Project Management (for Prof-Hayat Only)

Project Managment Process

– Project Monitoring & Controlling

– Project Closing

 

2 Pages Paper based on the case study I provided (Start from Page 111 to 121).

 

12 Times New Roman 2.0 Line Spacing

 

Due Date: Monday 2nd, December 2013.

3
The Project Management Process
Groups: A Case Study

After reading this chapter, you will be able to:

1. Describe the five project management process groups, the typical level of
activity for each, and the interactions among them

2. Understand how the project management process groups relate to the project
management knowledge areas

3. Discuss how organizations develop information technology project manage-
ment methodologies to meet their needs

4. Review a case study of an organization applying the project management
process groups to manage an information technology project, and understand
the contribution that effective project initiation, project planning, project
execution, project monitoring and controlling, and project closing make to
project success

OP

E

NING CASE

rica Bell was in charge of the Project Management Office (PMO)

for her consulting firm. The firm, JWD (Job Well Done)

Consulting, had grown to include more than 200 full-time consul-

tants and even more part-time consultants. JWD Consulting pro-

vides a variety of consulting services to assist organizations in

selecting and managing information technology projects. The firm

focuses on finding and managing high-payoff projects and develop-

ing strong metrics to measure project performance and benefits to the

organization after the project is implemented. The firm’s emphasis

Objectives

E

on metrics and working collaboratively with its customers gives it

an edge over many competitors.

Joe Fleming, the CEO, wanted his company to continue to grow

and become a world-class consulting organization. Since the core of

the business was helping other organizations with project manage-

ment, he felt it was crucial for JWD Consulting to have an exemplary

process for managing its own projects. He asked Erica to work with

her team and other consultants in the firm to develop several intranet

site applications that would allow them to share their project man-

agement knowledge. He also thought it would make sense to make

some of the information available to the firm’s clients. For example,

the firm could provide project management templates, tools, articles,

links to other sites, and an “Ask the Expert” feature to help build

relationships with current and future clients. Since JWD Consulting

emphasizes the importance of high-payoff projects, Joe also wanted

to see a business case for this project before proceeding.

Recall from Chapter 1 that project management consists of nine knowledge
areas: integration, scope, time, cost, quality, human resources, communications,
risk, and procurement. Another important concept to understand is that projects
involve five project management process groups: initiating, planning, executing,
monitoring and controlling, and closing. Tailoring these process groups to meet
individual project needs increases the chance of success in managing projects. This
chapter describes each project management process group in detail through a sim-
ulated case study based on JWD Consulting. It also includes samples of typical
project documents applied to this case. You can download templates for these and
other project documents from the companion Web site for this text. Although you
will learn more about each knowledge area in Chapters 4 though 12, it’s important
first to learn how they fit into the big-picture of managing a project. Understanding
how the knowledge areas and project management process groups function
together will lend context to the remaining chapters.

PROJECT MANAGEMENT PROCESS GROUPS

Project management is an integrative endeavor; decisions and actions taken in
one knowledge area at a certain time usually affect other knowledge areas.
Managing these interactions often requires making trade-offs among the project’s
scope, time, and cost—the triple constraint of project management described in

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 79

Chapter 1. A project manager may also need to make trade-offs between other
knowledge areas, such as between risk and human resources. Consequently,
you can view project management as a number of related processes.

! A process is a series of actions directed toward a particular result.
Project management process groups progress from initiation activities
to planning activities, executing activities, monitoring and controlling
activities, and closing activities. Initiating processes include defining
and authorizing a project or project phase. To initiate a project or just the
concept phase of a project, someone must define the business need for the
project, someone must sponsor the project, and someone must take on
the role of project manager. Initiating processes take place during each
phase of a project. Therefore, you cannot equate process groups with proj-
ect phases. Recall that there can be different project phases, but all proj-
ects will include all five process groups. For example, project managers
and teams should reexamine the business need for the project during
every phase of the project life cycle to determine if the project is worth
continuing. Initiating processes are also required to end a project.
Someone must initiate activities to ensure that the project team completes
all the work, documents lessons learned, reassigns project resources, and
that the customer accepts the work.

! Planning processes include devising and maintaining a workable
scheme to ensure that the project addresses the organization’s needs.
There normally is no single “project plan.” There are several plans, such as
the scope management plan, schedule management plan, cost manage-
ment plan, procurement management plan, and so on, defining each
knowledge area as it relates to the project at that point. For example, a
project team must develop a plan to define the work that needs to be
done for the project, to schedule activities related to that work, to esti-
mate costs for performing the work, to decide what resources to procure
to accomplish the work, and so on. To account for changing conditions on
the project and in the organization, project teams often revise plans dur-
ing each phase of the project life cycle. The project management plan,
described in Chapter 4, coordinates and encompasses information from all
other plans.

! Executing processes include coordinating people and other resources to
carry out the various plans and produce the products, services, or results
of the project or phase. Examples of executing processes include develop-
ing the project team, directing and managing the project team, performing
quality assurance, distributing information, and selecting sellers.

! Monitoring and controlling processes include regularly measuring and
monitoring progress to ensure that the project team meets the project

80 C H A P T E R 3

objectives. The project manager and staff monitor and measure progress
against the plans and take corrective action when necessary. A common
monitoring and controlling process is performance reporting, where proj-
ect stakeholders can identify any necessary changes that may be required
to keep the project on track.

! Closing processes include formalizing acceptance of the project or proj-
ect phase and ending it efficiently. Administrative activities are often
involved in this process group, such as archiving project files, closing out
contracts, documenting lessons learned, and receiving formal acceptance
of the delivered work as part of the phase or project.

Figure 3-1 shows the project management process groups and how they
relate to each other in terms of typical level of activity, time frame, and over-
lap. Notice that the process groups are not isolated events. The level of activity
and length of each process group varies for every project. Normally, the execut-
ing processes require the most resources and time, generally 50–60 percent,
followed by the planning processes, at about 15–25 percent. The initiating and
closing processes are usually the shortest and require the least amount of
resources and time, at about 5–10 percent each. Monitoring and controlling is
done throughout the project and generally takes 5–15 percent of the total time
and resources. However, every project is unique, so there can be exceptions.
You can apply the process groups for each major phase of a project, or you can
apply the process groups to an entire project, as the JWD Consulting case study
does in this chapter.

Figure 3-1. Level of Activity and Overlap of Process Groups Over Time

Start

Monitoring
and

Controlling

Process
Group

Initiating
Process
Group

Planning

Process
Group

Executing

Process
Group

Closing

Process
Group

Level
of

Activity

Time
Finish

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 81

Many readers of CIO Magazine commented on its cover story about problems with informa-
tion systems at the U.S. Internal Revenue Service (IRS). The article described serious problems
the IRS has had in managing information technology projects. Philip A. Pell, PMP, believes that
having a good project manager and following a good project management process would
help the IRS and many organizations tremendously. Mr. Pell provided the following feedback:

Pure and simple, good, methodology-centric, predictable, and repeatable project man-
agement is the SINGLE greatest factor in the success (or in this case failure) of any proj-
ect. When a key stakeholder says, ‘I didn’t know how bad things were,’ it is a direct
indictment of the project manager’s communications management plan. When a critical
deliverable like the middleware infrastructure that makes the whole thing work is left
without assigned resources and progress tracking, the project manager has failed in his
duty to the stakeholders. When key stakeholders (people and organizations that will be
affected by the project, not just people who are directly working on the project) are not
informed and their feedback incorporated into the project plan, disaster is sure to ensue.
The project manager is ultimately responsible for the success or failure of the project.1

The IRS continues to have problems managing IT projects. In 2006, Senate Finance Chairman
Charles Grassley strongly criticized both IRS and Computer Sciences Corp. management for late
delivery of a fraud-detection system. “Because of this contractor, the IRS’s poor oversight of that
contractor, and the IRS’s own poor judgment, the IRS lost as much as $320 million over this
botched project,” Mr. Grassley said in a statement. “That’s money down the drain.”2

Each of the five project management process groups is characterized by the
completion of certain tasks. During initiating processes for a new project, the
organization recognizes that a new project exists. Often, completing a business
case and project charter are part of this recognition (see Chapter 4). These doc-
uments identify the main stakeholders for a project, justify the project, and
specify the high-level scope, time, and cost goals of the project. Usually, the
project manager and key team members are also selected during the initiating
process group, if they haven’t been selected already in a process some organiza-
tions call pre-initiating.

Outcomes of the planning process group include completing the work breakdown
structure and scope statement, the project schedule, and the project cost estimate
(see Chapters 5, 6, and 7, respectively). Planning processes are especially important
for information technology projects. Everyone who has ever worked on a large
information technology project that involves new technology knows the saying, “A
dollar spent up front in planning is worth one hundred dollars spent after the system
is implemented.” Planning is crucial in information technology projects because once

82 C H A P T E R 3

1 Pell, Phillip A., Comments posted on CIO Magazine Web site on article “For the IRS, There’s
No EZ Fix,” (April 1, 2004).
2 Wells, Rob. “IRS Complains Fraud-Detection System Is Late,” Wall Street Journal
(July 15, 2006).

What Went Wrong?

a project team implements a new system, it takes a considerable amount of effort to
change the system. Research suggests that companies working to implement best
practices should spend at least 20 percent of project time in initiating and planning.3

The executing process group involves taking the actions necessary to complete
the work described in the planning activities. The main outcome of this process
group is the delivery of the actual work of the project. For example, if an informa-
tion technology project involves providing new hardware, software, and training,
the executing processes would include leading the project team and other stake-
holders to purchase the hardware, develop and test the software, and deliver and
participate in the training. The executing process group should overlap the other
process groups and generally requires the most resources.

Monitoring and controlling processes measure progress toward the project
objectives, monitor deviation from the plan, and take corrective action to
match progress with the plan. The project manager should be monitoring
progress closely to ensure that deliverables are being completed and objectives
are being met. The project manager must work closely with the project team
and other stakeholders and take appropriate actions to keep the project run-
ning smoothly. The ideal outcome of the monitoring and controlling process
group is to complete a project successfully by delivering the agreed-upon proj-
ect scope within time, cost, and quality constraints. If changes to project objec-
tives or plans are required, monitoring and controlling processes ensure that
these changes are made efficiently and effectively to meet stakeholder needs
and expectations. Monitoring and controlling processes overlap all of the other
project management process groups because changes can occur at any time.

During the closing processes, the project team works to gain acceptance of the
end products, services, or results and bring the phase or project to an orderly end.
Key outcomes of this process group are formal acceptance of the work and creation
of closing documents, such as a final project report and lessons-learned report.

