CHAPTER 1 Organizing Projects 1 Introduction to Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.1 What Is a Project? 3 1.2 History of Project Management 5 1.3 How Can Project Work Be Described? 6 1.3a Projects versus Operations 6 / 1.3b Soft Skills and Hard Skills and Responsibility 7 / 1.3d Project Life Cycle 7 7 / 1.3c Authority 1.4 Understanding Projects 10 1.4a Project Management Institute 10 / 1.4b Project Management Body of Knowledge (PMBOK ) 10 / 1.4c The PMI Talent Triangle 11 / 1.4d Selecting and Prioritizing Projects 14 / 1.4e Project Goals and Constraints 14 / 1.4f Defining Project Success and Failure 15 / 1.4g Using Microsoft Project to Help Plan and Measure Projects 16 / 1.4h Types of Projects 16 / 1.4i Scalability of Project Tools 17 ® 1.5 Project Roles 17 1.5a Project Executive-Level Roles 18 / 1.5b Project Management-Level Roles 1.5c Project Associate-Level Roles 20 19 / 1.6 Overview of the Book 20 1.6a Part 1: Organizing and Initiating Projects 20 / 1.6b Part 2: Leading Projects 1.6c Part 3: Planning Projects 21 / 1.6d Part 4: Performing Projects 23 PMP/CAPM Study Ideas Summary 23 24 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 25 26 Integrated Example Projects 27 Suburban Homes Construction Project Casa DE PAZ Development Project Semester Project Instructions Project Management in Action Endnotes 24 25 PMBOK Guide Questions References 21 / 27 28 28 29 30 31 viii Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents CHAPTER ix 2 Project Selection and Prioritization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.1 Strategic Planning Process 33 2.1a Strategic Analysis 33 / 2.1b Guiding Principles Objectives 36 / 2.1d Flow-Down Objectives 37 34 / 2.1c Strategic 2.2 Portfolio Management 37 2.2a Portfolios 38 / 2.2b Programs 39 / 2.2c Projects and Subprojects 39 / 2.2d Assessing an Organization’s Ability to Perform Projects 42 / 2.2e Identifying Potential Projects 42 / 2.2f Using a Cost-Benefit Analysis Model to Select Projects 43 / 2.2g Using a Scoring Model to Select Projects 45 / 2.2h Prioritizing Projects 48 / 2.2i Resourcing Projects 48 2.3 Securing Projects 49 2.3a Identify Potential Project Opportunities 50 / 2.3b Determine Which Opportunities to Pursue 50 / 2.3c Prepare and Submit a Project Proposal 51 / 2.3d Negotiate to Secure the Project 51 PMP/CAPM Study Ideas Summary 52 52 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 53 53 PMBOK Guide Questions Exercises 53 54 Integrated Example Projects 55 Casa DE PAZ Development Project Semester Project Instructions Endnotes CHAPTER 56 56 Project Management in Action References 52 57 58 59 3 Chartering Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 3.1 What Is a Project Charter? 62 3.2 Why Is a Project Charter Used? 3.3 When Is a Charter Needed? 63 64 3.4 Typical Elements in a Project Charter 65 3.4a Title 65 / 3.4b Scope Overview 65 / 3.4c Business Case 66 / 3.4d Background 66 / 3.4e Milestone Schedule with Acceptance Criteria 66 / 3.4f Risks, Assumptions, and Constraints 67 / 3.4g Resource Estimates 69 / 3.4h Stakeholder List 69 / 3.4i Team Operating Principles 69 / 3.4j Lessons Learned 70 / 3.4k Signatures and Commitment 70 3.5 Constructing a Project Charter 70 3.5a Scope Overview and Business Case Instructions 70 / 3.5b Background Instructions 71 / 3.5c Milestone Schedule with Acceptance Criteria Instructions 72 / 3.5d Risks, Assumptions, and Constraints Instructions 75 / 3.5e Resources Needed Instructions 75 / 3.5f Stakeholder List Instructions 75 / Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. x Contents 3.5g Team Operating Principles Instructions 77 / 3.5h Lessons Learned Instructions 77 / 3.5i Signatures and Commitment Instructions 78 3.6 Ratifying the Project Charter 79 3.7 Starting a Project Using Microsoft Project 79 3.7a MS Project 2016 Introduction 80 / 3.7b Setting up Your First Project 3.7c Define Your Project 82 / 3.7d Create a Milestone Schedule 83 PMP/CAPM Study Ideas Summary 88 88 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 89 90 Integrated Example Projects 91 Casa DE PAZ Development Project Semester Project Instructions Project Management in Action References Endnotes PART CHAPTER 2 88 89 89 PMBOK Guide Questions Exercises 81 / 93 93 93 96 97 Leading Projects 4 Organizational Capability: Structure, Culture, and Roles . . . . . . . . . . . . . . . . . . . . . 