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 Project
Management
 Project
Management
ToolBox
Tools arid Techniques for the Practicing Project,hlanager

Dragan Z. Milosevic

@
WlLN
John Wiley & Sons, Inc.
To the two ladies in my life: my wife, Dragana,
and my daughter, Jovana.
This book is printed on acid-free paper. @

Copyright O 2003 by John Wiley & Sons, Inc. All rights reserved.
Published by JohnWiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system, or

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Library of Congress Cataloging-in-PublicationData:

Milosevic, Dragan.
Project management toolbox: tools and techniques for the practicing
project manager 1 Dragan Milosevic.
p. cm.
Includes bibliographical references and index.
ISBN 0-471-20822-1 (cloth)
1. Project management. I. Title.

Printed in the United States of America

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Part I Project Initiation Tools ................1
C.hapter 1 Strategic Role of the PMToolbox . . . . . . . . . . . . . . . . .3
The New Role of the PMToolbox . . . . . . . . . . . . . . . . .4
PM Strategy Supports Competitive Strategy . . . . . . . . . . 6
Standardized PM Process Supports PM Strategy . . . . . . 9
PMToolbox Supports Standardized PM Process . . . . . 12
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . 16
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Chapter 2 Project Selection (Dr. Joseph P. Martino) . . . . . . . . . . . 19
Scoring Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 .
Analytical Hierarchy Process . . . . . . . . . . . . . . . . . . . . . 32
Economic Methods . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Portfolio Selection Methods . . . . . . . . . . . . . . . . . . . . . 46
Real Options Approach . . . . . . . . . . . . . . . . . . . . . . . . . 53
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . 64
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.
Chapter 3 Project Portfolio Mapping . . . . . . . . . . . . . . . . . . . . . .67
Traditional Charts for Portfolio Management . . . . . . . .68
Bubble Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . 84
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Part I1 Project Planning Tools ...............87
Chapter 4 Voice of the Project Customer uose Campos) . . . . . . . . 89
Customer Roadmap . . . . . . . . . . . . . . . . . . . . . . . . . . .91
The Focus Statement . . . . . . . . . . . . . . . . . . . . . . . . . 98
Sample Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Discussion Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . .109
Quality Function Deployment (QFD) . . . . . . . . . . . . 113
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . .121
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Chapter 5 ScopePlanning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Project Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Project SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . .133
Scope Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Work Breakdown Structure (WBS) . . . . . . . . . . . . . . . 152
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . 167
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
Chapter 6 Schedule Development . . . . . . . . . . . . . . . . . . . . . . .171
GanttChart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
Milestone Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 .
Critical Path Method (CPM) Diagram . . . . . . . . . . .184
Time-Scaled Arrow Diagram (TAD) . . . . . . . . . . . . . 193
Critical Chain Schedule . . . . . . . . . . . . . . . . . . . . . . .201
Hierarchical Schedule . . . . . . . . . . . . . . . . . . . . . . . . . 209
Line of Balance (LOB) . . . . . . . . . . . . . . . . . . . . . . . .215
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . .220
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222.
Cost Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Cost Planning Map . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Analogous Estimate . . . . . . . . . . . . . . . . . . . . . . . . . .233
Parametric Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Bottom-up Estimate . . . . . . . . . . . . . . . . . . . . . . . . . 243
Cost Baseline (Time-Phased Budget) . . . . . . . . . . . . . 249
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . .257
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Chapter 8 Quality Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
Project Quality Program . . . . . . . . . . . . . . . . . . . . . . .264
Flowchart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
 Aanity Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . 285 .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .286
Chapter 9 Risk Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Risk Response Plan . . . . . . . . . . . . . . . . . . . . . . . . . .288
Monte Carlo Analysis . . . . . . . . . . . . . . . . . . . . . . . . 300 .
Decision Tree . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .311
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . 319
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
.
Chapter 10 Team Building (Dr. Hans J.Thamhain) . . . . . . . . . . . . 321
Four-Stage Model of Project Team Building . . . . . . . 322
Stakeholder Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . 330
Skill Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336
Commitment Scorecard . . . . . . . . . . . . . . . . . . . . . . .345
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . 353
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355

