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Edited by 26
27 Darren Dalcher 27
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National Centre for Project Management
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Dalcher, Darren.
24 Advances in project management : narrated journeys in unchartered territory / by Darren 24
25 Dalcher, [chief contributor and editor]. 25
pages cm. – (Advances in project management)
26 26
Includes bibliographical references and index.
27 ISBN 978-1-4724-2912-4 (hardback) – ISBN 978-1-4724-2913-1 (ebook) 1. Project management. 27
28 I. Title. 28
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30 2013035197 30
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40 Printed in the United Kingdom by Henry Ling Limited, 40
41 at the Dorset Press, Dorchester, DT1 1HD 41
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13 Notes on Contributors xiii 13
14 14
15 Introduction 1 15
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1 Uncertainty
Darren Dalcher
That Uncertain Feeling
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Managing Project Uncertainty 7
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21 David Cleden 21
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23 2 Strategic Risk 23
24 When do Projects Begin? Addressing Strategic Project 24
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25 Appraisal Issues 15 25
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28 Strategic Project Risk Appraisal and Management 17 28
Elaine Harris
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31 3 Risk 31
Risks or Projects? 23
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34 Managing Risk in Projects: What’s New? 27 34
35 David Hillson 35
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37 4 Governance 37
38 Facing Uncertainty: Project Governance and Control 31 38
39 Darren Dalcher 39
40 Project Governance 33 40
41 Ralf Müller 41
5 Programme Management
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Managing Uncertainty through Programmes 39
2 2
Darren Dalcher
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4 Programme Management beyond Standards and Guides 41 4
5 Michel Thiry 5
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7 6 Risk Leadership 7
8 Beyond Tame Problems: The Case for Risk Leadership 49 8
9 Darren Dalcher 9
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The Application of the ‘New Sciences’ to Risk and Project
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Management 51
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David Hancock
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7 Leadership
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In Search of Project Leadership 57
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18 Project-oriented Leadership 59 18
19 Ralf Müller and Rodney Turner 19
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21 8 Earned Value 21
Progress and Performance: The Case for Extending Earned
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23 Value Management 63 23
24 Darren Dalcher 24
25 Effective Measurement of Time Performance using Earned 25
26 Value Management67 26
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27 Alexandre Rodrigues 27
28 28
29 9 Spiritual Inspiration 29
30 Inspiration in Teams: Searching for a New Intelligence 97 30
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31 Darren Dalcher 31
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33 Spirituality in Project Management Teams 99 33
34 Judi Neal and Alan Harpham 34
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36 10 Ethics 36
37 Project Ethics and Professionalism: The Making of a Profession? 107 37
38 Darren Dalcher 38
39 Project Ethics: The Critical Path to Development 109 39
40 Haukur Ingi Jónasson and Helgi Thor Ingason 40
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11 Stakeholders
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Can We Satisfy Project Stakeholders? 113
2 2
Darren Dalcher
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4 What Does the Project Stakeholder Value? 115 4
5 Pernille Eskerod and Anna Lund Jepsen 5
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7 12 Supply Chains 7
8 Managing Connected Supply Chains 119 8
9 Darren Dalcher 9
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Managing Project Supply Chains 121
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Ron Basu
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13 Second Order Project Management
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Making Sense of Complexity: Towards a Higher Order 127
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17 A Case for Second Order Project Management 129 17
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Michael Cavanagh
Sustainability
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Sustainability: A New Professional Responsibility? 135
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23 Taking Responsibility: The Integration of Sustainability 23
24 and Project Management 137 24
25 Gilbert Silvius and Ron Schipper 25
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27 15 Psychology 27
28 The Psychology of Projects: What the Bodies of Knowledge 28
29 Don’t Tell Us 145 29
30 Darren Dalcher 30
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32 The Psychology of Project Management 149 32
33 Sharon De Mascia 33
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35 16 Benefits 35
36 Overstating the Benefits? 155 36
37 Darren Dalcher 37
38 Benefits Realisation – Building on (un)Safe Foundations 38
39 or Planning for Success? 157 39
40 Stephen Jenner 40
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16 Sustainable Change in Large Projects 191 16
