Solution Manual for Contemporary Project Management Plan-Driven and Agile Approaches, 5th Edition by

Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 3 Key Terms Consistent with Agile Practice ........................................................................................ 5 What’s New in This Chapter ............................................................................................................... 6 Teaching Strategies ............................................................................................................................. 6 Specific Suggestions for Teaching Project Management Online .................................................. 9 Lecture and Workshop Outline ...................................................................................................... 10

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

Purpose and Perspective of the Chapter The purpose of this chapter is to introduce fundamental concepts in project management.

This begins with the explanation of how the work of project management can be categorized by knowledge area and process groups, principles and domains. Further, the chapter describes how project success is determined, and how both plan-driven and adaptive approaches, such as Agile, are frequently used.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives:     

Define a project and project management in your own words, using characteristics that are common to most projects.

Describe major activities and deliverables at each project life cycle stage.

List and define the twelve principles and the eight performance domains of the project management body of knowledge (PMBOK® 7e).

Delineate measures of project success and failure, and reasons for both.

Identify project roles and distinguish key responsibilities for project team members.

Agile Objectives:    

Define the twelve Agile principles and the four Agile values from the Agile Manifesto.

Describe when and why Agile is sometimes a more useful approach.

Briefly define and describe “Be Agile” and “Do Agile.”

Describe the four Agile metrics for success (viability and value, predictability, quality, and happiness) in each phase of the project.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

Key Terms Consistent with PMI Standards and Guides project: A time-bound effort constrained by performance specifications, resources, and budget to create a unique product or service that adds value and meets desired outcomes. stakeholders: An individual, group, or organization that may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio. project management: The art and science of using knowledge, skills, tools, and techniques to meet stakeholder needs and expectations efficiently and effectively. soft skills: These include the ability to work in teams and with the teams, interpersonal skills, communication, conflict resolution, negotiation, and leadership. hard skills: These include proficiency in planning and other project management techniques, risk analysis, quality assurance, and control, scheduling, budgeting, change control, and project execution. functional manager: Someone with management authority over an organizational unit. project life cycle: The series of phases that a project goes through from its initiation to its closure. project management process group: Project management phases to structure projects and lead them from beginning to end: initiating, planning, executing, monitoring and control, and closing. initiating processes: Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase. planning processes: Those processes required to establish the scope of the project, refine objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve. executing processes: Those processes performed to complete the work defined in the project management plan to satisfy the project requirements. monitoring and controlling processes: Those processes required to track, review, and regulate the progress and performance of the project, identify any areas in which changes to the plan are required, and initiate the corresponding changes. closing processes: Those processes performed to formally complete or close the project, phase, or contract. integration management: Project integration management is the processes and activities needed to identify, define, combine, unify, and coordinate activities within the project management process groups.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

scope management: Project scope management is the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. schedule management: Project schedule management is the processes required to manage the timely completion of the project. cost management: Project cost management is the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so the project can be completed within the approved budget. quality management: Project quality management is the processes for incorporating the organization’s quality policy regarding planning, managing, and controlling project and product quality requirements in order to meet stakeholders’ expectations. resources management: Project resources management is the processes to identify, acquire, and manage the resources needed for the successful completion of the project. communications management: Project communications management is the processes required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and ultimate disposition of project information. risk management: Project risk management is the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project. procurement management: Project procurement management is the processes necessary to purchase or acquire products, services, or results needed from outside the project team. stakeholder management: Project stakeholder management is the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution. deliverable: Any unique and verifiable product, result, or capability to perform a service that is produced to complete a process, phase, or project. scope: The sum of the products, services, and results to be provided as a project. product scope: The features and functions that characterize a product, service, or result. project scope: The work performed to deliver a product, service, or result with the specified features and functions. quality: The degree to which a set of inherent characteristics fulfills requirements.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

sponsor: An individual or a group that provides resources and support for the project, program, or portfolio, and is accountable for enabling success. project management office (PMO): A management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. customer: A person or an organization that buys goods or services. steering or leadership team: A team or committee that decides on the priorities or order of business of an organization and manages the general course of its operations. project manager: The person assigned by the performing organization to lead the team that is responsible for achieving the project objectives. project team: The members of a project team that is responsible for achieving the project objectives. project charter: A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. work breakdown structure (WBS): A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. project schedule: An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources. project budget: The sum of work package cost estimates, contingency reserve, and management reserve. monitor and control project work: To track, review, and regulate the progress and performance of the project, identify any areas in which changes to the plan are required, and initiate the corresponding changes. close project or phase: To formally complete or close the project, phase, or contract. [return to top]

Key Terms Consistent with Agile Practice Agile: A project method using iterative and continual processes, guided by an empowered mindset described in the Agile Manifesto and elaborated by many sources.

Agile lifecycle: Iteration-based production of solutions including inception, construction, and transition phases.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

iterative process: A method to plan the entire project at only a high level at the start and plan portions to be done soon in detail, updating plans as more becomes known. product owner: The person who represents the client or customer and other stakeholders, prioritizing work and making timely decisions, enabling an Agile project team. scrum master: The person who facilitates and guides the team to improve performance and remove roadblocks so that the members can focus on their work. team member: A person who works on a project in cooperation with others to develop the solution for the stakeholder. emergent design: Emergent design is a design that is constructed as it evolves as opposed to the usual upfront process of design. With emergent design, a development organization starts delivering functionality and lets the design emerge. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition:  

The new PMBOK 7 and associated project management principles are introduced.

Agile concepts are described and integrated into the content to foster understanding of adaptive methods.

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Teaching Strategies 

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Each chapter starts with learning objectives stated in measurable form as shown above. All chapters will have core objectives, which we believe any student of project management, should master. Chapters also include Agile and/or technical objectives, which you can also use depending on what you wish to emphasize. If you start with slides that list the objectives, you can emphasize that the students need to be able to accomplish each. We find it helpful to paraphrase a few of them and pick one to ask the students why they think it is included.

Many students will not have read the first chapter before the first class. Mike’s introductory essay on how he successfully climbed Mount Aconcagua (the second highest of the Seven Summits after Mount Everest) whereas others died in the attempt is a great attention getter.

We believe in active learning, so we include at least one breakout session every hour. These are often preceded by an introduction of the material and we pose at least one question or framework for the students to follow. We find a few simple rules are fun for the students and encourage participation. Ask one person to record what the group discussed/decided. Ask a different person to be the group’s

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

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spokesperson—that way at least two people stay alert. Ask the spokesperson to state what they learned from the exercise and “ditto” does not count. That means they cannot take the easy way out and say another group took their idea. This encourages volunteers to report first and forces teams to think beyond the obvious lesson and think creatively. If there are points we especially want to emphasize, we will summarize by repeating the points (and crediting the groups who made them) or introducing them if no group mentioned them. The first example breakout session follows.

Once we briefly cover what a project is (students in discussion will provide examples) and why project management is important, we ask the students to work in groups of four or five with large paper or sections of a chalk or white board. We ask them to describe project success and reasons for each for about 10 minutes.

Alternatively, you can ask the students to describe project failure and the causes of it. Either way, you set the expectation that students will actively participate in every class. It also serves as the introduction to the need to develop both soft and hard skills.

Since some students enjoy software, we mention MS Project early. An easy way to do this is to have the students look at the inside front cover on the left to see what MS Project is used for and where it is covered in the book.

We like to cover the concept of project life cycles. It is easy to use a house-building project as an example since the walk-through to inspect the project result helps students envision the idea of an approval to pass from one stage to the next.

The increasing popularity of the Agile (adaptive or change-driven) approach to projects creates another opportunity for discussion. You can introduce the extremes of totally plan-driven versus totally adaptive project schedules and ask what type of projects might lend themselves to each and what are some of the advantages and disadvantages of each. This discussion can culminate with the idea that contemporary project management can use parts of both and that we will explore differences throughout the course. An Agile icon appears in the margin in many places in the text where either different methods and/or different terminology is used in agile versus plan-driven approaches. The corresponding text is in alternate color to call attention to it. There is also an agile appendix that lists all of the ways agile is emphasized differently than traditional project management and the chapter in which each point is covered in the text.

An introduction to PMI® is useful. It sets the stage for discussing accreditation, process groups, knowledge areas, and glossary terms. We take this opportunity to encourage students to become student members at a greatly reduced cost.

Several features of this text help a student to understand The Guide to the Project management Body of Knowledge, 7th ed. (PMBOK® Guide). This most current version of the guide is what students will need to completely understand if the wish to

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

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challenge a Project Management Professional (PMP) or Certified Associate in Project Management (CAPM) certification exam.

You can ask the students to look at the inside front cover of the book on the right side to see both how the PMBOK® Guide is structured and exactly where each process is covered in the text.

You can also have the students turn to the back inside cover for a flowchart of the processes in the order in which they should be performed. This PMBOK® Guide flowchart emphasizes primarily the things students will need to learn to create the various planning and control documents that will help them plan and manage a project. At the start of each chapter, we include the portion of the flowchart that is covered in that chapter. One slide is available in the PowerPoint deck of the overall flowchart and several smaller sections of the flowchart are available as slides also so when you introduce topics, you might also want to remind students visually where they are in the planning flow.

The PMBOK® Guide topics for each chapter are listed in the margins of the second chapter page.

Key terms consistent with the PMBOK® Guide and numerous other, more detailed PMI publications are listed immediately after the project summary.

At the end of each chapter, we include study suggestions for the CAPM and PMP exams for the topics covered in the chapter. We also include one assessment section is PMBOK® Guide questions. These questions are very similar to CAPM and PMP exam questions. Correct answers to each of these questions along with page references from both this text and the PMBOK® Guide appear in this IM. Finally, Appendix A starting on page 439, is a summary of study suggestions for anyone who wishes to take one of the certification exams. We have taught many exam preparation classes both for PMI and for private providers.

The Project Customer Tradeoff Matrix gives the opportunity to discuss how a project manager can make consistently better decisions by fully understanding the customer. It also is an early opportunity to discuss the challenges of honest, open communications and ethical challenges that can arise. We like to use two different projects in the same industry that made different trade-off decisions as an example.

For us it is easy since one of our universities built our on-campus arena with a strong emphasis on cost control and had to play one more season in our old facility while one of the professional teams in town placed so much emphasis on playing their entire season in their new stadium that their overrun cost more than our entire arena!

Project roles are briefly introduced here, but described in much greater detail in Chapter 3. You may wish to tell your students that even though they are studying to be project managers, it is important for them to understand other roles that need to be accomplished. Project managers spend a large percentage of their time communicating and these roles describe many of the people with whom they will

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

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communicate. One further point regarding project roles is that while all projects require planning and control work, when it is done, by whom, and the titles of the people involved often differ on agile vs. traditional projects and to make matters more confusing, often different departments in the same organization are more accepting of agile than others, so titles can vary dramatically.

We like to use real projects as teaching vehicles. The end of Chapter 1 is a good place to introduce the projects. See specific ideas in example project section below.

Appendix D lists many of the project planning and control documents that are in common use. You will likely want to assign a variety of these as assignments. If it is the first time you are using real projects for class, you might start with just the most basic documents, such as charter, communication plan, WBS, and schedule. As you gain more experience, you can assign quite a few of these. You can also use ones you do not assign as homework as in-class exercises so you can give the students very rapid feedback. Examples and instructions for all of these are in the text and grading suggestions appear in the appropriate chapter where each is covered.

Appendix C has answers to selected problems. In each case, at least one other structurally similar problem is in the text with the answers here in this IM, but not in the text.

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Specific Suggestions for Teaching Project Management Online  

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Don’t assume anything specifically, about students that they understand about the course and your instructions.

Spell out everything even if you repeat some of the instructions. Nothing should be ambiguous. Assignment instructions should be crystal clear. Like Murphy’s law, if something can be misunderstood, it will be. Online instructors should be aware of this.

Develop clear policies and processes for course delivery. To the extent possible, appearance, features, and delivery of the learning management system, such as Blackboard should be consistent and clear. While consistency in course delivery is important for quality assurance, each instructor can be creative within the defined boundaries to break monotony and to bring unique perspectives.

Get acknowledgement from students—confirmation that they understand course policies. Ask them to acknowledge in writing.

Assignment instructors should be clear and unambiguous. Wherever possible, grading rubric should be shared with the students. Evaluation criteria must be spelled out.

When assessing student submissions, provide a detailed individual feedback and wherever applicable, provide general feedback to the entire class. Feedback should be based on the assessment criteria defined for each assignment.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

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Student submissions reflect their understanding of the teaching material and learning modules. They help us to develop an understanding of the effectiveness of our teaching material. A critical analysis will give us ideas to improve pedagogy for future learning modules.

Establish a friendly and conversational tone in writing lessons, feedback, and other communications with students. In communicating with students through discussion forums or by email, informal and friendly tone will help in connecting with the students. A tone of positivity will help in encouraging students to focus on the subject. Teaching material should also provide intrinsic motivation. However, we must remember that most of the distance students are committed to studies and are motivated to do well.

Assessment criteria for each assignment must be linked to learning objectives of the course.

Make the distinction and a fine balance between “nice to know” and “necessary to know.”

Provide illustrations for complex and difficult concepts. Technology must be employed to illustrate these concepts (synchronous conference meetings, phone calls, videos, and one-to-one online sessions).

Share student submissions with the entire class (after obtaining permission from the student) as a good example.

Teams are put together that represent diversity in qualifications and experience.

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Lecture and Workshop Outline 1.1 What Is a Project?

A project is a new, time-bound effort that has a definite beginning and a definite ending with several related and/or interdependent tasks to create a unique product or service.

Each project has unique stakeholders people and groups who can impact the project or might be impacted by either the work or results of the project.

Project management is the art and science of using knowledge, skills, tools, and techniques efficiently and effectively to meet stakeholder needs and expectations.

Projects create a unique product or service that adds business value and will help customers enable users of these products and services to accomplish their desired goals.

1.2 History of Project Management All through history, projects have been conducted.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

Formal discipline starting in the 1950s – scheduling and control.

Recent years – more focus on communications, leadership, teamwork, and Agile Rapid growth and changes in the information technology and telecommunications industries fueled massive growth in the use of project management in the 1990s and early 2000s.

1.3 How Can Project Work Be Described?

Projects vs. operations Soft skills and hard skills Authority and responsibility Project life cycle Agile (adaptive) approach Initiating, planning, executing, closing 1.4 Understanding Projects Project Management Institute (PMI) Project Management Body of Knowledge (PMBOK®) Process groups Knowledge areas Principles PMI Talent Triangle Selecting and Prioritizing Projects Project Goals and Constraints Defining Project Success and Failure Using Microsoft Project to Help Plan and Measure Projects Types of Projects Industry – PMI Special Interest Groups (SIGs) Size When project manager is able to clearly determine scope Application – organizational change, quality improvement, R&D, Information © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

Systems (IS), construction Scalability of Project Tools 1.5 Project Roles Traditional Roles Executive Roles Sponsor, Customer, Steering Team, Project Management Office (PMO) Managerial Roles Project Manager, Functional Manager, Facilitator, Associate Roles Core Team Member, Subject Matter Expert (SME) Agile Roles Executive Roles Customer (product owner), Sponsor (product manager), Portfolio Team, Project Management/Scrum Office Managerial Roles Customer (product owner), Scrum Master, Functional Manager, Coach Associate Roles Team member 1.6 PMBOK 7e Guide Standard for Project Management-ANSI/PMI 99-001-2021 PMBOK Guide 7e 1.7 Agile Plan-Driven versus Agile Agile Manifesto Principles Agile Terms Used in an Introduction to Project Management 1.8 Overview of Book

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 1: Introduction to Project Management

PART 1: ORGANIZING AND INITIATING PROJECTS Chapter 1:

Introduction to Project Management

Chapter 2:

Project Selection and Prioritization

Chapter 3:

Chartering Projects

PART 2: LEADING PROJECTS Chapter 4:

Organizational Capability: Structure, Culture, and Roles

Chapter 5:

Leading and Managing Project Teams

Chapter 6:

Stakeholder Analysis and Communication Planning

PART 3: PLANNING PROJECTS Chapter 7:

Scope Planning

Chapter 8:

Scheduling Projects

Chapter 9:

Resourcing Projects

Chapter 10:

Budgeting Projects

Chapter 11:

Project Risk Planning

Chapter 12:

Project Quality Planning and Project Kick-Off

PART 4: PERFORMING PROJECTS Chapter 13:

Project Supply Chain Management

Chapter 14:

Determining Project Progress and Results

Chapter 15:

Finishing Projects and Realizing the Benefits

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 5 Lecture and Workshop Outline ......................................................................................................... 6 Additional Resources .......................................................................................................................... 9 Cengage Video Resources ......................................................................................................................... 9

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Purpose and Perspective of the Chapter The purpose of this chapter is to introduce concepts of strategic management with emphasis on the role of strategy in portfolio management and project selection. The chapter explains the relationship between strategy, portfolio, programs, and projects, and includes measures, metrics, and selection tools.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives      

Explain the strategic planning and portfolio management processes in your own words.

Describe selection, prioritization, and resource allocation of projects as strategic planning outgrowth.

Describe how to secure projects from a contractor’s viewpoint.

Describe value and delivery performance from a customer’s viewpoint as per PMBOK Guide 7e.

Compare strengths and weaknesses of the financial and scoring models for project selection.

Demonstrate selection and prioritization of projects using a scoring model and organizational priorities.

Agile Objective 

Describe the project selection process in an Agile environment.

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Key Terms Consistent with PMI Standards and Guides portfolio management: The centralized management of one or more portfolios to achieve strategic objectives. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

portfolio: Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. program: Related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. vision: A vision statement describes what a company desires to achieve in the long-run, generally in a time frame of five to ten years, or sometimes even longer. It depicts a vision of what the company will look like in the future. mission statement: Briefly describes what your organization does (primary business and customers), why you do it (purpose and core values), and how you do it (beliefs and culture). strategic objectives: A strategic objective is a high-level goal outlining what you want to achieve, with a clearly stated deadline. Strategic objectives populate your plan’s focus areas and are very specific. program management: The application of knowledge, skills, and principles to a program to achieve the program objectives and to obtain benefits and control not available by managing program components individually. cost-benefit analysis: A financial analysis tool used to determine the benefits provided by a project against its costs. subproject: A significant point or event subordinate to the project. statement of work: A narrative description of products, services, or results to be delivered by the project. business case: A documented economic feasibility study used to establish validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities. source selection criteria: A set of attributes desired by the purchaser that the seller is required to meet or exceed.

Key Terms Consistent with Agile Practice product roadmap: Visual showing high-level plans of products expected to be created during each release. release: An Agile release refers to the final delivery of a product after the completion of multiple iterations or sprints. A release can be either the initial build of an application or the addition of one or more features to an existing application.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

portfolio vision: A description of the future state of a portfolio’s value streams and solutions and describes how they will cooperate to achieve the portfolio’s objectives, and the broader aim of the enterprise. product: An artifact that is produced, is quantifiable, and can either be an end item in itself or a component item. product backlog: An ordered list of user-centric requirements that a team maintains for a product. solutions: Deliverables that are usable, desirable, and functional in helping customers achieve desired outcomes. epic: Large functionality or product, not defined enough to produce. eat your dessert first: Find and create the highest value capability for the customer first. minimum viable product (MVP): An early version of a product with just enough features to be usable by early customers who can then provide feedback for future product development. customer-driven value: The practice of establishing expectations based on customer needs. customer prioritization: The practice of giving priority to customer defined needs, effectively and consistently prioritizing the requirements. refine requirements: As a result of the iterative process of requirements definition, which may evolve after producing a minimum viable product. prioritized backlog: A practice required to organize the product backlog items to make the sequence of its development and deployment. risk-adjusted backlog: A sprint or release backlog containing risk response tasks for actionable risks. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition:   

Inclusion of PMBOK Guide 7e Domains impacting project selection Agile project selection Agile terms for project selection

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Teaching Strategies 

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Generally, the first thing we do in this chapter is ask the students about their example projects. Most of the student teams will not have met with their sponsors yet. We encourage them to do so as soon as possible. We ask them to tell us why the agency or organization selected this particular project. Often they are not aware.

We use that uncertainty as the basis for this chapter.

Remind the students that while the concepts behind many project management techniques are the same for all organizations, the mechanics of how they are performed can vary widely. Project selection, for example, can be very simple in a small organization or highly structured in a larger organization. Nevertheless, all organizations should use the idea of starting with strategic planning, identifying potential projects, using appropriate criteria, and choosing the set of projects that help the organization best to achieve its goals. In practice, however, some organizations decide one project at a time without looking at the big picture.

Tell the students that in many cases they may have limited involvement in project selection and prioritization decisions, but those decisions will have a major impact on their projects, so they need to understand both how the decisions were made and the rationale behind them.

One topic that lends itself to a quick breakout session is the SWOT analysis. We like to give a scenario for a local government organization, sports organization, or company that is in the news and challenge the students to brainstorm a few strengths, weaknesses, opportunities, and threats. We ask each team to report on one of those four areas. We then ask the students how this knowledge can help them decide which projects they want to pursue. This introduces the concept of multiple criteria decision-making.

Next, we introduce the mission statements for both our university and our college of business. We ask the students what they can tell us about the mission or vision statements for their present organizations (many of our MBA students work full time and many of our undergraduates work part time). We then discuss how this knowledge can be helpful in selecting projects that will help achieve the vision and mission. Often, students do not claim to know their organizational vision and mission. We encourage them to find those statements and try to understand how they should guide behavior.

Show Exhibits 2.5 through 2.8 to get students thinking about what a portfolio really means. We relate a project portfolio for an organization to a personal financial portfolio since most students have had finance and can remember diversifying.

Either to follow-on one of the earlier breakouts, or as a standalone breakout, ask students to brainstorm potential projects of each type shown in Exhibit 2.8 for a particular company or other organization. You can even use your own university.

Since our entrepreneurship majors need to take project management, we remind them that a vast majority of work in young organizations is project based.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

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Quickly present Exhibit 2.8 to emphasize that net present value (NPV) is the most commonly used financial model in project selection, but that other methods are available.

