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Why Management Matters
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Many projects fail. In information technology computer installation and software development about half the projects fail, and over 80% run late or over budget. The failure of a large project can sink a small company. And the weight of many failed projects can drag down pro ts to the point where a big company is susceptible to acquisition by a competitor, losing its independence. If we add the human cost the frustration and burnout we see the situation is far worse. It is hard to stay with a company when a project you are on fails. And high sta turnover rates create out-of-control cost spirals that are one of the biggest problems in American business today. On the other hand, people want to stay with a company that is making progress, where they are on a creative team, working with a good manager, and succeeding. These experiences bring personal satisfaction and also a great deal of loyalty. People who are on successful project teams often say that they would not change jobs, even for considerably more money. And we can make projects succeed. Outside NASA, it is not rocket science. Almost all projects fail because companies are not using even the most basic tools of project management well. And the basic tools and more, the most valuable tools are right here in this book.
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KEY POINT
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Where Do Mistakes Come From
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W. Edwards Deming, the inventor of Total Quality Management, developed a process called root cause analysis. It is a way of nding out why things go wrong. It gets to the bottom the root cause of errors. Deming measured work in all kinds of environments, and found out that 94% of the time errors are due to people not following the right procedure for the job. It is not that people make mistakes, or make bad decisions. No, mistakes happen almost entirely because companies do not
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PART ONE Hello, Project Management
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organize and plan work well. As managers, we need to put the right processes in place and show people how to do them. That would eliminate 94% of all the mistakes we make. And that is the di erence between failure and success.
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WHAT IS MANAGEMENT
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QUICK TIP
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De ne, Measure, and Manage
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If you want to manage something, you have to be able to measure it. And to measure it, you have to de ne it clearly, and de ne or choose your unit of measure. Sometimes, as with money and time, the unit of measure is already de ned for us. We use dollars and cents to measure money, hours and days to measure time. But what is the unit of measure for quality There is not any one unit, so we have to de ne it ourselves for each project.
We all talk about management, but we rarely stop and ask what management is. Management is the work we do to make sure the job in our case, the project gets done right. It includes these key steps: De ning. We de ne the work to be done. We de ne the requirements, what is needed; the speci cations, what we are making; and the methods and units of measurement.  Planning. We create a written plan describing what we will do.  Estimating. We create a prediction of what it will take to do the job.  Communicating. We work with others to create the plan, to make sure everyone understands and agrees, to improve the plan and the way we work, and to solve problems as they come up.  Tracking. We compare what is actually happening to what we wrote in the plan.  Measuring. We measure how well we are doing. We measure both the process of how the work is going and also the end product.  Reporting. We report our status, where we are; our progress, how far we have come; and our forecast, when we think we will meet our goal.  Deciding. We decide what to do, write down any changes in the plan, and make sure that people carry through with the work to be done.  Supporting. We provide help and support, clearing the roadblocks so people can do their jobs well. 
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