17 Göran Brulin and Lennart Svensson 17
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20 Knowledge
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Is There a Universal Theory of Project Management? 197
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21 Darren Dalcher 21
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22 The Coming Sea-Change in Project Management Science 201 22
23 Michael Hatfield 23
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25 21 Senior Management 25
26 From Projects to Strategy, and Back Again 207 26
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29 Evidence of the Neglect of Project Management 29
30 by Senior Executives 211 30
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31 Antonio Nieto-Rodriguez 31
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33 Summary – Project Management Research: The Long Journey 221 33
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36 Index225 36
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13 1.1 The illusion of project stability 10 13
14 1.2 Four possible modes for confronting uncertainty 12 14
15 1.3 Making an intuitive leap to visualise a future scenario 13 15
16 2.1 IT project risk map 19 16
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4.1
4.2
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Four project governance paradigms
Framework for governance of project, programme
and portfolio management
Model of project governance
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21 5.1 The mature programme integration 42 21
22 5.2 The programme decision management cycle 44 22
23 5.3 The programme life cycle 46 23
24 8.1 The relationship between project scope, cost and time elements 69 24
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1 Tables 1
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3 2.1 Project risk attributes for business development projects 19 3
4 2.2 Mitigating actions 20 4
5 6.1 The new concept of risk leadership 56 5
6 7.1 Competences and their measurement 60 6
7 7.2 Hierarchy of importance of specific leadership competencies 7
8 by project type 60 8
9 8.1 Figures for the scenario 89 9
10 8.2 An extended EVM model for time management using 10
11 the modified SPI 92 11
12 14.1 The contrast between the concepts of sustainable development 12
13 and project management 140 13
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14 16.1 Five of the main cognitive biases and their impact on benefits 14
15 forecasting158 15
16 21.1 Project management as a discipline in top business schools 216 16
17 21.2 Number of references/articles per topic, Harvard Business
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18 Review (3 July 2011) 218 18
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13 Visiting Professor at the University of Iceland and Adjunct Professor at the Lille 13
14 Graduate School of Management (SKEMA). He is the Founder and Director 14
15 of the National Centre for Project Management (NCPM), an interdisciplinary 15
16 centre of excellence operating in collaboration with industry, government, 16
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charities, non-government organisations (NGOs) and the learned societies.
The centre aims to set the national agenda and establish project management
as a major profession and discipline in the UK. The centre is thus concerned
with fostering active dialogue about the integration of successful practice and
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21 theoretical research within project management. 21
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23 Following industrial and consultancy experience in managing technology 23
24 projects, Professor Dalcher gained his PhD from King’s College, University of 24
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29 and has delivered many international keynote addresses and tutorials. He has 29
30 written over 150 refereed papers and book chapters on project management and 30
31 software engineering. He is Editor-in-Chief of the Journal of Software: Evolution 31
32 and Process. He is the editor of the Advances in Project Management book series 32
33 published by Gower Publishing which synthesises leading-edge knowledge, 33
34 skills, insights and reflections in project and programme management and of 34
35 its companion series, Fundamentals of Project Management, which provides the 35
36 essential grounding in key areas of project management. 36
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38 He has built a reputation as leader and innovator in the area of practice-based 38
39 education and reflection in project management and has worked with many 39
40 major industrial, commercial and charitable organisations and government 40
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14 recognised authorities on modern project management. In October 2011 he was 14
15 awarded a prestigious Honorary Fellowship from the APM for outstanding 15
16 contributions to project management. 16
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18 He has delivered lectures and courses in many international institutions, 18
19 including King’s College London, Cranfield Business School, ESC Lille, 19
20 Iceland University, University of Southern Denmark and George Washington 20
21 University. His research interests include project success and failure; maturity 21
and capability; ethics; process improvement; agile project management; systems
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23 and software engineering; performance management; project benchmarking; 23
24 risk management; decision making; chaos and complexity; project leadership; 24
25 change management; knowledge management; and evidence-based and 25