For another breakout, give a scenario faced by an organization (real or fictitious).

Ask students to first brainstorm potential criteria for selecting projects in that situation. The students then weight the projects on each criterion. When they report out, ask them to give the rationale behind their decisions.

Ask the students to use a scoring model to select and prioritize projects.

Demonstrate with Exhibits 2.10, 2.11 and 2.12. Exercise 1 or 2 could be used for this breakout. Alternatively, with some prior setup of generating several possible projects, a continuation of the scenario of the local organization described in the previous bullet could be used to add authenticity. Yet another alternative is to have the students in groups select a type of car to buy. They will need to decide on the selection criteria first.

We like to point out Exhibit 2.13 (Alternative Breaks Project Site Selection).

Emphasize both how this is an example of selecting projects based upon multiple criteria and that we will have numerous places throughout the course where we will demonstrate points with this same integrated project.

If your course emphasis is on preparing students for the PMP and/or CAPM exam, be sure to emphasize the study tips.

You might choose to use either Suburban Homes Construction Project (to create a scoring model to select from the six alternatives) and/or Casa de Paz Development Project (to create an elevator pitch) as in-class workshops or homework assignments.

[return to top]

Lecture and Workshop Outline 2.1 Strategic Planning Process The company’s leadership performs strategic planning to set direction.

Strategic Analysis Internal and external analysis using SWOT. Guiding Principles Vision (preferred future state) and mission (what we stand for and how we will operate) statements, perhaps purpose and values also.

Mission Statement Strategic Objectives

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Annual goals to help achieve vision and mission.

Flow-Down Objectives In larger organizations an expansion on strategic objectives.

2.2 Define Portfolio Management Since projects are investments, we must ensure the best set of projects is selected.

Portfolios A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

Programs A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

Projects and Subprojects A smaller portion of the overall project created when a project is subdivided into more manageable components or pieces.

Assessing an Organization’s Ability to Perform Projects Understanding the type and amount of projects the organization can successfully perform.

Identify Potential Projects Systematically and entrepreneurially by everyone in the organization.

Methods for Project Selection Based upon organizational priorities, including financial and other considerations.

Using a Cost-Benefit Analysis Model to Select Projects Comparing expected project costs with benefits often by using net present value analysis.

Using a Scoring Model to Select Projects Used when multiple criteria such as timing, risk, and resource needs are important in selection decisions.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Prioritizing Projects Once selected, determining when each project will start and how conflicts will be resolved.

Resourcing Projects After the priorities of each project has been determined, leaders should start assigning resources from the highest priority project down until resource availability limits additional projects.

2.3 Perform Portfolio Management Assessing an Organization’s ability to perform projects: Do we have the right skills and technical knowledge?

Identifying Potential Projects: Capitalizing upon a strategic opportunity or technological advance. Project may also serve a social need, environmental consideration, customer request, or legal requirement.

Methods for selecting projects: Financial and scoring models Using a Cost-Benefit Analysis Model to Select Projects: Net Present Value (NPV), Benefit-Cost Ratio (BCR), Internal Rate of Return (IRR), Payback Period (PP) Disadvantages of Each Method Using a Scoring Model to Select Projects: Identifying Potential Criteria, Determining Mandatory Criteria, Weighting Criteria, Evaluating Projects Based on Criteria, Sensitivity Analysis.

Prioritizing Projects Resourcing Projects 2.4 Securing Projects Client company perspective of finding contractors to perform and contractor company perspective of finding projects to perform.

Identify Potential Project Opportunities Contractor companies use many methods to uncover possible projects.

Determine Which Opportunities to Pursue Decide whether to pursue all projects or only select projects.

Prepare and Submit Project Proposal

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 2: Project Selection and Prioritization

Proposals often include technical, management, and financial considerations.

Negotiate to Secure the Project Both parties need to agree to terms that make sense.

2.5 PMBOK Guide 7: Domains Impacting Project Selection Stakeholders Team Development Approach Planning Uncertainty 2.6 Agile Project Selection Agile Terms Used in Project Selection [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos:

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From the Author - Selecting Projects with a Scoring Model

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 4 Lecture and Workshop Outline ......................................................................................................... 7 Additional Resources ....................................................................................................................... 11 Cengage Video Resources ....................................................................................................................... 11

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

Purpose and Perspective of the Chapter The purpose of this chapter is to describe the project charter including its role as a form of contract as well as documenting a common understanding of project goals.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives:    

Describe a project charter and its critical role to project success.

List the various elements of a charter and the purpose of each element.

Discuss with the project sponsor and work with the team to develop a realistic and achievable project charter.

Initialize a project in Microsoft Project and set up a milestone schedule.

Agile Objective  

Discuss differences between an Agile charter and a predictive project charter.

Create an Agile project charter with a vision statement and roadmap.

[return to top]

Key Terms Consistent with PMI Standards and Guides project charter: A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. requirements: A condition or capability that is necessary to be present in a product, service, or result to satisfy a business need. scope creep: The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

milestone schedule: A type of schedule that presents milestones with planned dates. acceptance criteria: A set of conditions that the software must meet in order to satisfy the customer. risk: An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. assumptions: A factor in the planning process considered to be true, real, or certain, without proof or demonstration. constraint: A factor that limits the options for managing a project, program, portfolio, or process. resources: People, parts, equipment, expendables (etc.) needed to complete a project. lessons learned: The knowledge gained during a project which shows how project events were addressed or should be addressed in the future for the purpose of improving future performance. assumptions log: A collection of the factors in the planning process considered to be true, real, or certain, without proof or demonstration. lessons learned register: A repository of the knowledge gained during a project which shows how project events were addressed or should be addressed in the future for the purpose of improving future performance. [return to top]

Key Terms Consistent with Agile Practice commit to work: Team promises how much they will accomplish in timebox. timebox: A defined number of hours or days to complete an agreed-upon amount of work. product vision: Description of customer satisfaction and alignment with business objectives at an initially high level. sprint (aka iteration): Short time period when team commits to creating specific deliverables. defer decisions: By making decisions as late as possible, teams have better information. sustainable pace: Amount of work team can consistently produce well. commitment: A practice where the team agrees to complete the work in a specified period. definition of done: Agreement on exactly how the Product Owner (PO) will judge the deliverables produced.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

share knowledge: Deliberatively capture and share tacit knowledge. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition:  

PMBOK Guide 7e Domains Relating to the Project Charter Agile Projects and Charters

[return to top]

Teaching Strategies 

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This is the first chapter with a great deal of technique for the student to learn. We start by discussing what charters are and why they are important, and then, rapidly turn our attention to how charters are constructed. We emphasize that charters are like informal contracts. Like contracts, they set expectations for behavior and can be modified if both parties agree and if there is consideration for both parties. Unlike a formal contract, they have no fine print and people commit to the spirit of the project, not the letter of a formal contract.

We prefer to teach this project with students creating charters for new and real projects. Student teams work on one project each for the duration of the semester.

At the end of the term, we like to get a panel of PMPs from the local PMI chapter to judge all of the student deliverables. This gives the students “real world” feedback on their documents.

You can have breakout sessions for some or all of the sections of a charter. We generally try to have students spend at least a bit of time on most of the sections.

We tell them that they will not have time to really polish each section in class, but we want them to get a feel for each.

One interesting variation on having the students draft charter sections is to then have one student team present that section to another student team who are roleplaying as sponsor and other stakeholders. Encourage them to ask those questions that they feel some of the stakeholders may ask. This helps the students visualize the different expectations of various stakeholders.

Another variation is to have a student team present the section they have been composing and then to ask a student in another group (we suggest you ask a specific student, rather than ask for volunteers at this point) to paraphrase what the first student said. We make the point that if the second student could paraphrase it well, the team was probably getting close on their description. On the other hand, if the student could not describe it very well, the team still needs to work on their clarity. This is a good, low stress way for students to understand how clear they are.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

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We make sure each team gets a chance to present at least once with a couple of teams presenting each charter section.

We also like to have the students turn in a draft of their charters for our suggestions without a grade. We give them lots of specific suggestions. The revised charters are often quite good, but not always.

We post copies of several charters from previous semesters on Blackboard. We encourage the students to look at several and choose the parts of each that they feel they can adapt to their project. We warn them that none of the examples is perfect in every way, so they need to be thoughtful in what they emulate. This may be difficult to do the first time you teach, so encourage the students to look at the partial examples within the chapter and the full example at the end.

We teach scope overview and business case together. Many student teams will get the two mixed up. By clearly stating what and why as two different sections, students really develop a better understanding of the project. The person whose project it is (if it is a student project; otherwise, the person who seems to know most about the project) will start to tell about the project. One person will serve as scribe writing down anything that sounds as if it might be important. Each of the other team members should ask questions about the project and make sure the scribe captures any idea that may be of importance. If in doubt, capture the idea. When we do this in class, we usually continue for 10 minutes or so until a flip chart is filled with ideas.

Then, we ask the scribe to use two different colors of markers and mark any idea that sounds like a “what” in one color and any idea that sounds like a “why” in another color.

Next, we subdivide into two smaller teams with each team taking the ideas of what or why and drafting a statement of perhaps two to four sentences. Then they show their statements to each other to make sure they fit together. Finally, one person from the team presents the two statements, in their own words and not necessarily verbatim, to the rest of the class. At that point, as the instructors, we turn to someone randomly in another group and ask them to paraphrase what was just said. If they understood the majority of what was said, we tell the team they are close. If not, we tell them they need to clarify. We also like to add a few points about what the team did well and where they can improve.

The milestone schedule and acceptance criteria are much more powerful together than they are individually. The six-step format works well because if students start at the beginning and try to generate milestones before they know the final point, they may end up using too much detail. The detail will come later in the planning stage. Some students have a hard time understanding that the stakeholder is the person who judges the acceptance criteria, not the person who creates the deliverable. We remind students of the old suggestion that a trial attorney should know the answer to a question before asking it. By the same token, a project

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

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manager should know if a stakeholder will like a deliverable before submitting it because he/she understands how the deliverable will be judged.

When creating the milestone schedule, it is helpful to tell the students the project they are planning may be part of something larger like in Exhibit 3.6. If so, the second step in the six-step process is to identify both the ultimate goal to be achieved someday and the interim future state when the project is complete.

Remind the students of rolling wave planning—we can see the first wave on a beach clearly but can only see the second one when we can see over the top of the first one. Planning a project that is part of something larger is like studying the first wave with expectations that we will then study the next wave when we can. To that end, the last deliverable in the first phase of a multi-phase project is sometimes a rough plan for the next wave.

Risks are a fun part of charters to teach since most students enjoy brainstorming.

One key is to get the student group (and not just an individual) to rate each risk according to both probability of occurrence and impact if it happens. Tell the students the diagonal line is used to separate the major risks that will each have a contingency plan from all other risks that we will just keep watching. Many students tend to rate the majority of risks as major risks. However, they often reconsider when they discover each major risk needs one or more contingency plan. Each contingency plan should be designed to either reduce the probability of occurrence or impact. It is also helpful to tell the students the line represents the risk tolerance level of their sponsor and/or other key decision-makers. If their sponsor is willing to accept quite a bit of risk, the line can be rather high—and if the sponsor wants little risk the line would be lower. Asking the sponsor about their risk tolerance is good practice. The goal of risk management is not to eliminate all risk as that would be too expensive—it is to reduce risk to a level acceptable to the sponsor.

Resources needed estimates will vary widely from one organization to another. In some organizations, a budget is critical while in others staff time is the big issue.

Sometimes space, key machines, or other resources that are in scarce supply are important. Note how this is shown differently in Exhibit 3.10 and in the Project Management in Action Feature at chapter end.

We like to tell students that stakeholder lists are vital since many projects have communication lapses with various stakeholders that affect project success. The students will often not list much in this section. That is acceptable since the stakeholder identification and prioritization will be expanded in the following chapter and that will be essential for developing the project communication plan.

The key is to get the students to start thinking about the project stakeholders.

Lessons learned tend to be easy with MBA students since many have been on at least one project that has experienced difficulties. Intuitively students understand the idea of learning from both successes and failures. However, when you ask them to actually list specific lessons, many will give very general suggestions. These are

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

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better than none, but try to get them to be specific. Remember, one starter list of lessons learned are in Exhibit 15.4 and a somewhat longer one is in the preface section of this instructor’s manual.

If the students are planning a project for an organization that is not very savvy concerning projects, the sponsor may be tempted to just say OK. We try to head that off proactively by having the sponsors attend class early in the term and laying out common expectations. One of those expectations is that the sponsors will ask many questions when the students present the charters. The questions can be both for clarification and for negotiating changes.

Point out that Exhibit 3.6 is an example of using a milestone schedule for the Alternative Breaks Project. There is no detail developed yet, but we start the scheduling process at a high level.

This chapter has a detailed introduction to MS Project. Depending on the time available, you can just do a quick show and explain with either MS Project or Power Point slides for this introduction or you can go to a computer lab. We prefer to do the show and explain now and go a couple of times to the lab later.

[return to top]

Lecture and Workshop Outline 3.1 What is a Project Charter?

A project charter is like an informal contract between the project team and the sponsor.

3.2 Why is a Project Charter Used?

The project charter is used to authorize PROJECT MANAGER to proceed, help develop common understanding, help team and sponsor to commit, and screen out poor projects.

3.3 When is a Charter Needed?

A question often asked is if an initiative is large enough to warrant a charter. Exhibit 3.2 may prove useful in making that decision and if a full charter or an abbreviated mini-charter will be enough.

3.4 Typical Elements in a Project Charter While charters in practice vary widely, the following sections are found in many charters. Most are kept quite short for easy reading. 

Title A meaningful title helps people understand the project quickly.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

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Scope Overview The “what” of the project. The project in a nutshell: what needs to be delivered and what work is involved in creating it.

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Business Case The “why” of the project. How the project will benefit the organization – how it supports the organization’s strategy.

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Background Optional. More details under business case if needed.

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Milestone Schedule with Acceptance Criteria Powerful visual summary of high-level schedule combined with how key stakeholder will evaluate progress at each point.

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Risks, Assumptions, and Constraints Risks are uncertain events, assumptions are factors believed to be true, and constraints are limitations. Each can influence the project.

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Resource Estimates Preliminary project budget or at least pre-approval to cover minor expenses, plus estimates for staff time and any resource that is in short supply.

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Stakeholder List Table with stakeholders identified along with what each cares about.

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Team Operating Principles Guidelines to enhance team functioning. Often include meetings, decisionmaking, accomplishing work, and showing respect.

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Lessons Learned How the current project will be better because of learning on previous project(s).

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Signatures and Commitment Public and personal commitment to the project.

3.5 Constructing a Project Charter Ideally sponsor and project team work together. In practice, often the team prepares the first draft and then discusses with sponsor.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

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Scope Overview and Business Case Instructions This is the “elevator speech” – a half minute summary of the project. Ideally, sponsor provides a rough draft or at least input. Each of these sections should be about two to four sentences.

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Background Instructions If team wants more detail than four sentences in either of the previous sections, the extra details can be included in this optional section.

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Milestone Schedule with Acceptance Criteria Instructions Can use a table with four columns, one each for milestones; dates; stakeholder (who will judge); and acceptance criteria. Six-step process includes describing current situation, describing desired end state (along with ultimate goal if project is the part of something bigger), describing end state stakeholder and acceptance criteria, determining milestones, identifying stakeholder and acceptance criteria for each milestone, and finally determining expected completion dates for each milestone.

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Uncertainty Instructions This section can vary. At a minimum, brainstorming is done about risks and one risk is noted per Post-It® Note, determining by group consensus the likelihood and the impact of each risk, and creating contingency plans and assigning ownership for each major risk.

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Resource Needed Instructions Listing any preliminary budget or authorization to spend minor amounts of money without further approval and estimates for staff time and other limited resources.

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Stakeholder List Instructions A two-column table is created listing stakeholders and the interest each has in the project. If the list is long, a sponsor may wish for the team to begin prioritizing the stakeholders now rather than wait until it is covered in the next chapter. A simple prioritization at this point is just primary stakeholders and all other stakeholders.

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Team Operating Principles Instructions Either existing team principles are discussed or new ones are formulated.

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Lessons Learned Instructions

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

Useful practices are identified to copy or tailor from previous projects and/or less useful practices to be avoided. 

Signatures and Commitment Instructions Signature blocks are created to be signed after ratifying charter.

3.6 Ratifying the Project Charter Project manager and team present draft charter to sponsor (and sometimes team of executives). After interactive discussion, often leading to adjustments, ideally everyone is satisfied and sponsor, project manager, and core team sign charter. Everyone feels committed to the project.

3.7 PMBOK Guide 7e Domains: Stakeholders Team Development approach and lifecycle Planning Measurement Uncertainty 3.8 Agile Projects and Charters Agile Terms Used in Chartering Projects 3.9 Starting a Project Using Microsoft Project 2013 MS Project 2016 Introduction This section tells where MS Project is presented in the text and what some of the major capabilities include.

Setting up Your First Project Define Your Project Create a Milestone Schedule [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 3: Chartering Projects

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Constructing Scope Overview and Business Case o From the Author - Create Milestone Schedule with Acceptance Criteria o From the Author - Initiating Risk Management in a Charter o Project 2016 Tutorial Video - Introduction to Microsoft Project 2016

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 4: Organizational Capability: Structure, Culture, and Roles

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 4: Organizational Capability: Structure, Culture, and Roles

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 3 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 4 Lecture and Workshop Outline ......................................................................................................... 6

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 4: Organizational Capability: Structure, Culture, and Roles

Purpose and Perspective of the Chapter The purpose of this chapter is to describe organizational structures as well as lifecycle governance approaches for project management. Ethical and professional standards as well as their importance to culture and management of the organization are introduced.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives:    

    

Compare and contrast the advantages and disadvantages of the functional, project, strong matrix, balanced matrix, and weak matrix structures of an organization.

Describe how each organization’s structure operates and when to use each structure.

Relate how an organization’s structure influences the implementation of its strategic plan.

Describe organizational culture elements that are helpful in planning and managing projects and demonstrate how to overcome organizational culture elements that hinder project success.

Compare different project life cycle models and distinguish when each is appropriate.

Describe how to tailor your development approach according to PMBOK Guide 7e.

Describe the duties, motivations, and challenges of the executive, managerial, and team roles in projects.

Explain ethical behavior that is consistent with PMI’s Code of Ethics and Professional Conduct in a project situation.

Predict the impact of organizational structure and associated culture on individual and team behaviors and their performance.

Agile Objectives 

Define Agile in your own words.

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   

Describe situations in which the Agile approach may be better than the plan-driven approach.

Describe the iteration-based and continuous Agile project life cycle models.

Contrast plan-driven and Agile approaches in project management.

Describe typical primary and additional team roles and responsibilities on Agile projects.

[return to top]

Key Terms Consistent with PMI Standards and Guides functional organization: An organizational structure in which staff is grouped by areas of specialization and the project manager has limited authority to assign work and apply resources. projectized organization: An organizational structure in which the project manager has full authority to assign work and apply resources. co-location: Placing multiple resources in a single location. matrix organization: An organizational structure in which the project manager shares authority with the functional manager temporarily to assign work and apply resources. agile: A term used to describe a mindset of values and principles as set forth in the Agile Manifesto. milestone: A significant point or event in a project, program, or portfolio.

Key Terms Consistent with Agile Practice empiricism: Work in a fact-based, experienced-based manner. experimentation: Encourage individuals and teams to try, perhaps fail, and share lessons. product increment: The deliverables created and accepted during a sprint. small release: Provide tested, working product often to deploy to users. duration: The time-boxed length of sprints, such as one or two weeks. stakeholder vision: Part of charter in which initial scope, technology, risk, and so on are agreed upon. proven approach: Milestone early in planning and execution when approach is verified to reduce the risk. continued viability: Milestone(s) in planning and execution to ensure a team is making progress.

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production-ready: Milestone at end of planning and executing when a product is tested and complete, and users are capable of accepting and effectively using it. hybrid: Approach that combines Agile and plan-driven or two different Agile approaches, such as lean and scrum. lean (aka Kanban) lifecycle: Continuous workflow with highly visible information. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition:    

PMBOK Guide 7e: Domains impacting organizational structure and culture including Team, Development Approach and Lifecycle, Project Work, and Tailoring.

Agile Projects and Organizational Capability Agile Terms Used in Organizational Capability Agile Manifesto Principles

[return to top]

Teaching Strategies  







Tell the students this chapter is about understanding the various ways in which an organization is capable of handling projects.

When covering organizational structures you can either have the slides describing the structures one by one or have the first slide showing only the first of the structures. With each structure, we like to ask students how many of them work in that type of organization. Many will say functional, some will say matrix, very few will say project. Have the students offer examples of advantages or disadvantages from their experience.

It’s good practice to have a short breakout regarding organizational culture. One possibility is to have student teams identify specific (real or made up) examples to demonstrate each of the four culture types. You can assign one type per team and give them a very short time—such as 5 minutes to develop their example.

Alternatively, you could give them 10 minutes and ask each team to create an example of every one of the four types.

A different type of breakout is to assign one of the four types of cultures (power, role, task, or personal) to each student team, give them a scenario, and ask how the organization is likely to respond. A variation of this is to give each team a primary culture that the organization mostly uses and a secondary one they sometimes use and see how the students feel the organization would respond to various situations.

We like to go to the PMI website to look at their Code of Ethics and Professional Conduct. You can pull it up at http://www.pmi.org/PDF/ap_pmicodeofethics.pdf.

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



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We generally paraphrase several sections and ask the students why each is important. MBA students often have a few more answers than undergraduates at this point, but all should have some. We supplement when important points are not brought up by the students.

Alternatively, you can assign one of the code values of responsibility, respect, fairness, and honesty to each student in a group asking the person to start a conversation regarding how a project manager could use the assigned value to accomplish the processes of one of the knowledge areas.

Ask students what are the company values that exist where they work. Many often cannot say, so we encourage them to find out. This is a good opportunity to point out that if they do not understand the company values, it is hard to practice them!