100 4.1 Types of Organizational Structures 103 4.1a Functional 103 / 4.1b Projectized 104 / 4.1c Matrix 105 4.2 Organizational Culture and Its Impact on Projects 109 4.2a Culture of the Parent Organization 110 / 4.2b Project Cultural Norms 111 4.3 Project Life Cycles 111 4.3a Define-Measure-Analyze-Improve-Control (DMAIC) Model 112 / 4.3b Research and Development (R&D) Project Life Cycle Model 113 / 4.3c Construction Project Life Cycle Model 113 / 4.3d Agile Project Life Cycle Model 113 4.4 Agile Project Management 114 4.4a What Is Agile? 114 / 4.4b Why Use Agile? 114 / 4.4c What Is an Agile Mindset? 114 / 4.4d What Are the Key Roles in Agile Projects? 115 / 4.4e How Do You Start an Agile Project? 115 / 4.4f How Do You Continue an Agile Project? 115 / 4.4g What Is Needed for Agile to Be Successful? 116 4.5 Traditional Project Executive Roles 116 4.5a Steering Team 116 / 4.5b Sponsor 117 / 4.5c Customer Projects Officer/Project Management Office 121 4.6 Traditional Project Management Roles 121 4.6a Functional Manager 121 / 4.6b Project Manager 119 / 4.5d Chief 122 / 4.6c Facilitator 4.7 Traditional Project Team Roles 126 4.7a Core Team Members 126 / 4.7b Subject Matter Experts 124 126 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents 4.8 Role Differences on Agile Projects PMP/CAPM Study Ideas Summary 126 128 128 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 129 129 130 Integrated Example Projects 130 Casa DE PAZ Development Project Semester Project Instructions Endnotes CHAPTER 131 131 Project Management in Action References 128 129 PMBOK Guide Questions Exercises xi 132 134 135 5 Leading and Managing Project Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 5.1 Acquire Project Team 138 5.1a Preassignment of Project Team Members 139 / 5.1b Negotiation for Project Team Members 139 / 5.1c On-Boarding Project Team Members 140 5.2 Develop Project Team 141 5.2a Stages of Project Team Development 142 / 5.2b Characteristics of High-Performing Project Teams 144 / 5.2c Assessing Individual Member Capability 147 / 5.2d Assessing Project Team Capability 148 / 5.2e Building Individual and Project Team Capability 150 / 5.2f Establishing Project Team Ground Rules 153 5.3 Manage Project Team 157 5.3a Project Manager Power and Leadership 157 / 5.3b Assessing Performance of Individuals and Project Teams 159 / 5.3c Project Team Management Outcomes 5.4 Relationship Building Within the Core Team 159 160 5.5 Managing Project Conflicts 161 5.5a Sources of Project Conflict 162 / 5.5b Conflict-Resolution Process and Styles 163 / 5.5c Negotiation 164 5.6 Communication Needs of Global and Virtual Teams 166 5.6a Virtual Teams 166 / 5.6b Cultural Differences 166 / 5.6c Countries and Project Communication Preferences 167 PMP/CAPM Study Ideas Summary 167 168 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 168 168 169 PMBOK Guide Questions Integrated Example Projects 170 170 Casa DE PAZ Development Project Semester Project Instructions 171 171 Copyright 2019 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xii Contents Project Management in Action References Endnotes CHAPTER 172 174 175 6 Stakeholder Analysis and Communication Planning . . . . . . . . . . . . . . . . . . . . . . . . . 176 6.1 Identify Stakeholders 178 6.1a Find Stakeholders 179 / 6.1b Analyze Stakeholders Stakeholders 183 180 / 6.1c Document 6.2 Plan Stakeholder Engagement 184 6.2a Creating a Stakeholder Engagement Assessment Matrix Relationships with Stakeholders 185 6.3 Manage Stakeholder Engagement 187 6.4 Monitor Stakeholder Engagement 188 184 / 6.2b Planning to Build 6.5 Plan Communications Management 188 6.5a Purposes of a Project Communications Plan 188 / 6.5b Communications Plan Considerations 189 / 6.5c Communications Matrix 191 / 6.5d Manage Project Knowledge 192 6.6 Manage Communications 193 6.6a Determine Project Information Needs 193 / 6.6b Establish Information Retrieval and Distribution System 193 / 6.6c Project Meeting Management 194 / 6.6d Issues Management 197 PMP/CAPM Study Ideas Summary 199 199 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 200 200 PMBOK Guide Questions 201 Integrated Example Projects 202 Casa DE PAZ Development Project Semester Project Instructions Project Management in Action References Endnotes PART CHAPTER 3 200 202 203 204 206 