Transcript Document

Project Management
• These slides are partially based on the following book: Frame,
Davidson J. Managing projects in organizations: how to make
the best use of time, techniques and people. San Francisco,
Calif.: Jossey-Bass,C1995 or a newer edition.
• It is important to acquire the book
1
0 -WHAT IS A PROJECT?
Use the PEAK-typology in your definition
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A project is goal oriented (P)
Coordinates interrelated activities (E)
It is of finite duration: beginning and ends A)
It is, to a certain degree, unique (K)
Let us look a bit closer at these PEAK-factors
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How to make a project
goal oriented? [P]
• Use ”Management by objectives” (MbO)
– Establishing clear objectives: goals or requirements or milestones
– Making sure that they are achievable: Realistic, Objectively
measurable, Limited in duration, Development oriented and
Describing results.
• Develop project goals jointly: no top-down imposition of will
– ”Swim the pool as fast as possible” is less clearer than ”To be able to
swim, by March 15, four laps of the twenty-five-meter pool, using the
freestyle stroke, in sixty or fewer seconds” (p. 3-4)
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How to coordinate
interrelated activities? [E]
• Use systems analysis so as to sync tasks
with each other.
– Coordinate dependent, parallel and independent
tasks. [Peter Senge’s book The Fifth Discipline
(1990) underlines the importance of the
systems perspective.]
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Has a project a limited duration:
beginning and end? [A]
• Projects have defined end dates, but project responsibilities
extend beyond the handover of the deliverables.
– On time and within budget does not necessarily mean deliverable.
• A project manager should design and build deliverables
that are operable and maintainable after they have been
delivered.
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In which way can a project be
considered unique? [K]
• Uniqueness may lie in:
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The conditions and requirements of the project
Its usefulness or economics
The tasks implied in carrying it out
Its novelty or dependency on past experiences.
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A systems theoretical picture:
PEAK->Octograph->SETS
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1- organizational environment & projects
2- project localization & identification
3. organizational policy & projects
4- project management
5- project staff & teams
6- empowerment & team identity
7- cont. tasks & activites
8- project evaluation
9- termination & sustainability
10-key lessons to learn
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1- ORGANIZATIONAL
ENVIRONMENT & PROJECTS
• Environmental factors:
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Political & legal [government regulations, contract provisions & law …].
Economical [suppliers, external customers, subcontractors…].
Physical & technological [Equipments…].
Social & Cultural [Staff…]
• External resources should furnish us with the best staff and the
best equipments.
• Expand using other PEAK-variables!
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2- PROJECT
LOCALIZATION &
IDENTIFICATION
• Defining Needs: Internal & External
Customer needs:
• Making Certain the Project Is Based on a
Clear Need (kap. 4)
• Specifying What the Project Should
Accomplish (kap. 5)
• Specifying project Requirements: Problems
& Guidelines
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Defining Needs (pitfalls)
• Dealing with Inherently Fuzzy Needs (Dynamic & gradually
take a shape and substance). Specific sources of changing needs
include: changing players, budgets, technology or business
environment.