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 83

Just as information technology projects need to follow the project management process
groups, so do other projects, such as the production of a movie. Processes involved in making
movies might include screenwriting (initiating), producing (planning), acting and directing (exe-
cuting), editing (monitoring and controlling), and releasing the movie to theaters (closing).
Many people enjoy watching the extra features on a DVD that describe how these processes
lead to the creation of a movie. For example, the DVD for Lord of the Rings: The Two Towers
Extended Edition includes detailed descriptions of how the script was created, how huge struc-
tures were built, how special effects were made, and how talented professionals overcame
numerous obstacles to complete the project. This acted “…not as promotional filler but as a
serious and meticulously detailed examination of the entire filmmaking process.”4 New Line
Cinema made history by shooting all three Lord of the Rings films consecutively during one
massive production. It took three years of preparation to build the sets, find the locations, write

3 PCI Group, “PM Best Practices Report,” (October 2001).
4 Jacks, Brian, “Lord of the Rings: The Two Towers Extended Edition (New Line),”
Underground Online (accessed from www.ugo.com August 4, 2004).

Media Snapshot

the scripts, and cast the actors. Director Peter Jackson said that the amount of early planning
they did made it easier than he imagined to produce the films. Project managers in any field
know how important it is to have good plans and to follow a good process.

MAPPING THE PROCESS GROUPS TO THE
KNOWLEDGE AREAS

You can map the main activities of each project management process group into
the nine project management knowledge areas. Table 3-1 provides a big-picture
view of the relationships among the 44 project management activities, the process
groups in which they are typically completed, and the knowledge areas into
which they fit. The activities listed in the table are the main processes for each
knowledge area listed in the PMBOK® Guide Third Edition. The exact wording of
these processes may be slightly different in other parts of this text. This text also
includes additional activities not listed in the PMBOK® Guide Third Edition, such as
creating a business case and team contract, which can assist in managing projects.

Table 3-1: Project Management Process Groups and Knowledge
Area Mapping

KNOWLEDGE PROJECT MANAGEMENT PROCESS GROUPS
AREA

INITIATING PLANNING EXECUTING MONITORING & CLOSING
CONTROLLING

Project Develop Develop project Direct and Monitor and Close
Integration project management manage project control project
Management charter, plan execution project work,

Develop Integrated
preliminary change control
project scope
statement

Project Scope Scope planning, Scope
Management Scope definition, verification,

Create WBS Scope
control

Project Time Activity Schedule
Management definition, control

Activity
sequencing,
Activity resource
estimating,
Activity duration
estimating,
Schedule
development

84 C H A P T E R 3

Several organizations use PMI’s information as a foundation for developing
their own project management methodologies, as described in the next section.
Notice in Table 3-1 that the majority of project management processes occur as
part of the planning process group. Since each project is unique, project teams
are always trying to do something that has not been done before. To succeed at
unique and new activities, project teams must do a fair amount of planning.
Recall, however, that the most time and money is normally spent on execut-
ing. It is good practice for organizations to determine how project management
will work best in their own organizations.

Table 3-1: Project Management Process Groups and Knowledge
Area Mapping (continued)

KNOWLEDGE PROJECT MANAGEMENT PROCESS GROUPS
AREA
INITIATING PLANNING EXECUTING MONITORING & CLOSING
CONTROLLING

Project Cost Cost estimating, Cost control
Management Cost budgeting

Project Quality Quality Perform quality Perform quality
Management planning assurance control

Project Human Human Acquire Manage project
Resource resource project team, team
Management planning Develop

project team

Project Communications Information Performance
Communications planning distribution reporting,
Management Manage

stakeholders

Project Risk Risk Risk monitoring
Management management and control

planning, Risk
identification,
Qualitative risk
analysis,
Quantitative risk
analysis, Risk
response
planning

Project Plan purchases Request seller Contract Contract
Procurement and acquisitions, responses, administration closure
Management Plan contracting Select sellers

PMBOK® Guide Third Edition, 2004, p. 69

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 85

DEVELOPING AN INFORMATION TECHNOLOGY PROJECT
MANAGEMENT METHODOLOGY

Many organizations spend a great deal of time and money on training efforts for
general project management skills, but after the training, project managers may
still not know how to tailor their project management skills to the organization’s
particular needs. Because of this problem, some organizations develop their
own internal information technology project management methodologies. The
PMBOK® Guide is a standard that describes best practices for what should be done
to manage a project. A methodology describes how things should be done, and
different organizations often have different ways of doing things.

For example, after implementing a systems development life cycle (SDLC) at
BlueCross BlueShield of Michigan, the Methods department became aware
that developers and project managers were often working on different infor-
mation technology projects in different ways. Deliverables were often missing
or looked different from project to project. Both groups may have had a project
charter, status reports, technical documents (i.e., database design documents,
user interface requirements, and so on), but how they were producing and
delivering these deliverables was different. There was a general lack of consis-
tency and a need for standards to guide both new and experienced project
managers. Top management decided to authorize funds to develop a methodol-
ogy for project managers that could also become the basis for information tech-
nology project management training within the organization. It was also part
of an overall effort to help raise the company’s Software Capability Maturity
Model level. (See Chapter 8, Project Quality Management, for more informa-
tion on maturity models.)

BlueCross BlueShield of Michigan launched a three-month project to
develop its own project management methodology. Some of the project team
members had already received PMP certification, so they decided to base their
methodology on the PMBOK® Guide, making adjustments as needed to best
describe how their organization managed information technology projects.
See a complete article on this project on the companion Web site for this text.

Many organizations include project management in their methodologies for
managing Six Sigma projects, which you will learn about in Chapter 8. Other
organizations include project management in their software development
methodologies, such as the Rational Unified Process (RUP) framework.
RUP is an iterative software development process that focuses on team produc-
tivity and delivers software best practices to all team members. According to
RUP expert Bill Cottrell, “RUP embodies industry-standard management and
technical methods and techniques to provide a software engineering process

86 C H A P T E R 3

particularly suited to creating and maintaining component-based software sys-
tem solutions.”5 Cottrell explains that you can tailor RUP to include the
PMBOK process groups. Specifically, IBM Rational, the creators of RUP, found
that it could adjust RUP input artifacts with PMBOK process inputs, RUP steps
with PMBOK process tools and techniques, and RUP resulting artifacts with
PMBOK process outputs.

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 87

5 Cottrell, Bill, “Standards, compliance, and Rational Unified Process, Part I: Integrating RUP
and the PMBOK,” IBM Developerworks, (May 10, 2004).
6 Al-Tamimi, Fairooz, “Jordanian Company Uses PMI Methods to ‘Go Global,’ Improve
Productivity,” PMI Today (August 2004).

Jordan Telecom (JT), Jordan’s only telecom operator, introduced new customized project
management processes to improve efficiency and reduce costs in its Information Technology
department. The first step the organization took was to acquire International Standards
Organization (ISO) 9000 certification in April 2004 to make sure JT had documented
processes that everyone followed. It also wanted to make sure its processes were optimized
and that projects followed a customized methodology. JT created three lines of processes
based on the size of the project: high, medium, or low. JT used information from the
PMBOK® Guide and PMI’s Organizational Project Management Maturity Model to assess the
maturity of JT’s Information Technology department and design and develop a customized
information technology project management process. Rula Ammuri, JT’s Chief Information
Officer, believes this new methodology will result in a 40–50 percent increase in productivity.
Ammuri said, “I believe that optimizing our process and working according to a methodol-
ogy will have an enhancement in the organization.”6

The following section describes an example of applying the project manage-
ment process groups to a project at JWD Consulting. It uses some of the ideas
from the PMBOK® Guide Third Edition, some ideas from the BlueCross
BlueShield of Michigan methodology, some ideas from Six Sigma and RUP, and
some new ideas to meet unique project needs. This example also includes the
use of Microsoft Project to demonstrate how project management software can
assist in several aspects of managing a project. Several templates will illustrate
how project teams prepare various project management documents. Files for
these and other templates are available on the companion Web site for this
text. Details on creating many of the documents shown are provided in later
chapters, so do not worry if you do not understand everything right now. You
might want to read this section again to enhance your learning. The following
fictitious case provides an example of the elements involved in managing a
project from start to finish.

What Went Right?

CASE STUDY: JWD CONSULTING’S PROJECT MANAGEMENT
INTRANET SITE PROJECT

Project Initiation

In project management, initiating includes recognizing and starting a new proj-
ect. An organization should put considerable thought into project selection to
ensure that it initiates the right kinds of projects for the right reasons. It is bet-
ter to have a moderate or even small amount of success on an important proj-
ect than huge success on one that is unimportant. The selection of projects for
initiation, therefore, is crucial, as is the selection of project managers. Ideally,
the project manager would be involved in initiating a project, but often the
project manager is selected after many initiation decisions have already been
made. You will learn more about project selection in Chapter 4, Project
Integration Management. Organizations must also understand and plan for the
ongoing support that is often required after implementing a new system or
other product or service resulting from a project.

It is important to remember that strategic planning should serve as the foun-
dation for deciding which projects to pursue. The organization’s strategic plan
expresses the vision, mission, goals, objectives, and strategies of the organiza-
tion. It also provides the basis for information technology project planning.
Information technology is usually a support function in an organization, so it is
critical that the people initiating information technology projects understand
how those projects relate to current and future needs of the organization. For
example, JWD Consulting’s main business is providing consulting services to
other organizations, not developing its own intranet site applications. Infor-
mation systems, therefore, must support the firm’s business goals, such as pro-
viding consulting services more effectively and efficiently.

An organization may initiate information technology projects for several
reasons, but the most important reason is to support business objectives.
Providing a good return on investment at a reasonable level of risk is also
important, especially in tough economic times. As mentioned in the opening
case, JWD Consulting wants to follow an exemplary process for managing its
projects since its core business is helping other organizations manage projects.
Developing an intranet to share its project management knowledge could help
JWD Consulting reduce internal costs by working more effectively, and by
allowing existing and potential customers to access some of the firm’s infor-
mation. JWD Consulting could also increase revenues by bringing in more
business. Therefore, they will use these metrics—reducing internal costs and
increasing revenues—to measure their own performance on this project.

The PMBOK® Guide Third Edition includes only two items as outputs of the ini-
tiating process group: the project charter and the preliminary project scope state-
ment, created as part of project integration management. JWD Consulting also

88 C H A P T E R 3

believes it is important to assign a project manager, identify key project stake-
holders, and write a business case for the project during project initiation. Some
organizations require an approved corporate project request and a more detailed
business case before project initiation begins. Other organizations require these
items in a phase called pre-initiation. Remember that it is important to tailor the
project management process to meet unique project needs and the needs of the
organization.

Erica, head of the Project Management Office for JWD Consulting, has
reviewed possible outputs of project initiation and tailored them to meet the
needs of the Project Management Intranet Site Project. The project’s business
case includes a clarification of constraints and a list of assumptions, as well as
several items, such as preliminary project requirements, that are often
included in a preliminary scope statement, so she decides not to include that
item as separate outputs of initiation. Table 3-2 summarizes the desired out-
puts of project initiation for this particular project. It also lists related templates
provided on the companion Web site, as described later in this chapter, that
can be using during initiation. Note that Erica is tailoring information to
meet the needs of her project and organization. She knows that her project
requires a strong business case, and she knows that it is crucial to identify key
stakeholders early in her organization and invite them to the project kickoff
meeting. Recall from Table 3-1 that the PMBOK Guide® Third Edition only sug-
gests a project charter and preliminary project scope statement as part of ini-
tiating, which are done as part of project integration management.