Part III Project ImplementationTools .........357

Chapter 11 Scope Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
Change Coordination Matrix . . . . . . . . . . . . . . . . . . . 360
Project Change Request . . . . . . . . . . . . . . . . . . . . . . . 366
Project Change Log . . . . . . . . . . . . . . . . . . . . . . . . . 373 .
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . 378
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 .
Chapler 12 Schedule Control . . . . . . . . . . . . . . . . . . . . . . . . . . . .381
The Jogging Line . . . . . . . . . . . . . . . . . . . . . . . . . . . .382
B-C-FAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390
Milestone Prediction Chart . . . . . . . . . . . . . . . . . . . 396 .
Slip Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401
Buffer Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407
Schedule Crashing . . . . . . . . . . . . . . . . . . . . . . . . . . .413
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . 418
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420
Chapkr 13 Cost Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .421
EarnedValue Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 422
Milestone Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . .446
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447
..... viii
.?A*----
Coolenls
.
Chapter 1 4 Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449
Quality Improvement Map . . . . . . . . . . . . . . . . . . . . . 450
Pareto Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
Cause and Effect Diagram . . . . . . . . . . . . . . . . . . . . . 466
Control Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . .481
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
Chapter 15 Performance Reporting and Closure . . . . . . . . . . . . . . 485
RiskLog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
Summary Progress Report . . . . . . . . . . . . . . . . . . . . .492
Postmortem Review . . . . . . . . . . . . . . . . . . . . . . . . . .500
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . 510
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511

Part IV Industry Applications ............... 513

Chq~lrr16 Selecting and Customizing Project Management
Toolbox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
Which of AllThese Tools DoYou Really Need? . . . . . 516
Process for Selecting and Adapting
Project Management Toolbox . . . . . . . . . . . . . . . . . . . 516
Final Thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537
Appendix A Linking Project Management Tools to PMBOK . . . . . 539
,4ppcn&x B Project Management Toolboxes per Project Size . . . . . 545
Appcndix C Project Management Toolboxes per Project Family . . 549
Appcndk D Project Management Toolboxes per ProjectType . . . . . 561
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .569
T he power of project management (PM) is at its historic peak, primarily
because it has become a business strategy of choice. The evidence is
abundant. Large corporations, the locomotive of the American economy,
have launched corporate-wide PM initiatives and centers of PM excel-
lence, poised to create a successful environment for PM. To improve their
competitiveness, Fortune 500 started a PM Benchmarking Forum, tasked to
identify best PM practices. Small businesses are racing
- to follow suit. Most
interestingly, this is an across-the-industry phenomenon. Joining traditional
proponents of PM such as construction and aerospace are the powerhouses
. -

of new economy, high-technology, and telecommunications companies.

Riding on this wave of PM popularity, the Project Management
Institute, the world's largest association of project managers, has been
enjoying exponential growth in terms of both membership and certified
Project Management Professionals. Management gums have thrown their
weight behind PM as well. Tom Peters calls project manager the job num-
ber one in the twenty-first century. Eliahy Goldratt, the pioneer of the the-
ory of constraints, pictures PM as the next frontier of continuous business
improvement. As they wish to give credence to the guru's assertions, com-
panies have poured billions of dollars into PM training.
A central place in the PM rise belongs to project process management,
an outgrowth of the total quality movement of the 1980s. PM process is
about seamless performance of orderly arranged project activities and
phases, resulting in project deliverables. The point is simple--we need a
controlled, no-nonsense, predictable execution to successfully put out fast,
repeatable, high-quality project products. For this to happen, we need
mechanisms built into the process that would enforce it on a daily basis.
This mechanism is the PM toolbox. It provides a practical and tangible,
yet systematic way of planning and controlling our projects. Quite obvi-
ously, to strengthen the PM process is to strengthen the PM toolbox,
which leads us to the basic purpose of the book: to display a repository of
PM tools (methods and techniques) and offer strong criteria to select, cus-
tomize, and incorporate the most powerful of them in the PM toolbox,
which would then be built in the process.
As leading companies continue to beef up their project process, other
organizations strive to build their first project process, destined to bring
more orderliness to their strategic and tactical projects. The key building
blocks for achieving such objectives through PM toolbox are described
here. This book is about PM toolbox and its constituent tools, not about
managing a project or project process. It significantly differs, therefore,
from traditional PM literature whose major emphasis is on the theoretical
description of the process of managing a single project, with an occasional
glimpse at some of the classic PM tools. In contrast, this book addresses
needs of project managers who believe that they have had enough of theo-
retical talk and feel that what they really need is "packing" the theory in
the form of the toolbox that they know how and when to use.