207 Planning Projects 7 Scope Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 7.1 Plan Scope Management 211 7.2 Collect Requirements 212 7.2a Gather Stakeholder Input and Needs 213 7.3 Define Scope 217 7.3a Reasons to Define Scope 217 / 7.3b How to Define Scope Scope in Agile Projects 218 217 / 7.3c Defining Copyright 2019 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents 7.4 Work Breakdown Structure (WBS) 220 7.4a What Is the WBS? 220 / 7.4b Why Use a WBS? 221 / 7.4c WBS Formats 222 / 7.4d Work Packages 224 / 7.4e How to Construct a WBS 7.5 Establish Change Control Summary 239 Chapter Review Questions Discussion Questions 239 240 241 Integrated Example Projects 241 Casa DE PAZ Development Project Semester Project Instructions CHAPTER 242 242 Project Management in Action References 239 239 PMBOK Guide Questions Exercises 232 237 Key Terms Consistent with PMI Standards and Guides ® 226 229 7.6 Using MS Project for Work Breakdown Structures (WBS) 7.6a Set Up a WBS in MS Project 232 PMP/CAPM Study Ideas xiii 242 243 8 Scheduling Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 8.1 Plan Schedule Management 246 8.2 Purposes of a Project Schedule 247 8.3 Historical Development of Project Schedules 247 8.4 How Project Schedules Are Limited and Created 8.5 Define Activities 248 249 8.6 Sequence Activities 253 8.6a Leads and Lags 254 / 8.6b Alternative Dependencies 8.7 Estimate Activity Duration 255 8.7a Problems and Remedies in Duration Estimating 255 256 / 8.7b Learning Curves 8.8 Develop Project Schedules 259 8.8a Two-Pass Method 259 / 8.8b Enumeration Method 258 263 8.9 Uncertainty in Project Schedules 264 8.9a Program Evaluation and Review Technique 265 / 8.9b Monte Carlo Simulation 8.10 Show the Project Schedule on a Gantt Chart 268 266 8.11 Using Microsoft Project for Critical Path Schedules 268 8.11a Set up the Project Schedule 269 / 8.11b Build the Network Diagram and Identify the Critical Path 270 PMP/CAPM Study Ideas Summary 275 276 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions 276 277 277 Copyright 2019 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xiv Contents Exercises ® 278 PMBOK Guide Questions 280 Integrated Example Projects 281 Casa DE PAZ Development Project Semester Project Instructions 283 Project Management in Action References Endnotes CHAPTER 281 283 284 285 9 Resourcing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 9.1 Abilities Needed When Resourcing Projects 288 9.1a The Science and Art of Resourcing Projects 288 / 9.1b Considerations When Resourcing Projects 288 / 9.1c Activity- versus Resource-Dominated Schedules 289 9.2 Estimate Resource Needs 290 9.3 Plan Resource Management 290 9.3a Identify Potential Resources 291 / 9.3b Determine Resource Availability 9.3c Decide Timing Issues When Resourcing Projects 294 9.4 Project Team Composition Issues 295 9.4a Cross-Functional Teams 295 / 9.4b Co-Located Teams Teams 295 / 9.4d Outsourcing 295 293 / 295 / 9.4c Virtual 9.5 Assign a Resource to Each Activity 296 9.5a Show Resource Responsibilities on RACI Chart 297 / 9.5b Show Resource Assignments on Gantt Chart 297 / 9.5c Summarize Resource Responsibilities by Time Period with Histogram 297 9.6 Dealing with Resource Overloads 300 9.6a Methods of Resolving Resource Overloads 9.7 Compress the Project Schedule 303 9.7a Actions to Reduce the Critical Path Tracking 307 300 303 / 9.7b Crashing 304 / 9.7c Fast 9.8 Alternative Scheduling Methods 309 9.8a Critical Chain Project Management (CCPM) 309 / 9.8b Reverse Phase Schedules 310 / 9.8c Rolling Wave Planning 310 / 9.8d Agile Project Planning 310 / 9.8e Auto/Manual Scheduling 310 9.9 Using MS Project for Resource Allocation 311 9.9a Step 1: Defining Resources 311 / 9.9b Step 2: Set Up a Resource Calendar 312 / 9.9c Step 3: Assigning Resources 312 / 9.9d Step 4: Finding Overallocated Resources 315 / 9.9e Step 5: Dealing with Overallocations 316 / 9.9f Crashing a Critical Path Activity 317 PMP/CAPM Study Ideas Summary 319 319 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 320 320 PMBOK Guide Questions Exercises 320 321 322 Copyright 2019 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Integrated Example Projects 324 Casa DE PAZ Development Project Semester Project Instructions Endnote CHAPTER 324 325 Project Management in Action References xv 325 327 327 