As described in the opening case, Joe Fleming, the CEO at JWD Consulting,
has assigned Erica Bell as the project manager for the intranet project, so that
particular initiating task is finished. Erica has managed several projects in the
past, and as the head of the firm’s Project Management Office, she has exper-
tise that would be instrumental to this project’s success.

Erica met with Joe Fleming, the project’s sponsor, to help identify other key
stakeholders for this project. They decided to contact one full-time consultant

Table 3-2: Project Initiation Knowledge Areas, Outputs, and Related

Templates for JWD Consulting Project
KNOWLEDGE AREA OUTPUTS RELATED TEMPLATES

Project Integration Project manager assigned
Management

Key stakeholders identified

Business case completed Business Case
Business Case Financial Analysis
Payback Chart
Weighted Decision Matrix

Project charter completed Project charter
and signed

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 89

with an outstanding record, Michael Chen, one part-time consultant, Jessie
Faue, who was new to the company and supported the Project Management
Office, and two members of the Information Technology department who sup-
ported the current intranet, Kevin Dodge and Cindy Dawson. They also knew
that client inputs would be important for this project, so Joe agreed to call the
CEOs of two of the firm’s largest clients to see if they would be willing to pro-
vide representatives to work on this project at their own expense. After Joe
and Erica made the preliminary contacts, Erica documented the stakeholders’
roles, names, organizations, and contact information. All of the internal staff
Joe and Erica recommended agreed to work on the project, and the two client
representatives would be Kim Phuong and Page Miller. Erica would have these
stakeholders review and sign the project charter and attend important meet-
ings, like the kickoff meeting for the project.

To justify investing in this project, Erica drafted a business case for the proj-
ect, getting input and feedback from Joe, one of her senior staff members in the
Project Management Office, and a member of the Finance department. She also
used a corporate template and sample business cases from past projects as a
guide. Table 3-3 provides the business case. (Note that this example and others
are abbreviated examples. See the companion Web site for additional examples
of project documents and to download a business case template and other tem-
plates.) Notice that the following information is included in this business case:

! Introduction/background
! Business objective
! Current situation and problem/opportunity statement
! Critical assumptions and constraints
! Analysis of options and recommendation
! Preliminary project requirements
! Budget estimate and financial analysis
! Schedule estimate
! Potential risks
! Exhibits

Since this project is relatively small and is for an internal sponsor, the
business case is not as long as many other business cases. Erica reviewed the
business case with Joe before proceeding to develop the project charter. Joe
agreed that the project was worth pursuing, and he told Erica to proceed
with developing the project charter to officially recognize the existence of
this project.

90 C H A P T E R 3

Table 3-3: JWD Consulting’s Business Case

1.0 INTRODUCTION/BACKGROUND
JWD Consulting’s core business goal is to provide world-class project management con-
sulting services to various organizations. The CEO, Joe Fleming, believes the firm can
streamline operations and increase business by providing information related to project
management on its intranet site, making some information and services accessible to cur-
rent and potential clients.

2.0 BUSINESS OBJECTIVE
JWD Consulting’s strategic goals include continuing growth and profitability. The Project
Management Intranet Site Project will support these goals by increasing visibility of the
firm’s expertise to current and potential clients by allowing client and public access to some
sections of the intranet. It will also improve profitability by reducing internal costs by pro-
viding standard tools, techniques, templates, and project management knowledge to all
internal consultants. Since JWD Consulting focuses on identifying profitable projects and
measuring their value after completion, this project must meet those criteria.

3.0 CURRENT SITUATION AND PROBLEM/OPPORTUNITY STATEMENT
JWD Consulting has a corporate Web site as well as an intranet. The firm currently uses the
Web site for marketing information. The primary use of the intranet is for human resource
information, such as where consultants enter their hours on various projects, change and
view their benefits information, access an online directory and Web-based e-mail system, and
so on. The firm also uses an enterprise-wide project management system to track all project
information, focusing on the status of deliverables and meeting scope, time, and cost goals.
There is an opportunity to provide a new section on the intranet dedicated to sharing consul-
tants’ project management knowledge across the organization. JWD Consulting only hires
experienced consultants and gives them freedom to manage projects as they see fit. However,
as the business grows and projects become more complex, even experienced project man-
agers are looking for suggestions on how to work more effectively.

4.0 CRITICAL ASSUMPTION AND CONSTRAINTS
The proposed intranet site must be a valuable asset for JWD Consulting. Current consultants
and clients must actively support the project, and it must pay for itself within one year by
reducing internal operating costs and generating new business. The Project Management
Office manager must lead the effort, and the project team must include participants from sev-
eral parts of the company, as well as current client organizations. The new system must run on
existing hardware and software, and it should require minimal technical support. It must be
easily accessible by clients and the public yet secure from unauthorized users.

5.0 ANALYSIS OF OPTIONS AND RECOMMENDATION
There are three options for addressing this opportunity:

1. Do nothing. The business is doing well, and we can continue to operate without this
new project.

2. Purchase access to specialized software to support this new capability with little
in-house development.

3. Design and implement the new intranet capabilities in-house using mostly existing
hardware and software.

Based on discussions with stakeholders, we believe that option 3 is the best option.

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 91

Table 3-3: JWD Consulting’s Business Case (continued)

6.0 PRELIMINARY PROJECT REQUIREMENTS
The main features of the project management intranet site include the following:

1. Access to several project management templates and tools. Users must be able to search for
templates and tools, read instructions on using these templates and tools, and see examples
of how to apply them to real projects. Users must also be able to submit new templates and
tools, which should be first screened or edited by the Project Management Office.

2. Access to relevant project management articles. Many consultants and clients feel as
though there is an information overload when they research project management
information. They often waste time they should be spending with their clients. The new
intranet should include access to several important articles on various project manage-
ment topics, which are searchable by topic, and allow users to request the Project
Management Office staff to find additional articles to meet their needs.

3. Links to other, up-to-date Web sites, with brief descriptions of the main features of the
external site.

4. An “Ask the Expert” feature to help build relationships with current and future clients
and share knowledge with internal consultants.

5. Appropriate security to make the entire intranet site accessible to internal consultants
and certain sections accessible to others.

6. The ability to charge money for access to some information. Some of the information
and features of the intranet site should prompt external users to pay for the informa-
tion or service. Payment options should include a credit card option or similar online
payment transactions. After the system verifies payment, the user should be able to
access or download the desired information.

7. Other features suggested by users, if they add value to the business.

7.0 BUDGET ESTIMATE AND FINANCIAL ANALYSIS
A preliminary estimate of costs for the entire project is $140,000. This estimate is based on
the project manager working about 20 hours per week for six months and other internal
staff working a total of about 60 hours per week for six months. The customer representa-
tives would not be paid for their assistance. A staff project manager would earn $50 per
hour. The hourly rate for the other project team members would be $70 per hour, since
some hours normally billed to clients may be needed for this project. The initial cost estimate
also includes $10,000 for purchasing software and services from suppliers. After the project is
completed, maintenance costs of $40,000 are included for each year, primarily to update the
information and coordinate the “Ask the Expert” feature and online articles.

Projected benefits are based on a reduction in hours consultants spend researching
project management information, appropriate tools and templates, and so on. Projected
benefits are also based on a small increase in profits due to new business generated by this
project. If each of more than 400 consultants saved just 40 hours each year (less than one
hour per week) and could bill that time to other projects that generate a conservative esti-
mate of $10 per hour in profits, then the projected benefit would be $160,000 per year.
If the new intranet increased business by just 1 percent, using past profit information,
increased profits due to new business would be at least $40,000 each year. Total projected
benefits, therefore, are about $200,000 per year.

Exhibit A summarizes the projected costs and benefits and shows the estimated net pre-
sent value (NPV), return on investment (ROI), and year in which payback occurs. It also
lists assumptions made in performing this preliminary financial analysis. All of the financial
estimates are very encouraging. The estimated payback is within one year, as requested by
the sponsor. The NPV is $272,800, and the discounted ROI based on a three-year system life
is excellent at 112 percent.

92 C H A P T E R 3

Erica drafted a project charter and had the project team members review it
before showing it to Joe. Joe made a few minor changes, which Erica incorpo-
rated, and then all the key stakeholders signed the project charter at their kick-
off meeting. She decided that the meeting should be short and focus on brief
introductions and reviewing what was in documents like the charter and busi-
ness case. Table 3-4 shows the final project charter (see Chapter 4 for more
information on project charters). Note the items included on the project char-
ter and its short length. JWD Consulting believes that project charters should

Table 3-3: JWD Consulting’s Business Case (continued)

8.0 SCHEDULE ESTIMATE
The sponsor would like to see the project completed within six months, but there is some
flexibility in the schedule. We also assume that the new system will have a useful life of at
least three years.

9.0 POTENTIAL RISKS
There are several risks involved with this project. The foremost risk is a lack of interest in
the new system by our internal consultants and external clients. User inputs are crucial for
populating information into this system and realizing the potential benefits from using the
system. There are some technical risks in choosing the type of software used to search the
system, check security, process payments, and so on, but the features of this system all use
proven technologies. The main business risk is investing the time and money into this proj-
ect and not realizing the projected benefits.

10.0 EXHIBITS
Exhibit A: Financial Analysis for Project Management Intranet Site Project
Discount rate 8%
Assume the project is done in about 6 months

0 1 2 3 Total
Costs 140,000 40,000 40,000 40,00

0

Discount factor 1 0.93 0.86 0.79
Discounted costs 140,000 37,037 34,294 31,753 243,084

Benefits 200,000 200,000 200,000
Discount factor 0.93 0.86 0.79
Discounted benefits 186,185 171,468 158,766 515,419

Discounted benefits – costs (140,000) 148,148 137,174 127,013
Cumulative benefits – costs (140,000) 8,148 145,322 272,336 NPV

Payback in Year 1
Discounted life cycle ROI————> 112%

Assumptions
Costs # hours
PM (500 hours, $50/hour) 25,000
Staff (1500 hours, $70/hour) 105,000
Outsourced software and services 10,000
Total project costs (all applied in year 0)

Benefits
# consultants 400
Hours saved 40
$/hour profit 10
Benefits from saving time 160,000
Benefits from 1% increase in profits 40,000
Total annual projected benefits 200,000

Year

140,000

0

0
1

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 93

preferably be one or two pages long, and they may refer to other documents,
such as a business case, as needed. Erica felt the most important parts of the
project charter were the signatures of key stakeholders and their individual
comments. It is hard to get stakeholders to agree on even a one-page project
charter, so everyone has a chance to make their concerns known in the com-
ments section. Note that Michael Chen, the senior consultant asked to work on
the project, was concerned about working on this project when he felt that his
other assignments with external clients might have a higher priority. He offered
to have an assistant help as needed. The information technology staff members
mentioned their concerns about testing and security issues. Erica knew that she
would have to consider these concerns when managing the project.