We spend a few minutes on project life cycles. Primarily we focus on the generic life cycle model, but depending on the students’ backgrounds, we may spend more time on one of the industry-specific models. We like to talk about how the charter (Chapter 3) is the culmination of selecting and initiating, all the planning chapters (5– 11) that occur before kickoff, how customers want a demonstration that the project deliverables will work at the end of the executing stage (talking about a house walkthrough before closing works well here), how we will create transition plans at the end since we want to have capable, satisfied customers, and how leading organizations measure project benefits after the deliverables have been used for weeks or months. This is a good time to remind students that projects are investments and executives may want to verify that the project delivered the benefits it was selected to create.

A recent trend in project management is use of agile. This is a good time to provide an extended introduction to agile. Exhibit 4.12 illustrates the idea of agile. We like to describe briefly how agile often plans quick “sprints”, executes that portion of the work, and then plans the next sprint. This leads to a discussion of rolling wave planning.

Remind students that we cover all project roles since they will be more effective project managers when they understand everyone’s responsibilities. Also, many students will be team members before they become project managers.

Another breakout we enjoy asks the students how they will help their project’s sponsor understand and perform his or her stage specific behaviors. Since the behaviors are grouped by project life cycle stage, we often ask each student team to tackle one stage and then report to the class as a whole. Having teams attempt to operationalize a few behaviors seems to be making better use of teaching time than trying to lecture each in turn. This also reinforces the life cycle (stage gate) approach that is so common in project management these days.

When we cover the Project Management Office (PMO)/Chief Projects Officer (CPO) role, we remind them that capturing and using lessons learned prevents every team from having to learn the same lessons from scratch. A starter set of lessons learned

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





you may find useful is on page 429. This set is by no means comprehensive and other groups may organize the lessons differently, but it can be a useful start.

We remind them that is why we have copies of previous project team deliverables on Blackboard (this is a good idea for you to save from one semester to the next) and why we insist that lessons learned are explicitly stated in a charter. Remember, a two-page starter set of lessons learned are included in the preface section of this instructor’s manual.

Project manager behaviors, skills, and judgment calls are another good place to have a short breakout session. Give each team a limited number of issues and ask them to describe specific behaviors (real if possible, fictitious if necessary) to demonstrate each. Good examples of how each is positively performed and also poor examples in which a behavior is not performed or is performed poorly are useful here. Get the students to describe the impact each has (or might have) on a project.

If there are a few minutes left, ask the students to turn to the Project Management in Action feature at the chapter end and ask how the role definitions at the example company are similar to and different from those at their own companies.

[return to top]

Lecture and Workshop Outline 4.1 Types of Organizational Structures Companies can choose how to organize themselves with respect to work assignment, reporting relationships, and decision-making responsibility.

Functional Traditional approach with clear lines of authority according to type of work.

Advantages: “one boss”; all work in a discipline reports to same person; job for worker when project is done; knowledge is retained.

Disadvantages: slow communication; technically challenging if multiple disciplines are needed.

Projectized Opposite of functional – project manager has full authority; no departments.

Advantages: “one boss”; fast communication and decision-making; project identity; effective integration on project.

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Disadvantages: potential for idle time, prioritizing project norms and culture over that of the parent company, and/or failing to keep up with discipline-specific competencies.

Matrix Intermediate strategy; project and functional managers share responsibility.

Advantages: Shared resources; cooperation; high-quality decisions; knowledge is retained; effective integration on project; flexible.

Disadvantages: “two bosses”; slow decision-making; conflict; meetings.

A matrix can be weak (with the project manger having little decision-making authority), balanced, or strong 4.2 Organizational Culture and Its Impact on Projects Formal and informal practices and values of parent organization impact projects.

Project managers need to understand the organizational culture.

Culture of the Parent Organization Types of Power Organizations can exert power through motivators of power, role, task, or personal cultures. Each impacts projects.

Project Cultural Norms Impacted by parent organization’s culture, influenced by sponsor and project manager. An ethical culture should define how people should act and encourage them to actually act that way – especially in challenging circumstances.

4.3 Project Life Cycles A project life cycle model guides project planning and execution.

Generic project life cycle Selecting & Initiating, Planning, Executing, Closing & Realizing Benefits Define-Measure-Analyze-Improve-Control (DMAIC) Model For improvement projects.

Research and Development (R&D) Project Life Cycle Model Unique demands of R&D – varies by industry Construction Project Life Cycle Model

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 4: Organizational Capability: Structure, Culture, and Roles

For major construction projects.

Agile Project envisioning, requirements gathering, multiple sprints, production release 4.4 Traditional Project Executive Roles Project managers tend to be more successful if they understand all roles involved in projects.

Steering Team Overall priority setting, project selection and prioritization, sponsor selection, general guidance, encouragement.

Sponsor Financial and decision-making authority, behaviors change with demands or project stage, for example, very hands-on during initiating, less so later.

Customer Represented by and works with sponsor and project manager to ensure clear requirements and control.

CPO/PMO Keeper of project management system within parent organization.

4.5 Traditional Project Management Roles Project managers work effectively when they understand the four management level roles.

Functional Manager Department heads who often control resources and make many decisions.

Project Manager Responsible for delivering expected project results on time and on budget. Flexible, facilitating type leader who spends much time communicating and must exhibit integrity and judgment.

Facilitator Optional role to assist in process on some complex and/or controversial projects.

4.6 Traditional Project Team Roles

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Associate level roles Core Team Members On project entire duration when possible, make decisions, carry out tasks, and supervise subject matter experts.

Subject Matter Experts (SME) Specific and temporary help as needed.

4.7 PMBOK Guide 7e PMBOK Guide 7e Domains Impacting Chapter 4: Team Development Approach and Lifecycle Project Work Tailoring (Additional Sections of PMBOK Guide 7e) 4.8 Agile Projects and Organizational Capability Agile is a form of adaptive or change-driven project management that largely reacts to what has happened I the early or previous stages of a project rather than planning everything in detail from the start.

What Is Agile?

Why Use Agile?

What Is an Agile Mindset?

What Is Needed for Agile to Be Successful?

Experienced and motivated team members Commitment of product owner or customer Trust What Is an Agile Project Lifecycle?

First iteration often determines product to be built and prioritizes work for the next iteration.

How to continue Agile project Use four types of meetings:

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Iteration planning meetings—project team plans and commits to what it will deliver in the next iteration Daily stand-up meetings—review yesterday’s accomplishments, plan for current day, and discuss any issues Demonstration meetings—shows completed, usable product Retrospective meetings—held at end of each iteration with goal of improving work processes What Are the Key Roles in Agile Projects?

Customer representative (a.k.a. product owner)—similar to sponsor on a traditional project Scrum master—facilitates and leads; similar to but more empowering than traditional project manager Team members—full-time, co-located, self-governing [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Table of Contents

Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 3 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 4 Lecture and Workshop Outline ......................................................................................................... 6

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Purpose and Perspective of the Chapter

The purpose of this chapter is to provide a comprehensive view of how project teams are acquired, developed, and led within both the plan-driven as well as Agile project teams.

Cengage Supplements

The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives

The following objectives are addressed in this chapter: Core Objectives        

Discuss stages of team development and strategies to move teams through the project life cycle.

Describe characteristics of a high-performing project team.

Compare project team decision-making methods and the circumstances in which each is likely to be most effective.

Describe collaborative leadership, empathy, and relationship building in teams.

Explore ways to utilize the project team relationships and ground rules to improve them.

Discuss types of power and determine when each type is appropriate for the project manager.

Describe typical sources of project conflicts and the steps in a conflict-resolution process, strategies for managing conflict, and steps in a negotiation process.

Summarize ways to develop high-performance traditional and virtual teams.

Agile Objectives   

Describe characteristics, composition, and governing principles of Agile teams.

Identify key tenets of Agile leadership.

Discuss pros and cons of transformational, servant, and developmental leadership for Agile projects and decide the one that is best suited to your Agile project.

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Key Terms Consistent with PMI Standards and Guides management: The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. leadership: The influencing process of leaders and followers to achieve organizational objectives through change. acquire project team: A process of identifying skill requirements for a project and acquiring human resources that possess those skills based on their availability to work on project assignments. develop project team: The process of defining roles and responsibilities, improving competencies, working productively at individual and team levels, and improving the work environment to improve the team and project performance. manage project team: The process of assigning tasks, roles, and responsibilities to all the team members, tracking team member performance, providing feedback, resolving issues, and coordinating changes to optimize project performance. negotiation: Negotiation is about redefining an old relationship that is not working effectively or establishing a new relationship, necessary when a proposal is not acceptable to both the parties; most commonly used process and the first step to resolve a dispute, a difference, or a conflict. virtual team: Known as a distributed team, rarely meet in person and rely on information and communication technology. [return to top]

Key Terms Consistent with Agile Practice generalized specialists: Human capital who are very good at one thing, but also competent at a wide variety of work. improve collaboratively: When one worker has problems, others help and learn together. courage: Tell the truth, work together, adapt to changes, question status quo, have difficult conversations. collective ownership: All qualified team members are responsible for product and all can change it. openness: Seek new ideas, ask for help when needed. pair programming: Practice of one programmer writing while another reviews, two minds are better than one.

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developmental leadership: Safe environment in which different team members informally take on leadership roles at different times and are supported by team members and other stakeholders. servant leadership: Leader focuses on needs of the followers first through integrating followers’ needs with project goals, honesty, delegation, and empowerment. transformational leadership: Leader aims to develop trust and align personal values of individuals (followers) to accomplish vision and mission of the organization. respect: Everyone gives and feels respect, everyone contributes, team strength is collaboration, give each other permission. [return to top]

What’s New in This Chapter

The following elements are the improvements in this chapter from the previous edition: 

PMBOK Guide 7e domains associated with project team acquisition, development, and leadership including the following: o Team o Stakeholders o Development Approach o Planning o Delivery o Measurement o Uncertainty

[return to top]

Teaching Strategies 

Sometimes we start this chapter with scenario questions and asking the students what they would do. This is a good way to introduce the internal project issues.

Examples of scenario questions include: o

The project is 50% complete, and the marketing department changes its specifications.

o

The marketing department has promised a delivery date we cannot meet.

o

A new product has been announced by our No. 1 competitor, which threatens the future of our existing project.

o

Your electrical building contractor, although cheap, is the worst contractor you’ve ever seen. You’re at the 25% complete point of construction.

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o

You have just started the software programming effort, which is on the critical path. Randy, the matrix manager, has reassigned your key resource to another project that is in trouble…



This chapter has a large amount of conceptual material. There are a variety of places where you can have either discussions or breakouts, asking either the question “why is this important” or “give me an example of this on your project.”



Sometimes it helps to ask the students in advance to be ready with certain material.

We tell them two or three general areas we will use (in the following bullet points) and that we will apply these to their projects. Therefore, they should in advance of class think about how those topics were covered on their projects and how successful the results were.



One possible breakout session includes the effective team behavior methods for enhancing personal values, communication methods for enhancing personal values, and project management methods to further team development. You can use one, two, or all three of these. Ask the student teams to select an item or two from one of those groups and explain how to do it.



We like to ask students for examples of personal rewards they have experienced by working on projects. When most of the students are traditional undergraduates, we remind them that class projects count.



We use the dozen ground rule topics for project teams for another breakout session. We tell the students while all of these are important, perhaps some are more important on certain projects. Ask them to select two or three of the ground rules that they feel are most important on their project and explain why each is so important.



Types of project management power are also a good topic for either discussion or a breakout. One difference is that in using the student projects, it is often helpful to ask for examples both for how the project manager (student teams sometimes name a project manager and sometimes share the duty) and the sponsor have exhibited various forms of power.



Yet another possible breakout topic is managing stakeholder expectations. We ask the students two questions: how they actually have handled this and how they will handle it better on future projects because of what they learned on this project. To pull off the second question, you need to convince the students you are more interested in what they learned than whether they did everything right the first time.

You also may need to encourage them to perform a plus-delta exercise to identify improvement areas.



A two-part discussion or breakout can be conducted regarding project conflict. The first part is to identify and categorize the conflicts that actually happened on the student projects. The second part is to have the students describe how the conflict

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

was resolved and to determine whether they could have used a different style of conflict resolution.

 One final potential breakout is the negotiation process. We like to create a little scenario concerning a local project and divide students into two teams. One team represents the contractor and one represents the owner. We describe the scenario and give the student teams a few minutes to prepare. Then they conduct a mock negotiation while the remaining students watch. Finally, we ask the student observers what style of negotiation was used, was it effective, what could have made it better, and was a different style more appropriate in this situation. [return to top]

Lecture and Workshop Outline

This chapter deals with the people side of ensuring project performance. The more technical issues regarding project performance are in the next chapter. In the contemporary approach to projects, the project manager largely works collaboratively with the team.

5.1 Acquire Project Team This deals with both the core team and subject matter experts (SMEs).

Pre-assignment of Project Team Members It is helpful to have those who will do the work help plan it, but this is sometimes impractical.

Negotiation for Project Team Members Project managers often cannot just name who they want for their project. However, they should not accept an entire team of inexperienced members.

On-Boarding Project Team Members Ideally involve team members in chartering so that they understand and are committed. Otherwise, bring them up to speed quickly and make sure they understand the charter.

5.2 Develop Project Team This major section includes all of the activities a project manager uses to mold a project team into an effective force.

Stages of Project Team Development There are five stages for project teams: forming, storming, norming, performing, and adjourning. Project managers can move more easily and productively through © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

the stages if they understand relationship issues and team member tendencies and if they employ strategies to promote organization, project, and individual needs.

Characteristics of High-Performing Project Teams Project managers can use behavior, communication, and project methods to improve upon the personal values individuals bring to a project team. This leads to team members developing feelings for each other, which leads to both personal rewards and project results. Agile teams are often self-managed and able to make quick decisions. This requires trust between sponsor and team and often leads to both good project results and team member satisfaction.

Assessing Individual Member Capability 1.

2.

3.

4.

5.

Activity-specific knowledge and skills Personal planning and control Personal learning Organizational understanding Interpersonal skills and sensitivity

Assessing Project Team Capability Many interrelated factors (Exhibit 5.7) contribute to project team capability.

Building Individual and Project Team Capability To build individual and project team capability, project managers can use personal leadership, project management tools, situational leadership, desirable team identity, personal responsibility, a learning cycle, understanding, and respect.

Establishing Project Team Ground Rules Ground rules help teams operate effectively. They may include: Relationship Topics 1.

2.

3.

4.

5.

6.

Encourage participation Discuss openly Protect confidentiality Avoid misunderstandings Develop trust Handle conflict

Process Topics 1. Manage meetings 2. Establish roles 3. Maintain focus © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

4. Consider alternatives 5. Use data 6. Make decisions 5.3 Manage Project Team Managing and leading the project team consists of keeping tabs on what is happening, assessing human performance in comparison with plans, taking action to get the team back (or keep it) on track, motivating both individual members and the team as a whole, and continually improving the capability and satisfaction of both the project participants and the methods they use.

Project Manager Power and Leadership Since project managers often rely on people who do not report directly to them to perform some of the project work, they need to use various forms of power to encourage people to perform. Types of power available to project managers are: Legitimate power Reward and coercive power Referent power Expert power Information power Connection power Assessing Performance of Individuals and Project Teams Goals of performance assessments include administrative uses such as rewards and promotions and developmental uses such as determining areas for improvement.

Project managers often provide input for functional mangers to make assessments.

Project Team Management Outcomes Morale changes “Quarter mile stones” to “inch stones” Staff changes Training needs Discipline Role clarification

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Issues Lessons learned 5.4 Relationship Building Within the Core Team Project managers need to understand individual and team motivations, skills, and aspirations. Involving the team members in project and meeting planning helps secure buy-in. Small successes should be celebrated, and everyone should have a common understanding of how decisions will be made during the project.

5.5 Managing Project Conflicts Since projects have many opportunities for conflict, project managers need to understand the sources of conflict; become capable in using a variety of conflict resolution methods and styles; and learn how to negotiate effectively.

Sources of Project Conflict (Exhibit 5.12) Relationship Sources

Task Sources

Roles and responsibilities

Stakeholder expectations

Lack of commitment

Unique project demands

Communications failure

Money and other resources

Different personalities

Technical approach

Stakeholder relationships

Priorities

Personal motives of participants

Differing goals of stakeholders

Energy and motivation

Task interdependencies

Next project assignment

Schedule

Individual rewards

Risks

Conflict Resolution Process and Styles 1.

2.

3.

4.

5.

6.

Understand the conflict.

Agree on conflict resolution goals.

Identify causes of conflict.

Identify potential solutions for conflict.

Pick desired conflict solution.

Implement chosen solution.

Negotiation

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Negotiation styles Forcing/Competing Withdrawing/Avoiding Smoothing/Accommodating Compromising Collaborating/Problem solving Negotiation process steps (Exhibit 5.14) Prepare for negotiation Know your walk away point Clarify both parties’ interests Consider multiple options Work toward a common goal Clarify and confirm agreements 5.6 Communication Needs of Global and Virtual Teams Virtual teams Also known as a distributed team, rarely meet in person but rely on communications technology. Often team members are physically dispersed, time boundaries are crossed, and a great deal of diversity exists among the team.

Cultural differences Pose additional challenges for project managers and project team members, especially in regards to clear communication (see Exhibit 5.15).

Countries and Project Communication Preferences Extremely helpful for a project team to meet face to face at least once, if possible.

Also, beneficial to include team members—virtual or not—in writing charter 5.7 PMBOK Guide 7e PMBOK Guide 7e Domains impacting Chapter 5 Team

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 5: Leading and Managing Project Teams

Stakeholders Development Approach Planning Delivery Measurement Uncertainty [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 3 Key Terms Consistent with Agile Practice ........................................................................................ 4 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 5 Lecture and Workshop Outline ......................................................................................................... 6 Additional Resources .......................................................................................................................... 9 Cengage Video Resources ......................................................................................................................... 9

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1

Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Purpose and Perspective of the Chapter The purpose of this chapter is to introduce practices for effective stakeholder management and engagement along with communications planning and execution within both the plandriven as well as Agile project environments.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives:       

Enumerate, describe, and prioritize stakeholders for a project.

List each section of a project communications plan and describe the necessity of each.

Build a communications matrix for a real project.

Develop strategies for stakeholder management.

Discuss the process of building project relationships and their importance in terms of communication.

Develop a project communications management plan for a real project.

Plan, conduct, and improve project meetings.

Agile Objectives    

Describe collaboration and communication needs and methods on Agile projects.

Develop a customer-driven vision and customer-driven value for a project, while balancing business needs.

Identify key Agile communication challenges and the most effective communication methods/techniques for your project.

Justify the importance of transparency on Agile projects.

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Key Terms Consistent with PMI Standards and Guides identify stakeholders: The process to determine the people, groups, or organizations who are or might be impacted by some aspect of our project. stakeholder analysis: A technique composed of gathering and evaluating information to determine whose interests should be emphasized throughout the project. stakeholder register: A repository of information regarding all project stakeholders used to develop strategies to either capitalize upon stakeholder support or to mitigate the impact of their resistance. plan stakeholder engagement: By creating a tool called a stakeholder engagement assessment matrix and by planning to build relationships with the stakeholders. stakeholder engagement plan: Defines how they will effectively engage stakeholders in planning and performing the project based on the analysis of the stakeholders’ needs, wants, and influences. stakeholder engagement assessment matrix: Matrix typically includes the stakeholders in the first column and additional columns may represent how much they are currently supporting or opposing the project, where you would like them to be, barriers to change (from current position to target position), and strategies you may employ to move them. manage stakeholder engagement: The process of the project team communicating and working with stakeholders to satisfy their needs (and additional desires if applicable and possible), manage issues quickly, and encourage active stakeholder participation throughout the life of the project. monitor stakeholder engagement: The process of engaging stakeholders and managing relations with them effectively. plan communications management: The plan that considers stakeholders’ information needs and steers the project communications. communications matrix: Documents who, what, when, and by what mode communications will take place. knowledge: As insights derived from information and experience; a conclusion drawn from information after it is linked to other information and compared to what is already known. manage project knowledge: The process of using and developing knowledge to help improve both the current project performance and the capability of the organization. manage communication: This includes all the work associated with the project communications plan, starting with planning, generating, organizing and sharing, and, eventually, storing and disposing of it.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

issue: A situation that requires a decision to be made by the team, but one that the team cannot make now, usually either due to needing information or more time. issues log: It is a dynamic repository of information regarding both open issues and those that have been resolved. [return to top]

Key Terms Consistent with Agile Practice feedback: Demonstrate results early, listen carefully, make adjustments. embrace change: Acceptance and eagerness to serve updated customer needs. communication: Confer on everything, every day, create best solution together. transparency: All people openly present the facts as they are to create necessary trust. information radiator: Highly visual device that conveys project information publicly in the workplace. events: Five types of meetings: backlog refinement, sprint planning, daily scrum, sprint review, and sprint retrospective. product backlog refining: A planning meeting to understand, slice, and estimate the time to create each user story to ensure each meets the definition of ready. sprint planning: A planning meeting to plan the work outputs and methods for the upcoming sprint. daily scrum (aka standup): A 15-minute meeting for each team member to share what they did yesterday, what they plan today, and what may get in the way. sprint review (aka demo): A demonstration meeting when the team shows product created and PO determines if it meets definition of done. sprint retrospective: Review meeting in which the team and scrum master reflect on what worked well, what did not, and plan to improve people, process, and product. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 

PMBOK Guide 7e Domains impacting Chapter 6 including: o Stakeholders o Team o Planning o Delivery o Measurement

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

[return to top]

Teaching Strategies 











An interesting segway between chapters 5 and 6 is the introductory essay. Arthur Shelly has developed the organizational zoo. Using this or another instrument like StrengthsFinders from Gallup can give the students more understanding of themselves, their team, and their stakeholders. Students may enjoy creating their own profiles now (early in the course) and having their teammates create profiles for them later in the course.

We like to use projects that are in the news as examples to demonstrate points in this chapter. Controversial, local projects that are either under way or are under consideration work very well since they typically have many stakeholders with communication needs.