10 Budgeting Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 10.1 Plan Cost Management 329 10.2 Estimate Cost 330 10.2a Types of Cost 331 / 10.2b Accuracy and Timing of Cost Estimates 334 / 10.2c Methods of Estimating Costs 335 / 10.2d Project Cost Estimating Issues 10.3 Determine Budget 342 10.3a Aggregating Costs 342 / 10.3b Analyzing Reserve Needs 10.3c Determining Cash Flow 344 10.4 Establishing Cost Control Summary 345 / 10.5b Develop Summary 349 349 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 350 351 352 Integrated Example Projects 353 Casa DE PAZ Development Project Semester Project Instructions Project Management in Action References Endnotes CHAPTER 350 350 PMBOK Guide Questions Exercises 342 / 345 10.5 Using MS Project for Project Budgets 345 10.5a Developing a Bottom-Up Project Budget Estimate Project Budget 347 PMP/CAPM Study Ideas 338 354 354 354 356 356 11 Project Risk Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 11.1 Plan Risk Management 360 11.1a Roles and Responsibilities 362 / 11.1b Categories and Definitions 11.2 Identify Risks 366 11.2a Information Gathering 366 / 11.2b Reviews Relationships 368 / 11.2d Risk Register 368 362 367 / 11.2c Understanding 11.3 Risk Analysis 368 11.3a Perform Qualitative Risk Analysis 368 / 11.3b Perform Quantitative Risk Analysis 372 / 11.3c Risk Register Updates 373 Copyright 2019 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xvi Contents 11.4 Plan Risk Responses 373 11.4a Strategies for Responding to Risks PMP/CAPM Study Ideas Summary 373 / 11.4b Risk Register Updates 377 378 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 379 379 380 Integrated Example Projects 381 Casa DE PAZ Development Project Semester Project Instructions Endnotes CHAPTER 381 382 Project Management in Action References 378 379 PMBOK Guide Questions Exercises 377 382 384 384 12 Project Quality Planning and Project Kickoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 12.1 Development of Contemporary Quality Concepts 388 12.1a Quality Gurus 388 / 12.1b Total Quality Management/Malcolm Baldrige 12.1c ISO 9001:2008 390 / 12.1d Lean Six Sigma 390 389 / 12.2 Core Project Quality Concepts 392 12.2a Stakeholder Satisfaction 393 / 12.2b Process Management 394 / 12.2c FactBased Management 396 / 12.2d Fact-Based Project Management Example 398 / 12.2e Empowered Performance 399 / 12.2f Summary of Core Concepts 400 12.3 Plan Quality Management 401 12.3a Quality Policy 401 / 12.3b Quality Management Plan Contents 403 / 12.3c Quality Baseline 404 / 12.3d Process Improvement Plan 404 12.4 Manage Quality 404 12.5 Control Quality 406 12.6 Cost of Quality 409 12.7 Develop Project Management Plan 409 12.7a Resolve Conflicts 409 / 12.7b Establish Configuration Management 12.7c Apply Sanity Tests to All Project Plans 410 12.8 Kickoff Project 410 12.8a Preconditions to Meeting Success 411 / 12.8b Meeting Activities 12.9 Baseline and Communicate Project Management Plan 410 / 411 413 12.10 Using MS Project for Project Baselines 413 12.10a Baseline the Project Plan 413 / 12.10b Create the First Time Baseline 414 / 12.10c Subsequent Baselines 414 / 12.10d Viewing Baselines and Variances 415 PMP/CAPM Study Ideas Summary 416 417 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions 417 418 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Discussion Questions ® 418 PMBOK Guide Questions Exercises 418 419 Integrated Example Projects 420 Casa DE PAZ Development Project Semester Project Instructions Endnotes PART CHAPTER 4 420 420 Project Management in Action References xvii 421 423 424 Performing Projects 13 Project Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 13.1 Introduction to Project Supply Chain Management 428 13.1a SCM Components 430 / 13.1b SCM Factors 430 / 13.1c SCM Decisions 430 / 13.1d Project Procurement Management Processes 431 13.2 Plan Procurement Management 431 13.2a Outputs of Planning 431 / 13.2b Make-or-Buy Decisions 432 13.3 Conduct Procurements 434 13.3a Sources for Potential Suppliers 434 / 13.3b Approaches Used When Evaluating Prospective Suppliers 435 / 13.3c Supplier Selection 436 13.4 Contract Types 438 13.4a Fixed-Price Contracts 439 / 13.4b Cost-Reimbursable Contracts 13.4c Time and Material (T&M) Contracts 440 13.5 Control Procurements 441 13.6 Improving Project Supply Chains 441 13.6a Project