The Book Approach

The construction of such PM toolbox is the focus of this book. As an aid in
envisioning the construction, we present its process in Figure P.1.
 In short, once Chapter 1 builds the case for PM toolbox that supports
the competitive strategy of the company, we shift our attention to Chapters
2 to 15. These chapters act as a repository of 50+ tools, explaining how-tos
for each of them, another topic often neglected in the traditional literature.
Tools necessary for initiating projects, committing an organization to
bringing projects to life, are covered in Part I. Part I1 features tools for
planning projects, necessary to chart a realistic roadmap to prepare the
project for the future and accomplish its business goals. Executing, con-
trolling, and closing projects is what the tools in Part I11 target. Using all of
these tools as basic building blocks, Part IV shows how to build a PM tool-
box, as well as real-world examples of the toolboxes. More detailed
description of these steps follows.

-
-
Part 1 '
-
~ ~ ~ a tRole
e & of PM 'holhox
--
7
( C k 1) Use PM Toolbox to Support Competitive Strategy
I

Part 1 .. tnitiiti;"-.roo*
-
(Ch. 2) Select Projects
(Ch. 3) Balance Portfolio

. - 7-
. -.
Part I1
(Ch. 4)
--
Voice of
- Planning Tools
Team
7
(Ch. 5) Customer Planning
(Ch. 6)
(Ch. 7) Scope Risk
(Ch. 8) Planning Planning
(Ch. 9)
Schedule Cost Quality
(Ch. 10)
Development Plan~lning Planning
I
-
Part In Implementation
. .. k T
~1nsm-e W ~ ]
(Ch. 11) Scope Reporting
(Ch. 12) Control and Closure
(Ch. 13)
(Ch. 14) Schedule Quality
(Ch. 15) Control Control
Cost Control

-4.
I
Part l V
I l'raetical Applications
. - I
(Ch. 16)
(Appendices)
Select and Cuslomize PM Toolbox
Real-World Examples of PM Toolboxes I
Figure P.1 The book approach.
 The initial interest of Part I is the powerful role of PM tools in deliver-
ing a project (Chapter 1). Here we seek to shed light on the role, revealing
an overarching approach for using the tools to build a PM toolbox to
enforce a PM process day in and day out and support competitive strategy
of the company. Determined to employ the approach throughout the
book, Part I, Chapters 2 and 3, begin our march through the tools, right
there at the beginning of a project's life.The attention is centered on tools
for selection of the most viable projects out of a pool of project proposals,
which can mean the diierence between leading or lagging behiid the
competitive pack.The intention is to maximize the value of the portfolio of
chosen projects against an organization's goals and strategy. Also, the aim
is to balance the portfolio in order to secure proper risk allocation.
Those whose job is to plan for a project should look carefully at Part 11,
Chapters 4 through 10. Our times demand that we treat the customers as
royalty. That is why Part I begins with the customer intimacy tools, telling
us how to learn, internalize, and build the voice of the project customer in
the design of project process and product. First zeroing in on the sacred
project triad of scope-time-cost, tools in this part show how to scope a pro-
ject, spelling out its goals, milestones, deliverables, and assumptions. They
explain how to identlfy activities, establish dependencies among them,
estimate their durations, and make sure they are resourced, all with the
purpose of developing a project schedule. Finally, the tools in this part
guide you through determining necessary resources, costing them, and
allocating them to specific project activities in specific time periods, thus
producing a time-phased project cost budget. The focus, then, shifts to
tools for quality planning and facilitating processes-risk planning and
team planning.
Part 111, Chapters 11 through 15, features several groups of implemen-
tation tools, designed to carry out the plan developed with tools from Part
11. These chapters offer ways to execute projects, by synchronizing the
deployment of people and material resources to make the project plan hap-
pen. The controlling tools focus on monitoring and measuring progress of
the execution, and taking required actions, to ensure the delivery on pro-
ject business goals. The role of closure tools is to draw the project to a
smooth end and provide for its acceptance. In selecting the implementa-
tion tools, we carefully listened to managers who believe that the main role
of implementation is to be fact-based proactive, continuously predicting
the path to project completion. Consequently, these tools tell how to
proactively report and control the scope, schedule, cost, and quality;
explain how to exercise proactive control of implementation processes
related to risk response and team development; and make sure the project
venture is properly phased down.
 Preface xiii