One breakout is to have students identify and categorize as many stakeholders as they can for an upcoming project. We often assign four groups of students, respectively, to identify internal stakeholders affected by the process, external stakeholders affected by the process, internal stakeholders affected by the results, and external stakeholders affected by the results. We tell them bragging rights go to the group that identifies the most stakeholders like in Exhibit 6.1. If any of the stakeholders identified are unexpected, we ask the group to explain the way in which they are stakeholders. It often takes the students by surprise how many people could have an interest in some of the projects.

A follow-up break out session is to have the students then prioritize the stakeholders and to justify their decisions. They can prioritize in accordance with Exhibit 6.2.

Another breakout can be for the communication matrix. Show them Exhibit 6.9 as the communication matrix for the Modular Courses Project. We usually let the student teams begin the communication matrix for their class project. Giving them 10 minutes of class time to start and to discuss gets them off to a good start. They need to be careful looking at other projects for ideas—not with an eye toward just copying.

When introducing the subject of managing the meetings, ask if anyone has ever wasted time in a meeting. That is so obviously a rhetorical question that students will actually laugh. At any rate, explaining the need for a meeting agenda and having the students plan a meeting for their project illustrates the point. We tell them we will want to see copies of their agenda, minutes, and evaluation for one of their meetings.

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Lecture and Workshop Outline A good place to start detailed planning (after the charter is accepted) is with understanding who the stakeholders are and how to communicate with them.

6.1 Identify Stakeholders It is imperative to understand the various stakeholders and their sometimesconflicting desires.

Find Stakeholders Anyone impacted positively or negatively by the process of performing the project or the results of the project is a stakeholder that needs to be identified.

Analyze Stakeholders Prioritizing among the many stakeholders is vital to ensuring the most important project needs are addressed.

Document Stakeholders The stakeholder register is a document for recording all information pertaining to stakeholders.

6.2 Plan Stakeholder Engagement Creating Stakeholder Engagement Assessment Matrix Create stakeholder management plan to define how to engage and manage stakeholders throughout project lifecycle.

Primary tool that comprises stakeholder management plan is the stakeholder engagement matrix (see Exhibit 6.5).

Planning to Build Relationships with Stakeholders Project manager and team should engage stakeholders throughout life of project and beyond.

Team-building and involving key stakeholders is especially important during planning phase.

Since PMs often do not have enough formal authority to command, developing relationships to influence others is critical.

6.3 Manage Stakeholder Engagement Involves communicating and working with stakeholders to satisfy their needs, address issues, and encourage participation throughout.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Understanding stakeholder assumptions was performed when creating charter and will be elaborated on during the creation of the requirements matrix (Chapter 7).

Clarified assumptions lead to expectations regarding project deliverables and should be documented and verified by stakeholders prior to project execution.

6.4 Monitor Stakeholder Engagement Stakeholder relationships, communications, and lessons learned must be continually monitored.

6.5 Plan Communications Management Purposes of a Project Communications Plan A PM must use effective communications to set and manage expectations from all stakeholders as well as to ensure that project work is completed properly.

Communications Plan Considerations Purpose Project communications need to be clear, concise, courteous, consistent, confidential, and compelling.

Structures Projects can use existing organizational communication forms if they are satisfactory, but need to create their own to supplement.

Methods Communications can be pushed to recipients, or pulled by them, or interactive with them.

Timing Communications can be tied to the project life cycle, be routine, or as needed.

Communications Matrix o o o o o o o

Who does the project team need to learn from?

What does the team need to learn from this stakeholder?

Who does the project team need to share with?

What does this stakeholder need to know?

When do they need to know it?

What is the most effective communications method for this stakeholder to understand?

Who on the project team is responsible for this communication? (the owner)

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

Manage Project Knowledge If lessons-learned are captured and shared, a project can learn from previous projects.

6.6 Manage Communications Determine Project Information Needs All information needs should be handled accurately, promptly, and effectively.

Stakeholders will have different information needs at different stages of the project.

Establish Information Retrieval and Distribution System Target your communication to only the people who need it.

Many methods of communicating are available. Use newer technologies if helpful, but don’t discard proven methods without reason.

Use your communication management plan and constantly keep asking who needs to know what?

Project Meeting Management Projects require many meetings and can benefit from having them well-run.

Improving project meetings Meetings are a process that can be studied and improved.

PDCA model (see Exhibit 6.10) This quality approach to process improvement can be applied to the meeting process.

Project meeting agenda template Well-run meetings require planning. A clear agenda helps.

Project meeting minutes template Decisions made, issues surfaced or resolved, action items agreed to, and evaluation of the meeting should be concisely captured.

Issues Management An issues log is a living document adding new issues and removing resolved issues.

Decisions and Issues

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 6: Stakeholder Analysis and Communication Planning

All decisions made should be documented. An issue is something that does not need to be resolved immediately, but will need to be resolved in time.

Action items For each agreed upon action, capture who will do it and by when.

Evaluation Meetings can be evaluated using a plus-delta. Evaluations on agile projects are called retrospectives.

6.7 PMBOK Guide 7e Domains impacting Chapter 6: Stakeholders Team Planning Delivery Measurement [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Plan Project Meetings o From the Author - Manage and Document Project Meetings

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 4 Lecture and Workshop Outline ......................................................................................................... 6 Additional Resources .......................................................................................................................... 9 Cengage Video Resources ......................................................................................................................... 9

© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

Purpose and Perspective of the Chapter The purpose of this chapter is to introduce the processes of scope planning and development including the elicitation of requirements and the elaboration of project scope via the WBS.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives      

Describe the planning of scope management and collecting requirements.

Define scope processes.

Create a requirements traceability matrix, project scope statement, and change request form.

Describe a work breakdown structure (WBS) and its importance to planning and control.

Compare different methods of developing a WBS. Create a WBS, including work packages and a numbering system both by hand and using MS Project.

Agile Objectives   

Use simplicity and emergent design in developing scope.

Capture user requirements as stories.

Create backlogs for a sprint and a release.

[return to top]

Key Terms Consistent with PMI Standards and Guides plan scope management: The process of developing a plan that includes the total scope of what needs to be done and what is excluded from the project, implementation, and validation of the scope, and control deviations from the scope statement. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

requirement: A condition or capability needed by the client or a user to solve a problem or achieve an objective that satisfies a standard, a specification, or any other formally documented need. collect requirements: A systematic effort to understand and analyze stakeholder needs to define and document these requirements. define scope: The process of translating stakeholder needs and requirements into detailed specifications of the project outcomes and products. define activity: A project-planning process that identifies and determines specific actions to develop and deliver the project outcomes, such as products, services, or results. work package: Lowest level deliverable.

WBS component: A work element that is part of the WBS at any level.

WBS dictionary: A document that provides detailed information about each work package by providing details about the associated deliverable, activity, scheduling information, predecessor, successor, person responsible for it, resources required, and associated risks. rolling wave planning: A planning technique of identifying and defining the work to be completely accomplished in the near term and planning the future work at a higher level. baseline: The approved project plan mainly consisting of scope, schedule, and cost. decomposition: To break them into smaller deliverables or components. change control system: Formalized decision-making system to receive and review change proposals and accept or reject them after evaluating their impact on project scope, cost, and schedule. change request: A formal written request or a formal proposal to recommend changes to any project planning component, such as a document, project deliverable, or baseline (scope, cost, and time). [return to top]

Key Terms Consistent with Agile Practice simplicity: Do what is needed and no more, take small simple steps, use the sheerest possible design to meet today’s requirement. extra features: Extras not used by the customer add cost and failure possibility. extra processes: Steps such as extra documentation or planning that add no value. progressive elaboration: First defining simply, then adding detail as needed. savage summary: The briefest description of an idea or tool to help people understand it.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

story map: Visual with product features on top and supporting detail below. release backlog: The work that is planned to be completed in the current release. sprint backlog: The work that is committed to be completed in the current sprint.

MoSCoW: Prioritization technique of must, should, could, and will not have. persona: Fictional username and description of expected user of deliverables. user story: Need to be described by who wants it, how they will use it, and why. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 

PMBOK 7e Performance Domains applicable to Chapter 7 o Team o Development Approach o Planning o Delivery o Measurement o Uncertainty

[return to top]

Teaching Strategies 

This is a good chapter to use the opening example to introduce the chapter (if you have not started doing this already). In the Teradata example, the following concepts or tools that will be covered in this chapter are introduced: project deliverables, business parameters (constraints), requirements, customer needs, scope definition, statement of work, traceability matrix, testing, customer acceptance, WBS, and change control. You could have all of these terms on a slide and ask the students to tell what each means to Teradata. Be prepared to supplement their guesses.



On small, simple projects the information in the scope statement may already be developed in the charter. However, it may prove helpful to get the students to elaborate. One possible breakout session is to gather stakeholder input using a requirements matrix, such as Exhibit 7.2. For this, we like to choose a project in which the students are one group of customers, such as development of a new service or building a new building on campus. Generally, when that happens, the students are able to articulate more requirements from their own perspective than from that of others. This leads to a discussion about how we need to understand each stakeholder’s perspective.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning



A second breakout session we like is to use an upcoming project in your area to have the students’ list potential deliverables. Be sure to get them to list intermediate and final deliverables. For each deliverable, have the students’ list acceptance criteria as in Exhibit 7.4. When each team reports, challenge the other students to suggest additional deliverables. The purpose is to convince the students it is worth some degree of effort to make sure their list of potential deliverables is complete.

Remind them that when it comes to estimating time and cost, if they do not have a consistent bias, the items they overestimate will somewhat offset the items they underestimate. However, when they forget an item, they underestimate it by 100%.



Exclusions, constraints, and assumptions can all help to define a project’s boundaries. Project boundaries can be either a short break-out session or a discussion. Again, we like to use either a community project or the student’s semester project to guide the discussion on identifying what is included and what is not included. Remind the students that one way to envision scope is to think as if it as a field of play for a game and that we are trying to define the out-of-bounds lines.

These are described in Exhibit 7.4.



A great breakout is creating the WBS. We like to show all three possible formats and then ask the students to create a small WBS. We give them a simple scenario, such as a campus fund raiser. This can be done in one or more breakout sessions.

Eventually we want them to have the WBS in indented outline form since that is the way they will enter information into MS Project. If different groups choose to use different methods, discussion can follow as to the advantages and disadvantages of each. We do want them to have each line numbered. We also ask the students to create a category for project management—composed of the various deliverables they will need to plan and manage the project.



Talk about the change request forms. One thing that is an issue on many projects is getting people to actually use a change control system. Discussion of how much people like additional paperwork when they are already busy drives home the point.

We want the students to come away thinking that a very simple but suitable change request form is needed. We insist they use one on their semester project.

 If you did not already go to a computer lab to give your students a chance to start using MS Project, this is a good time. We like to encourage the students to print the Power Point slides for note taking but to tell them we will primarily use MS Project to demonstrate. After we demonstrate each item for this chapter, we pass out a small sample output (such as the one below) for a project and ask them to recreate it.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

Source: Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.

[return to top]

Lecture and Workshop Outline This chapter deals with understanding what work will be involved in the project both by defining the scope and the WBS. 7.1 Plan Scope Management

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

This is how the scope will be defined, developed, and verified; how the WBS will be created; and how scope will be controlled. Product scope is features and functions of deliverables while project scope is the work that must be accomplished to produce the results.

7.2 Collect Requirements Ensure Clarity of Objectives The process of defining and documenting stakeholders’ needs to meet the project objectives, so first the project team must understand the objectives.

Gather Stakeholder Input and Needs With many stakeholders and many possible methods for understanding their desires, the mechanics of this varies widely.

Define Needs as Requirements Requirements traceability 7.3 Define Scope Define scope is “the process of developing a detailed description of the project and product.”

Reasons to Define Scope Basis for other planning and method of avoiding scope creep.

How to Define Scope 1. List deliverables and acceptance criteria for each 2. Establish project boundaries What is included vs. not included, what are constraints and assumptions?

3. Create a scope description—a sentence or two to summarize project work.

Defining Scope in Agile Projects At beginning of project, overall scope is only defined at high level, and a backlog of possible work is identified Customer representative (aka “owner”) prioritizes the scope based upon business need, value, cost, and risk.

7.4 Work Breakdown Structure (WBS) What is a WBS?

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

Tool to progressively divide project into smaller pieces until the team feels every deliverable is identified. While the WBS identifies deliverables, teams may define activities and milestones at the same time for use in the project schedule.

Why Use a WBS? To ensure all parts of the project are considered and as a basis for other planning, such as schedule, budget, resources, risk, and quality.

WBS Formats Each has advantages and disadvantages. 

Indented outline

Useful when typing WBS into scheduling software. 

Org chart

Org chart is a familiar form – easy to understand and somewhat flexible. 

Free form

Totally flexible – especially useful for project with structure initially unclear.

Work Packages They are the lowest level of WBS—smallest deliverables identified. Work packages for the basis for continued planning and much of the project control.

How to Construct a WBS Include appropriate subject matter experts (SMEs). 

Identify major deliverables

Use a top-down approach identifying deliverables from scope statement. Rolling wave planning can be used to identify early deliverables in detail and later ones at a high level. Organize in systematic manner, such as by phase or design component. 

Decompose deliverables

Include both interim and final deliverables—use Post-it® Notes for flexibility.  

Continue until deliverables are the right size—small enough for control, not so small as to micro-manage.

Review – Ensure completeness.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 7: Holistic Scope Planning

– Make sure each level is the summary of next lower level.

– Ensure each item has unique name and number.

7.5 Establish Change Control Procedures to make sure all potential changes are considered, accepted or rejected, and their impact is factored into revised plans.

7.6 PMBOK Guide 7e Domains Team Development Approach Planning Delivery Measurement Uncertainty 7.6 Agile Projects 7.8 Using MS Project for WBS Set Up the WBS – in five steps 1. Understand WBS definitions and displays.

2. Enter project deliverables and work package elements.

3. Create the outline of your WBS. 4. Insert a WBS code identification column.

5. Hide (or show) the desired amount of detail in the WBS. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Construct a WBS o Project 2016 Tutorial Video - Creating the WBS in Microsoft Project

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 5 What’s New in This Chapter ............................................................................................................... 5 Teaching Strategies ............................................................................................................................. 5 Wolf Creek Farms Case....................................................................................................................... 7 Lecture and Workshop Outline ...................................................................................................... 11 Additional Resources ....................................................................................................................... 16 Cengage Video Resources ....................................................................................................................... 16

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Purpose and Perspective of the Chapter The purpose of this chapter is to explain the process of project schedule development for both plan-driven as well as Agile projects including schedule optimization and resolution of conflict.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives       

Identify limitations of a project’s schedule and discuss ways to manage them.

Learn the activity on node (AON) method to develop a project schedule.

Identify potential problems in estimating time accurately and how to overcome them.

Create a project schedule on a Gantt chart by hand, showing the critical path and all float.

Describe ways to adjust a project’s sequence logic using leads, lags, and alternative dependencies.

Build and display the critical path and all float for each activity using MS Project.

Resolve potential scheduling conflicts.

Agile Objectives   

Describe the process of determining the size of a story.

Explain the product owner’s process of prioritizing work based on value and risk.

Discuss how a team decides what work it will commit for an iteration.

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Key Terms Consistent with PMI Standards and Guides activity: A unique and distinct part of work with a duration greater than zero time period, which is scheduled to be performed during the course of a project. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

plan schedule management: Arranging how to develop, manage, execute, and control the project schedule. sequence activities: A project planning process that identifies and determines specific actions to develop and deliver the project outcomes, such as products, services, or results. estimate activity durations: The process of estimating the number of work periods that are needed to complete individual schedule activities. develop schedule: The process of analyzing schedule activity sequences, schedule activity durations, resource requirements, and schedule constraints to create the project schedule. control schedule: The process of monitoring and regulating changes to the project schedule. critical path method (CPM): A method used to estimate the minimum project duration and determine the amount of schedule flexibility on the network paths within the schedule model. precedence diagramming method (PDM): Represents scheduled activities with nodes and connects each activity to one or more other activities with logical relationships or sequences of performance from left to right. sequence activities: Determining the predecessor and successor relationships among the project activities. predecessor activity: An initial activity or an activity that comes before another. successor activity: The activity that follows another. mandatory dependency: A logical relationship between activities that must happen— usually due to a physical or legal demand. discretionary dependency: A logical relationship between activities that is considered desirable, usually based upon experience or best practice. finish-to-start (FS): A logical relationship in which a successor activity cannot start until a predecessor activity has finished. lead: A modification of a logical relationship that allows an acceleration of the successor activity. lag: A modification of a logical relationship that imposes a delay of the successor activity. finish-to-finish (FF): The logical relationship in which a successor activity cannot finish until a predecessor activity has finished. start-to-start (SS): A logical relationship in which a successor activity cannot start until a predecessor activity has started.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

start-to-finish (SF): A logical relationship in which a successor activity cannot finish until a predecessor activity has started. estimate activity durations: The process of approximating the number of work periods needed to complete individual activities with estimated resources. duration: The total number of work periods (not including holidays or other non-work periods) required to complete an activity or project, expressed in hours, days, or weeks. velocity: The forecasted number of story points a team can do in one iteration. critical path: The longest sequence of activities from the project start date to the finish date. forward pass: A critical path method technique for calculating the early start and early finish dates by working forward through the schedule model from the project start date or a given point of time. early start date (ES): The earliest possible point in time when the schedule activity can begin based on critical method (CPM) forward pass of schedule model logic. early finish date (EF): The earliest possible point in time when the uncompleted portion of the schedule activity can be completed given the assigned resources. late start date (LS): The latest possible point in time when the schedule activity can begin without violating schedule constraint or delaying the project end date. late finish date (LF): The latest possible point in time when the schedule activity can be completed without violating schedule constraint or delaying the project end date. backward pass: A critical path technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date. total float: The amount of time a schedule activity can be delayed from its early start date without delaying the project end date or violating a schedule constraint. free float: The amount of time a schedule activity can be delayed without delaying the early start of any successor or violating a schedule constraint.

Monte Carlo simulation: A computerized mathematical technique that allows people to account for risk in quantitative analysis and decision making.

Gantt chart: A horizontal bar chart that shows each work activity on a separate line with the bar placed from the early start date to the early finish date from left to right for each activity on a timescale. [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Key Terms Consistent with Agile Practice story point: An estimate by team of complexity and size of specific work in story form. planning poker: Method for team to size-specific stories quickly and relatively. right-sized: Ensuring stories are small, understood, and testable. definition of ready: Agreement that team understands a story enough to bring into a sprint. risk-based spike: Short time-boxed work to address a specific risk.

Kanban board: Visible information register that communicates work status as to do, in progress, or done. task card: Sticky note or index card showing work item name and other info.

3c process: Task card with conversations and confirmation of understanding. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 

PMBOK 7e Performance Domains o Team o Development Approach o Planning o Delivery o Measurement o Uncertainty

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Teaching Strategies 



This is a critical chapter that has many opportunities for “hands-on” work. After a short introduction, much of this chapter can be well-covered by demonstration and practice. Be sure to include in your opening remarks the five ways in which project schedules are limited and that they will be covered collectively in this and the next two chapters. For each breakout, we first demonstrate using the examples from the book.

A nice breakout to start can be defining activities. This can be accomplished by using a WBS (or partial WBS) and asking the students to define activities required to create all of the deliverables on the WBS. Be sure to emphasize that some work packages may require one activity while others may require multiple activities. Alternatively,

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects



 







you can just give a little scenario, such as you want to build a garage next to your house. Ask the students to define the required activities. This works best with at least around twelve activities so that students can see the power of using a network for schedules (below) and not more than about twenty activities (since it will take more time with more activities). For another alternative, you can have the students use the WBS from their example projects to practice defining activities in the first scheduling breakout session. The emphasis here is to have the students start with the deliverables (things, worded as nouns with adjectives) and ask the question “what work activities will we need to perform to create each of these deliverables?” the activities should be stated in verb-noun format with adjectives to describe and clarify as needed. There may be one or several activities for any given deliverable.

You can use the activities identified above to have the students practice sequencing the activities in a network. Alternatively, you can use the example Wolf Creek Farms case that follows these teaching strategies. Have them write one activity per Post-it® Note and then have them arrange the notes in what they believe to be a logical order. Have them draw arrows connecting predecessors with successors. Encourage the students to have someone on their team play “Devil’s Advocate” both in challenging the order and in ensuring that no activities are “dead-ends” with no successors. Tell the students if they have more than one starting activity to make up another Post-it® and call it “start.” This can serve as the predecessor to as many activities as necessary. If they have more than one ending activity, make up another Post-it® and call it “end,” making it the successor to as many activities as necessary.

When the network is complete, there should be one start and one end. All intermediate activities need to have at least one in arrow and at least one out arrow.

Another breakout you might use is to have the students estimate the duration for each activity. This could be combined with either the previous or the next breakout.

The next breakout is to develop the project schedule. We first model this, then have students do this using the two-pass method. Be sure to have them identify the critical path(s) and to calculate the amount of slack for every non-critical activity.

Again, the Wolf Creek Farms case or a project of your choice work well for this.

We like to show the students how to find the critical path using the enumeration method also so that they will be able to crash the schedule (next chapter). It also helps for them to compare the two-pass and enumeration method results.

Once the students have identified the critical path, ask them how easy it is to read the schedule. Of course, it is often quite difficult, so this paves the way to introduce Gantt charts. Ask the students to show their schedule on a Gantt chart. Also ask them to identify the critical path and the slack.

When presenting MS Project, we like to furnish the students with Power Point files and encourage them to use them for taking notes. While we often present a few of the Power Point slides, we generally try to use a small project such as the one shown below to demonstrate using MS Project. We pass out a hard copy for the

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

students, then demonstrate with a couple examples of how to perform each portion of the technique. [return to top]

Wolf Creek Farms Case You have inherited a century old farm house and acreage in Montana. You have visited the site and made an inspection. The house needs a great deal of repair work to get it marginally livable. You have itemized the most important things that need to be done and estimated the time required as shown below. The total estimated time is 160 work hours.

