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658.4'04--dc22 2007011249

Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com

and the Auerbach Web site at http://www.auerbach-publications.com

Contents

Acknowledgments xv

Introduction xvii

Section I Practice Management

1 Project Management Methodology 3

Project Environment Interface Concepts 4

Business Environment Interface Concepts 5

Project Management Methodology Activities across the PMO

Continuum 6

Project Management Methodology Function Model 8

Establish Basis for Project Management Methodology 9

Convene Methodology Development Team 9

Prepare Methodology Deployment Strategy 12

Examine Current Practices 20

Develop Methodology Solution 24

Identify Methodology Components 25

Design Life-Cycle Processes 26

Develop Project Management Practices 33

Introduce Methodology Platform 35

Conduct Methodology Implementation 38

Plan Methodology Implementation 38

Plan Project Transition 42

Conduct Methodology Training and Implementation 45

Manage Methodology Maturity 46

Evaluate Methodology Implementation 46

Analyze Methodology Performance 47

Manage Methodology Maintenance 49

Postscript for the Smaller PMO 50

Establish Simple, Critical Processes for Project Management 50

Gain Increased Support for Process Expansion 51

Expand and Incorporate Technical and Business Processes 52

2 Project Management Tools 55

Project Environment Interface Concepts 56

Business Environment Interface Concepts 58

Project Management Tools Activities across the PMO Continuum 60

Project Management Tools Function Model 6l

Select Project Management Tools 63

Identify the Need for Project Management Tools 63

Examine General Types of Project Management Tools 65

Assess Specific Project Management Tools 67

Acquire Project Management Tools 69

Implement Project Management Tools 70

Plan Tool Implementation 70

Plan Tool Transition 71

Conduct Tool User Training 72

Conduct Tool Implementation 72

Evaluate Tool Performance 73

Identify and Resolve Utilization Problems 73

Identify and Resolve Functional Problems 74

Assess Overall Tool Effectiveness 74

Postscript for the Smaller PMO 75

3 Standards and Metrics 77

Project Environment Interface Concepts 78

Business Environment Interface Concepts 79

Standards and Metrics Activities across the PMO Continuum 80

Standards and Metrics Function Model 82

Implement Project Management Standards 83

Examine Standards Sources 83

Identify Applicable Standards 87

Introduce Preferred Standards 89

Conduct Benchmarking 92

Determine Project Metrics Requirements 93

Identify Process Management and Improvement Metrics 94

Identify Project Performance Metrics 97

Identify Business Management Metrics 101

Introduce and Use Project Metrics 102

Establish Metrics Measurements Plan 103

Compare Metrics Performance 104

Establish Corrective Actions 104

Postscript for the Smaller PMO 105

4 Project Knowledge Management 109

Project Environment Interface Concepts 110

Business Environment Interface Concepts 111

Project Knowledge Management Activities across the PMO

Continuum 112

Project Knowledge Management Function Model 114

Establish Knowledge Management Framework 115

Information Management 116

Document Management 119

Process Management 121

Collaboration Management 122

Project Archive and Reference Library Management 125

Introduce Knowledge Management System 129

Conduct Installation and Establish Connectivity 129

Perform Function and Feature Customization 130

Introduce Project Knowledge Management Content 133

Implement Knowledge Management System 134

Develop Project Management Information System (PMIS) 134

Develop Executive Dashboard 144

Construct Project Management Library 145

Implement Online Project Collaboration 146

Implement Other Knowledge Management Tools 148

Postscript for the Smaller PMO 149

Section II Infrastructure Management

5 Project Governance 153

Project Environment Interface Concepts 154

Business Environment Interface Concepts 155

Project Governance Activities across the PMO Continuum 156

Project Governance Function Model 158

Prepare and Maintain PMO Charter 158

Define Business Purpose 160

Specify Organizational Alignment 162

Highlight Functional Responsibility 163

Specify PMO Authority 164

Identify PMO Funding 165

Develop Project Management Policies 165

Evaluate Policy Needs 166

Demonstrate Senior Management Support 167

Prepare Policy Guidance 168

Develop Project Classification Guidance 169

Examine Project Classification Purpose 170

Identify Project Classification Criteria 170

Implement Project Classification Guidance 173

Establish Project Manager Authority 173

Establish Executive Control Board 175

Determine Executive Oversight Requirements 176

Set Control Board Parameters 178

Prepare Control Board Operating Procedures 178

Align Business and Technical Committees 180

Postscript for the Smaller PMO 181

6 Assessment 183

Project Environment Interface Concepts 184

Business Environment Interface Concepts 185

Assessment Activities across the PMO Continuum 185

Assessment Function Model 187

Conduct Competency Assessments 187