Developing a framework for selecting and customizing PM toolbox lies

at the heart of Part IV.Actually, once we know what tools are available to a
project process, as featured in the first three parts, Part IV starts off with
Chapter 16, specifying how to select tools for inclusion into the PM tool-
box. This is done by means of a unique situational (contingency) frame-
work, almost nonexistent in the traditional literature. Its purpose is to help
you select tools that best fit your specific situation.To make the application
of the tools in the real world more transparent, several appendices in Part
IV display examples of PM toolboxes in various project situations. These
situations are kom projects of varying size and complexity, as well as from
different industries. Also, clear correspondence between the tools covered
in the book and the Project Management Institute's popular A Guide to
Project Management Body of Knowledge is established.

Chapter Outline
In explaining individual PM tools, each of Chapters 2 to 15 follows a sim-
ilar structure and flow that we proceed to describe in the following (see
Figure P.2).
1ntroduction.This section, typically a one-pager, provides a complete list of
the tools covered in the chapter. Also, it delines the purpose of the tools and
illustrates their role in the PM process, and lays out goals for the chapter.
Tools. Each chapter groups and reviews several tools, which belong to a
certain PM process; for example, risk planning. Like the chapters, these
tools also have a similar structure and flow (discussed in the continuation).
Concluding Remarks. The purpose of this section is to provide guide-
lines for selecting tools within each chapter. It starts with a summary of
tools the chapter covers, emphasizing whether the tools complement each
other, or if able to perform the same function, compete with each other for
the attention of the user. In that context, project situations favoring the use
of individual tools are specified.

CHAPTER
I
1 I I
I I I

P.
List Chapter Tools
* Purpose of the Tools
Role of the Tools
i ~ : -
r- Surnrnan~rChapter Tools
Camplernenl or Compete?
Guidelines to Select Tools
* Define Chapter Goals
Figure P.2 Chapter outline.
Tool Outline
Each of the tools in Chapters 2 through 15 is structured in a consistent
way described in the following (see Figure P.3).
What Is theTool?This is usually a paragraph or two describing the purpose
of the tool and its main features. The description refers to an illustrated
example that is provided to help understand what the tool looks like.
Constructing the Tool. Steps involved in constructing, building, or devel-
oping the tool are detailed in this section. They are made up of a series of
substeps that describe specific activities. Essentially, this is the how-to of
the tool.
Utilizing theTool. Multiple elements are involved in this section. When to
Use the tool explains situations in which the tool can be applied. How
much time the project manager or project team needs to consume when
utilizing the tool is described in Time to Use. Benefi'ts specifies what value
the tool creates for the user. By contrast, Advantages and Disadvantages
generally concentrates on the simplicity/complexity and ease-of-use issues
of the tool utilization. The Variations element refers the reader to different
names and versions of the tool used. Most of the time, the tool is presented
in its generic form, used across industries. Helping the reader adapt the
tool to fit his or her project needs is the Customize the Tool element.
Summary andTool Check. At the end of each tool section, a summary
reminds the reader of the purpose, use, and benefits of the tool, offering a
checklist for appropriately using or structuring the tool.
Common Elements. In addition to the structure of the chapters and
tools, other common elements appear throughout the book. These are text
boxes that may provide any of the following:

A Tips
A Checklists
A Detailed examples
a Case studies
A Background information

Their purpose is to offer readers more depth or breadth of information

than the basic text.

* Benefits of the Tool * Use the Tool

>Customize the Tool

Figure P.3 Tool outline.

How to Read and Use This Book
Today's project managers are busy businesspeople. Few will be able to
squeeze in their tight schedules time to read this book cover-to-cover. If
they can, the book is shaped to naturally unfold through a project life
cycle. If they cannot, the book is designed to accommodate different read-
ers with different needs:

A The reader with an interest in a specific PM tool is advised to

review the tool in detail.
A The reader who is interested in a certain group of tools-the whole
group of project selection tools or schedule development tools, for
example--will be just fine to study carefully only those tools.
r. The reader with a keen interest in the industry applications of
tools should look at these chapters in detail.