You and your spouse want to use this house for vacations and as a rental property.

However, just buying the supplies to fix it up will max out your budget. Therefore, if it is to be fixed up, the two of you will need to do the work. The two of you can arrange to take a two-week vacation. You have each committed to working 80 hours (160 hours total) over your vacation to fix up the house.

This is a multi-part exercise. For the first part, sequence the activities by developing an AON network with Post it Notes. Each activity is to be done by one person. Start with the activity(ies) that can begin immediately and continue to ask “when this is done or when these 2 or 3 activities are done, what can we do now?” For this step, you are only considering the logical order. In later steps, you will consider who will perform each step. It is expected that you will have some “burst activities” after which there are multiple things that can start. It is also expected that you will have some “merge activities” that can only start once multiple other activities are complete.

WBS Summaries and Activities

Est. Hours

1 Purchasing 1.1 Purchase supplies

2

1.2 Purchase curtains

2

2 Shutters and porch 2.1 Repair shutters

12

2.2 Paint shutters

12

2.3 Rehang shutters

4

2.4 Repair porch

16

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

3 Floor 3.1 Repair floor

8

3.2 Sand floor

10

3.3 Refinish floor

24

4 Paint 4.1 Paint ceilings

10

4.2 Paint wood trim

22

4.3 Paint walls

20

5 Windows 5.1 Wash exterior windows

8

5.2 Wash interior windows

8

5.3 Hang curtains

2

Answers will vary for this case, but one possible schedule is shown below.

For the schedule shown in the network diagram and Gantt chart below, the enumeration method yields the following paths and times.

Time

Path

30

1.1

2.1

18

1.1

2.4

44

1.1

72

2.2

2.3

3.1

3.2

3.3

1.1

3.1

3.2

4.2

4.3

5.2

64

1.1

4.1

4.2

4.3

5.2

5.3

10

1.1

5.1

4

1.2

5.2

5.3

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Wolf Creek Farm Case Network

Wolf Creek Farm Case Gantt Chart The students must first create the network diagram so they understand the logical order, can determine the critical path, and understand how much float each non-critical activity has. Point out it is typical to identify the critical path in bright red. Once the network is complete, the schedule can be transferred to a Gantt chart. It is typical to show the critical path in red and noncritical activities in blue. It is also typical to show the amount of float in a muted color and/or narrow lines. It is helpful to write on the Gantt chart the start and finish times of each activity.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Sometimes a student team will attempt to put all activities into two lines since they know there will be only two workers. This defeats the purpose of project scheduling. Remind them that of the five things that can delay a project schedule, the number of resources (people) is only one. They must first understand the logical order, the critical path, and the float. We also remind them that this is a tiny project with two workers and fifteen activities.

Ask them if they were scheduling a project with 200 workers and 1500 activities would they still insist on drawing 200 rows. Of course not! We are teaching them a process that is scalable to any size of project. They would use software on a big project, but it drives home the point.

It will be purely by chance if a student team has their schedule take exactly the 80 hours available (two workers are available 80 hours each for a total of 160 hours). If their first attempt took more than 80 hours, they will need to evaluate their logic. This is a good opportunity to introduce alternative dependencies and lead and lag times. If their first attempt took less than 80 hours, they will have some periods when more than two activities are scheduled at once. This leads into resource leveling in Chapter 8. We ask the students to bring their schedules back to class when we cover resource overloads so they can practice on their projects.

If you are using Microsoft Project in your class, you can also ask the students to bring their Wolf Creek Farms project schedule to the computer lab and recreate their schedule using the software. Ask them to inspect it very carefully. If there are any inconsistencies, they probably either had an error inputting, or an error in their by-hand calculations.

In Chapter 8, we will learn how to identify resource overloads. A fourth step in this case is to identify any overloads and adjust your schedule accordingly by delaying noncritical activities.

Another example project, the eBay Project has a schedule shown below.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Source: Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.

[return to top]

Lecture and Workshop Outline 8.1 Plan Schedule Management PMI has identified the following seven, time management processes: Plan schedule management Define activities Sequence activities Estimate activity resources Estimate activity durations Develop schedule Control schedule 8.2 Purposes of a Project Schedule In addition to the primary question of when will the project be complete, many other questions can be answered with a schedule.

8.3 Historical Development of Project Scheduling

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

PERT and CPM were developed in the 1950s. The AOA and AON methods were used through the years, but AON is the primary method today. The basic logic remains, but many advancements have been incorporated into software scheduling systems.

8.4 How Project Schedules Are Limited and Created Project schedules are limited by the logical order of activities, the duration of each activity, availability of key resources, imposed dates, and cash flow. Schedules are often developed by considering each of these five limits in order – that is, first consider logical order, then activity duration, etc.

8.5 Define Activities The activities are outgrowths of the work packages (lowest level) of the WBS. On small projects, they are frequently defined concurrently with constructing the WBS. Focus on developing a complete list of activities and make sure they have action words (verbs).

8.6 Sequence Activities This is often done by Post-it® Notes with each note representing one activity.

Leads and Lags While basic logic says when the predecessor is complete, the successor can start, if the successor can start before the predecessor ends, there is an overlap or a “lead” and if the successor must be delayed before it can start, there is a gap or “lag.”

Alternative Dependencies Finish-to-Finish, Start-to-Start, and Start-to-Finish Relationships are the three types of alternative relationships, which used in software scheduling systems.

They allow more realism to be shown in predecessor–successor relationships.

8.7 Estimate Activity Duration Estimate using normal circumstances first and only then ask what is unique that may allow quicker or cause slower performance.

Problems and Remedies in Duration Estimating Potential Activity Duration Estimating Problem

Remedy

Omissions

Refine scope and WBS Checklists, templates, Devil's Advocate

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Lessons learned General uncertainty in estimate

Rolling wave planning Reverse phase schedule Learning curve Identify and reduce sources of uncertainty Manage schedule aggressively

Special cause variation

Risk analysis Resolve risk events

Common cause variation

PERT Monte Carlo Project buffer

Merging (multiple predecessors)

Milestones Reverse phase schedule Feeding buffer Manage float

Queuing

Staggered project start dates Resource leveling Resource buffer

Multitasking

Prioritizing projects Carefully authorize start of non-critical activities

Student Syndrome (starting late)

Float Critical path meetings

Not reporting early completion of rework

Project culture Project communications

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Contract incentives Progress reporting Learning Curves Take into account when estimating that the more times a person performs an activity, the faster they tend to get.

8.8 Develop Project Schedules After completing the scheduling processes discussed to this point, it is time to identify the critical path. This can be done by using software, such as MS Project, or by using the two-pass or enumeration method by hand.

Two-Pass Method You make two logical passes through the network.

First or Forward Pass This is to calculate the early start (ES) and early finish (EF) for each activity.

Second or Backward Pass This is to calculate the late start (LS) and late finish (LF) for each activity.

Float and the Critical Path Activities on the critical path have zero float. More than one path can be critical, and if the project is behind schedule, critical path activities can have negative float.

Enumeration Method This method, by which you list or enumerate all of the paths through the network, provides necessary information for crashing the schedule (a topic in the following chapter).

8.9 Uncertainty in Project Schedules If it is difficult to estimate activity durations with confidence, the following may be used to deal with the uncertainty.

Program Evaluation and Review Technique (PERT) The estimated time for each activity is calculated by the formula optimistic plus four times the most likely plus pessimistic divided by 6.

Monte Carlo Simulation

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

This flexible technique allows multiple duration estimates for any of the project activities.

8.10 Show the Project Schedule on a Gantt chart The network analysis described above is needed to calculate the schedule, but a simple bar (Gantt) chart is far better for communicating the schedule.

8.11 PMBOK Guide 7e Performance Domains Team Development Approach Planning Delivery Measurement Uncertainty 8.11 Schedules for Agile Projects Agile Terms 8.12 Using MS Project for Critical Path Schedules This powerful tool can be used to automate many of the schedule, budget, and resource calculations on projects and for communicating effectively.

Set Up the Project Schedule Set (or update) the project start date Define your organization’s holidays Build the logical Network Diagram 1.

2.

3.

4.

5.

6.

Enter tasks and milestones Edit the timescale Understand and define task dependencies, Assign task duration estimates Identify the critical path Understand the network diagram view

Display and print schedules

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 8: Scheduling Projects

Since many people do not have personal copies of MS Project, emailing schedules is often not an option. Therefore, it is imperative to be able to print easy to read schedules. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Develop Project Schedule o From the Author - Show Schedule on Gantt Chart o Project 2016 Tutorial Video - Set Up the Project Schedule o Project 2016 Tutorial Video - Build the Network Diagram and Identify the Critical Path

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 4 Lecture and Workshop Outline ......................................................................................................... 7 Additional Resources ....................................................................................................................... 12 Cengage Video Resources ....................................................................................................................... 12

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

Purpose and Perspective of the Chapter The purpose of this chapter is to describe how resources are assigned to projects as well as how they are employed to optimize and improve the overall schedule duration.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives 

Assign resources on a RACI chart, Gantt chart, and resource histogram.



Develop an effective project schedule with resources and resource constraints.



Compress a project schedule using crashing and fast tracking.



Compare various scheduling methods.



Assign resources, pinpoint overloads, and describe methods of dealing with them using MS Project.



Create a human resources management plan and a staffing management plan.

Agile Objective



Describe Agile concepts and tools that enable teams to deliver value quickly.

[return to top]

Key Terms Consistent with PMI Standards and Guides estimate activity resources: A process of assessing all types of resources—people, materials, tools, and equipment (along with quantities)—required to complete each activity as specified in the project scope. plan resource management: The process of identifying resources and required skills for the project, defining and assigning roles and responsibilities to all the resources, developing a reporting hierarchy, and communicating expectations.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

staffing management plan: A proposal focused on acquiring, developing, and retaining human resources as long as you need them on the project. resource breakdown structure: Identifying required resources for an internal project that mostly requires resources within the organization. responsibility assignment matrix: The roles and responsibilities of project team members are identified and documented.

RACI chart: A matrix that shows all the work packages and the resources assigned for various responsibilities regarding each work package. resource leveling: A project execution technique of adjusting the use of resources based on resource availability and the amount of float on activities to accomplish work as soon as possible, given the limited resource availability. fast tracking: A method to expedite a project by executing activities at the same time that ordinarily would be done one after the other. crashing: Speeding up the critical path, often by adding additional resources or employing existing resources for longer hours and/or more days per week. critical chain method: An alternate scheduling technique that modifies the project schedule by taking resource constraints into account. It makes use of principles of the theory of constraints. reverse phase schedule: Developed by the people closest to the work (often either the hands-on workers or the forepersons who directly supervise work) by starting with the final project deliverables and continually asking what needs to be completed before starting work on this deliverable. rolling wave planning: To plan the first part of the project in as much detail as needed and to plan later phases only at a high level. [return to top]

Key Terms Consistent with Agile Practice velocity: The forecasted number of story points a team can do in one iteration. cadence: The rhythm of planning, performing, and evaluating each iteration. cycle time: The time from when work starts on an item until it is delivered. swarming: Multiple team members work quickly together to solve a problem. release decision: Determination that product and support are ready for transition and customer is ready to successfully use the product. [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: PMBOK 7e ® Performance Domains o o o

Team Development Approach & Lifecycle Project Work

[return to top]

Teaching Strategies 

This is the second of two chapters that deal with scheduling topics, but we turn our attention more to the people side of scheduling. This chapter deals with resourcing projects; that is, identifying and securing the necessary resources, dealing with resource overloads, and making adjustments to schedules. Start by reminding the students that schedules are limited by a combination of logical order and activity duration (covered in the previous chapter) along with resource limits (covered extensively in this chapter) and imposed dates (covered in this chapter– mostly with MS Project) and partly by cash flow (covered in the next chapter).



Two conceptual points can be made early in this chapter. One is that project managers need to develop both technical and behavioral skills when resourcing a project. The other is that most project schedules are partially limited by activities and partially limited by resources. A key is to determine which tends to dominate for a particular project.



One of the first breakout sessions we like to have is for the students to work on a RACI chart. We either give them a few minutes to start this for their example project or we will use an example of a list of project activities for a small project and tell them who is involved. You can continue the use of a sample project you have used in previous chapters here. Simple examples you may use include building a garage or planning a party. A key to making this work is to have three or four distinct people (resources) and to make sure the students only assign primary responsibility to one person.



We next show the Power Point slides that depict resource assignments on a Gantt chart, summarize resource responsibilities on a histogram, and then combine them with a partial schedule and resource histogram on one slide. This helps the students visualize how the various tools work together to discover overloads.



We like the students to develop an understanding of how all of the tools fit together in a “by hand” manner before using MS Project. Exercise 5 (at the end of this chapter) is a very small problem that allows students to make this connection. We will use this problem for a breakout session and tell the students that we are the

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

department head to whom Alcides (one of two resources on this project) reports and want to understand his involvement in the project. That forces the students to create the project schedule (it is very small and is quickly accomplished), translate the schedule to a Gantt chart, and then total the commitments of this resource by time period. 

The next breakout session topic is resource leveling. Exercise 5 can give the students an understanding of how to do this by simply shifting one of the two activities that overload Alcides early in the project within the amount of slack available.



An alternative breakout session is to continue the Wolf Creek case from the previous chapter. The resource demands and leveled resources are shown below, captured from a flip chart.



The topic of critical chain project management (CCPM) has its share of advocates and detractors. Regardless of how you feel about it, students should be aware that it exists and understand the basic tenants. With an MBA class, you may have a student who has experienced it and can help generate discussion. More frequently, it is simply a topic to cover at a basic level.



Compressing the project schedule has two major topics: fast tracking and crashing.

We cover fast tracking at a conceptual level and tell our students that some of our friends in construction say they almost always fast track schedules.



Crashing is a good topic for a breakout session. We like to show the students how to crash a day at a time. The slides are busy, but the information on them is very helpful for the students to keep track of things. They need to keep track of each path, as additional paths can become critical. It is also helpful to keep track of how much each activity has been crashed already to determine if it can still be crashed further. It is also helpful to keep a running log for each reduction in time along with which activity or activities were crashed and at what cost. Once we have gone through the example on Power Point slides, we leave the last slide up and have the students do a problem such as that in Exercise 2. We encourage them to work in twos or threes and to ask us any questions as they work. The majority of students pretty quickly learn this challenging technique.



The MS Project coverage in this chapter consists of four steps: defining resources, assigning resources, identifying over-allocated resources, and dealing with the over allocations. The first two steps are the most important and are covered by the first dozen or so slides. As with other MS Project coverage, we encourage the students to print the slides before class for taking notes, show them on MS Project, and then summarize by quickly going through the slides. If there is time and you wish to emphasize this, a little hands-on time in a lab is useful.



If you wish to take the next logical step and use MS Project to identify overloads in a simple manner, the view with resource usage in the top pane and detailed Gantt in

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

the lower pane shows the exact overloads, critical path, and amount of slack that help a project manager pinpoint problems. For most people, that is enough.

However, included in the description and Power Point slides is a bit of guidance for dealing with the overloads. We like to have class discussion on various things that a project manager might do to remedy the overloads and emphasize that while software may help a bit, this becomes a management decision.

Wolf Creek Case Gantt chart and original resource demands shown in histogram

Wolf Creek original resource histogram and leveled resource histogram

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

[return to top]

Lecture and Workshop Outline This chapter deals with securing resources and making schedule adjustments based upon both resource availability and other issues.

9.1 Abilities Needed When Resourcing Projects Project managers need both technical and behavioral skills when staffing projects.

The Science and Art of Resourcing Projects Complement each other in order to develop a workable resource-based schedule that people will accept.

Considerations When Resourcing Projects Tradeoffs often must be made to secure resources; project managers need to understand resource limits to avoid over promising, and resources comprise a large amount of total project cost.

Activity- vs. Resource-Dominated Schedules

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

While almost all project schedules are partly limited by activities and partly by resources, it is helpful to understand which has the bigger impact on a particular schedule.

9.2 Estimating Resource Needs Understanding resource needs is the first part of securing the needed resources.

9.3 Plan Resource Management This describes how resource needs will be met.

Identify Potential Resources You may not get the specific people you prefer to work on your project, so it makes sense to identify all possible resources.

A resource breakdown structure (RBS) can help, by depicting resource needs by either function or skill level (see Exhibit 9.3).

Determine Resource Availability Many times, the best resources are very busy, so confirming their availability is needed.

Decide Timing Issues When Resourcing Projects Project life cycles create issues on when to bring people onboard, how to motivate them when the project lags, and how to release them at the end.

9.4 Project Team Composition Issues Project teams often have people both from inside and outside the parent organization.

Cross-Functional Teams Many team members may look at issues differently based upon training, education, experience, and personality.

Co-Located Teams Despite communication technologies that allow people to work together from long distance, locating closely together is useful since many small decisions are made that people often do not feel are important enough for formal communications.

Virtual Teams

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

The opposite of co-located teams is virtual teams, in which the teams rarely meet face to face. Many people report that if they get a chance to meet at least once in person, it helps communication and trust.

Outsourcing Many times, if all of the necessary resources cannot be found within the organization, additional resources are hired from outside. The entire project can be outsourced or some activities on it can be outsourced.

9.5 Assign a Resource to Each Activity This may require negotiation and flexibility.

Show Resource Responsibilities on RACI Chart RACI stands for responsible, approve, consult, and inform and is one type of responsibility assignment matrix (RAM). While just one person should be accountable for an activity, others will be involved in the other capacities (see Exhibit 9.5).

Show Resource Assignments on Gantt Chart Showing responsibilities on a schedule is a simple visual way to communicate responsibilities.

Summarize Resource Responsibilities by Time Period with Histogram This allows the project manager to pinpoint the timing and specific activities assigned that contribute to resource overloads.

9.6 Dealing with Resource Overloads MS Project helps identify overloads, but the project manager must decide how to overcome them.

Methods of Resolving Resource Overloads Some of the methods used include assigning work to other resources, splitting an activity, reordering the activities, securing additional resources, reducing scope, informing the sponsor, and leveling the resource demands.

Resource leveling First try to delay noncritical activities that are part of an overload within the amount of slack they have. If that is not enough, then either the schedule needs to be delayed, the resource needs to perform overtime, or one of the methods of resolving overloads mentioned above needs to be used.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

9.7 Compress the Project Schedule Actions to Reduce the Critical Path Reduce the project scope and/or quality, Overlap sequential activities using FF, SS, or SF relationships, Partially overlap sequential activities by using time leads, Increase the number of work hours per day, Schedule activities that are normally in sequence at the same time, Shorten the duration of critical activities, Shorten activities by assigning more resources, Shorten activities that cost the least to speed up, and Shorten the activity with the least probability of increasing project risk.

Crashing This is trading cost for time (paying more to get critical path activities completed more quickly). The first activities selected are those that cost the least per day to speed up. See Exhibits 9.11-9.14.

Fast-tracking This is trading risk for time (performing activities concurrently that would often be performed in sequence).

9.8 Alternative Scheduling Methods Critical Chain Project Management (CCPM) CCPM considers limits based simultaneously upon traditional critical path (logical order and activity duration) and limits of the bottleneck resource to form the sequence of activities called the critical chain. Advice given includes avoiding multitasking, estimating aggressively, buffering critical chain activities, putting all time for uncertainty at the end of the project rather than assigning it to individual activities, finishing activities early when possible, and communicating openly.

Reverse Phase Schedules (also known as Last Planner System) This method, often used in construction projects, starts logically at the end and asks what is needed right before the end, then what is needed before that, etc.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

Rolling Wave Planning This simply means planning a short amount in detail while using placeholders for the further out portions of the project. Agile is one form of rolling wave planning, and planning a project in phases is another example.

Agile Project Planning In recent years more projects are planned in short (as little as 2 week) increments called sprints. At the end of one sprint, the next sprint is planned, and so on.

Auto/Manual Scheduling Microsoft Project allows users to show a schedule without building in the predecessor-successor relationships, but merely show about when each task needs to be accomplished. While similar to Excel and useful on some projects, if there are many logical relationships, it may be a poor choice.

9.9 PMBOK Guide 7e Domains Team Development Approach & Lifecycle Project Work 9.10 Agile Project Resourcing 9.11 Using MS Project for Resource Allocation (see detailed instructions in text book) Define Resources Each person is defined as a resource with maximum available time.

Set Up a Resource Calendar A unique calendar, costs, and other information can be included, if needed.

Assign Resources Activate the Gantt chart view (with entry table).

Put the resources and predecessors form in the lower pane by right clicking on the Gantt chart (right pane) and choosing split.

In the upper pane, select the activity for resource assignment.

Select resource name column in the lower pane.

Pick the resource from the drop-down list.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 9: Resourcing and Accelerating Projects

Add additional resources (if any).

Enter a Units value if the Max Units value is not correct for any assignment.

Click the OK button—no assignment is made until the OK button is clicked.

Finding Overallocated Resources The resource allocation view and resource management toolbar are helpful in identifying resource over allocations.

Dealing with Overallocations The project manager is responsible for dealing with over allocations, but MS Project can illustrate the impact of actions such as replacing the over allocated resource with someone else, reducing the unit assignment, reducing scope, or using leveling delay to delay the start of an activity.

Crashing a Critical Path Activity One way of shortening overall project duration by adding resources. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Create RACI o From the Author - Identify Overloads o From the Author - Compress the Project Schedule by Crashing o Project 2016 Tutorial Video - Assigning Resources o Project 2016 Tutorial Video - Dealing with Overallocations

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 3 What’s New in This Chapter ............................................................................................................... 4 Teaching Strategies ............................................................................................................................. 4 Lecture and Workshop Outline ......................................................................................................... 5 Additional Resources .......................................................................................................................... 9 Cengage Video Resources ......................................................................................................................... 9

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

Purpose and Perspective of the Chapter The purpose of this chapter is to introduce methods for estimating project costs as well as developing a complete project budget.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives     

Define project cost terms and explain how each term is used in estimating project cost.