Identify Competency Assessments 188

Conduct Competency Assessments 189

Implement Competency Improvement Plans 190

Conduct Capability Assessments 191

Identify Capability Assessments 192

Conduct Capability Assessments 194

Implement Capability Improvement Plans 196

Conduct Maturity Assessments 198

Identify Maturity Assessments 198

Conduct Maturity Assessments 200

Implement Maturity Advancement Plans 202

Postscript for the Smaller PMO 203

7 Organization and Structure 205

Project Environment Interface Concepts 206

Business Environment Interface Concepts 206

Organization and Structure Activities across the PMO Continuum 207

Organization and Structure Function Model 209

Set Up the PMO Structure 209

Identify Staff Needs for PMO Functions 210

Introduce PMO Staff 214

Analyze and Establish PMO Relationships 215

Establish Project Team Structure 216

Specify Project Team and PMO Relationship 217

Define Standard Project Team Structure 221

Define Extended Project Team Alignment 225

Develop Stakeholder Participation 228

Manage Internal Project Team Stakeholders 229

Manage Internal Oversight Stakeholders 230

Manage Internal-Support Stakeholders 231

Manage Customer Stakeholders 233

Manage Vendor and Contractor Stakeholders 234

Manage Other Project Stakeholders 235

Postscript for the Smaller PMO 237

8 Facilities and Equipment Support 239

Project Environment Interface Concepts 240

Business Environment Interface Concepts 241

Facilities and Equipment Support Activities across the PMO

Continuum 242

Facilities and Equipment Support Function Model 242

Establish Project Team Requirements 244

Establish Workspace Requirements 245

Establish Equipment Requirements 246

Manage Project Facilities 250

Manage Facility Acquisition Options 251

Monitor Facility Utilization 253

Ensure Adequacy of Facilities 253

Monitor Facility Disposition 255

Manage Project Equipment 257

Manage Equipment Acquisition 258

Manage Equipment Assignments 260

Monitor Equipment Assignments 261

Manage Equipment Disposition 262

Postscript for the Smaller PMO 263

Section III Resource Integration

9 Resource Management 267

Project Environment Interface Concepts 268

Business Environment Interface Concepts 269

Resource Management Activities across the PMO Continuum 269

Resource Management Function Model 270

Acquire Project Resources 272

Identify Resource Providers 272

Establish Resource Requirements 275

Fulfill Resource Requests 277

Assign Project Resources 278

Prepare Resource Assignment Notifications 279

Obtain Individual Resource Commitments 279

Introduce Resources to the Project Team 279

Deploy Project Resources 280

Perform Deployment Administration 281

Identify and Arrange Relevant Training 282

Monitor Travel Arrangements 284

Manage Resource Performance 284

Develop Performance Management Guidance 284

Conduct Project Resource Performance Reviews 286

Monitor Project Resource Performance 288

Close Project Resource Assignments 289

Coordinate Resource Extensions 289

Facilitate Resource Transfers and Reassignments 289

Manage Resource Terminations 290

Postscript for the Smaller PMO 290

10 Training and Education 293

Project Environment Interface Concepts 294

Business Environment Interface Concepts 294

Training and Education Activities across the PMO Continuum 295

Training and Education Function Model 297

Establish Training Program 298

Assess Training Needs 298

Determine Training Requirements 300

Identify Training Resources 302

Prepare Training Plan 305

Select and Develop Training Courses 306

Manage Training Program 308

Establish Training Registration Capability 308

Publicize and Promote Training Program 310

Conduct Project Management Training 311

Evaluate Training Program 313

Evaluate Training Plan Implementation 313

Evaluate Training Resources 314

Update Training Program 315

Postscript for the Smaller PMO 315

11 Career Development 317

Project Environment Interface Concepts 318

Business Environment Interface Concepts 319

Career Development Activities across the PMO Continuum 320

Career Development Function Model 320

Develop Project Management Career Path 322

Establish Project Management as a Professional Discipline 323

Define Career Advancement Model 327

Construct Position Descriptions and Qualifications 334

Integrate New Career Path into the Organization 336

Support Project Management Career Planning 338

Provide General Career Guidance 338

Promote Business Skill Development 339

Implement Career Planning Support 341

Establish Professional Certification 341

Develop Project Management Certification Program 342

Facilitate Technical and Professional Certification 345

Postscript for the Smaller PMO 346

12 Team Development 347

Project Environment Interface Concepts 348

Business Environment Interface Concepts 348

Team Development Activities across the PMO Continuum 349

Team Development Function Model 351

Facilitate Cohesive Team Formation 351

Examine Project Team Composition 353

Develop Project Team Orientation Program 355

Integrate Vendors and Contractors 356

Facilitate Virtual Team Management 358

Establish Virtual Team Alignment 359

