STRATEGIC PLANNING FOR PROJECT MANAGEMENT USING A PROJECT ANAGEMENT MATURITY MODEL Y L F M A E T ?Team-Fly 9755.Frontmatter 10/31/00 9:40 AM Page iSTRATEGIC PLANNING FOR PROJECT MANAGEMENT USINGA PROJECT MANAGEMENT MATURITY MODELThis Page Intentionally Left Blank9755.Frontmatter 12/5/00 12:28 PM Page iiiSTRATEGIC PLANNING FOR PROJECT MANAGEMENT USINGA PROJECT MANAGEMENT MATURITY MODELHAROLD KERZNER,PhDSenior Executive Director for Project ManagementInternational Institute for LearningNew York,New YorkJohn Wiley & Sons,Inc. New YorkChichesterWeinheimBrisbaneSingaporeToronto9755.Frontmatter 10/31/00 9:40 AM Page ivThis book is printed on acid-free paper.Copyright ?2001 by John Wiley & Sons. All rights reserved.Published simultaneously in Canada.No part of this publication may be reproduced,stored in a retrieval system or transmitted in anyform or by any means,electronic,mechanical,photocopying,recording,scanning or otherwise,except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act,without either the prior written permission of the Publisher,or authorization through payment of theappropriate per-copy fee to the Copyright Clearance Center,222 Rosewood Drive,Danvers,MA01923,(978) 750-8400,fax (978) 750-4744. Requests to the Publisher for permission should beaddressed to the Permissions Department,John Wiley & Sons,Inc.,605 Third Avenue,New York,NY 10158-0012,(212) 850-6011,fax (212) 850-6008,E-Mail:PERMREQ WILEY4.This publication is designed to provide accurate and authoritative information in regard to thesubject matter covered. It is sold with the understanding that the publisher is not engaged inrendering professional services. If professional advice or other expert assistance is required,theservices of a competent professional person should be sought.Library of Congress Cataloging-in-Publication DataKerzner,Harold.Strategic planning for project management using a project management maturity model /Harold Kerzner.p.cm.Includes index.ISBN 0-471-40039-4 (alk. paper)1.Industrial project management.2.Strategic planning.I.Title.HD69.P75K494200100-043814658-4 04dc21Printed in the United States of America.109876543219755.Frontmatter 10/31/00 9:40 AM Page vContentsForewordixPrefacexiIntroductionxiii1The Need for Strategic Planning for Project Management1Introduction1Misconceptions1Wall Street Benefits3Stakeholders4Gap Analysis5Concluding Remarks92Impact of Economic Conditions of Project Management11Introduction11Historical Basis113Principles of Strategic Planning15General Strategic Planning15What Is Strategic Planning for Project Management?16Executive Involvement25The General Environment26Critical Success Factors for Strategic Planning28Qualitative Factors29Organizational Factors30Quantitative Factors32v9755.Frontmatter 10/31/00 9:40 AM Page viviCONTENTSIdentifying Strategic Resources34Why Does Strategic Planning for Project Management Sometimes Fail?384An Introduction to the Project Management Maturity Model(PMMM)41Introduciton41The Foundation for Excellence42Overlap of Levels43Risks455Level 1:Common Language47Introduction47Roadblocks48Advancement Criteria49Risk50Assessment Instrument for Level 150Questions516Level 2:Common Processes67Introduction67Life Cycles for Level 268Roadblocks71Advancement Criteria72Risk72Overlapping Levels73Assessment Instrument for Level 273Questions747Level 3:Singular Methodology77Introduction77Integrated Processes78Culture81Management Support81Informal Project Management82Training and Education82Behavioral Excellence84Roadblocks85Advancement Criteria85Risk86Overlapping Levels87Assessment Instrument for Level 387Questions879755.Frontmatter 10/31/00 9:40 AM Page viiContentsvii8Level 4:Benchmarking97Introduction97Characteristics98The Project Office/Center of Excellence99Benchmarking Opportunities101Roadblocks103Advancement Criteria103Assessment Instrument for Level 4104Questions1049Level 5:Continuous Improvement109Characteristics109Continuous Improvement Areas110The Never-Ending Cycle112Examples of Continuous Improvement113Developing Effective Procedural Documentation114Project Management Methodologies120Continuous Improvement120Capacity Planning122Competency Models123Managing Multiple Projects125End-of-Phase Review Meetings127Strategic Selection of Projects128Portfolio Selection of Projects131Horizontal Accounting134Organizational Restructuring136Career Planning138Assessment Instrument for Level 5138Questions13910Sustainable Competitive Advantage143Introduction143Strategic Thrusts144The Need for Continuous Improvement147Project Management Competitiveness14811Special Problems with Strategic Planning for ProjectManagement151Introduction151The Many Faces of Success152The Many Faces of Failure153Training and Education157Change Management158Partnerships1629755.Frontmatter 10/31/00 9:40 AM Page viiiviiiCONTENTSThe Impact of Risk Controls Measu