Table 3-4: Project Charter

Project Title: Project Management Intranet Site Project

Project Start Date: May 2, 2008 Projected Finish Date: November 4, 2008

Budget Information: The firm has allocated $140,000 for this project. The majority of
costs for this project will be internal labor. An initial estimate provides a total of 80 hours
per week.

Project Manager: Erica Bell, (310) 555-5896, erica_bell@jwdconsulting.com

Project Objectives: Develop a new capability accessible on JWD Consulting’s intranet site
to help internal consultants and external customers manage projects more effectively. The
intranet site will include several templates and tools that users can download, examples of
completed templates and related project management documents used on real projects,
important articles related to recent project management topics, an article retrieval service,
links to other sites with useful information, and an “Ask the Expert” feature, where users
can post questions they have about their projects and receive advice from experts in the
field. Some parts of the intranet site will be accessible free to the public, other parts will
only be accessible to current customers and/or internal consultants, and other parts of the
intranet site will be accessible for a fee.

Approach:
! Develop a survey to determine critical features of the new intranet site and solicit input

from consultants and customers.

! Review internal and external templates and examples of project management documents.

! Research software to provide security, manage user inputs, and facilitate the article
retrieval and “Ask the Expert” features.

! Develop the intranet site using an iterative approach, soliciting a great deal of user
feedback.

! Determine a way to measure the value of the intranet site in terms of reduced costs
and new revenues, both during the project and one year after project completion.

94 C H A P T E R 3

Project Planning

Planning is often the most difficult and unappreciated process in project manage-
ment. Because planning is not always used to facilitate action, many people view
planning negatively. The main purpose of project plans, however, is to guide project
execution. To guide execution, plans must be realistic and useful, so a fair amount of
time and effort must go into the planning process; people knowledgeable with the
work need to plan the work. Chapter 4, Project Integration Management, provides
detailed information on preparing a project management plan, and Chapters 5–12
describe planning processes for each of the other knowledge areas.

Table 3-5 lists the project management knowledge areas, processes, and out-
puts of project planning according to the PMBOK® Guide Third Edition. There are
many potential outputs from the planning process group, and every knowledge
area is included. Just a few planning documents from JWD Consulting’s Project
Management Intranet Site Project are provided in this chapter as examples. Recall
that the PMBOK® Guide is only a guide, so many organizations may have different
planning outputs based on their particular needs, as is the case in this example.

Table 3-4: Project Charter (continued)

ROLES AND RESPONSIBILITIES:
NAME ROLE POSITION CONTACT INFORMATION
Joe Fleming Sponsor JWD Consulting, joe_fleming@jwdconsulting.com

CEO

Erica Bell Project Manager JWD Consulting, erica_bell@jwdconsulting.com
manager

Michael Chen Team Member JWD Consulting, michael_chen@jwdconsulting.com
senior consultant

Jessie Faue Team Member JWD Consulting, jessie_faue@jwdconsulting.com
consultant

Kevin Dodge Team Member JWD Consulting, kevin_dodge@jwdconsulting.com
IT department

Cindy Dawson Team Member JWD Consulting, cindy_dawson@jwdconsulting.com
IT department

Kim Phuong Advisor Client kim_phuong@client1.com
representative

Page Miller Advisor Client page_miller@client2.com
representative

Comments: (Handwritten or typed comments from above stakeholders, if applicable)
“I will support this project as time allows, but I believe my client projects take priority. I
will have one of my assistants support the project as needed.” —Michael Chen
“We need to be extremely careful testing this new system, especially the security in giving
access to parts of the intranet site to the public and clients.” —Kevin Dodge and Cindy Dawson

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 95

There are many templates related to planning as well, with several listed in the
last section of this chapter.

Table 3-5: Planning Processes and Outputs

KNOWLEDGE AREA PLANNING PROCESS OUTPUTS

Project Integration Develop project ! Project management plan
Management management plan

Project Scope Scope planning ! Project scope management plan
Management

Scope definition ! Project scope statement

! Requested changes

! Project scope management plan

(updates)

Create WBS ! Project scope statement (updates)
! WBS and WBS dictionary
! Scope baseline
! Project scope management plan

(updates)
! Requested changes

Project Time Activity definition ! Activity list and attributes
Management ! Milestone list

! Requested changes

Activity sequencing ! Project schedule network diagram
! Activity list and attributes

(updates)
! Requested changes

Activity resource estimating ! Activity resource requirements
! Activity attributes (updates)
! Resource breakdown structure
! Resource calendars (updates)
! Requested changes

Activity duration estimating ! Activity duration estimates
! Activity attributes (updates)

Schedule development ! Project schedule
! Schedule model data
! Schedule baseline
! Updates to resource requirements,

activity attributes, project calendar
and project management plan

! Requested changes

Project Cost Cost estimating ! Activity cost estimates and
Management supporting detail

! Requested change
! Cost management plan (updates)

Cost budgeting ! Cost baseline
! Project funding requirements
! Cost management

plan (updates)
! Requested changes

96 C H A P T E R 3

Since the Project Management Intranet Site Project is relatively small, Erica
believes some of the most important planning documents to focus on are the
following:

! A team contract (not listed in Table 3-5, which is based only on the
PMBOK® Guide Third Edition)

! A project scope statement

! A work breakdown structure (WBS)

! A project schedule, in the form of a Gantt chart with all dependencies and
resources entered

! A list of prioritized risks (part of a risk register)

Table 3-5: Planning Processes and Outputs (continued)

KNOWLEDGE AREA PLANNING PROCESS OUTPUTS

Project Quality Quality planning ! Quality management plan
Management ! Quality metrics

! Quality checklists
! Process improvement plan
! Quality baseline
! Project management plan (updates)

Project Human Human resource planning ! Roles and responsibilities
Resource Management ! Project organization charts

! Staffing management plan
Project Communications Communications planning ! Communications
Management management plan

Project Risk Risk management planning ! Risk management plan
Management

Risk identification ! Risk register

Qualitative risk analysis ! Risk register (updates)

Quantitative risk analysis ! Risk register (updates)

Risk response planning ! Risk register (updates)
! Project management plan

(updates)
! Risk-related contractual

agreements

Project Procurement Plan purchases and ! Procurement management plan
Management acquisitions ! Contract statement of work

! Make-or-buy decisions
! Requested changes

Plan contracting ! Procurement documents
! Evaluation criteria
! Contract statement of work

(updates)

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 97

All of these documents, as well as other project-related information, will be
available to all team members on a project Web site. JWD Consulting has used
project Web sites for several years, and has found that they really help facilitate
communications and document project information. For larger projects, JWD
Consulting also creates project organization charts, a formal communications
management plan, a quality management plan, detailed cost estimates, pro-
curement plans, and other planning documents. You will learn more about
these documents by knowledge area in the following chapters.

Soon after the project team signed the project charter, Erica organized a
team-building meeting for the Project Management Intranet Site Project. An
important part of the meeting was helping the project team get to know each
other. Erica had met and talked to each member separately, but this was the
first time the project team would spend much time with each other. Jessie
Faue worked in the Project Management Office with Erica, so they knew each
other well, but Jessie was new to the company and did not know any of the
other team members. Michael Chen was a senior consultant and often worked
on the highest priority projects for external clients. He attended the meeting
with his assistant, Jill Anderson, who would also support the project when
Michael was too busy. Everyone valued Michael’s expertise, and he was
extremely straightforward in dealing with people. He also knew both of the
client representatives from past projects. Kevin Dodge was JWD Consulting’s
intranet guru who tended to focus on technical details. Cindy Dawson was
also from the Information Technology department and had experience work-
ing as a business consultant and negotiating with outside suppliers. Kim
Phuong and Page Miller, the two client representatives, were excited about
the project, but they were wary of sharing sensitive information about their
company.

Erica had everyone introduce him or herself, and then she facilitated an ice-
breaker activity so everyone would be more relaxed. She asked everyone to
describe his or her dream vacation, assuming cost was no issue. This activity
helped everyone get to know each other and show different aspects of their
personalities. Erica knew that it was important to build a strong team and have
everyone work well together.

Erica then explained the importance of the project, again reviewing the
signed project charter. She explained that an important tool to help a project
team work together was to have members develop a team contract that every-
one felt comfortable signing. JWD Consulting believed in using team contracts
for all projects to help promote teamwork and clarify team communications.
She explained the main topics covered in a team contract and showed them a
team contract template. She then had the team members form two smaller
groups, with one consultant, one Information Technology department member,
and one client representative in each group. These smaller groups made it eas-
ier for everyone to contribute ideas. Each group shared their ideas for what
should go into the contract, and then they worked together to form one project
team contract. Table 3-6 shows the resulting team contract, which took about

98 C H A P T E R 3

90 minutes to create. Erica could see that there were different personalities on
this team, but she felt they all could work together well.

Erica wanted to keep their meeting to its two-hour time limit. Their next task
would be to clarify the scope of the project by developing a scope statement and
WBS. She knew it took time to develop these documents, but she wanted to get a
feel for what everyone thought were the main deliverables for this project, their
roles in producing those deliverables, and what areas of the project scope needed
clarification. She reminded everyone what their budget and schedule goals were so
they would keep that in mind as they discussed the scope of the project. She also

Table 3-6: Team Contract

Code of Conduct: As a project team, we will:
! Work proactively, anticipating potential problems and working to prevent them.
! Keep other team members informed of information related to the project.
! Focus on what is best for the entire project team.

Participation: We will:
! Be honest and open during all project activities.
! Encourage diversity in team work.
! Provide the opportunity for equal participation.
! Be open to new approaches and consider new ideas.
! Have one discussion at a time.
! Let the project manager know well in advance if a team member has to miss a meeting

or may have trouble meeting a deadline for a given task.

Communication: We will:
! Decide as a team on the best way to communicate. Since a few team members cannot

meet often for face-to-face meetings, we will use e-mail, a project Web site, and other
technology to assist in communicating.

! Have the project manager facilitate all meetings and arrange for phone and video-
conferences, as needed.

! Work together to create the project schedule and enter actuals into our enterprise-wide
project management system by 4 p.m. every Friday.

! Present ideas clearly and concisely.
! Keep discussions on track.

Problem Solving: We will:
! Encourage everyone to participate in solving problems.
! Only use constructive criticism and focus on solving problems, not blaming people.
! Strive to build on each other’s ideas.

Meeting Guidelines: We will:
! Plan to have a face-to-face meeting the first and third Tuesday morning of every month.
! Meet more frequently the first month.
! Arrange for telephone or videoconferencing for participants as needed.
! Hold other meetings as needed.
! Record meeting minutes and send them out via e-mail within 24 hours of all project

meetings, focusing on decisions made and action items from each meeting.
! Develop an agenda before all meetings with our project sponsor and client advisors.
! Document major issues and decisions related to the project and send them out via

e-mail to all team members and the project sponsor.