26 reflective practice. 26
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28 Professor Dalcher is an Honorary Fellow of the APM, a Chartered Fellow of 28
29 the British Computer Society, a Fellow of the Chartered Management Institute 29
30 and the Royal Society of Arts, and a Member of the Project Management Institute, 30
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13 and supply chain management and has research interests in performance 13
14 management and project management. Previously he held senior management 14
15 roles in blue-chip companies like GSK, GlaxoWellcome and Unilever and 15
16 led global initiatives and projects in Six Sigma, ERP/MRPII, supply chain 16
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re-engineering and total productive maintenance. Prior to this he worked
as Management Consultant with A.T. Kearney. He is the co-author of Total
Manufacturing Solutions, Quality Beyond Six Sigma, Total Operations Solutions
and Total Supply Chain Management and the author of Measuring e-Business
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21 Performance, Implementing Quality, Implementing Six Sigma and Lean, FIT SIGMA, 21
22 Managing Project Supply Chains and Managing Project Quality. He has authored a 22
23 number of papers in the operational excellence and project management fields. 23
24 He is a regular presenter of papers in global seminars on project management, 24
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29 Through this global network she works with organisations to manage change 29
30 through managing the relationships essential for successful delivery of 30
31 organisational outcomes. Lynda was the first graduate of the RMIT University, 31
32 Doctor of Project Management course, where her research was focused on 32
33 tools and techniques for more effective stakeholder engagement. She has 33
34 been recognised in the field of project management through her work on 34
35 development of project and programme management standards. She was also 35
36 included in Project Management Institute’s (PMI) list of the 50 most influential 36
37 women in project management. She is a Fellow of the Australian Institute of 37
38 Management (AIM) and a Fellow of the Australian Computer Society (ACS). 38
39 She is a recognised international speaker and seminar leader on the topic of 39
40 stakeholder management, the Stakeholder Circle® visualisation tool, and 40
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14 VINN, Centre of Excellence (see www.liu.se/helix). His research interests 14
15 include interactive local and regional development, organisation of work, 15
16 business administration and management, and economic sociology. 16
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18 Michael Cavanagh has worked as a programmer, systems analyst, project 18
19 manager, department head and consultant in a number of business sectors over 19
20 his 45-year career. An independent management consultant and conference 20
21 speaker since 1991, his earlier specialisations were in the fields of project 21
management and the risk and ethical implications of technology, particularly
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23 with regard to safety-critical and safety-related systems design in software- 23
24 intensive systems. He is now concentrating on more in-depth research into 24
25 ethical issues in complex engineering projects and has recently published an 25
26 eBook on the subject. Michael is also an ordained Anglican priest in the Church 26
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27 of Ireland and is currently responsible for the churches of the Kenmare and 27
28 Dromod Union, Co. Kerry. 28
29 29
30 David Cleden is a senior project manager, bid writer and consultant with 30
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14 within project management, and is a well-known speaker at international 14
15 conferences. Pernille is co-author of Project Stakeholder Management published 15
16 by Gower Publishing as, part of the Advances in Project Management series 16
17 edited by Professor Darren Dalcher. 17
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David Hancock is Head of Project Risk for London Underground part
of Transport for London. He has a wide breadth of knowledge in project
management and complex projects and extensive experience in opportunity
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and risk management, with special regard to the people and behavioural
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23 aspects. Trained in the use of psychometrics, he has used this to produce 23
24 high performing teams and bring innovation and creativity into projects. He 24
25 champions the case for rethinking project management as a social interaction 25
26 rather than delivery through the application of process and developed the 26
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1 Alan Harpham describes himself as being on his fourth career as what Charles 1
2 Handy calls ‘a portfolio manager’. Alan is the Chairman of the Association 2
3 for Project Management Group (APMG), a global accreditation, registration 3
4 and examination certification body for key elements of best practice in 4
5 programme and project management. He is also a non-executive director with 5
6 Subject Matters, a consultancy specialising in organising business-to-business 6
7 events, conferences and exhibitions. He was a founding director of P5 – the 7
8 Power of Projects, a consultancy specialising in the application of project and 8
9 programme management in owner/client organisations. He started his career as 9
10 a civil engineer with John Laing and held various roles there including section 10