Further, the major purpose of the book is to help the following industry
professionals:

A ProjectTeam Members. Project professionals of this type often

face a challenge of solving a specific project problem for which a
certain PM tool offers an easy path to a solution. Without ade-
quate support in an organization where invariably everyone is
stretched thin, the book is a reliable guide to draw upon.
A Project Managers. Many project managers work in organizations
that do not have a formal PM process and toolbox. As a result,
they are rired of managing ad hoc, beginning from scratch every
time they begin a new project. Here, managers can use the book
to identify a blueprint for a PM toolbox from industry applica-
tions similar to their environment and adapt it (see the appendices
on indusuy applications). Other project managers may need this
book's chapters to find new, better tools for their already existing
PM process and toolbox.
A Multiproject Managers. For those who manage multiple projects
and their organizations haven't developed a shared PM toolbox,
the book is a way to create a repeatable, less frustrating PM tool-
box to support the PM process. Use the book to identify a blue-
print for a PM toolbox in the industry applications appendix that
is similar to yours and adapt it. If you already have a PM toolbox
that needs enhancement, look through the book chapters for some
better tools.
A Process Owners/ProcessTeams. Individual managers or teams
tasked with designing a sophisticated PM process or improving
the existing ones can use the book to find the tools for the whole
 new PM toolbox to support PM process or the ones missing in
the current toolbox. They can also use one of PM toolboxes in the
industry applications part as a blueprint for planning their own
toolbox to support a rapid and repeatable PM process.
Academics and Consultants. To academics the book can be a
research resource, recommended reading for their PM class, or
a resource to teach their students how to use and apply the tools.
Consultants on assignments to help companies develop PM
processes and toolboxes, train their project professionals, or
deploy tools can use the book as a framework for the assignments.
In addition, they may find it useful as a text to teach PM tools to
students.

Your organizations are in the heat of competitive battles. For them to

win,you need to deliver your projects in a fast, repeatable, and concurrent
fashion.The way to accomplish this is to equip your PM process with pow-
erful and customized PM toolbox. This book shows you how.
Strategc Role
of the PM
Toolbox
Man is a tool-using animal. Without tools he is nothing. with tools he
is all.

Thomas Carlyle

Tonventional wisdom holds that individual project management

.! (PM) tools are enabling devices to reach an objective or, more
specifically, a project deliverable. While this traditional role of PM
tools is more than meaningful, we believe that there is more to the
tools than that. In particular, PM tools can be used as basic building
4 Chaotfir I : Stratefie Role oftlie !PI 'Toolbox

blocks to construct a PM toolbox. In this new role, the PM toolbox sup-

ports the standardized project management (SPM) process. The goal of
this chapter is to

A Clarify the new role.

A Explain its strategic importance.

To accomplish these objectives, we first present an overview of the new

role. Then, special aspects of the role are explained.

The New Role of the PM Toolbox

As shown in Figure 1.1, a typical SPM process includes process phases,
milestones, technical deliverables, and managerial deliverables. Supporting
it in its new role is the PM toolbox (at this time, we only focus on manage-
rial deliverables and the PMtoolbox). Two principles are important in the
support. First, each managerial deliverable is specifically supported by a
specific tool or tools. That means that each of these tools is selected
because of its systematic procedure to help produce the deliverable.
Second, the PM toolbox is constructed to include all tools necessary to
complete the whole set of SPM processes' managerial deliverables, which
we have emphasized in Figure 1.1 by shading the deliverables and toolbox.
This implies that the PM toolbox is designed for the specific SPM process.
If this principle were not met, we would not have the toolbox. Rather, we
would have a set of individual tools, performing the conventional role of
PM tools. Technical deliverables and their tools are project type-specific
and are beyond the scope of this book.
The value of the new role of the PM toolbox is obvious. Designed as a
set of predefined PM tools, the PM toolbox supports SPM process by pro-
viding a practical and tangible, yet systematic, way of producing a set of
the process's managerial deliverables. That this support has a strategic
meaning can be seen in Figure 1.2. As shown by upward arrows, the PM
toolbox supports SPM process that helps implement PM strategy, which
supports the competitive strategy of the company in its quest for survival
and growth. For this upward chain of support to work, competitive strat-
egy has to drive PM strategy, which drives SPM process, which drives PM
toolbox design (downward arrows). Evidently, the new role of the PM
toolbox is played in the wider, strategic context of PM. That calls for dis-
secting the context, its elements, and their relationships, which we will do
next.
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