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 99

asked each person to provide the number of hours he or she would be available to
work on this project each month for the next six months. She then had each per-
son write down his or her answers to the following questions:

1. List one item that is most unclear to you about the scope of this project.
2. What other questions do you have or issues do you foresee about the

scope of the project?
3. List what you believe to be the main deliverables for this project.
4. Which deliverables do you think you will help create or review?

Erica collected everyone’s inputs. She explained that she would take this
information and work with Jessie to develop the first draft of the scope state-
ment that she would e-mail to everyone by the end of the week. She also sug-
gested that they all meet again in one week to develop the scope statement
further and to start creating the WBS for the project.

Erica and Jessie reviewed all the information and created the first draft of
the scope statement. At their next team meeting, they discussed the scope
statement and got a good start on the WBS. Table 3-7 shows a portion of the
scope statement that Erica created after a few more e-mails and another team
meeting. Note that the scope statement lists the importance of documenting
the product characteristics and requirements, summarizes the deliverables, and
describes project success criteria.

Table 3-7: Scope Statement (Draft Version)

Project Title: Project Management Intranet Site Project

Date: May 18, 2008 Prepared by: Erica Bell, Project Manager, (310) 555-5896,
erica_bell@jwdconsulting.com

Project Justification: Joe Fleming, CEO of JWD Consulting, requested this project to
assist the company in meeting its strategic goals. The new intranet site will increase visibili-
ty of the company’s expertise to current and potential clients though the sections of the
intranet to which they will be accessible. It will also help reduce internal costs and improve
profitability by providing standard tools, techniques, templates, and project management
knowledge to all internal consultants. The budget for the project is $140,000. An additional
$40,000 per year will be required for operational expenses after the project is completed.
Estimated benefits are $200,000 each year. It is important to focus on the system paying for
itself within one year of its completion.

Product Characteristics and Requirements:

1. Templates and tools: The intranet site will allow authorized users to download files
they can use to create project management documents and to help them use project
management tools. These files will be in Microsoft Word, Excel, Access, Project, or in
HTML or PDF format, as appropriate.

2. User submissions: Users will be encouraged to e-mail files with sample templates and
tools to the Webmaster. The Webmaster will forward the files to the appropriate person
for review and then post the files to the intranet site, if desired.

3. Articles: Articles posted on the intranet site will have appropriate copyright permission.
The preferred format for articles will be PDF. The project manager may approve other
formats.

100 C H A P T E R 3

Table 3-7: Scope Statement (Draft Version) (continued)

4. Requests for articles: The intranet site will include a section for users to request someone
from the Project Management Office (PMO) at JWD Consulting to research appropriate
articles for them. The PMO manager must first approve the request and negotiate pay-
ments, if appropriate.

5. Links: All links to external sites will be tested on a weekly basis. Broken links will be
fixed or removed within five working days of discovery.

6. The “Ask the Expert” feature must be user-friendly and capable of soliciting questions and
immediately acknowledging that the question has been received in the proper format. The
feature must also be capable of forwarding the question to the appropriate expert (as main-
tained in the system’s expert database) and capable of providing the status of questions that
are answered. The system must also allow for payment for advice, if appropriate.

7. Security: The intranet site must provide several levels of security. All internal employees
will have access to the entire intranet site when they enter their security information to
access the main, corporate intranet. Part of the intranet will be available to the public
from the corporate Web site. Other portions of the intranet will be available to current
clients based on verification with the current client database. Other portions of the
intranet will be available after negotiating a fee or entering a fixed payment using pre-
authorized payment methods.

8. Search feature: The intranet site must include a search feature for users to search by
topic, key words, etc.

9. The intranet site must be accessible using a standard Internet browser. Users must
have appropriate application software to open several of the templates and tools.

10. The intranet site must be available 24 hours a day, 7 days a week, with one hour per
week for system maintenance and other periodic maintenance, as appropriate.

Summary of Project Deliverables

Project management-related deliverables: Business case, charter, team contract, scope
statement, WBS, schedule, cost baseline, status reports, final project presentation, final proj-
ect report, lessons-learned report, and any other documents required to manage the project.

Product-related deliverables:

1. Survey: Survey current consultants and clients to help determine desired content and
features for the intranet site.

2. Files for templates: The intranet site will include templates for at least twenty docu-
ments when the system is first implemented, and it will have the capacity to store up to
one hundred documents. The project team will decide on the initial twenty templates
based on survey results.

3. Examples of completed templates: The intranet site will include examples of projects
that have used the templates available on the intranet site. For example, if there is a
template for a business case, there will also be an example of a real business case that
uses the template.

4. Files for tools: The intranet site will include information on how to use several project
management tools, including the following as a minimum: work breakdown structures,
Gantt charts, network diagrams, cost estimates, and earned value management. Where
appropriate, sample files will be provided in the application software appropriate for
the tool. For example, Microsoft Project files will be available to show sample work
breakdown structures, Gantt charts, network diagrams, cost estimates, and applications
of earned value management. Excel files will be available for sample cost estimates and
earned value management charts.

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 101

As the project team worked on the scope statement, they also developed the
work breakdown structure (WBS) for the project. The WBS is a very important
tool in project management because it provides the basis for deciding how to
do the work. The WBS also provides a basis for creating the project schedule
and performing earned value management for measuring and forecasting proj-
ect performance. Erica and her team decided to use the project management
process groups as the main categories for the WBS (Figure 3-2). They included
completed work from the initiating process to provide a complete picture of the
project’s scope. The group also wanted to list several milestones on their sched-
ule, such as the completion of key deliverables, so they prepared a separate list
of milestones that they would include on the Gantt chart. You will learn more
about creating a WBS in Chapter 5, Project Scope Management.

Table 3-7: Scope Statement (Draft Version) (continued)

5. Example applications of tools: The intranet site will include examples of real projects
that have applied the tools listed in number 4 above.

6. Articles: The intranet site will include at least ten useful articles about relevant topics in
project management. The intranet site will have the capacity to store at least 1000 arti-
cles in PDF format with an average length of ten pages each.

7. Links: The intranet site will include links with brief descriptions for at least 20 useful
sites. The links will be categorized into meaningful groups.

8. Expert database: In order to deliver an “Ask the Expert” feature, the system must
include and access a database of approved experts and their contact information. Users
will be able to search for experts by pre-defined topics.

9. User Requests feature: The intranet site will include an application to solicit and
process requests from users.

10. Intranet site design: An initial design of the new intranet site will include a site map,
suggested formats, appropriate graphics, etc. The final design will incorporate comments
from users on the initial design.

11. Intranet site content: The intranet site will include content for the templates and tools
section, articles section, article retrieval section, links section, “Ask the Expert” section,
User Requests feature, security, and payment features.

12. Test plan: The test plan will document how the intranet site will be tested, who will do
the testing, and how bugs will be reported.

13. Promotion: A plan for promoting the intranet site will describe various approaches for
soliciting inputs during design. The promotion plan will also announce the availability
of the new intranet site.

14. Project benefit measurement plan: A project benefit plan will measure the financial
value of the intranet site.

Project Success Criteria: Our goal is to complete this project within six months for no
more than $140,000. The project sponsor, Joe Fleming, has emphasized the importance of
the project paying for itself within one year after the intranet site is complete. To meet this
financial goal, the intranet site must have strong user inputs. We must also develop a
method for capturing the benefits while the intranet site is being developed and tested, and
after it is rolled out. If the project takes a little longer to complete or costs a little more than
planned, the firm will still view it as a success if it has a good payback and helps promote
the firm’s image as an excellent consulting organization.

102 C H A P T E R 3

Figure 3-2. JWD Consulting Intranet Project Work Breakdown Structure (WBS)

1.0 Initiating

1.2 Identify key stakeholders
1.3 Prepare business case
1.4 Prepare project charter

2.0 Planning
2.1 Hold project kickoff meeting
2.2 Prepare team contract
2.3 Prepare scope statement
2.4 Prepare WBS
2.5 Prepare schedule and cost baseline

2.5.1 Determine task resources
2.5.2 Determine task durations
2.5.3 Determine task dependencies
2.5.4 Create draft Gantt chart
2.5.5 Review and finalize Gantt chart

2.6 Identify, discuss, and prioritize risks
3.0 Executing

3.1 Survey
3.2 User inputs
3.3 Intranet site content

3.3.1 Templates and tools
3.3.2 Articles
3.3.3 Links
3.3.4 Ask the Expert
3.3.5 User requests feature

3.4 Intranet site design
3.5 Intranet site construction
3.6 Intranet site testing
3.7 Intranet site promotion
3.8 Intranet site roll-out
3.9 Project benefits measurement

4.0

Monitoring and Controlling

4.1 Status reports

5.0 Closing
5.1 Prepare final project report
5.2 Prepare final project presentation
5.3 Lessons learned

1.1 Determine/assign project manager

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 103

After preparing the WBS, the project team held another face-to-face meet-
ing to develop the project schedule, following the steps outlined in section 2.5
of the WBS. Several of the project schedule tasks are dependent on one
another. For example, the intranet site testing was dependent on the construc-
tion and completion of the content tasks. Everyone participated in the develop-
ment of the schedule, especially the tasks on which each would be working.
Some of the tasks were broken down further so the team members had a better
understanding of what they had to do and when. They also kept their work-
loads and cost constraints in mind when developing the duration estimates.
For example, Erica was scheduled to work 20 hours per week on this project,
and the other project team members combined should not spend more than
60 hours per week on average for the project. As team members provided
duration estimates, they also estimated how many work hours they would
spend on each task.

After the meeting, Erica worked with Jessie to enter all of the information
into Microsoft Project. Erica was using the intranet site project to train Jessie in
applying several project management tools and templates. They entered all of
the tasks, duration estimates, and dependencies to develop the Gantt chart.
Erica decided to enter the resource and cost information after reviewing the
schedule. Their initial inputs resulted in a completion date a few weeks later
than planned. Erica and Jessie reviewed the critical path for the project, and
Erica had to shorten the duration estimates for a few critical tasks in order to
meet their schedule goal of completing the project within six months. She
talked to the team members working on those tasks, and they agreed that they
could plan to work more hours each week on those tasks in order to complete
them on time. Erica considered adding a project buffer at the end of the proj-
ect, but she was confident they could meet the schedule goal. You will learn
more about project buffers and developing project schedules in Chapter 6,
Project Time Management.

Figure 3-3 shows the resulting Gantt chart created in Microsoft Project.
Only the executing tasks are expanded to show the subtasks under that cate-
gory. (You will learn how to use Project 2007 in Appendix A. Chapter 6,
Project Time Management, explains Gantt charts and other time management
tools.) The baseline schedule projects a completion date of November 1, 2008.
The project charter had a planned completion date of November 4, 2008. Erica
wanted to complete the project on time, and although three extra days was
not much of a buffer, she felt the baseline schedule was very realistic. She
would do her best to help everyone meet their deadlines.