11 engineer through to International M&E Contracts Manager. He is on the Jury 11
12 of the International Project Management Association’s (IPMA) International 12
13 Project Management Award. 13
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15 Elaine Harris is Professor of Accounting and Management and Director of 15
16 the Business School at the University of Roehampton. She has over 25 years 16
17 of experience in higher education. Prior to that Elaine worked in accountancy
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18 practice as an auditor, accountant, consultant and manager. Elaine’s research 18
19 is focused upon how managers make sense of risky business propositions and 19
20 prospective projects, and how they interact with other organisation members 20
21 and external parties in reaching strategic investment decisions. Elaine has 21
carried out research funded by commercial enterprises such as Christian
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23 Salveson PLC (1999–2003) and professional bodies such as the Chartered 23
24 Institute of Management Accountants (CIMA) (2004–2006). She is a member of 24
25 the European Risk Research Network (funded by Marie Curie 2007–2009) and 25
26 has been the current chair of the research network, the Management Control 26
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27 Association since 2010. She is the author of Strategic Project Risk Appraisal and 27
28 Management published by Gower Publishing, part of the Advances in Project 28
29 Management series edited by Professor Darren Dalcher. 29
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14 Group. He received the PMI Distinguished Contribution Award for his work 14
15 in developing risk management over many years. Since 1998 he has been a core 15
16 author for the risk chapter of the PMBOK Guide®, and is a core author for the 16
17 PMI Practice Standard for Project Risk Management. 17
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Helgi Thor Ingason is an Associate Professor at Reykjavik University and
lectures in project management, quality management and systems dynamics
modelling. He is the head of the MPM – Master in Project Management –
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programme at the university. He is a co-founder and senior consultant at the
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23 Nordica Consulting Group in Iceland and co-founder and chairman of Alur, 23
24 alvinnsla hf – a recycling company in the aluminium industry in Iceland. He is 24
25 an IPMA Certified Senior Project Manager. 25
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15 Ralf Müller is Professor of Business Administration at Umeå University, 15
16 Sweden and Professor of Project Management at BI Norwegian Business 16
17 School, Norway. He lectures and researches in governance and management
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18 of projects, as well as in research methodologies. He is the (co)author of more 18
19 than 140 publications and received, among others, the Project Management 19
20 Journal’s 2009 Paper of the Year, 2009 IRNOP’s best conference paper award, 20
21 and several Emerald Literati Network Awards for outstanding journal papers 21
and referee work. He holds an MBA degree from Heriot Watt University and a
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23 DBA degree from Henley Management College, Brunel University, UK. Before 23
24 joining academia he spent 30 years in the industry consulting large enterprises 24
25 and governments in 47 different countries for their project management and 25
26 governance. He also held related line management positions, such as the 26
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31 USA. She received her PhD from Yale University. In 1992 Judi made faith and 31
32 spirituality in the workplace a central focus of her research and presentations, 32
33 and has gained a reputation in the national media for stressing the importance 33
34 and value of faith and spirituality into the workplace. She was the Founder of 34
35 The International Center for Spirit at Work and the International Spirit at Work 35
36 Awards. Judi authored Edgewalkers: People and Organizations that Take Risks, 36
37 Build Bridges and Break New Ground. She helped to co-found the Management, 37
38 Spirituality and Religion Interest Group at the Academy of Management, 38
39 and was the group’s second Chair. She is also a co-founder of the Journal of 39
40 Management, Spirituality, and Religion. She is Professor Emeritus at the University 40
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14 the author of the book The Focused Organization, and has been featured in several 14
15 magazines, including PM Network®, Strategy Business Review and The Economist. 15
16 Antonio is a Professor of Project Management for MBA students at several 16
17 business schools, and is a regular keynote speaker at large international events. 17
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As a hobby, Antonio teaches business students and convinces senior leaders 18
about the value of project management, positioning project management as a 19
key management concept for executing organisation’s strategies. 20
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Kaye Remington is author of Leading Complex Projects (Gower Publishing, 22
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23 2010) and co-author of Tools for Complex Projects (Gower Publishing, 2007). 23
24 With over 25 years of senior management and project experience she is also 24
25 a former Director of the Post-graduate Project Management Program at the 25
26 University of Technology, Sydney. Kaye now runs a small consulting firm that 26