Compare and contrast analogous, parametric, and bottom-up methods of estimating cost.

Describe potential issues in project cost estimating and remedial approaches to deal with each issue.

Create a time-phased, bottom-up budget for a project.

Show both summary and bottom-up project budget information with cumulative costs using MS Project.

Agile Objective 

Describe how to use spikes and the shift left concept to address specific cost uncertainties.

[return to top]

Key Terms Consistent with PMI Standards and Guides plan cost management: The process to determine how to plan, estimate, and control project costs. cost management plan: This includes forecasting and refining cost estimates of all the project activities throughout the duration of the project.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

estimate cost: The process of developing an approximate and best guess of the monetary value of resources needed to complete all project activities. estimate: A quantified assessment of the likely amount. It should always include an indication of accuracy. reserve: Extra money in the project budget to be used if necessary—usually if a risk event occurs. management reserve: money assigned to the project for unknown possible costs, which is controlled by senior management contingency reserve: Money assigned to the project and allocated for identified risks for which contingent responses are developed. analogous estimating: A technique for estimating the duration or cost of an activity or project using historical data from a similar activity or project. parametric estimating: An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters. bottom-up estimating: A simplified mathematical description of a system or process (used to assist calculations and predictions) that is prepared by starting at the lower, more detailed-level pieces of work; these estimates are then aggregated into total quantity for the component work. value engineering: A formal and structured approach to reducing cost without decreasing the quality or performance. determine budget: The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. cost baseline: That part of the project baseline that handles the amount of money the project is predicted to cost and on the other side when that money will be spent. It is an approved budget usually in a time distribution format used to estimate, monitor, and control the overall cost performance of the project. control cost: The process of monitoring the project costs and managing changes to the cost baseline. [return to top]

Key Terms Consistent with Agile Practice spike: Short, time-boxed effort to test the concept to reduce risk. shift left: Perform as much testing and risk reduction early to gain feedback as soon as possible so that needed changes can be made quickly. [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 

PMBOK 7e Domains o Planning o Measurement o Uncertainty

[return to top]

Teaching Strategies 

We like to start the discussion on budgeting projects with a look at ethics. It is often tempting to underestimate (or at least optimistically estimate) the cost of a project in order to obtain approval. Both for the practical reason of not being able to live up to your promises and ethical reasons, it is important to be completely honest first with yourself in understanding what you are proposing and also to be honest with others.



Depending on the background of your students, this is a chapter that can be covered in more or less detail. Many of the topics might be familiar to a student who has had accounting and finance and unfamiliar to others. We do a quick review of some of the points for the sake of those who may not have really learned them. We strongly encourage the students to read the chapter since even things we cover in passing are fair game on the test if they are described in the chapter objectives.



Remind students that many of the project costs are assigned to the work package level. Others may be allocated as overhead at the project level.



Project cost estimate comparisons are unique to projects, so we always cover them fully. We want students to understand that at different points in a project, different types of estimates are used depending on the amount of data available at that time and what the estimate will be used for. Remind the students it is good practice to describe the method used and the range of confidence in the estimate so that people do not hold you to an early and not very accurate estimate.



One way to help the students envision the different types of estimates is to first describe each with an example, and then present a different type of project and ask the students what each type of estimate for that project might look like. You can also ask them what they would need in terms of data, experience, ability, etc. to perform each type of estimate.



A good place for a break out session is on aggregating the project budget. We like to use either Exercise 10.2 or 10.3 for this. For simplicity, tell the students that you are the boss of one of the resources and that you are only interested in the budget for

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

that person. Use the slide of Exhibit 10.9 to talk the students through the following steps: o

First construct a project schedule with a network.

o

Then show the schedule on a Gantt chart front-loaded.

o

Then delay a task if there is a conflict.

o

Then identify the cost per time period for that worker.

o

And finally, show the cumulative costs for that worker and how they grow through the project.

Students working in groups of two or three often initially grumble at this breakout session, but they usually discover they can do it, and it reinforces what they learned in Chapters 8 and 9 and allows them to see how project budgets are constructed.

We tell them we will use this when we perform earned value in Chapter 14. I tell the students that if they understand all parts of this example, they really understand the flow of project planning and control. 

This is yet one more chapter where you can demonstrate MS Project. If you have been using MS Project on earlier chapters, you can probably just demo the additional use in budgeting.

[return to top]

Lecture and Workshop Outline Different methods of estimating costs and creating project budgets make sense in different circumstances. This chapter describes various methods and when each is appropriate.

10.1 Plan Cost Management This is developing the cost management plan to document how you will plan, structure, and control project costs. Cost and schedule are closely related.

10.2 Estimate Cost This process of determining the approximate project costs is an outgrowth of scope, schedule, and resource planning.

Types of Cost Fixed vs. Variable Costs Project managers sometimes can choose between alternative methods, and the relative fixed and variable costs of each method along with expected volume can help determine the most cost-effective approach.

Direct vs. Indirect Costs

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

Direct costs only occur because of the project, but other costs of running the company are allocated as indirect costs to projects. Project managers need to understand how these costs are allocated.

Recurring vs. Nonrecurring Costs One-time or nonrecurring costs tend to occur near project start and conclusion, while repetitive or recurring costs occur during project execution.

Regular vs. Expedited Costs On projects where time is critical, extra charges may be incurred to speed up work.

Other Cost Classifications Several other cost classifications that most students know are listed.

Accuracy and Timing of Cost Estimates Projects often need preliminary (and perhaps not very accurate) estimates early and more accurate estimates later to support various decisions.

Order of Magnitude Estimates These initial estimates are often made quite early in the project when there is little detail, and therefore little expectation of accuracy. They help screen out impractical projects.

Budget and Definitive Estimates As more detailed planning occurs, estimates can become more accurate. These can serve as a basis for budgets.

Methods of Estimating Costs Methods for estimating costs vary from highly aggregated approximations to highly detailed estimates. Each has a time and purpose.

Analogous Estimating This compares the proposed project to a previous one on an overall basis and adjusts for differences in factors, such as size and complexity, to quickly estimate total project costs.

Parametric Estimating This is a bit more detailed and relies on one or more statistical relationships to estimate.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

Bottom-up Estimating This highly detailed method estimates the costs of each individual part of a project. It is vital to make sure all portions of the project are included in this estimate, as those not included are underestimated by 100%.

Project Cost Estimating Issues Supporting Detail By identifying the scope, estimating methods, assumptions, constraints, and range of possible outcomes for the estimate, people will know how much confidence to place in it.

Causes of Variation All projects have variation. Those with a high percentage of novel work and human interaction have more variation. Variation can be normal or expected given the work methods or it can be special—meaning something unusual might happen. Understanding the type of variation helps to explain and reduce it.

Vendor Bid Analysis This involves determining how reasonable a vendor’s bid is. On projects with substantial expense in purchased products and services, this becomes more important.

Value Engineering This is double-checking of all the methods used and features included in a project, which often uncovers ways to save money and still deliver necessary results.

Activity-Based Costing (ABC) This is a modern method of allocating indirect costs more accurately based upon four different types of cost drivers: number of units produced, number of batches run, number of product variations, and amount of facility utilized.

Life Cycle Costing This method seeks to understand full costs of producing the project and also using the results of the project for its entire useful life, including final disposition.

Time Value of Money and International Currency Fluctuations These are issues on some projects that are large either in terms of lengthy time and/or multiple locations.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

10.3 Determine Budget This is the process of establishing a cost baseline of when each cost is expected to occur. This approved budget is part of the overall project management plan and is used for project control.

Aggregating Costs The budget is aggregated based upon when each work package is scheduled.

Analyzing Reserve Needs Known knowns are estimated directly and do not require reserves. Known unknowns are discovered during risk identification and are covered by contingency reserves. Unknown unknowns (unk unks) are totally unexpected and are covered by management reserves.

Determining Cash Flow Cash outflow on projects often occurs almost continuously (although not necessarily evenly). Cash inflows often occur in increments—with those from customers often occurring long after expenses are incurred. Project managers need to understand both to ensure that at no time the project is without cash to handle expenses.

10.4 Establishing Cost Control The approved project budget serves as a baseline for cost control. Milestones serve as useful intermediate points to measure progress both in terms of cost and schedule.

10.5 PMBOK Guide 7e Planning Measurement Uncertainty 10.6 Budgeting Agile Projects 10.7 Using MS Project for Project Budgeting MS Project supports both bottom-up and summary level cost modeling.

Developing a Bottom-Up Project Budget Estimate Assignment Costs Assignment costs are calculated by multiplying assignment work hours by resource rates (standard and possibly overtime).

Task Costs

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 10: Budgeting Projects

An activity or task cost is the sum of assignment costs plus any activity fixed cost.

Project Total Costs This is the sum of all underlying costs.

View Costs from a Different Perspective Cost can be viewed as summaries of the WBS elements or as summaries of resource costs by using the Resource Usage View.

Develop Summary Project Budget Either for an entire project, or portions of a project, summary level estimates can be inserted. As details become known, these summary estimates can be replaced with detailed estimates. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Create the Time-Phased Project Budget o Project 2016 Tutorial Video - Defining Project Budgets

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 3 Key Terms Consistent with Agile Practice ........................................................................................ 4 What’s New in This Chapter ............................................................................................................... 5 Teaching Strategies ............................................................................................................................. 5 Lecture and Workshop Outline ......................................................................................................... 6

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

Purpose and Perspective of the Chapter The purpose of this chapter is to examine the methods for identifying, assessing, responding, and finally, monitoring and controlling risk in plan-driven as well as Agile projects.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives:       

Describe the processes of identifying risks, analyzing risks, and developing response plans for identified risks.

Identify and classify risks for a project and populate a risk register.

Describe various risk assessment techniques and state when each technique is appropriate to use.

Prioritize each risk on a project using an appropriate assessment technique and develop and defend at least one strategy for each of the high-priority risks.

Compare and contrast the various strategies for dealing with risks.

Select and utilize an appropriate quantitative risk analysis tool if qualitative risk analysis is not sufficient.

Determine the propensity of a key decision-maker to accept risk and use that knowledge to strategize about which risks to accept.

Agile Objectives:  

Explain how risk is generally reduced or mitigated using Agile methods.

Plan and conduct a risk-based spike to prove your approach to your product owner.

[return to top]

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Key Terms Consistent with PMI Standards and Guides plan risk management: Describes how the risk management processes are implemented and how they fit with other project management processes. performing organization: An enterprise whose employees have direct involvement in executing and completing the project. project risk: Anything that may impact the project team’s ability to achieve the general project success measures and the specific project stakeholders’ priorities—together, referred to as project objectives. threat: Risks that would adversely impact one or more project objectives. opportunity: Any uncertainty that has a positive impact on one or more project objectives. risk management plan: Describes how risks are identified, prioritized, and monitored for changing priorities, and how prioritized risk management activities will be planned and performed. risk breakdown structure: A hierarchical organization of risks based on categories, such as operational, strategic, finance, external, and project management. identify risks: The act of documenting what is known that can be managed with a risk plan.

SWOT analysis: A detailed analysis of the project’s and project management’s strengths, weaknesses, opportunities, and threats.

Delphi technique: An information-gathering technique used as a way to reach a consensus among experts on a subject, with the experts participating anonymously to avoid groupthink and prejudice. root cause analysis: An analytical technique to ascertain the fundamental or causal reason or reasons that affect one or more variances, defects, or risks. trigger condition: a situation that has been identified in advance that prompts us to invoke a risk strategy or risk action. risk register: A repository in which outputs of risk management processes are recorded. perform qualitative risk analysis: Evaluates the importance of each risk to categorize and then prioritize risks to develop further actions. perform quantitative risk analysis: The process of developing insight using a detailed numerical estimate of the overall impact of the risk on project objectives. decision tree analysis: A graphic tool depicting alternative choices as branches, multiple options for each alternative, and evaluating potential outcomes in terms of uncertainty and

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

monetary value. Potential outcomes are often determined using the expected monetary value (EMV) method. expected monetary value (EMV) analysis: A statistical technique to calculate the present value of future outcomes to choose the best alternative. It is generally used for engineering economics and cost-benefit analysis. failure mode and effect analysis (FEMA): Failure mode means the ways, or modes, in which something might fail. Failures are any errors or defects, which can be potential or actual. Effects analysis refers to studying the consequences of those failures. FMEA documents current knowledge and actions about the risks of failures and can be used for continuous improvement. sensitivity analysis: A quantitative what-if risk analysis technique that presents comparative analyses of various desirable outcomes with respect to a financial measure or uncertainty. It can be used to determine which risks have the most impact on the project outcomes or goals. tornado diagram: A special type of bar chart and data where project goals are listed vertically and risk uncertainties are depicted horizontally as probability. simulation: A technique that mimics real situations using uncertainties and assessing their impact on project objectives. In the context of projects, the Monte Carlo simulation tool is used to develop probability distribution of risks and their impact on project goals, such as cost and time. plan risk responses: A process determines effective response actions that are appropriate for prioritized individual risks and for the overall risk of a project. [return to top]

Key Terms Consistent with Agile Practice continuously identify risk: Specific effort to use feedback and engage team to identify risks. premortum: Brainstorming description of what could go wrong. assume variability: Preserve options to provide flexibility because of unknowns. handoffs: Whenever work is turned over some tacit knowledge is lost. risk-based spike: Short time-boxed work to address a specific risk. [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 

PMBOK 7e Domains o Stakeholders o Team o Development Approach o Planning

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Teaching Strategies 

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We like to start this chapter discussing project success measures and priorities, as those will highlight the importance of various risks. You can ask the students how their sponsors look at success and what they prioritize highest.

It is important for students to understand that we consider both negative risk (threats) and positive risk (opportunities), with a variety of strategies used for dealing with each.

Encourage students to consider how they can categorize risk, both to understand each risk better and to increase the likelihood of identifying more relevant risks.

Make sure students think about “known knowns,” “known unknowns,” and “unknown unknowns (unk unks).” You can have a short breakout session or a discussion asking students to identify risks of each of these three kinds. It may be hard for them to think of unk unks because by their very definition, they are things people do not think about. You can introduce this by talking about an IT project in which the sponsor decided late in the project to change the programming language or a construction project in which someone sat on a sink and destroyed it or something else that happens which may not have been considered in risk identification. Here is an easy example: We just completed our new business school building. A known known is that on a two year construction project it will rain at some point and workers will not be able to work outside. A known unknown is that in Ohio we might get a major blizzard in a given year and we might not. And, finally, a weather-related unknown unknown happened—we had the tail end of a hurricane disrupt construction. It was over a century since that had happened here, so nobody thought of it.

This is a good chapter in which to remind students that the various project documents relate to each other. One way to do this is to encourage the students to review the documents they have already completed with an eye toward identifying as many potential risks as they can.

Risk triggers make for interesting discussion. Try to get students to think about what they can observe before a risk event happens, so they can better manage their

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

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project is insightful. An obvious risk trigger for construction projects is a weather report. Encourage the students to discover triggers for risks on their projects by asking many questions of various stakeholders.

We generally have a short breakout session in which students start to prepare their risk register.

If you did not already cover qualitative risk analysis in your charter (with probability and impact for each risk), this is a good time to do so. You can add when in the project the risk is likely to occur and how easy it will be to identify the risk event (think visible trigger).

We usually mention quantitative risk analysis techniques, but do not teach the mechanics of how to perform each method. You might prefer to cover one or more of the methods in more depth.

Risk response strategies make another easy and enjoyable breakout session for students. First, quickly review the eight common strategies so the students are familiar with them. Then choose a real project in your community that has just been announced, for which there has not yet been much discussion of details. Challenge groups of students to see how many of the common strategies they can employ, and insist that they be specific. You can even let the different groups of students determine whether a strategy is good enough to count and tell them that bragging rights go to the students who come up with the most useful strategies.

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Lecture and Workshop Outline The approach to risk is the same on any project—identify, assess, and respond.

However, the level of depth and energy spent varies considerably from one project to another. The purpose of risk management is to reduce overall project risk to an acceptable level.

11.1 Plan Risk Management Upon understanding the success measures and priorities for a project, a project manager develops a risk management plan to decide how to approach, plan, and execute risk management activities for the project.

Roles and Responsibilities Involve as many people as practical in risk planning to get all points of view and good buy-in. Identify who is responsible for each risk.

Categories and Definitions Projects have many risks. By categorizing them, it is less likely to overlook some.

Some industries have typical categories of project risks.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

11.2 Identify Risks Project managers, while responsible for identifying risks, often rely on subject matter experts (SMEs).

Information Gathering This can occur via brainstorming, SWOT analysis, structured interviews, and other means.

Reviews Reviewing documents developed for the project and for other uses helps identify risks.

Understanding Relationships Flow charts, root cause analysis, and triggers are tools that help understand risk relationships.

Risk Register This is the primary output of risk identification. It is a living document with much information regarding risks.

11.3 Risk Analysis This is understanding enough about each risk to be able to determine how fully and formally it will be handled.

Perform Qualitative Risk Analysis Project managers consider probability of occurrence and impact if realized for each risk. Qualitative risk analysis is performed on all projects.

Differentiating Between Major and Minor Risks Using probability and impact, possibly with additional criteria, the project manager decides which risks need to be considered major and which are minor.

The major risks will have contingency plans and an owner responsible for each plan.

Cause-and-Effect Relationships These relationships are important because one way to assess the magnitude of an effect is to understand its cause. By changing the cause, sometimes the effect can be indirectly impacted.

Cause-and-Effect Diagram

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

This helps a team understand the cause and effect relationships.

Perform Quantitative Risk Analysis These numerical techniques are often used on larger, more complex projects to more clearly determine the extent of certain risks.

Risk Register Updates Probabilities, impacts, and priorities for each risk should be added to the register.

11.4 Plan Risk Responses This is the process of developing options and actions to reduce the impact of negative risks (threats) and to capitalize on positive risks (opportunities).

Strategies for Responding to Risks Eight types of strategies exist for responding to risks. Many projects will use multiple strategies depending on the unique combination of risks to be faced (see Exhibit 11.12).

Avoid Risk Sometimes a project plan can be altered to avoid a particular risk.

Transfer Risk This does nothing to reduce a risk—it just pays some other organization to assume it. Insurance is a common form of this.

Mitigate Risk These strategies are undertaken to lower the probability of the risk event, the impact if it does happen, or both.

Accept Risk Project managers accept many minor risks.

Research Risk Sometimes by learning more about a risk, it can be dealt with better.

Exploit Opportunity

This is increasing the probability, impact, or both of a favorable opportunity.

Share Opportunity

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 11: Project Uncertainty Planning

This variation of exploiting opportunities is appropriate if the opportunity is too large for the project team to fully exploit on their own.

Enhance Opportunity Again, this is a variation of exploiting opportunities, but is more proactive.

Risk Register Updates Keep the risk register updated with any results from risk response planning.

11.5 PMBOK Guide 7e Stakeholders Team Development Approach Planning Delivery Measurement Uncertainty 11.6 Agile Projects [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 4 What’s New in This Chapter ............................................................................................................... 5 Teaching Strategies ............................................................................................................................. 5 Lecture and Workshop Outline ......................................................................................................... 7

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

Purpose and Perspective of the Chapter The purpose of this chapter is to describe how a quality plan is developed and managed as well as to explain how to prepare for and kick-off a new project.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives      

Define each core concept of quality in projects and explain its significance in planning and managing projects.

Explain what may be included in a project quality management plan.

Describe the major contributions to contemporary project quality of the quality gurus, and TQM, ISO, and Six Sigma.

Baseline your complete project plan in Microsoft Project.

Compile a complete project management plan, including all parts covered in the last several chapters.

Kick off a project with effective pre-meeting preparation, a kickoff meeting, and documentation.

Agile objectives 

Describe how Agile methods help to improve the quality of project products, processes, communications, and people.

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Key Terms Consistent with PMI Standards and Guides plan quality management: The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements and/or standards.

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project quality: The characteristics of a product or service that bear on its ability to satisfy stated or implied needs. stakeholder satisfaction: Identifying all stakeholders and understanding the stakeholders’ ultimate quality goals using a structured process to determine relevant quality standards. process: A sequence of linked activities that is intended to achieve some result, such as producing a good or service for a customer. control: The activity of ensuring conformance to the requirements and taking corrective action when necessary to correct problems and maintain stable performance. four aspects of fact-based management: Understanding variation, deciding what to measure, working correctly with data, and using the resulting information appropriately. quality metrics: A measurement meant to ensure that customers receive acceptable products or deliverables. data: Information in an unorganized form representing conditions, ideas, or objects. information: Knowledge gained through study, communication, research, instruction, etc.; factual data. quality management plan: Specifies the acceptable level of quality, typically defined by the customer, and provides a detailed account of how the project will meet this level of quality with its deliverables and work processes. process improvement plan: Documents the steps for analyzing processes with a focus on improving them. manage quality: The process of using the quality plan and policy to perform tasks that will most likely lead to creating project outputs to customers’ satisfaction. perform quality assurance: A practice, primarily concerned with overall process improvements to ensure that every deliverable produced is error free. quality audit: Review and evaluate the project activities and identify those which should be improved versus those that meet the quality standards. preventive actions: Steps taken when the project is trending away from the planned scope, schedule, cost, or quality requirements. Preventive actions are proactive in nature, based on a variance and trend analysis. corrective actions: Steps taken when the project has deviated from the planned scope, schedule, cost, or quality requirements. Corrective actions are reactive in nature and are intended to bring the project’s performance back into alignment with the agreed-upon project baselines. defect repair: Steps required to take when a product or deliverable does not meet the specified quality requirements. Not all defects can be repaired, so judgment is required to

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

decide if the output is repairable or if it needs to be scrapped and a new output will be created. process analysis: A step-by-step breakdown of the phases of a process, used to determine the inputs, outputs, and operations that take place during each phase. A process analysis can be used to improve understanding of how the process operates, and to determine potential targets for process improvement through eliminating waste and increasing efficiency. control quality: The activities used to verify that deliverables are of acceptable quality and that they are complete and correct. Examples of quality control activities include inspection, deliverable peer reviews, and the testing process. cost of quality: A sum of the cost of conformance of quality and cost of nonconformance of quality. [return to top]

Key Terms Consistent with Agile Practice build quality in: Workflow is reduced and waste increased if mistakes are made. continuous improvement: Pursue perfection by enlisting all in never-ending effort to get better. make process explicit: Ensure everyone understands how a process works. value stream mapping: Visual flowchart identifying value and nonvalue activities. inspection: Everyone examines, trying to improve product, process, and people. testing evaluating: To ensure that the deliverable meets requirements, which serves as an important feedback mechanism. test-driven development: The practice of writing tests to be used before writing code. test plan: Determine how you will verify work is acceptable before performing. unit test: Ensuring small function or classes work properly. integration test: Ensuring new functionality works immediately in existing system. acceptance test: Verifying for customer entire system works correctly. continuous integration: The practice of immediately ensuring each bit works in the system. refactoring: Simplifying and cleaning a product to make it stable and maintainable. [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: PMBOK Guide 7e o o o o o o

Stakeholders Team Work Delivery Measurement Uncertainty

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Teaching Strategies 

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There is a great deal of conceptual material behind understanding the modern approach to quality planning and management on projects. We want the students to operationalize these ideas, not merely memorize them. Therefore, we conduct breakout sessions in which they identify both good and bad examples.