104 C H A P T E R 3

Figure 3-3. JWD Consulting Intranet Site Project Baseline Gantt Chart

The majority of the costs for this project were internal labor, and the team
kept their labor hour constraints in mind when developing task duration esti-
mates. Erica and Jessie entered each project team member’s name and labor rate
in the resource sheet for their Microsoft Project file. The client representatives
were not being paid for their time, so she left their labor rates at the default
value of zero. Erica had also included $10,000 for procurement in the financial
analysis she prepared for the business case, and she showed Jessie how to enter
that amount as a fixed cost split equally between the “Ask the Expert” and User
Requests features, where she thought they would have to purchase some exter-
nal software and/or services. Erica then helped Jessie assign resources to tasks,
entering the projected number of hours everyone planned to work each week on
each task. They then ran several cost reports and made a few minor adjustments
to resource assignments to make their planned total cost meet their budget con-
straints. Their cost baseline was very close to their planned budget of $140,000.

The last deliverable her team needed to create within the planning process
group was a list of prioritized risks. This information will be updated and
expanded as the project progresses to include information on root causes of the
risks, warning signs that potential risks might occur, and response strategies for
the risks. Erica reviewed the risks she had mentioned in the business case as
well as the comments team members made on the project charter and in their
team meetings. She held a special meeting for everyone to brainstorm and dis-
cuss potential risks. They posted all of the risks they identified on a probabil-
ity/impact matrix, and then they grouped some of the ideas. There was only
one risk in the high probability and high impact category, and several with

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 105

medium impact in one or both categories. They chose not to list the low proba-
bility and low impact risks. After some discussion, the team developed the list
of prioritized risks shown in Table 3-8.

Project Executing

Executing the project involves taking the actions necessary to ensure that
activities in the project plan are completed. It also includes work required
to introduce any new hardware, software, and procedures into normal
operations. The products of the project are produced during project execution,
and it usually takes the most resources to accomplish this process. Table 3-9
lists the knowledge areas, executing processes, and outputs of project execu-
tion listed in the PMBOK® Guide Third Edition. Many project sponsors and cus-
tomers focus on outputs or deliverables related to providing the products,
services, or results desired from the project. Implementing solutions to prob-
lems, such as change requests or corrective actions, are also important out-
puts, as are the other outputs listed below. Templates related to this process
group are also listed later in this chapter.

Table 3-9: Executing Processes and Outputs
KNOWLEDGE AREA EXECUTING PROCESS OUTPUTS
Project Integration Direct and manage project ! Deliverables
Management execution ! Requested changes

! Implemented solutions to problems (i.e.,
change requests, corrective actions,
preventive actions, and defect repairs)

! Work performance information

Table 3-8: List of Prioritized Risks
RANKING POTENTIAL RISK
1 Lack of inputs from internal consultants

2 Lack of inputs from client representatives

3 Security of new system

4 Outsourcing/purchasing for the article retrieval and “Ask the Expert” features

5 Outsourcing/purchasing for processing online payment transactions

6 Organizing the templates and examples in a useful fashion

7 Providing an efficient search feature

8 Getting good feedback from Michael Chen and other senior consultants

9 Effectively promoting the new system

10 Realizing the benefits of the new system within one year

106 C H A P T E R 3

For this relatively small project, Erica could work closely with all the team
members to make sure they were producing the desired work results. She also
used her networking skills to get input from other people in the firm and from
external sources at no additional cost to the project. She made sure that everyone
who would use the resulting intranet application also understood what they were
producing as part of the project and how it would help them in the future. She
knew that providing strong leadership and using good communication skills were
crucial to good project execution. The firm did have a formal change request
form, but primarily used it for external projects. The firm also had contract spe-
cialists and templates for several procurement documents that the project team
would use for the portions of the project they planned to outsource.

As mentioned earlier, Erica knew that Joe, the CEO and project sponsor,
liked to see progress on projects through milestone reports, which are one type
of project report. He also wanted Erica to alert him to any potential issues or
problems. Table 3-10 shows a sample of a milestone report for the Project
Management Intranet Site Project that Erica reviewed with Joe in mid-June.
Erica met with most of her project team members often, and she talked to Joe
about once a week to review progress on completing milestones and to discuss

Table 3-9: Executing Processes and Outputs (continued)
KNOWLEDGE AREA EXECUTING PROCESS OUTPUTS

Project Quality Perform quality assurance ! Requested changes
Management

! Recommended corrective actions

! Organizational process assets (updates)

! Project management plan (updates)

Project Human Acquire project team ! Project staff assignments
Resource ! Resource availability
Management ! Staffing management plan (updates)

Develop project team ! Team performance assessment

Project Information distribution ! Organizational process assets (updates)
Communications ! Requested changes
Management

Project Request seller responses ! Qualified sellers list
Procurement ! Procurement document package
Management ! Proposals

Select sellers ! Selected sellers
! Contract
! Contract management plan
! Resource availability
! Procurement management

plan (updates)
! Requested changes

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 107

any other project issues. Although Erica could have used project management
software to create milestone reports, she instead used word processing software
because this project was small, and she could more easily manipulate the
report format.

Table 3-10: Milestone Report as of June 17, 2008
MILESTONE DATE STATUS RESPONSIBLE ISSUES/COMMENTS
Initiating

Project manager May 2 Completed Joe
determined/assigned

Business case created May 6 Completed Erica

Project charter signed May 10 Completed Erica

Planning

Project kickoff meeting held May 13 Completed Erica Went well

Team contract signed May 13 Completed Erica

Scope statement completed May 27 Completed Erica

WBS completed May 31 Completed Erica

List of prioritized risks June 3 Completed Erica Reviewed with
completed sponsor and team

Schedule and cost baseline June 13 Completed Erica
completed

Executing

Survey completed June 28 Erica Poor response so far!

Intranet site design July 26 Kevin
completed

Project benefits August 9 Erica
measurement completed

User inputs collected August 9 Jessie

Articles completed August 23 Jessie

Templates and tools September 6 Erica
completed

Ask the Expert completed September 6 Michael

User Requests feature September 6 Cindy
completed

108 C H A P T E R 3

Human resource issues often occur during project execution, especially con-
flicts. At several of the team meetings, Erica could see that Michael seemed to
be bored and often left the room to make phone calls to clients. She talked to
Michael about the situation, and she discovered that Michael was supportive of
the project, but he knew he could only spend a minimal amount of time on it.
He was much more productive outside of meetings, so Erica agreed to have
Michael attend a minimal amount of project team meetings. She could see that
Michael was contributing to the team by the feedback he provided and his
leadership on the “Ask the Expert” feature for the intranet site. Erica adjusted
her communication style to meet his specific needs.

Another problem occurred when Cindy was contacting potential suppliers
for software to help with the “Ask the Expert” and User Requests features.
Kevin wanted to write all of the software for the project himself, but Cindy
knew it made better business sense to purchase these new software capabilities
from a reliable source. Cindy had to convince Kevin that it was worth buying
some software from other sources.

Cindy also discovered that their estimate of $10,000 was only about half the
amount they needed. She discussed the problem with Erica, explaining the

Table 3-10: Milestone Report as of June 17, 2008 (continued)
MILESTONE DATE STATUS RESPONSIBLE ISSUES/COMMENTS
Links completed September 13 Kevin

Intranet site construction October 4 Kevin
completed

Intranet site testing October 18 Cindy
completed

Intranet site promotion October 25 Erica
completed

Intranet site roll-out October 25 Kevin
completed

Monitoring and Controlling

Status reports Every All
Friday

Closing

Final project presentation October 27 Erica
completed

Sponsor sign-off on project October 27 Joe
completion

Final project report October 28 Erica
completed

Lessons-learned reports November 1 All
submitted

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 109

need for some custom development no matter which supplier they chose. Erica
agreed that they should go with an outside source, and she asked their sponsor
to approve the additional funds. Joe agreed, but he stressed the importance of
still having the system pay for itself within a year.

Erica also had to ask Joe for help when the project team received a low
response rate to their survey and requests for user inputs. Joe sent out an
e-mail to all of JWD Consulting’s consultants describing the importance of the
project. He also offered five extra vacation days to the person who provided the
best examples of how they used tools and templates to manage their projects.
Erica then received informative input from the consultants. Having effective
communication skills and strong top management support are essential to good
project execution.

110 C H A P T E R 3

One way to learn about best practices in project management is by studying recipients of
PMI’s Project of the Year award. The Quartier international de Montreal (QIM), Montreal’s
international district, was a 66-acre urban revitalization project in the heart of downtown
Montreal. This $90 million, five-year project turned a once unpopular area into a thriving
section of the city with a booming real estate market and has generated $770 million in
related construction. Clement Demers, PMP, was the director general for the QIM project.
He said the team “took a unique project execution approach by dividing work into pack-
ages that allowed for smaller-scale testing of management techniques and contract awards.
Benefiting from experience gained in each stage, managers could then adjust future work
segments and management styles accordingly.”7

Other strategies that helped the team succeed included the following:

! The team identified champions in each stakeholder group to help inspire others to
achieve project goals.

! The team’s communications plan included a Web site dedicated to public concerns.

! There were two-day reviews at the beginning of each project phase to discuss problems
and develop solutions to prevent conflict.

! Financial investors were asked for input to increase their stake in the project.

! The team recognized the cost value of hiring high-quality experts, such as architects,
engineers, lawyers, and urban planners. They paid all professionals a fixed price for their
services and paid their fees quickly.

Best Practice

7 Ellis, Libby, “Urban Inspiration,” PM Network (January 2006) p. 30.

Project Monitoring and Controlling
Monitoring and controlling is the process of measuring progress toward project
objectives, monitoring deviation from the plan, and taking corrective action to
match progress with the plan. Monitoring and controlling is done throughout
the life of a project. It also involves seven of the nine project management
knowledge areas. Table 3-11 lists the knowledge areas, monitoring and control-
ling processes, and outputs, according to the PMBOK® Guide Third Edition.
Templates related to this process group are listed later in this chapter.