Partnering and Collaboration 442 / 13.6b Third Parties Purchasing 447 / 13.6d Sourcing 447 / 13.6e Logistics 447 / 13.6f Information 448 PMP/CAPM Study Ideas Summary 448 Chapter Review Questions Discussion Questions ® 449 450 451 Integrated Example Projects 451 Casa DE PAZ Development Project Semester Project Instructions Project Management in Action Endnotes 449 449 PMBOK Guide Questions References 447 / 13.6c Lean 448 Key Terms Consistent with PMI Standards and Guides Exercises 440 / 452 452 452 453 454 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xviii Contents CHAPTER 14 Determining Project Progress and Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456 14.1 Project Balanced Scorecard Approach 458 14.2 Internal Project Issues 459 14.2a Direct and Manage Project Work 459 / 14.2b Monitor and Control Project Work 460 / 14.2c Monitoring Project Risk 463 / 14.2d Implement Risk Responses 464 / 14.2e Manage Communications 465 / 14.2f Monitor Communications 467 14.3 Customer Issues 469 14.3a Manage and Control Quality 469 / 14.3b Control Scope 475 14.4 Financial Issues 476 14.4a Control Resources 476 / 14.4b Control Schedule and Costs Value Management for Controlling Schedule and Costs 476 476 / 14.4c Earned 14.5 Using MS Project to Monitor and Control Projects 480 14.5a What Makes a Schedule Useful? 480 / 14.5b How MS Project Recalculates the Schedule Based on Reported Actuals 481 / 14.5c Current and Future Impacts of Time and Cost Variance 481 / 14.5d Define the Performance Update Process 481 / 14.5e Steps to Update the Project Schedule 482 14.6 Replanning If Necessary 487 PMP/CAPM Study Ideas 488 Summary 488 Key Terms Consistent with PMI Standards and Guides Chapter Review Questions Discussion Questions ® 489 489 PMBOK Guide Questions Exercises 490 491 Integrated Example Projects 492 Casa DE PAZ Development Project Semester Project Instructions Project Management in Action References Endnotes CHAPTER 488 493 493 494 496 497 15 Finishing the Project and Realizing the Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498 15.1 Validate Scope 500 15.2 Terminate Projects Early 501 15.3 Close Project 503 15.3a Write Transition Plan 503 / 15.3b Knowledge Management the Closeout Report 508 504 / 15.3c Create 15.4 Post-Project Activities 509 15.4a Reassign Workers 509 / 15.4b Celebrate Success and Reward Participants 15.4c Provide Ongoing Support 510 / 15.4d Ensure Project Benefits Are Realized 510 509 / Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents 15.5 Using MS Project for Project Closure 15.5a Creating Project Progress Reports PMP/CAPM Study Ideas Summary 511 511 / 15.5b Archiving Project Work 515 Chapter Review Questions Discussion Questions 516 517 Integrated Example Projects 517 Casa DE PAZ Development Project Semester Project Instructions Project Management in Action References Endnotes 515 515 516 PMBOK Guide Questions Exercise 512 515 Key Terms Consistent with PMI Standards and Guides ® xix 518 518 518 520 521 Appendix A PMP and CAPM Exam Prep Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . 522 Appendix B Agile Differences Covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527 Appendix C Answers to Selected Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 532 Appendix D Project Deliverables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537 Appendix E Strengths Themes As Used in Project Management . . . . [Available Online] Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Preface While project managers today still need to use many techniques that have stood the test of several decades, they increasingly also must recognize the business need for a project, sort through multiple conflicting stakeholder demands. They must know how to deal with rapid change, a myriad of communication issues, global and virtual project teams, modern approaches to quality improvement, when to tailor their project management approach to include methods and behaviors from Agile, and many other issues that are more challenging than those in projects of the past. Contemporary project management utilizes the tried-and-true project management techniques along with modern improvements such as the most current versions of Microsoft Project Professional 2016, the sixth edition of the Guide to the Project Management Body of Knowledge (PMBOK Guide), and