The first breakout session we sometimes conduct is to have the students identify good and bad (or missing) examples of the suggestions from the various gurus.

When we do this breakout session, we tell the students they can use examples from any organization or any project with which they are familiar. The key is to get them to think about what the practice of these ideas looks like. It is easy to do this in three groups with one taking Deming, one taking Juran, and the final group taking others.

You can divide the other guru group into two or three groups if you wish to have four or five total breakout groups.

For the second breakout, we divide the students into groups dealing with Malcolm Baldrige, ISO, and Lean Six Sigma. Again, you can divide some of these into subgroups if you want more than three breakout groups. For this breakout, ask the students to focus on an organization. For MBA students or undergrads with significant work experience, it can be an employer. In those cases, one student often contributes more and the other students are encouraged to ask questions and group the answers. We always ask a different student to report out than the student who best knows the organization. That encourages better questions. Another approach is for the students to address the organization in which they are performing their example project. One potential disadvantage of this is they sometimes do not know that organization in depth. A way to overcome that is to assign the groups in advance and ask them to research the organization so that they can provide meaningful comments.

Briefly cover the DMAIC model, then tell students that other organizations sometimes use the PDCA model or some other model to guide their efforts. We tell

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

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them all of the better models are based upon the scientific method and make sure they can explain what that is.

Everything in this chapter to this point serves as a background for understanding the core project quality concepts. These concepts are based on a synthesis and an application of the ideas developed by many gurus and summarized in the various frameworks. The core project quality concepts are structured to help students to know not just the theory of what they should do, but also serve as roadmaps for how to perform. We like to go through each in turn by first presenting the material (and tying as much of our presentation as possible to things the students said in their previous breakout sessions). Then we ask leading questions about where and how they have seen these things or how they could envision them.

The SIPOC is a useful tool in understanding processes. You can use Exhibit 12.7 as an example. If we have the students construct one, we usually only let them have enough time to start it and encourage them to complete it on their own. Just as in all our breakout sessions, we like to ask what the students learned. One of the most common statements is that they had no idea how complex it is.

Sometimes we will conduct another breakout session at the end of the coverage of the four core project quality concepts. We assign one of the core concepts to each group and ask them what specific guidance within that concept they feel is most critical and why. We also ask them to tell us how they would use it on their project.

Discuss project quality management plans by reminding the students these are subsidiary plans and will need to be fully integrated into the project management plan. Tell them that many small projects do not have separate quality management plans. Ask them how they would address the specific topics that are often included if they do not have a separate plan.

Especially with MBA classes, we like to ask what the quality policy of their company is. When few if any students can answer, we ask how they are guided by something they do not know. We then remind them that top management has an obligation to communicate their policy, and everyone has an obligation to seek it out and understand it. We also tell them that a project needs to have a quality policy. When the project is internal, using the parent organization’s policy often makes sense.

However, when the project is external, the project manager needs to understand the policies of both contractor and customer organizations and be consistent with both—even if they are somewhat different. You might find it interesting to point out common words in quality policies in Exhibit 12.13 and ask why certain words are common and others are not. It might also be interesting to ask why some trends have changed such as sustainable/reliable/dependable is so much more common now.

Students need to understand the difference between quality control and assurance.

We emphasize the word control means looking at a specific measurement while assurance means giving someone a comfortable feeling you are capable. Quality

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

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control is technical and reactive; while quality assurance is managerial and proactive. Both are important.

The last part of this chapter deals with successfully transitioning the project from primarily planning to primarily executing. On most projects, some long lead items are performed during planning and some re-planning occurs during executing. On agile projects, the transition between planning and performing occurs repeatedly.

Nevertheless, students should consider the formal project kickoff as a transition and should think about how to conduct it. Ask the students when a good trial attorney asks a question (when she already knows the answer). Similarly, a good project manager works individually with various stakeholders in advance so she knows what each will say during the kickoff meeting.

Finally, you can demonstrate how to baseline a project plan in MS Project.

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Lecture and Workshop Outline Many concepts in the modern approach to managing quality are the same as those in the modern approach to managing projects. This is the final planning chapter and it ends with kicking off the project.

12.1 Development of Contemporary Quality Concepts A number of well-known individuals (often called quality gurus) and also a number of established frameworks offer ideas and techniques used in contemporary quality management.

Quality Gurus Deming developed a system of profound knowledge composed of systems thinking, understanding variation, identifying cause and effect, and dealing with motivation.

Juran’s trilogy of quality planning, control, and improvement serve as a basis for PMI’s quality planning, control, and assurance.

Many other gurus have also made significant contributions (see Exhibit 12.3).

Total Quality Management (TQM)/Malcolm Baldrige The core concepts of TQM, dating from the 1980s, evolved into criteria for the Malcolm Baldrige National Quality Award. This includes concepts such as leadership, customer focus, learning, partnership, innovation, and managing by facts.

ISO 9001:2015

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

A European approach to quality, called ISO, originated in technical standards and evolved into a comprehensive set of many of the same principles.

Lean Six Sigma This approach started with rigorous statistical analysis. While retaining that, it also now is a complete system (DMAIC). This five-step method of define, measure, analyze, improve, and control guides improvement efforts.

12.2 Core Project Quality Concepts These concepts are common to each of the gurus and frameworks noted above, but are specifically tailored to use in projects.

Stakeholder Satisfaction Developing Quality Standards Based Upon Stakeholder Requirements Steps in developing the standards for a project include: identifying all stakeholders, prioritizing among them, understanding their prioritized requirements, developing standards to ensure the requirements will be met, and making appropriate tradeoff decisions. Project managers frequently facilitate a process by which the more important stakeholders use the quality standards to judge the project process as well as deliverables.

Stakeholder Satisfaction Sayings Measure twice, cut once.

Meet requirements, exceed expectations.

A smart project manager develops capable customers.

Process Management A process is a set of related activities to achieve a specific outcome. The three aspects of process management are understanding, control, and improvement.

Process Understanding with a SIPOC Model Supplier Input Process Output Customer (SIPOC) models help project managers visualize the entire process of the work that needs to be performed and all the people involved.

Process Control On projects this is establishing standards, measuring actual performance, calculating any difference between the two as a variance, and striving to reduce unwanted variances.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

Process Improvement with a PDCA Model Processes can be improved using a continuous or a breakthrough approach.

Improvement models are based upon the scientific method and are frequently either the DMAIC used by Six Sigma or the Plan Do Check Act (PDCA) used by other approaches. They are essentially variations of the same general approach.

Fact-Based Management Projects are fast-paced and decisions often need to be made quickly.

Nevertheless, taking just enough time to get facts—instead of only using opinion—often yields better decisions.

Understanding Variation Understanding if variation originates from a common cause (inherent in the system) or special cause (something specific) helps a project manager decide on the best method of reducing the unwanted variation or capitalizing upon the wanted variation.

Determining What to Measure This is a balancing act of measuring enough of important characteristics, but not spending more time or money to do so than necessary. Acceptance criteria in the milestone schedule of project charters are a great place to start defining what to measure, but are often not enough.

Working Correctly with Data Devise simple methods of collecting and analyzing data. These may be enough for small projects, though other projects may require more involved methods.

Using the Resulting Information Appropriately The project communications plan outlines how information will be shared in a truthful and transparent way. When making decisions based upon facts, people sometimes need to confront unpleasant facts.

Empowered Performance The goal is to have capable and willing workers at every level and for all needed functions.

Recognize Individuality Projects benefit in so many ways from an inclusive and diverse workforce.

Project managers are wise to ask in a one on one setting of each member what

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he or she hopes to get out of working on the project (in addition to helping the project succeed).

Capitalize on Individual Strengths People feel good when they get to use their strengths, so project managers can often find creative ways to capitalize upon this as they utilize talents and interests of participants.

Emphasize Individual Responsibilities Empowered performance requires that people understand and accept their responsibilities.

Use Appropriate Collaboration Shared learning is an effective strategy to get people to work more effectively together.

12.3 Plan Quality Management This subsidiary plan describes how the project will perform in accordance with the quality policy.

Quality Policy This brief statement includes top management’s principles of achieving quality and the benefits they hope to achieve. Quality policies vary substantially.

Quality Management Plan Contents These may include deliverables and standards to evaluate each for completeness and correctness from the customer perspective; quality control activities such as processes and standards to review them; quality assurance activities; and quality responsibilities.

Quality Baseline Just like other baseline plans, this clearly describes what a project is expected to achieve (in this case the quality standard to be achieved).

Process Improvement Plan This details how to analyze work processes with an eye toward improving them.

12.4 Manage Quality Using the quality plan and policy to perform tasks most likely to lead to customer satisfaction

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

Perform quality assurance These management activities of quality audit and improvement are designed to give stakeholders confidence in the project.

Quality audits often lead to change requests for one of more of the following: preventive actions, corrective actions, and/or defect repair.

Process analysis is a way of breaking down the phases of a process to a step-bystep level in order to gain understanding and enhance efficiency.

12.5 Control Quality This is more specific—checking on specific results to see if they comply with standards.

Quality control terms (see Exhibit 12.14 and accompanying descriptions).

12.6 Cost of Quality Sum of the cost of conformance of quality and cost of nonconformance of quality (see Exhibit 12.15).

12.7 Develop Project Management Plan This is bringing all of the subsidiary plans discussed in Chapters 6–12 into one comprehensive project plan that is practical.

Resolve Conflicts Sometimes when different people develop different sections of the project plan, the individual parts may each look good, but they may not go well together.

Establish Configuration Management This is to identify, document, control, and track all of the characteristics of the project deliverables.

Apply Sanity Tests to All Project Plans Before finally accepting the complete project plan, it makes sense to just ask—is this practical?

12.8 Kickoff Project Projects are formally kicked off so that various stakeholders can see how everything fits together, so they can understand the desires of other stakeholders, and so everyone can become excited about the project.

Preconditions to Meeting Success

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 12: Project Quality Planning and Project Kickoff

These are things the project manager, team, and sponsor do to enhance the probability of a successful kickoff.

Meeting Activities The sponsor, project manager, and core team will each make some presentation at this meeting to ensure that everyone knows enough about the project and to enhance the status of participants, in the hopes that will enable them to perform better.

12.9 Baseline and Communicate Project Management Plan Formal acceptance of the project plan is called baselining. Actual performance will be compared to this baseline for project control. Baselining marks the transition from primarily planning to primarily executing the project.

12.10 Using MS Project for Project Baselines Before using MS Project to automate and communicate the baseline, a number of planning items (covered in Chapters 6–12) should be verified.

Baseline the Project Plan MS Project’s baseline includes five activity metrics: planned values for project duration, start, finish, work, and cost. Now that project work is underway, you will need to continuously compare actual results to the planned baseline.

Create the First-time Baseline (See textbook for detailed instructions.)

Subsequent Baselines Sometimes with a major change, management will instruct the project manager to manage to a revised baseline.

Viewing Baselines and Variances Gantt Chart view can be formatted to show graphics of difference between planned and actual schedule of each task.

12.10 PMBOK Guide 7e Stakeholders Team Work Delivery

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Measurement Uncertainty [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 Key Terms Consistent with Agile Practice ........................................................................................ 4 What’s New in This Chapter ............................................................................................................... 5 Teaching Strategies ............................................................................................................................. 5 Lecture and Workshop Outline ......................................................................................................... 6

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

Purpose and Perspective of the Chapter The purpose of this chapter is to provide an overview of key components of project execution including procurement, assessment of project results, and benefits realization.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives      

Describe how to plan, conduct, control, and close project procurements.

Describe the various formats for supply contracts and when each type is appropriate.

Determine activities, supplies, or services to be purchased in a project situation.

Create bid documents for the purchase of a service or supply for a project.

Determine the criteria to select a seller, then decide and justify the type of contract to be used.

Describe effective approaches to and advantages of project partnering.

Agile Objectives 



Describe four main types of contract clauses used in Agile and the benefits of each.

Explain the Agile approach to project partnering and collaboration.

[return to top]

Key Terms Consistent with PMI Standards and Guides supply chain management: This includes a set of approaches to integrate suppliers, manufacturers, warehouses, and stores efficiently and effectively such that the process of procurement, production, and distribution of products and services are distributed in the right quantity, to the correct location, and on time with an overall goal to minimize overall cost in meeting requirements.

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owner: Person or entity that owns the product of the project and to whom that product will be handed over at the time of its completion. general contractor: A person or agency that “does not specialize in one kind of work; often used to refer to the primary contractor who employs specialty subcontractors. subcontractor: Contractor who is holding a contract with a prime contractor (also referred to as a first-tier subcontractor) or is holding a contract with a subcontractor to the prime contractor (i.e., lower-tier subcontractor). make-or-buy decisions: These are the acts of choosing between manufacturing a product or developing a service in-house or purchasing it from an external supplier. plan procurement management: Determining how project procurement decisions, approach, and dealing with sellers will be accomplished and documented. procurement management plan: Describes how a project team will acquire goods and services they choose to purchase. procurement statements of work: A statement of work for outsourcing goods or services to an outside entity. procurement documents: Documents that define the requirements and contractual relation-ship between suppliers and customers of services and products used on a project. request for information: A proposal requested from a potential seller or a service provider to determine what products and services are potentially available in the marketplace to meet a buyer’s needs and to know the capability of a seller in terms of offerings and strengths of the seller. request for quotation: Used when discussions with bidders are not required (mainly when the specifications of a product or service are already known) and when price is the main or only factor in selecting the successful bidder. request for proposal: An early stage in a procurement process issuing an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. conduct procurements: Includes receiving seller responses, selecting a seller, and awarding a contract. contract: A mutually binding legal relationship obligating the seller to furnish supplies or services and the buyer to pro-vide consideration for them. fixed-price contracts: An agreement that binds the seller to perform the agreed-upon work for the agreed-upon money. firm-fixed-price contracts: A contract in which the seller has to complete the job for the agreed-upon amount of money regardless of the actual cost incurred.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

fixed-price-incentive-fee contracts: A contract in which the price is fixed as defined by the contract, but the seller can earn an additional amount as incentive if the seller meets defined project metrics. fixed-price-economic-price-adjustment contracts: A fixed-price contract with a clause to protect the seller from conditions such as inflation or commodity cost increases. cost-reimbursable contracts: A type of contract in which the seller is reimbursed for the actual approved costs of completed work, plus a fee typically representing profit. cost-plus-fixed-fee contract: A type of contract in which the buyer reimburses the seller for all of the seller’s allowable costs plus a fixed amount of profit (fee). cost-plus-award-fee contract: It is a type of contract that involves payments to the seller for all allowed costs incurred for completed work, plus an award fee based on satisfying certain subjective performance objectives. cost-plus-incentive-fee contract: It is a type of contract in which the buyer reimburses the seller for the seller’s allowable costs and pays the seller a fee if it meets defined performance criteria. time and material contracts: Hybrid contracts containing aspects of both costreimbursement and fixed-price contracts, and they are generally used when the scope is unclear and the deliverable is created using either effort (labor hours) and/or amounts of materials. control procurements: Managing relationships between sellers and customers, monitoring contract performance, and making changes and corrections, if needed. partnering: A long-term relationship between an owner and a contractor in which the contractor acts as a part of the owner’s organization for certain functions. lean purchasing: Manufacturing context and implementation of just-in-time (JIT) tools and techniques to ensure every step in the supply process adds value while various costs are kept at the minimum level. sourcing: Identifying a vendor for the good or service. logistics: A general term to describe the movement of goods from one location to the next. [return to top]

Key Terms Consistent with Agile Practice value chain: All activities performed by project team or partners that help produce solution. change for free: Agreement allowing customer to substitute future work packages. fixed-price increments: Agreement to pay set amount for current increment of work. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

graduated fixed price: Agreement by which a contractor makes more if completed early. money for nothing: Agreement to pay contractor portion if future work is terminated. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 



PMBOK 7e Domains o Stakeholders o Planning o Work o Measurement Emphasis placed on project procurement rather than project supply chain management.

[return to top]

Teaching Strategies 





The Project Management in Action feature at the end of this chapter is a great place to start. You can use it in different manners. You could ask the students to read it before class and have a discussion. You could ask them to map how ideas from it match up to ideas in the chapter or elsewhere in the book. You could ask your students if the companies where they work do things in a similar or different fashion. Students often find it interesting that a large, successful company does so many of the things mentioned in the book—even if a few use slightly different names.

A variation of the first strategy is to compare and contrast how a fledgling company in the introductory essay and a global powerhouse in the Project Management in Action example exhibit similarities and differences with respect to their project management supply chain and how they deal with their partners.

This chapter lends itself very well to using a local project that is about to start. You can use each of the exercises at the end of the chapter for excellent class discussions. Make sure the students bring their books to class, as to do this well, you want the students to refer to the chapter at several points. You can ask them to: o Use the ideas in Exhibit 13.2 to speculate what activities, supplies, or services needed could be contracted out. o Create a request for information (RFI) for one portion of the project work that could be contracted out. o Use ideas from Exhibits 13.4 and 13.5 to determine criteria you would use to select sellers for the portion of contract work under consideration. o Determine what type of contract you would use for this work and tell why.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

Describe the extent to which any partnering makes sense for this project. What are the challenges and benefits to this partnering? What would prevent any further partnering?

We try to make sure we at least mention each of the procurement management processes. This chapter has all three of the PMBOK processes pertaining to procurements (plan, conduct, and control procurements).

If you choose not to use a local project as described above, several of the topics such as reasons to make or buy, factors used in assessing potential suppliers, and types of contracts can still be used for either discussion or a small breakout session.

Encourage students to offer specific examples and to justify their recommendation.

In either an MBA class or an undergraduate class with several students who have significant work experience, it may be easy to generate a brief discussion on where to look for potential suppliers—again look for specific ideas to help students visualize.

Role play can help students envision why partnering has the potential to reduce conflict and work to both parties’ benefit. You could divide the class into four teams.

Create a scenario with probable conflict. Instruct one team to be contractor and one to be the customer using traditional methods. Have the other two teams use partnering and have all teams then report back to the class. Alternatively, you could have all pairs of teams use traditional methods, have a class discussion on the results, then have all pairs of teams use partnering in the same scenario, and finally, discuss how it was different. o





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[return to top]

Lecture and Workshop Outline This chapter includes both planning and executing topics and helps with the transition from planning into executing.

13.1 Introduction to Project Procurement Since the vast majority of projects require goods and/or services from outside the organization, understanding how to best secure them is vital. Thinking in terms of SCM allows us to consider the ultimate customer better.

Project Procurement Components Make-or-buy decision, contract types, collaboration and cooperation, and system integration.

Project Procurement Factors The formalization of SCM varies according to factors such as the value of outsourced products and services, timing, and number of suppliers.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

Project Procurement Decisions Many decision need to be made regarding the project supply chain.

Project procurement management processes 1. Plan procurement management 2. Conduct procurements 3. Control procurements 13.2 Plan Procurement Management This is the process that documents how project purchasing decisions will be made and identifies potential sellers.

Outputs of Project Procurement Planning These include the procurement management plan and the procurement statement of work.

Make-or-Buy Decisions Reasons to Buy or Sell Many firms determine their major strengths, decide how to build upon them, and try to outsource many other functions.

Outsourcing Issues Outsourcing needs to be done carefully because the firm can lose control and have skills diminish if it is done poorly.

13.3 Conduct Project Procurements This is the process of obtaining seller responses, selecting a seller, and awarding a contract.

Sources for Potential Suppliers There are many ways to identify potential sellers.

Approaches Used When Evaluating Prospective Sellers There are multiple methods to determine if the potential seller has the technical, managerial, and financial capability of performing the needed work.

Supplier Selection Process Once one or more potential sellers have passed the evaluation, a request for proposal is often issued. The potential sellers respond, the project team decides

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

which they prefer, and a negotiation is conducted with the goal of signing a contract.

13.4 Contract Types Project managers can choose from several contract types depending on the risk level and other factors.

Fixed-Price Contracts These are primarily for well-understood projects.

Firm-Fixed Price Contract This simple contract states that the buyer will pay the seller an agreed-upon sum for performance regardless of seller’s cost.

Fixed Price-Incentive-Fee Contract The basic contract is for a set sum, but seller can earn more depending on how well certain performance criteria are met.

Fixed-Price-Economic-Adjustment Contract The basic contract price is fixed, but inflation and/or commodity price fluctuations can be factored into the final settlement.

Cost-Reimbursable Contracts Buyer agrees to pay sellers cost plus some amount toward profit.

Cost-Plus-Fixed-Fee Contract All allowable costs are covered plus an agreed-upon amount of profit.

Cost-Plus-Award-Fee Contract All allowable costs are covered plus an award that can be made at the sole discretion of a named executive at the customer organization based upon customer satisfaction criteria.

Cost-Plus-Incentive-Fee Contract All allowable costs are covered plus seller can earn additional more depending on how well certain performance criteria are met.