Table 3-11: Monitoring and Controlling Processes and Outputs
KNOWLEDGE AREA MONITORING AND OUTPUTS

CONTROLLING PROCESS
Project Integration Monitor and control ! Recommended corrective actions,
Management project work preventive actions, and defect repair

! Forecasts
! Requested changes

Integrated change control ! Approved change requests, corrective
actions, preventive actions, and defect
repair

! Rejected change requests
! Project management plan (updates)
! Project scope statement (updates)
! Validated defect repair
! Deliverables

Project Scope Scope verification ! Accepted deliverables
Management ! Requested changes

! Recommended corrective actions

Scope change control ! Project scope statement (updates)
! WBS and dictionary (updates)
! Scope baseline (updates)
! Requested changes

! Recommended corrective actions
! Organizational process assets (updates)

! Project management plan (updates)

Project Time Schedule control ! Schedule model data (updates)
Management ! Schedule baseline (updates)

! Performance measurements
! Requested changes
! Recommended corrective actions
! Organizational process assets (updates)
! Activity list and attributes (updates)
! Project management plan (updates)

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 111

Table 3-11: Monitoring and Controlling Processes and Outputs (continued)
KNOWLEDGE AREA MONITORING AND OUTPUTS

CONTROLLING PROCESS
Project Cost Cost control ! Cost estimate (updates)
Management ! Cost baseline (updates)

! Performance measurements
! Forecasted completion
! Requested changes
! Recommended corrective action
! Organizational process assets (updates)
! Project management plan (updates)

Project Quality Perform quality control ! Quality control measurements
Management ! Validated defect repair and deliverables

! Quality baseline (updates)
! Recommended corrective actions,

preventive actions, and defect repair
! Requested changes
! Organizational process assets (updates)
! Project management plan (updates)

Project Human Manage project team ! Requested changes
Resource ! Recommended corrective and
Management preventive actions

! Organizational process assets (updates)
! Project management plan (updates)

Project Performance reporting ! Performance reports
Communications ! Forecasts
Management ! Requested changes

! Recommended corrective actions
! Organizational process assets (updates)

Manage stakeholders ! Resolved issues
! Approved change requests and

corrective actions
! Organizational process assets (updates)
! Project management plan (updates)

Project Risk Risk monitoring and ! Risk register (updates)
Management control ! Requested changes

! Recommended corrective and
preventive actions

! Organizational process assets (updates)
! Project management plan (updates)

Project Contract administration ! Contract documentation
Procurement ! Requested changes
Management ! Recommended corrective actions

! Organizational process assets (updates)
! Project management plan (updates)

112 C H A P T E R 3

On the Project Management Intranet Site Project, there were several updates to
the project management plan to reflect changes made to the project scope, sched-
ule, and budget. Erica and other project team members took corrective action when
necessary. For example, when they were not getting many responses to their sur-
vey, Erica asked Joe for help. When Cindy had trouble negotiating with a supplier,
she got help from another senior consultant who had worked with that supplier in
the past. Erica also had to request more funds for that part of the project.

Project team members submitted a brief status report every Friday. They were
originally using a company template for status reports, but Erica found that by
modifying the old template, she received better information to help her team work
more effectively. She wanted team members not only to report what they did but
also to focus on what was going well or not going well and why. This extra infor-
mation helped team members reflect on the project’s progress and identify areas in
need of improvement. Table 3-12 is an example of one of Cindy’s status reports.

Table 3-12: Sample Weekly Status Report

Project Name: Project Management Intranet Project
Team Member Name: Cindy Dawson, cindy_dawson@jwdconsulting.com
Date: August 5, 2008

Work completed this week:
-Worked with Kevin to start the intranet site construction
-Organized all the content files
-Started developing a file naming scheme for content files
-Continued work on “Ask the Expert” and User Requests features
-Met with preferred supplier
-Verified that their software would meet our needs
-Discovered the need for some customization

Work to complete next week:
-Continue work on intranet site construction
-Prepare draft contract for preferred supplier
-Develop new cost estimate for outsourced work

What’s going well and why:
The intranet site construction started well. The design was very clear and easy to follow.
Kevin really knows what he’s doing.

What’s not going well and why:
It is difficult to decide how to organize the templates and examples. Need more input from
senior consultants and clients.

Suggestions/Issues:
-Hold a special meeting to decide how to organize the templates and examples on the
intranet site.
-Get some sample contracts and help in negotiating with the preferred supplier.

Project changes:
I think we can stay on schedule, but it looks like we’ll need about $10,000 more for out-
sourcing. That’s doubling our budget in that area.

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 113

In addition to status reports, an important tool for monitoring and controlling
the project was using project management software. Each team member submit-
ted his or her actual hours worked on tasks each Friday afternoon by 4 p.m. via
the firm’s enterprise-wide project management software. They were using the
enterprise version of Microsoft Project 2007, so they could easily update their
task information via the Web. Erica worked with Jessie to analyze the informa-
tion, paying special attention to the critical path and earned value data. (See
Chapter 6 on Project Time Management for more information on critical path
analysis; Chapter 7 on Project Cost Management for a description of earned
value management; and Appendix A for more information on using Project 2007
to help control projects.) Erica wanted to finish the project on time, even if it
meant spending more money. Joe agreed with that approach, and approved the
additional funding Erica projected they would need based on the earned value
projections and the need to make up a little time on critical tasks.

Joe again emphasized the importance of the new system paying for itself
within a year. Erica was confident that they could exceed the projected financial
benefits, and she decided to begin capturing benefits as soon as the project team
began testing the system. When she was not working on this project, Erica was
managing JWD Consulting’s Project Management Office (PMO), and she could
already see how the intranet site would help her staff save time and make their
consultants more productive. One of her staff members wanted to move into
the consulting group, and she believed the PMO could continue to provide its
current services with one less person due to this new system—a benefit she had
not considered before. Several of the firm’s client contracts were based on per-
formance and not hours billed, so she was excited to start measuring the value
of the new intranet site to their consultants as well.

Project Closing

The closing process involves gaining stakeholder and customer acceptance of
the final products and services and bringing the project, or project phase, to an
orderly end. It includes verifying that all of the deliverables are complete, and
it often includes a final presentation. Even though many information technol-
ogy projects are canceled before completion, it is still important to formally
close any project and reflect on what can be learned to improve future projects.
As philosopher George Santayana said, “Those who cannot remember the past
are condemned to repeat it.”

It is also important to plan for and execute a smooth transition of the project
into the normal operations of the company. Most projects produce results that are
integrated into the existing organizational structure. For example, JWD
Consulting’s Project Management Intranet Site Project will require staff to support
the intranet site after it is operational. Erica did include support costs of $40,000
per year for the projected three-year life of the new system. She also created a
transition plan as part of the final report to provide for a smooth transition of the
system into the firm’s operations. The plan included a list of issues that had to be
resolved before the firm could put the new intranet site into production. For

114 C H A P T E R 3

example, Michael Chen would not be available to work on the intranet site after
the six-month project was complete, so they had to know who would support the
“Ask the Expert” feature and plan some time for Michael to work with him or her.

Table 3-13 lists the knowledge areas, processes, and outputs of project clos-
ing based on the PMBOK® Guide Third Edition. During the closing processes of
any project, project team members should take the time to develop appropriate
closing procedures, deliver the final product, service, or result of the project,
and update organizational process assets, such as project files and a lessons-
learned report. If the project team procured items during the project, they must
formally complete or close out all contracts. Templates related to project closing
are listed later in this chapter.

Erica and her team prepared a final report, final presentation, contract files, and
lessons-learned report in closing the project. Erica reviewed the confidential, indi-
vidual lessons-learned report from each team member and wrote one summary
lessons-learned report to include in the final documentation, part of which is pro-
vided in Table 3-14. Notice the bulleted items in the fourth question, such as the
importance of having a good kick-off meeting, working together to develop a team
contract, using project management software, and communicating well with the
project team and sponsor.

Table 3-14: Lessons-Learned Report (abbreviated)

Project Name: JWD Consulting Project Management Intranet Site Project
Project Sponsor: Joe Fleming
Project Manager: Erica Bell
Project Dates: May 2, 2008 – November 4, 2008
Final Budget: $150,000

1. Did the project meet scope, time, and cost goals?
We did meet scope and time goals, but we had to request an additional $10,000, which
the sponsor did approve.

2. What were the success criteria listed in the project scope statement?
Below is what we put in our project scope statement under project success criteria:
“Our goal is to complete this project within six months for no more than $140,000. The
project sponsor, Joe Fleming, has emphasized the importance of the project paying for
itself within one year after the intranet site is complete. To meet this financial goal, the
intranet site must have strong user input. We must also develop a method for capturing
the benefits while the intranet site is being developed and tested, and after it is rolled
out. If the project takes a little longer to complete or costs a little more than planned,
the firm will still view it as a success if it has a good payback and helps promote the
firm’s image as an excellent consulting organization.”

Table 3-13: Closing Processes and Output
KNOWLEDGE AREA PROCESS OUTPUTS
Project Integration Close project ! Administrative and contract closure procedures
Management ! Final product, service, or result

! Organizational process assets (updates)

Project Procurement Contract closure ! Closed contracts
Management ! Organizational process assets (updates)

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 115

Erica also had Joe sign a client acceptance form, one of the sample templates
on the new intranet site that the project team suggested all consultants use
when closing their projects.

Table 3-15 provides the table of contents for the final project report. The cover
page included the project title, date, and team member names. Notice the inclu-
sion of a transition plan and a plan to analyze the benefits of the system each
year in the final report. Also, notice that the final report includes attachments for
all the project management and product-related documents. Erica knew how
important it was to provide good final documentation on projects. The project
team produced a hard copy of the final documentation and an electronic copy to
store on the new intranet site for other consultants to use as desired.

Table 3-15: Final Project Report Table of Contents

1. Project Objectives
2. Summary of Project Results
3. Original and Actual Start and End Dates
4. Original and Actual Budget
5. Project Assessment (Why did you do this project? What did you produce? Was the

project a success? What went right and wrong on the project?)
6. Transition Plan

Table 3-14: Lessons-Learned Report (abbreviated) (continued)
3. Reflect on whether or not you met the project success criteria.

As stated above, the sponsor was not too concerned about going over budget as long as
the system would have a good payback period and help promote our firm’s image. We
have already documented some financial and image benefits of the new intranet site.
For example, we have decided that we can staff the PMO with one less person, resulting
in substantial cost savings. We have also received excellent feedback from several of our
clients about the new intranet site.

4. In terms of managing the project, what were the main lessons your team learned from

this project?

The main lessons we learned include the following:

! Having a good project sponsor was instrumental to project success. We ran into a
couple of difficult situations, and Joe was very creative in helping us solve problems.

! Teamwork was essential. It really helped to take time for everyone to get to know
each other at the kick-off meeting. It was also helpful to develop and follow a team
contract.

! Good planning paid off in execution. We spent a fair amount of time developing a
good project charter, scope statement, WBS, schedules, and so on. Everyone worked
together to develop these planning documents, and there was strong buy-in.

! Project management software was very helpful throughout the project.

5. Describe one example of what went right on this project.
6. Describe one example of what went wrong on this project.
7. What will you do differently on the next project based on your experience working on

this project?

116 C H A P T E R 3

Erica also organized a project closure luncheon for the project team right
after their final project presentation. She used the luncheon to share lessons
learned and celebrate a job well done!

As you can see, there are many documents that project teams prepare
throughout the life of a project. Many people use templates as a standard for-
mat for preparing those documents. Table 3-16 lists templates used in this text
for preparing the documents shown in this chapter and in later chapters. It lists
the template name, chapter number, process group(s) where you normally use
the template, application software used to create it, and the file name for the
template. You can download all of these files in one compressed file from the
companion Web site for this text.