Facilitate Virtual Team Interactions 360

Introduce Virtual Team Technology 364

Enable Project Team Development 365

Promote Team Skill Learning 365

Develop Project Manager Tools and Techniques 366

Facilitate Leadership Development 367

Monitor Project Team Performance 369

Assess Team Dynamics 369

Examine Team Effectiveness 370

Conduct Team Improvement Activities 371

Postscript for the Smaller PMO 373

Section IV Technical Support

13 Mentoring 377

Project Environment Interface Concepts 378

Business Environment Interface Concepts 380

Mentoring Activities across the PMO Continuum 381

Mentoring Function Model 383

Establish Project Management Mentoring Program 383

Develop the Mentoring Approach 383

Identify Mentor-Protégé Roles and Responsibilities 390

Determine Mentor Sourcing Process 396

Engage Project Management Mentors 400

Identify Mentor Candidates 400

Conduct Mentor Candidate Qualification 402

Prepare Project Management Mentors 403

Conduct Project Management Mentoring 404

Identify Engagement 405

Assign Mentor (or Mentors) 405

Prepare for Mentoring Engagement 406

Perform Mentoring Engagement Activities 407

Closeout Mentor-Protégé Relationship 408

Evaluate Mentoring Program 408

Evaluate Mentor Performance 408

Monitor Mentoring Program Results 409

Postscript for the Smaller PMO 410

14 Project Planning 413

Project Environment Interface Concepts 414

Business Environment Interface Concepts 415

Project Planning Activities across the PMO Continuum 416

Project Planning Function Model 418

Establish Project Planning Capability 419

Define Project Plan Components 419

Implement Project Planning Processes and Tools 421

Establish Planning Facilitation and Support Capability 426

Facilitate Project Planning Workshop 431

Manage Planning Workshop Arrangements 431

Facilitate Project Workplan Development 434

Perform Follow-Up Planning Support 436

Administer Project Planning 438

Specify Primary Project Management Plans 439

Recommend Essential Project Support Plans 453

Prepare Project Plan Content Guidance 457

Evaluate Project Planning 458

Postscript for the Smaller PMO 462

15 Project Auditing 465

Project Environment Interface Concepts 466

Business Environment Interface Concepts 467

Project Auditing Activities across the PMO Continuum 467

Project Auditing Function Model 470

Set Up Project Auditing Capability 470

Determine Project Auditing Needs 471

Identify Project Auditing Resources 481

Establish Project Audit Performance Points 485

Conduct Project Auditing 487

Prepare for Project Audits and Reviews 487

Conduct Project Audit 489

Prepare Project Audit Report 491

Manage Project Auditing Results 492

Review Project Audit Results 492

Analyze Aggregate Program Results 494

Monitor Project Audit Follow-Up Actions 495

Postscript for the Smaller PMO 496

16 Project Recovery 499

Project Environment Interface Concepts 500

Business Environment Interface Concepts 501

Project Recovery Activities across the PMO Continuum 501

Project Recovery Function Model 503

Develop Recovery Assessment Process 505

Identify Recovery Indicators 505

Assess Project and Identify Problem Areas 506

Prepare Project Recovery Decision Package 514

Coordinate Project Recovery Decision 515

Plan and Conduct Project Recovery 516

Establish Project Recovery Team 516

Develop Project Recovery Plan 522

Stabilize Project Using Recovery Solution 524

Conclude Project Recovery 527

Capture Recovery Lessons Learned 529

Examine Project Management Indicators 529

Examine Project Selection Criteria 530

Examine Project Recovery Process 531

Update Routine and Project Recovery Remedies 531

Postscript for the Smaller PMO 532

Section V Business Alignment

17 Project Portfolio Management 537

Project Environment Interface Concepts 538

Business Environment Interface Concepts 538

Portfolio Management Activities across the PMO Continuum 539

Project Portfolio Management Function Model 541

Set Up Project Portfolio Management 541

Validate Business Strategy and Interests 543

Identify Project Selection Criteria 544

Determine Project Selection Mechanism 549

Identify Project Portfolio Management Roles 556

Establish a Supportive Project Environment 561

Perform Project Selection 563

Conduct Project Screening 564

Develop Project Business Plan 566

Develop Project Resource Allocation Plan 572

Conduct Project Selection 576

Integrate Projects in the Portfolio 577

Validate Project Selection 578

Determine Project Priority 579

Approve Initial Project Funding 579

Conduct Project and Portfolio Reviews 580

Compile Project Performance Information 580

Conduct Project Gateway Reviews 581

Conduct Portfolio Reviews 586

Manage Portfolio Attrition 588

Perform Project Closeout 589

Assess Strategic Advantage 590

Assess Customer Satisfaction 591

Postscript for the Smaller PMO 592

1B Customer Relationship Management 595

Project Environment Interface Concepts 596

Business Environment Interface Concepts 597

Customer Relationship Management Activities across the PMO

Continuum 597

Customer Relationship Management Function Model 598

Manage Customer Relationships 600