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14 Gilbert Silvius is Professor at HU University of Applied Sciences Utrecht 14
15 in the Netherlands and principal consultant at Van Aetsveld, specialising in 15
16 project and change management. He is founder and programme director of 16
17 the Master of Project Management programme at HU and an active member of
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18 IPMA, PMI and the ISO TC258. 18
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20 Lennart Svensson is Professor in Sociology at Linköping University and a 20
21 member of the research management team at HELIX VINN, Centre of Excellence. 21
He is also Research Manager at APeL, a research and development (R&D) centre
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23 for workplace learning and the framework for different development projects. 23
24 His research field has covered local and regional development, workplace 24
25 learning, interactive research, networks, partnerships and project work. He is 25
26 author or co-author of more than 30 books. 26
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28 Michel Thiry has over 35 years of professional experience after graduating as 28
29 an architect. Following a fruitful career in construction, he has now focused 29
30 on combining his value, project and programme management expertise to 30
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1 and practice levels. In addition to his book Value Management Practice, published 1
2 by the PMI, he has written a number of book chapters on value, programme 2
3 and portfolio management. In 2006 he was elected PMI Fellow for his continued 3
4 contribution to project management and in 2007 he was nominated Fellow 4
5 of the Association for Project Management. In 2008, he was awarded a Life 5
6 Achievement Award by the Canadian Society of Value Analysis. 6
7 7
8 Rodney Turner is Professor of Project Management at the SKEMA Business 8
9 School, in Lille, France. He is Visiting Professor at Henley Business School and 9
10 the Kemmy Business School, Limerick, and Adjunct Professor at the University 10
11 of Technology Sydney. Rodney is the author or editor of 16 books, including 11
12 The Handbook of Project-based Management, the bestselling book published by 12
13 McGraw-Hill, and the Gower Handbook of Project Management. He is editor of The 13
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14 International Journal of Project Management. He lectures on project management 14
15 worldwide. Rodney is Vice President, Honorary Fellow and former Chairman 15
16 of the UK’s APM, and former President and Chairman of the IPMA. He is a 16
17 member of the Institute of Directors and Fellow of the Institution of Mechanical 17
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Engineers. o
The chapter contributions in this volume were published with the help of PM
World Journal.
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23 The PM World Journal (PMWJ) is an online publication produced by PM 23
24 World Inc. in the United States, but created by a virtual team of advisors, 24
25 correspondents and contributing editors located worldwide. Each month, the 25
26 PMWJ features dozens of new articles, papers and stories about programmes, 26
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27 projects and project management (P/PM) around the world. Objectives for the 27
28 journal are to (1) support the creation of new P/PM knowledge; (2) support the 28
29 transfer of that knowledge to individuals, organisations and locations where 29
30 professional P/PM may be weak, less available or sorely needed; (3) provide 30
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31 recognition and visibility for authors, the creators of new P/PM knowledge; 31
32 (4) provide an easily accessible and useful online repository of P/PM knowledge 32
33 and information as a global resource for knowledge sharing and continuous 33
34 learning; and (5) promote the application of modern, professional P/PM for 34
35 solving more of the world’s problems – to make this world a better place. 35
36 36
37 Project management experts, leaders and practitioners are invited to submit 37
38 an article, paper or story for publication in the PMWJ. Share knowledge, gain 38
39 visibility and help change the world. Visit www.pmworldjournal.net or contact 39
40 editor@pmworldjournal.net. 40
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13 –Anon. 13
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15 This book has emerged from the search for refining and redefining the boundaries 15
16 of project management. While the topics may be briefly mentioned in the 16
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various standards and bodies of knowledge, the individual chapters are often
reflections on new developments that stretch contemporary understanding,
offering new insights and perspectives. In fact, a large proportion of the writing
extends beyond widely recognised knowledge aspects to feature a much-
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21 needed focus on the skills, attitudes, values and competencies that are needed 21
22 to successfully deliver projects. 22
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24 In recent years we have also seen a plethora of new books and articles 24
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14 that they would like to explore. As the range of topics extends beyond those 14
15 normally covered, it is likely that the book will identify new perspectives that 15
16 readers may not have considered, and thereby suggest additional reading to 16
17 augment the interests and concerns of practitioners and researchers.