Table 3-15: Final Project Report Table of Contents (continued)
7. Annual Project Benefits Measurement Approach
Attachments:
A. Project Management Documentation

! Business case
! Project charter
! Team contract
! Scope statement
! WBS and WBS dictionary
! Baseline and actual Gantt chart
! List of prioritized risks
! Milestone reports
! Status reports
! Contract files
! Lessons-learned reports
! Final presentation
! Client acceptance form

B. Product-Related Documentation
! Survey and results
! Summary of user inputs
! Intranet site content
! Intranet site design documents
! Test plans and reports
! Intranet site promotion information
! Intranet site roll-out information
! Project benefits measurement information

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 117

Table 3-16: Templates by Process Group Available on the Companion
Web Site

TEMPLATE NAME PROCESS CHAPTER(S) APPLICATION FILE NAME
GROUP WHERE USED SOFTWARE

Kickoff Meeting Initiating Appendix A Word kickoffmeeting

Business Case Initiating 3 Word business_case

Business Case Initiating 3, 4 Excel business_case_
Financial Analysis financials.xls

Payback Chart Initiating 4 Excel payback.xls

Weighted Decision Initiating 4, 12 Excel wtd_decision_
Matrix matrix.xls

Project Charter Initiating 3, 4, 5 Word charter

Team Contract Planning 3 Word team_contract

Scope Statement Planning 3, 4, 5 Word scope_
statement

Statement of Work Planning 12 Word statement_of_
work

Request for Proposal Planning 12 Word rfp_outline

Stakeholder Analysis Planning 4 Word stakeholder_
analysis

Software Project Planning 4 Word sw_project_mgt_
Management Plan plan

Work Breakdown Planning 3, 5, 6 Word wbs
Structure

Gantt Chart Planning, 3, 5, 6 Project Gantt_chart.mpp
Executing

Network Diagram Planning, 3, 6 Project network_
Executing diagram.mpp

Project Cost Estimate Planning 7 Excel cost_estimate.xls

Earned Value Monitoring and 7 Excel earned_value.xls
Data and Chart Controlling

Quality Executing 8 Word quality_assurance_
Assurance Plan plan

Pareto Chart Monitoring and 8 Excel pareto_chart.xls
Controlling

Project Organizational Planning, 9 PowerPoint project_org_
Chart Executing chart.ppt

Responsibility Planning, 9 Excel ram.xls
Assignment Matrix Executing

118 C H A P T E R 3

Table 3-16: Templates by Process Group Available on the Companion
Web Site (continued)

TEMPLATE NAME PROCESS CHAPTER(S) APPLICATION FILE NAME
GROUP WHERE USED SOFTWARE

Resource Histogram Planning, 9 Excel resource_
Executing histogram.xls

Communications Planning 10 Word comm_plan
Management Plan

Project Description Planning 10 Word project_desc_
(text) text

Project Description Planning 10 Project project_desc_
(Gantt chart) Gantt.mpp

Milestone Report Executing 3, 6 Word milestone_
report

Change Request Form Planning, 4 Word change_request

Monitoring and
Controlling

Status/Progress Report Monitoring and 3, 10 Word status_report
Controlling

Expectations Monitoring and 10 Word expectations
Management Matrix Controlling

Issue Log Monitoring and 10 Word issue_log
Controlling

Probability/Impact Planning, 11 PowerPoint prob_impact_
Matrix Executing, matrix.ppt

Monitoring and
Controlling

List of Prioritized Planning, 3, 11 Word list_of_risks
Risks Executing,

Monitoring and
Controlling

Risk Register Planning, 11 Excel risk_register.xls
Monitoring and
Controlling

Top 10 Risk Item Planning, 11 Excel top_10.xls
Tracking Monitoring and

Controlling

Breakeven/Sensitivity Planning 11 Excel breakeven.xls
Analysis

Client Acceptance Closing 10 Word client_
Form acceptance

Lessons-Learned Closing 3, 10 Word lessons_learned_
Report report

Final Project Closing 3, 10 Word final_
Documentation documentation

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 119

The project management process groups—initiating, planning, executing,
monitoring and controlling, and closing—provide a useful framework for
understanding project management. They apply to most projects (information
technology and non-information technology) and, along with the project man-
agement knowledge areas, help project managers see the big picture of manag-
ing a project in their particular organization.

CASE WRAP-UP

Erica Bell and her team finished the Project Management Intranet

Site Project on November 4, as planned in their project charter. They

did go over budget, however, but Joe had approved Erica’s request

for additional funds, primarily for purchasing external software and

customization. Like any project, they had a few challenges, but they

worked together as a team and used good project management to

meet their sponsor’s and users’ needs. They received positive initial

feedback from internal consultants and some of their clients on the

new intranet site. People were asking for templates, examples, and

expert advice even before the system was ready. About a year after

the project was completed, Erica worked with a member of the

Finance department to review the benefits of the new system. The

Project Management Office did lose one of its staff members, but it

did not request a replacement since the new system helped reduce

the PMO’s workload. This saved the firm about $70,000 a year for

the salary and benefits of that staff position. They also had data to

show that the firm saved more than $180,000 on contracts with

clients due to the new system, while they had projected just

$160,000. The firm was breaking even with the “Ask the Expert”

feature the first year, and Erica estimated that the system provided

$30,000 in additional profits the first year by generating new busi-

ness, not the $40,000 they had projected. However, savings from the

PMO staff position salary and the extra savings on contracts more

than made up for the $10,000 difference. Joe was proud of the proj-

ect team and the system they produced to help make JWD

Consulting a world-class organization.

120 C H A P T E R 3

C H A P T E R S U M M A R Y

Project management is often a number of interlinked processes. The five proj-
ect management process groups are initiating, planning, executing, monitoring
and controlling, and closing. These processes occur at varying levels of intensity
throughout each phase of a project, and specific outcomes are produced as a
result of each process. Normally the executing processes require the most
resources and time, followed by the planning processes.

Mapping the main activities of each project management process group into
the nine project management knowledge areas provides a big picture of what
activities are involved in project management.

Some organizations develop their own information technology project man-
agement methodologies, often using the standards found in the PMBOK® Guide
Second and Third Editions as a foundation. It is important to tailor project man-
agement methodologies to meet the organization’s particular needs. Popular
methodologies like RUP and Six Sigma include project management processes.

The JWD Consulting case study demonstrates how one organization man-
aged an information technology project from its initiation through its closure.
The case study provides several samples of outputs produced for initiating,
planning, executing, monitoring and controlling, and closing as follows:

! Business case
! Project charter
! Team contract
! Work breakdown structure
! Gantt chart
! List of prioritized risks
! Milestone report
! Status report
! Lessons-learned report
! Final project report

Later chapters in this text provide detailed information on creating these doc-
uments and using several of the tools and techniques described in this case study.

DISCUSSION QUESTIONS
1. Briefly describe what happens in each of the five project management

process groups (initiating, planning, executing, monitoring and control-
ling, and closing). On which process should team members spend the
most time? Why?

2. Which process group includes information from every single knowledge
area? Why?

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 121

3. Why do organizations need to tailor project management concepts, such
as those found in the PMBOK® Guide Third Edition, to create their own
methodologies?

4. What are some of the key outputs of each process group?

5. What are some of the typical challenges project teams face during each of
the five process groups?

EXERCISES
1. Study the WBS and Gantt charts provided in Figures 3-2 and 3-3. Enter

the WBS into Project 2007, indenting tasks as shown to create the WBS
hierarchy. Do not enter durations or dependencies. Print the resulting
Gantt chart. See the scope management section of Appendix A for help
using Project 2007.

2. Read the article by William Munroe regarding BlueCross BlueShield of
Michigan’s information technology project management methodology
(available on the companion Web site for this text under Chapter 3). Write
a two-page summary of the article, its key conclusions, and your opinion
of it. Do you think many other organizations could apply this methodol-
ogy, or does each organization need to create its own methodology?

3. Read the “ResNet Case Study” (available from the companion Web site for
this text under Chapter 3). This real case study about Northwest Airlines’
reservation system illustrates another application of the project manage-
ment process groups. Write a three-page paper summarizing the main
outputs produced during each project process group in this case. Also,
include your opinion of whether or not Peeter Kivestu was an effective
project manager.

4. JWD Consulting wrote a business case during project initiation. Review
the contents of this document (Table 3-3) and find another example of a
business case for a project. (Search online for “sample business cases” for
ideas.) Write a two-page paper comparing the contents of these docu-
ments. In addition, describe whether you think most projects should
include a business case before the project sponsors officially approve the
project.

5. Read an article about a recipient of PMI’s Project of the Year award, on
PMI’s Web site. Past winners include the Quartier International de
Montréal district revitalization project, Saudi Aramco Haradh Gas Plant,
and the Winter Olympics Salt Lake Organizing Committee. Write a one-
page paper summarizing the project, focusing on how the project man-
ager and team used good project management practices.

122 C H A P T E R 3

QUICK QUIZ
1. A is a series of actions directed toward a

particular result.
a. goal
b. process
c. plan
d. project

2. processes include coordinating people and other
resources to carry out the project plans and produce the products,
services, or results of the project or phase.
a. Initiating
b. Planning
c. Executing
d. Monitoring and controlling
e. Closing

3. Which process group normally requires the most resources and time?
a. Initiating
b. Planning
c. Executing
d. Monitoring and controlling
e. Closing

4. A work breakdown structure, project schedule, and cost estimates are
outputs of the process.
a. initiating
b. planning
c. executing
d. monitoring and controlling
e. closing

5. Which process group includes activities from each of the nine
knowledge areas?
a. Initiating
b. Planning
c. Executing
d. Monitoring and controlling
e. Closing

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 123

6. Initiating involves developing a project charter and preliminary project
scope statement, which are part of the project
management knowledge.
a. integration
b. scope
c. communications
d. risk

7. A describes how things should be done, and different
organizations often have different ways of doing things.
a. regulation
b. process
c. standard
d. methodology

8. involves measuring progress toward project objectives
and taking corrective actions.
a. Initiating
b. Planning
c. Executing
d. Monitoring and controlling
e. Closing

9. What type of report do project teams create to reflect on what went right
and what went wrong with the project?
a. lessons-learned report
b. status report
c. final project report
d. business case

10. Many people use to have a standard format for
preparing various project management documents.
a. methodologies
b. templates
c. project management software
d. standards

Quick Quiz Answers
1. b, 2. c, 3. c, 4. b, 5. b, 6. a, 7. d, 8. d, 9. a, 10. b

124 C H A P T E R 3

KEY TERMS
! closing processes — formalizing acceptance of the project or project phase

and ending it efficiently

! executing processes — coordinating people and other resources to carry out
the project plans and produce the products, services, or results of the project
or project phase

! initiating processes — defining and authorizing a project or project phase

! methodology — describes how things should be done

! monitoring and controlling processes — regularly measuring and monitoring
progress to ensure that the project team meets the project objectives

! planning processes — devising and maintaining a workable scheme to ensure
that the project addresses the organization’s needs

! process — a series of actions directed toward a particular result

! project management process groups — the progression of project activities
from initiation to planning, executing, monitoring and controlling, and closing

! Rational Unified Process (RUP) — an iterative software development process
that focuses on team productivity and delivers software best practices to all
team members

T H E P R O J E C T M A N A G E M E N T P R O C E S S G R O U P S : A C A S E S T U D Y 125