Manage Customer Project Information 600

Manage Customer Business Information 602

Manage Customer Project Participation 603

Manage Customer Contracts 605

Produce and Manage Customer Proposals 606

Establish Customer Contracts 6ll

Conduct Customer Contract Administration 612

Manage Customer Satisfaction 620

Measure Customer Satisfaction 620

Conduct Customer Relationship Programs 623

Implement Customer-Centric Improvements 624

Postscript for the Smaller PMO 626

19 Vendor and Contractor Relationship Management 629

Project Environment Interface Concepts 630

Business Environment Interface Concepts 630

Vendor and Contractor Relationships Activities across the PMO

Continuum 631

Vendor and Contractor Relationships Function Model 631

Manage Vendor/Contractor Relationships 633

Identify Vendor and Contractor Needs 633

Manage Vendor and Contractor Information 636

Prescribe Vendor and Contractor Participation 638

Manage Vendor/Contractor Acquisition 640

Identify and Qualify Vendors and Contractors 640

Solicit Vendor and Contractor Proposals 642

Prepare Vendor and Contractor Contracts 646

Manage Vendor and Contractor Performance 647

Administer Vendor and Contractor Contracts 647

Monitor Vendor and Contractor Performance 652

Postscript for the Smaller PMO 655

20 Business Performance Management 657

Project Environment Interface Concepts 658

Business Environment Interface Concepts 659

Business Performance Management Activities across the PMO

Continuum 659

Business Performance Management Function Model 662

Develop Integrated Business Solutions 662

Demonstrate Project Management Business Value 663

Generate Executive Value Awareness 669

Align Business and Project Management Performance 673

Manage Business Collaboration 675

Conduct Operational Business Collaboration 675

Conduct Tactical Business Collaboration 677

Conduct Strategic Business Collaboration 678

Manage PMO Business Fulfillment 679

Manage PMO Business Function Evolution 680

Develop PMO and Enterprise Business Alignment 685

Postscript for the Smaller PMO 688

Acknowledgments

It was a distinct pleasure to perform the extensive review and revision of The Complete Project Management Office Handbook, per the publisher's request to do so. To that end, I would like to extend my appreciation to all readers, as well as to all those who have reviewed and promoted or endorsed this publication. A few years have passed since the original work was released, and there were definitely some topical areas of this book that benefited from my further attention and examination as I prepared this second edition.

The review and revision process prompted me to recall the effort put into my original work. In particular, I remember the names and faces that provided the early encouragement, counsel, and support that enabled my work to be published in the first place. Paul Shaltry, among several manuscript reviewers, served as the primary technical advocate for what was right or wrong about my content; and his valuable advice and guidance were revisited and remained intact as I prepared this second edition.

My tenure with ESI International, as Vice President of Technical Services, was also brought to mind, and I recall that period of my career with genuine appreciation for that affiliation, but especially for the encouragement and support provided by other members of the executive management team, which enabled the original publication of The Complete Project Management Office Handbook.

Today my focus is on pursuing professional project management and business interests through the establishment and efforts of the Hill Consulting Group. The depth of my ongoing interest in the concepts and practices of modern project management continues to amaze me, and my current work reflects a desire to devise concepts and solutions that can be shared with others. In that light, my recent work provided distinct contributions to the preparation of this second edition. For example, during much of the past year or so, I have been delving into research that supported development of the new, matrix-based ProjectPRISM™ Methodology for Project Management. This particular work effort alone contributed to major revisions across several chapters of this second edition, notably the first chapter dealing with project management methodology. As well, my recent professional activities included serving as chairperson for a couple of national project portfolio management conferences; and those professional forums, among others, facilitated topical discussions and personal learning that certainly influenced my content review and revision efforts across many chapters of this book. I hope that my professional efforts will provide extended value for other professionals in the project management and business environments across industries.

Finally, and once again, this second edition was made possible by the love, encouragement, and support of my wife, Rita, who continues to shine a persistent light on the paths I take to pursue my life's work and my professional interests.

Gerard M. Hill

[email protected]

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