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20 Why Project Management? 20
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Project management is increasingly being recognised as a key competence 22
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23 in many organisations in both the public and private sectors. Trends such 23
24 as downsizing, reduced management layers, greater flexibility, distributed 24
25 teams and the challenges of rapidly evolving technology have taken project 25
26 management beyond its routes in the construction, engineering and aerospace 26
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27 industries and are playing a part in transforming the service, financial, IT and 27
28 general management sectors. Academic courses, professional training and 28
29 accreditation programmes are blossoming as practitioners seek to enhance their 29
30 knowledge, skills and competencies. Fortune even rated project management as 30
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31 the number one career choice at the beginning of the twenty-first century. 31
32 32
33 Project management offers the discipline and framework required to 33
34 help organisations to transform their mainstream operations and service 34
35 performance. It is viewed as a way of organising for the future. Moreover, in 35
36 an increasingly busy, stressful and uncertain world it has become necessary to 36
37 manage multiple projects successfully at the same time. 37
38 38
39 Project management is a core competence required to deliver change 39
40 measured in terms of achieving desired outcomes with associated benefits. 40
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14 introduced to projects, as well as their experienced project managers, in an 14
15 attempt to enhance their competence and capability in this area. 15
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There are many reasons why we need to refocus the discussion on improving
the management of projects: modern organisations feature flatter structures,
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new technologies, rising complexity, greater collaboration and increasing
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23 interactions all requiring greater responsiveness. We also need vision and 23
24 direction to drive our efforts. 24
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26 The world of projects has changed dramatically. The old models appear 26
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27 less relevant and the dated tools less useful in context. Successful delivery in 27
28 increasingly competitive and global environments require us to align with 28
29 organisational strategy, focus on practitioners, and create the right environment 29
30 to foster the skills and attitudes needed to succeed at the grand challenges 30
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31 facing us. 31
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33 We seem to live in a faster and more demanding world, characterised by 33
34 rising levels of uncertainty and ambiguity. Indeed, project management is 34
35 increasingly called upon to deliver in a world that is connected in complex 35
36 new ways; where the so-called ‘unknown unknowns’ determine our context. 36
37 Professor Eddie Obeng defines the new world as a world that can change faster 37
38 than you can learn. As we engage with an ever-growing portion of this world, 38
39 it becomes more difficult to satisfy all stakeholders whilst delivering value and 39
40 benefits in a new and unfamiliar context. 40
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14 We live in an increasingly unpredictable and complex environment replete 14
15 with change, ambiguity and uncertainty. Consequently, there appears to be a 15
16 greater need to be concerned with defining the new kind of project management 16
17 required to survive, succeed and excel in this new environment.
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19 The book thus offers insights and ideas about how the profession will 19
20 rise to the challenges of the new world – climate change, technological 20
21 advances, globalisation, social networks, public health, security and economic 21
regeneration and growth. The challenges require fundamentally new ways of
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23 making sense and shaping a world we neither control, nor fully understand. 23
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25 Success in the future would require better understanding of the context 25
26 and deeper engagement with the business. It will also require new ways of 26
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14 of this column is to make the ideas and principles of the knowledge and skills 14
15 required to manage projects more accessible. Advances in Project Management was 15
16 introduced in order to improve understanding and project capability further up 16
17 the organisation; amongst strategy and senior decision makers and amongst 17
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professional project and programme managers. Our ambition has been to provide 18
project sponsors, project management leaders, practitioners, scholars and 19
researchers with thought-provoking, cutting-edge information that combines 20
conceptual insights with interdisciplinary rigour and practical relevance thus 21
offering new insights and understanding of key areas and approaches.
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24 In order to identify the potential authors, a wide range of books and 24
25 resources have been consulted. Contributions were selected by the editor on 25
26 the basis of their individual merit, usefulness and applicability. The chapters 26
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27 offered here will feature many leading practitioners, researchers and managers 27
28 and highlight concepts, ideas and tools that will be of benefit to practising 28
29 project managers. 29
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1 In other words, the book aims to provide those people and organisations who 1
2 are involved with the developments in project management with the kind 2
3 of structured information that will inform their thinking, their practice and 3
4 improve their decisions. Featured contributions have not been limited to a 4
5 particular community, country or association to ensure that a wide variety of 5
6 angles and perspectives are covered. 6
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9 Geography and Scope 9
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11 People come to project management from many directions bringing with 11
12 them their own particular take. Over the years we have witnessed a number 12
13 of distinct influences on the development of project management from various 13
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14 sectors, government bodies, professional associations and even from specific 14
15 geographical regions. The publication is meant to be inclusive and offers a 15
16 platform to ideas which will be of use to practitioners regardless of where they 16
17 are based and whatever the geography of the projects that they are running.
o 17
18 18
19 Projects take place in organisations and feature people. Our approach 19
20 therefore is to focus on what it takes to manage projects in these settings. The 20
21 topics we cover will emphasise the skills, competencies, attitudes and knowledge 21
that are needed for successful delivery in a wide range of environments and
o
22 22
23 contexts. We will also endeavour not to get stuck in any particular silo, instead 23
24 offering a wider and more inclusive context. Some of our experts come from 24
25 other domains and bring organisational, psychological, sociological or other 25
26 influences that they can share. The value of this publication therefore is in 26
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