Time and Material Contracts Hybrid style contract where unit rates are set, but not the amount of work, so value of contract can grow.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

13.5 Control Project Procurements This includes managing the contractual relationship between buyer and seller, reviewing and documenting how the seller is performing, and managing changes.

13.6 Improving Project Procurement This is a perspective of a managerially-coordinated initiative to increase customer satisfaction, overall efficiency, continuous improvement, and competitiveness.

Sources of Conflict During Project Procurement Money, misunderstandings, apparent conflicts of interest, litigation, and many other sources of potential conflict exist in project purchasing. It is best to bring potential conflicts out early and try to resolve them.

Resolving Project Procurement Conflicts Shared responsibilities, shared resources, shared information, shared rights, and shared risks can contribute to heading off conflicts in the first place and to resolving them more easily.

Lean Project Procurement Focused on just-in-time (JIT) tools to ensure that every step of the process adds value.

Improving Communication in Project Procurement Information must have the following characteristics: Accurate Accessible Of the right kind 13.7 Project Partnering Strategic Project Partnering Research finds that through strategic partnering, organizations are more likely to access advanced technology, share risks, and improve project-based performance and relative competitiveness.

Mutual Goals in Project Partnerships Common goals such as schedule and costs warrant a supportive relationship

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 13: Project Procurement and Partnering

Effective Project Partnering Approaches Organizations can use a variety of purchasing approaches on their projects depending on the extent of partnering that is desired.

Securing Commitment to Partnering This can often be facilitated through a team building event with the primary goal of securing approval from top management of each partnering organization and subsidiary goals of developing mechanisms to resolve problems, improve processes, jointly assess, and continuously stress collaboration.

Third parties Through specializing, many times a third party can improve the supply chain performance.

Lean purchasing Through reducing cost and time of purchasing, projects can enhance customer satisfaction.

Sourcing Sensible sourcing improves project performance in many ways.

Logistics This often requires a tradeoff between responsiveness and transportation costs so that project managers need to remember which project objectives their stakeholders find most important.

Information For information to help supply chain partners make good decisions, it needs to be accurate, accessible in a timely manner, and of the right kind.

13.7 PMBOK Guide 7e Stakeholders Planning Work Measurement [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 3 Key Terms Consistent with Agile Practice ........................................................................................ 5 What’s New in This Chapter ............................................................................................................... 6 Teaching Strategies ............................................................................................................................. 6 Lecture and Workshop Outline ......................................................................................................... 7 Additional Resources ....................................................................................................................... 12 Cengage Video Resources ....................................................................................................................... 12

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

Purpose and Perspective of the Chapter The purpose of this chapter is to explain how project progress is reported and change is controlled and managed.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives         

Develop and demonstrate use of a change control system.

Demonstrate how to monitor and control project risks with various resolution strategies.

Create and present a project progress report.

Describe the importance of formal project progress reporting and communications.

Demonstrate negotiating skills.

Manage conflicts throughout the project execution.

Describe project quality control tools, including how and when to use each.

Calculate current project schedule and budget progress, and predict future progress, using Earned Value Analysis.

Document project progress using MS Project.

Agile Objectives    

Create an Agile iteration plan.

Conduct Agile stand-up meetings and document meeting minutes.

Demonstrate the use of Kanban boards.

Capture and share lessons learned (retrospectives).

[return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

Key Terms Consistent with PMI Standards and Guides direct and manage project work: Performing the work as defined in various components of the project management plan, including approved changes, with an intent to accomplish project objectives. monitor and control project work: This includes a series of activities such as identifying work packages for tracking, reviewing, and documenting the progress to ensure that the project execution is aimed to meet performance objectives as defined in the project plan. monitor: Reviewing the progress and capturing project performance data with reference to the project plan; developing performance measures; and communicating performance information. control: Assessing actual performance obtained from monitoring a work element and comparing it with planned performance, determining variances, analyzing trends to identify and implement process improvements, evaluating possible alternatives, and finally, recommending appropriate corrective action as needed. variance: A measurable departure from a planned baseline or expected value. perform integrated change control: Reviewing all change proposals, estimating their impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets, and the project management plan. change control: A process wherein change proposals to various project planning elements are acknowledged, formally documented, and either approved or declined after review. change control board: A formal group authorized and responsible for reviewing, evaluating, approving, delaying, or rejecting any changes to any aspect of the project plan by following a formal communication method of documenting the decision process. monitor risk: The process of adhering to the risk response plan of tracking identified risks, identifying new risks, monitoring residual risks, and evaluating the effectiveness of the risk response process throughout the project. implement risk responses: The process where when a risk event occurs or is quite likely to occur soon, the person assigned to that risk executes the strategy identified in the risk management plan. manage communications: All the work connected with the project communications plan, starting with planning for it; generating it; organizing and sharing it; and, finally, storing and disposing of it. work performance data: The actual and raw observations and measurements during execution of project activities.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

work performance information: The information from performance data, collected from these processes, analyzed in context, and then integrated, considering relations across areas. work performance reports: The compilation of work performance information in some physical or electronic form that are organized and presented as project documents intended to generate awareness, discussions, decision-making, or other suitable actions. monitor communications: Monitoring and controlling communications throughout the project life cycle to make certain that the information needs of all the project stakeholders are met. manage quality: The process of using and improving the quality plan and policy to perform tasks that will most likely lead to creating project outputs to customers’ satisfaction. control quality: The activities used to verify that deliverables are of acceptable quality and that they are complete and correct. control scope: The act of closely monitoring the project and product scope status and only allowing necessary changes to the scope baseline. scope change: Any change to the project work activities or deliverable. When the scope changes, the project cost and/or schedule also need to change. variance analysis: The process of determining both the cause and the amount of difference between planned and actual performance. control resources: A process by which all of the physical resources needed to perform the project are planned and monitored, and changes are made if needed. earned value management: A disciplined and quantitative method to integrate scope, cost, and schedule objectives into a single baseline plan for tracking contract performance. planned value (PV): The approved value of the work to be completed in a given time. It is the value that should have been earned as per the schedule. earned value (EV): The value of the work actually completed to date. actual cost (AC): The total of costs incurred in accomplishing work on the activity during a given period. budget at completion (BAC): The total amount budgeted for the entire project. schedule variance (SV): The difference between the earned value (EV) and the planned value (PV), and it denotes schedule performance. cost variance (CV): The difference between earned value (EV) and actual cost (AC), which reflects cost performance.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

schedule performance index (SPI): A schedule performance measure expressed as the ratio of earned value (EV) to planned value (PV). cost performance index (CPI): A cost performance measure expressed as the ratio of earned value (EV) to actual cost (AC). estimate to complete (ETC): The expected budget required to complete all the remaining project work. estimate at completion (EAC): The total cost of completing all the project work expressed as the sum of actual cost to date and the estimate to complete. to-complete performance index: A measure of the cost performance required to complete the remaining project work within the remaining budget. [return to top]

Key Terms Consistent with Agile Practice backlog: Activities not yet complete. work item pool: All work to do: new requirements, defects, training, and so on. manage flow: Teams focus on reducing time to complete work. work in progress (WIP): Work that has been started, but has not yet been completed, costs worktime, is not yet of value, and may be obsolete. minimize WIP: Focus on the work that has been started and finish it promptly. task switching: Time and concentration are lost when changing the work a person is doing. waiting: Delays may mean later feedback and task switching, work is not ready.

Kanban board: Tool designed to help visualize work, limit work-in-progress, and maximize

efficiency (or flow). trend analysis: Quantitative review of changes in performance over time. variance analysis: The study of deviations of actual behavior versus forecasted or planned behavior in budgeting or management accounting. burn-down chart: A visual presentation that starts at the total amount of planned work for a sprint and works toward zero. burn-up chart: A visual presentation that starts at zero and work their way up toward to the total amount of work expected pivot: Changing direction on next sprint based upon customer desires. [return to top]

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: 

PMBOK ®7e Domains o Stakeholders o Team o Development approach o Planning o Delivery o Measurement

[return to top]

Teaching Strategies 

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

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The methods of Chapters 13 and 14 are performed largely in a concurrent fashion.

All deal with executing and monitoring the project. You should continually reinforce to the students how the last four chapters are related. It is easy for them to get lost in detail otherwise.

Chapter 14 deals with most of the balanced scorecard issues except in the growth/innovation area. Participant development is covered in Chapter 13 and knowledge management is in Chapter 15.

We like to cover internal project issues first since they really form the “nerve center” of the project. We ensure students think about integration, risk and communications when they are performing detailed cost and schedule control using earned value and MS Project.

Tell the students that depending on how extensive any differences may be between their plans and their actual results, changes could be made to the project execution, plan, or even charter.

If you have the students planning a real project, there are quite a few questions you can assign in the Semester Project section of the chapter. Almost any major topic of the chapter can come alive through discussion of how it applies to a real project. We often choose just two or three of those questions instead of all eight. That is because we want to make sure there is time for the large amount of content in this chapter.

Give the students a few minutes to work with the change request form. Ask them to document either a real (if they have one) or potential change to their project and to describe any impact it may have. Emphasize how even small changes add up, so it is important to document them, but that in the haste to complete a project many people do not like added paperwork. Therefore, a change control system needs to be simple but enforced.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

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Time horizons for reporting project performance in Exhibit 14.6 help the students understand what to include in progress reports.

Students who are preparing for the CAPM or PMP will want to have a clear distinction in their minds between quality control and quality assurance. We find that spending some time differentiating the quality control terms helps them make this distinction.

Two very important techniques in this chapter are Earned Value Analysis and showing progress using MS Project 2016.

Earned Value makes a very good breakout session. The language PMI has adopted recently for this makes it easier to understand than it was with the old terminology.

Exhibit 14.17 can be used to further clarify. We like to bring in an example. We first encourage the students to duplicate our graph using an entire page to be able to see small differences. We draw the graph for the example similar to that in Exhibit 14.18 and make sure our example is somewhat different (with either favorable cost or schedule results). We talk the students through one portion of it at a time, then assign one of the first three problems for students to do in groups of two or three in class, and we discuss the results.

Go through some of the conceptual ideas with Microsoft Project before showing steps 1 through 6 of the process of updating a schedule. We generally have Power Point slides for students to take notes, but we demonstrate on MS Project, and then summarize by going through the slides.

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Lecture and Workshop Outline During project execution, a project manager needs to give direction, re-plan, influence, guard the scope, make decision, and follow-up to ensure proper results are delivered.

14.1 Project Balanced Score-Card Approach Project progress needs to be evaluated considering customer, internal business, financial, and growth/innovation perspectives (see Exhibit 14.1).

14.2 Internal Project Issues The project’s nerve center consists of integration, risk, and communications issues. Integration includes making choices to ensure project results are delivered. It is covered first in this chapter to encourage proactive integrated decision-making. A project manager needs to understand priorities and make decisions accordingly.

Direct and Manage Project Work

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

Empower others as possible, yet control as necessary when authorizing and performing project work.

Monitor and Control Project Work Continually measure and observe to understand actual work accomplishments and to return to desired performance when needed due to variance.

Types of Project Control Steering control is used to guide work, while go/no go control is used to approve work (or not).

Perform Integrated Change Control Insist that all changes are formally proposed, accepted or rejected, impact is considered and factored into revised plans.

Monitoring Project Risk The risk management plan and risk register will be used to monitor project risks and to resolve them when they occur.

This includes tracking and resolving previously-identified risks and understanding their impact, as well as identifying unexpected risks as soon as possible, recognizing the extent of control project manager has over each, and resolving them accordingly.

Implement Risk Responses When a risk event occurs or is about to occur, the risk “owner” executes the strategy identified in the risk management plan.

Manage Communications Execute according to communications plan and determine any additional information needs not already uncovered.

Collect Information on Executed Work and Work-in-Progress PMs need to understand current situation so they can re-plan if needed.

Report Performance Report actual progress on past period, current time period, and future time period.

Monitor Communications

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

The project manager and core team judge whether communications are following the plan and if they are effective.

Communicating in an Agile environment Communication is frequent and rapid in agile projects with core team meetings almost every day. The primary emphasis is on the near term.

Agile projects use a Burndown Chart to show amount of work remaining (see Exhibits 14.7 and 14.8) 14.3 Customer Issues Customers want everything to work correctly. They want the results to be useful (quality) and complete (scope).

Manage and Control Quality Manage quality is forward looking and revolves around using and improving the quality plan and policy (also known as quality assurance).

Control quality compares measurements of specific project outputs with standards. Quality control is technical and reactive.

Monitor the Project Quality This involves determining both what and when to measure quality.

Quality Management and Control Tools (see Exhibit 14.9) Flow chart Check sheet Pareto chart Cause-and-effect diagram Histogram Run chart Control chart

A visual model showing work flow A simple, structured form to gather data A vertical bar graph to show frequency of problems A visual outline showing possible causes A vertical bar chart showing average and variation A special type of scatter diagram showing time A run chart with process average and control limits

Control Scope Limit scope changes to those that really help better achieve project objectives and insist all changes go through the integrated change control system.

Variance analysis is the process of determining the cause and amount of difference between planned and actual performance.

On Agile projects, success of the product is predicted by having team members, including the product owner, use the product before users do.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

14.4 Financial Issues Control of scope, cost, and schedule is highly interrelated.

Control Resources The process in which all physical resources needed for the project are planned and monitored, with changes being made if necessary. This occurs throughout the project.

Control Schedule and Cost Comparing actual cost and schedule to baselines.

Earned Value Management for Controlling Schedule and Costs Management method of measuring schedule and cost performance.

Currently Known Values How much work should be done?

How much work is done?

How much did the “is done” work cost?

How much was the project supposed to cost?

Variances How much is the schedule ahead or behind?

How much is the project over or under budget?

Planned value (PV) Earned value (EV) Actual cost (AC) Budget at completion (BAC) Schedule variance (SV) Cost variance (CV)

Indexes How efficient is the schedule?

How efficient is the budget?

Schedule performance index (SPI) Cost performance index (CPI)

Estimates How much more do we expect to spend?

What do we think the total will cost?

Estimate to complete (ETC) Estimate at completion (EAC)

How efficient do we need to be to finish on budget? …To-complete performance index (TCPI) 14.5 PMBOK® 7e Determining Project Progress and Results Stakeholders The project team works with stakeholders to elicit requirements and expectations for deliverables.

Team

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

The project team is responsible for identification, analysis, and engagement of both internal and external stakeholders including both those who support the project as well as those who do not.

Development Approach Project Cadence-single delivery, multiple deliveries, or periodic deliveries.

Planning The team develops the approach for creating project deliverables.

Delivery Deliverables are released according to the development approach Measurement The evaluation of performance to plan, tracking resources, and demonstrating accountability.

14.6 Agile Differences in monitor and control between plan-driven and Agile projects are illustrated.

14.7 Using MS Project 2016 to Monitor and Control Projects MS Project 2016 is especially helpful for monitoring and controlling cost, schedule, and resources.

What Makes a Schedule Useful?

Accurate and timely baseline, actual, and predicted future data concerning cost, schedule, and resources enable project managers to make good and timely decisions.

How MS Project Recalculates the Schedule Based on Reported Actuals Actual data replaces planned data and recalculates with it.

Current and Future Impacts of Time and Cost Variance Comparisons can be made between baseline, actual, and estimated cost and schedule data.

Define the Performance Update Process The performance update process is defined by stating who needs to report, what is in each report, when each report needs to be filed, and the manner (how) each report is submitted.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 14: Determining Project Progress and Results

Steps to Update the Project Schedule The process of updating the project schedule includes seven steps.

Step 1: Acquire the performance data Step 2: Set the status date (as of) Step 3: Display the status date line on the Gantt chart Step 4: Enter the duration-based performance data Step 5: Reschedule remaining work Step 6: Revise future estimates 14.8 Replanning If Necessary What kinds of changes might we make in response to the problems, and does the approval for a change need to be escalated to higher management? [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o From the Author - Control Schedule with Earned value o From the Author - Report Progress o Project 2016 Tutorial Video - Updating Project Performance

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

Instructor Manual Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

Table of Contents Purpose and Perspective of the Chapter ......................................................................................... 2 Cengage Supplements ........................................................................................................................ 2 Chapter Objectives .............................................................................................................................. 2 Key Terms Consistent with PMI Standards and Guides ................................................................ 2 What’s New in This Chapter ............................................................................................................... 3 Teaching Strategies ............................................................................................................................. 3 Lecture and Workshop Outline ......................................................................................................... 4

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

Purpose and Perspective of the Chapter The purpose of this chapter is to describe the context under which projects are closed as well as the processes associated with project closure including the securing of client feedback and the review of lessons learned.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

PowerPoint Test Bank Instructor Manual Solution and Answer Guide Transition Guide

Chapter Objectives The following objectives are addressed in this chapter: Core Objectives       

Summarize how to determine when a project should be terminated early.

Describe the process for terminating a project in normal completion time.

Justify the importance of the project closing activities.

Create and present a transition plan for the project, including a plan for ongoing support and sharing lessons learned.

Capture, document, and share project lessons learned.

Secure customer feedback and acceptance of the project.

Close your projects administratively and technically.

Agile Objective 

Describe processes associated with capturing and using knowledge gained from Agile projects (if your team was to move together onto a new project).

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Key Terms Consistent with PMI Standards and Guides validate scope: Formally accepting the completed project deliverables. punch list: Work items that are identified during a final inspection that need to be completed.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

transition plan: An instruction manual of how the customer should use the project deliverables once the project team has completed its work. lessons learned: Useful knowledge gained by project team members as they perform a project and then reflect on both the process of doing the work and the results that transpired. closure of a project: Ensuring that all work has been accomplished, all resources have been reassigned, and all documentation is complete. closeout report: A summary status of the project that can be gleaned from progress reports, including lessons learned, and a review of the project’s original justification. [return to top]

What’s New in This Chapter The following elements are the improvements in this chapter from the previous edition: PMBOK 7e Domains Stakeholders Team Development Approach & Lifecycle Delivery [return to top]

Teaching Strategies 

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This is a short, concluding chapter that can be covered quickly, but should be covered. This can be used to teach students that it is important to end projects well.

We also remind them that on many projects, some people leave before the project concludes for other opportunities, so it is often a challenge to finish well.

One important point is that projects can either be terminated before their planned completion or upon completion.

Three main things to consider when closing a project are transitioning the project deliverables successfully to the users, knowledge management, and administrative closure—generally with a closeout report.

Knowledge management includes securing feedback from all stakeholders, documenting lessons learned, and determining how to best share the learning so other projects can benefit. One weakness many organizations have is they do not effectively share lessons.

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

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This chapter has several templates. One way to have a breakout session is to ask the students to create one of the forms specifically for their project.

Another breakout is for students to determine some lessons learned and share them with the class.

Celebration is very useful. Students will enjoy hearing that in addition to being fun, it serves the purposes of motivating people to finish the current project and to consider future projects.

Remind the students that for them to be successful, they need to consider future projects, not just the one they are currently performing. To that end, providing ongoing support helps clients to successfully use the results delivered to them. The satisfied and capable clients then become powerful selling agents for our futures projects.

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Lecture and Workshop Outline Whether a project is terminated—whether early or after successfully accomplishing its goals—there are several things to consider in wrapping things up.

15.1 Validate Scope This is the process of formalizing acceptance of the completed project deliverables. Validating scope can be accomplished by comparing promises made in the charter, WBS, and schedule to what was actually delivered. Project managers need to obtain approval from their customers that the project is complete to their satisfaction. This is the transition from executing to closing the project.

15.2 Terminate Projects Early Projects terminated before successful conclusion are stopped by mutual agreement, for default, or for convenience of the customer.

Mutual Agreement When both parties agree to stop a negotiated settlement takes place.

Terminations for Default This is when cost, schedule, or performance is not satisfactory or the customer has lost confidence that the contractor can deliver.

Terminations for Convenience of Buyer

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

This is for the buyer’s convenience—often due to changing conditions. It often requires a payment to the contractor.

15.3 Close Project The remainder of the chapter deals with issues included in successfully finishing a project.

Write Transition Plan Project teams need to remember the reason for their project is that someone (a customer or user) wishes to use the resulting project deliverables to accomplish their desires. The transition plan includes whatever actions are needed to help the customer be successful using the project deliverables.

Knowledge Management This helps the parent organization improve. It pertains to the fourth area of the balanced scorecard—growth and innovation.

Capture Lessons Learned Identifying what worked well and what worked poorly helps future projects.

Disseminate and Use Lessons Learned This is the key to knowledge management. Lessons that are captured but not used are of little value. Finding administratively easy ways to “close the loop” helps an organization improve rapidly.

Create the Closeout Report This formal report is a summary of the project’s original justification, ultimate status, and lessons learned.

15.4 Post-Project Activities Reassign Workers Dealing promptly, openly, and ethically with workers will enable them to prosper on their next assignment and make it easier to recruit for the next project.

Celebrate Success and Reward Participants Celebrations energize and reward workers and provide a transition from the project.

Provide Ongoing Support

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Instructor Manual: Kloppenborg/Anantatmula/Wells, Contemporary Project Management: Plan-Driven and Agile Approaches, 2023, 978-0-357-71573-4; Chapter 15: Finishing the Project and Realizing the Benefits

The ultimate goal of a project is to provide results to capable customers so they will be successful and tell others how good you are. This frequently requires support after the project is complete.

Ensure Project Benefits Are Realized This may include following up with customers weeks or months after the project to ensure the deliverables are serving their purpose and the customers are successful.

15.5 PMBOK Guide 7e Stakeholders The ultimate goal of a project is to provide value to stakeholders Team Recognizing team member’s contributions and capturing retrospectives are key actions for teams in project closure.

Development Approach & Lifecycle Deliveries are determined by the nature of the lifecycle whether plan-driven or adaptive.

Delivery 15.6 Agile Projects 15.7 Using MS Project for Project Closure Creating Project Progress Reports Create a customizable canned report Sharing reports—can be printed or saved as a PDF Export report to MS Excel Archiving Project Work [return to top]

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