many approaches derived from adaptive (Agile) project management. Contemporary project management also uses many tools and understandings that come from modern approaches to quality and communications, expanded role definitions, leadership principles, human strengths, and many other sources. Contemporary project management is scalable, using simple versions of important techniques on small projects and more involved versions on more complex projects. ® ® Distinctive Approach This book covers contemporary project management topics using contemporary project management methods. For example, when considering the topic of dealing with multiple stakeholders, every chapter was reviewed by students, practitioners, and academics. This allowed simultaneous consideration of student learning, practitioner realism, and academic research and teaching perspectives. The practical examples and practitioner reviewers came from a variety of industries, different parts of the world, and from many sizes and types of projects in order to emphasize the scalability and universality of contemporary project management techniques. New to This Edition Core, behavioral, and technical learning objectives. We have expanded the number of learning objectives and classified them as core, behavioral, or technical. About half of the objectives are core: what we believe every student of project management should learn. A professor could teach a solid project management introductory class by deeply using only the core objectives. On the other hand, there are measurable student objectives for either a behavioral or a technical approach. All suggested student assignments and questions are tied specifically to one of the learning objectives. A professor could use this text for a two-semester sequence that emphasizes both indepth behavioral and technical approaches. Videos. Exclusively available to those using the MindTap product for this book, we have created dozens of short (average time, five minutes) videos to show the art of many of the techniques. These demonstrate the use of many of the techniques in a by-hand or spreadsheet fashion as well as using Microsoft Project 2016. Several questions that can be assigned to students are included with the videos that xx Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Preface xxi demonstrate how to use Microsoft Project to complement learning. Answers (sometimes definitive, sometimes representative, depending on the nature of the technique) are included in the instructor’s manual (IM). Extensive flowchart to help the sixth edition of the PMBOK Guide come to life. All sixth edition PMBOK Guide knowledge areas, processes, and process groups, plus major deliverables from each process and the primary workflows between them, are specifically included in an interactive, color-coded flowchart that is included in full inside the back cover of the text. We also start each chapter by showing the portion of the flowchart that is covered in that chapter. We now use definitions both from the PMBOK Guide, Sixth Edition and also from more than a dozen Project Management Institute specialized Practice Guides and Standards. The end of each chapter contains specific suggestions for PMP and CAPM test preparation pertaining to the chapter’s topics plus ten PMBOK Guide-type questions that are typical of what would be seen on PMP and CAPM exams. Appendix A gives general study suggestions for the CAPM and PMP exams. Project deliverables. A list of 38 project deliverables that can be used as assignments for students and in-class exercises are included in Appendix D. Each deliverable is specifically tied to a student learning objective and shown on the PMBOK Guide flowchart. About half of these are core, while the others are behavioral or technical. Examples of completed deliverables are included in the text. Teaching suggestions and grading rubrics are included in the IM. Appendix D identifies the type of objective, chapter covered, and PMBOK Guide process, knowledge area, and process group in which the deliverable is typically created on a real project. Substantial increase in Agile coverage. Agile techniques and methods are considered much more often than even three years ago. As such, many experienced project manager...
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