• Misunderstood Needs: ”I’m not sure what I want, but I’ll know
it when I see it” (case p. 120)
• Customers often do not have a precise idea of what they want
• Addressing the Needs of the Wrong Customers
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Sorting Out the Needs of Multiple Customers (case, 122)
Multiple Customers, Multiple Needs (case)
Establishing Priorities: The Needs Hierarchy (Figure p. 127 & 128)
Distorting the Customer’ Needs: Gold-plating, filtering or father-knowsbest-syndrome)
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Making Certain the Project Is
Based on a Clear Need (kapt.4)
• Evolution of Needs (case, p.110)
• The Needs/Requirements Life Cycle:
– needs emergence phase (external/internal: business reengineering),
– needs recognition phase (forecasting/scenario building),
– needs articulation phase (direct identification, multidimensional view,
research, precise formulation, revise formulation - p.115),
– functional requirements (describe the characteristics of the deliverable),
– technical requirements (written for the technical staff)
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Specifying What the Project
Should Accomplish (kap.5)
• The Nature of Requirements (function/technical)
• Problems with Requirements
– Incorrect Requirements
– Imprecise and Ambiguous Requirements: Language, Deliberate
imprecision for flexibility, Conflict preventing consensus,
Abstractions, Lack of Expertise, Oversights on the part of project
planners
• Shifting Requirements:
– Cases: Buyer’s remote, insurmountable obstacles, Flights of
Fancy, Seizing opportunities
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Problems in Specifying
Requirements
• Problems with Oversimplification of Requirements:
– Insufficient information, Initiative discouraged,
Requirements ignored, Costly rework efforts
• Problems with Excessive Flexibility:
– Patchwork deliverables, Chaotic project planning, Time
and cost overruns
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Guidelines for Specifying Project
Requirements
• Rule 1: State the requirement explicitly and have project staff and
customers sign off on it
• Rule 2: Be realistic; assume that if a requirement can be
misinterpreted, it will be misinterpreted
• Rule 3: Be realistic; recognize that there will be changes on your
project and that things will not go precisely as anticipated
• Rule 4: To as great an extent as possible, include pictures, graphs,
physical models, and other nonverbal exhibits in the formulation of
requirements
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Guidelines for…
• Rule 5: Establish a system to monitor carefully any changes made
to the requirements: configuration management:
– date of change, name of the person requesting change, description of change,
statement of the change’s impact on the project, listing of tasks and staff
affected by the change, estimate of the cost of the change, signature of the
individual making the change request, indicating that this individual is aware
of the cost and performance impacts of the requested change
• Rule 6: Educate project staff and customers to the problem of
specifying requirements
• Application prototyping
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3. ORGANIZATIONAL
POLICY & PROJECTS
• The divorce of responsibility & authority
• Operating within organizational reality
• Politics is the art of influence. Six steps for good project
politician (Block, 1983):
1. Assess the environment
2. Identify the goals of the principal actors
3. Assess your own capabilities (1-3 = realistic view)
4. Define the problem
5. Develop solutions
6. Test and refine the solutions
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The Divorce of Responsibility and
Authority
• The divorce of responsibility and authority (Jerry’s
first experiences):
– projects are temporary, unique and are systems
(borrowed Resources. Project manger is not the boss)
• Nurturing Authority:
– formal authority (backing from above and operational),
purse-string (the carrot and the stick),
– bureaucratic authority (rules, paperwork, procedures),
– technical authority (technical competence) and
– charismatic authority (leadership)
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Operating within the Realities of
Organizational Life (kap.1)
• Projects must be designed and managed
within their organizational context.
– Case: The Education of Jerry: project manager
for network LAN (page.28-31)
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4- PROJECT MANAGEMENT
• Politics on Project Management
• Project Actors & the job
– ”To get the job done!….”
• The Project Life Cycle:
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Selection
Planning
Implementation
Control
Evaluation
Termination
• The Project Manager
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Politics of Project Management
• Politics is the art of influence. Six steps for good project
politician (Block, 1983):
1. Assess the environment
2. Identify the goals of the principal actors
3. Assess your own capabilities (1-3 = realistic view)
4. Define the problem
5. Develop solutions
6. Test and refine the solutions
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Project Actors & the job
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Figure 1.1., page 39
Top Management: (high- vs low-visibility projects)
The boss: creating the daily working environment
Colleagues: information, operational help, competitors in flattened
organizations.
• Staff: often borrowed to matrix structure: to get the job done and done
according to the triple constraint: on time, within budget, and according to
specifications”
– Scheduling tools: PERT/CPM Schedule Network: Program
Evaluation and Review Technique (PERT). Critical Bath
Method (CPM) etc.
– Tools for managing human and material resources:
resource loading charts, resource Gantt chartgs, linear
responsibility charts
– The most difficult to manage is SPECIFICATIONS 21
The Project Life Cycle - dynamics?
• Where you are in the project life cycle determines what
you should be doing and what options are open to you.
• Six functions are addressed during the course of a
project: [S-P-I-C-E-T] (Figure 1.2. Page 9)
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Selection
Planning
Implementation
Control
Evaluation
Termination
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Life Cycle: Project selection?
• Why envisage project selection?
• External and internal sources:
– A project might come from the external environment as
a request for proposal (RFP) or invitation for bid (TFB)
– Or it might come internally from management or task
force charged with reengineering corporate processes.
• Project selection:
– We select some projects and reject others because they
involve OPPORTUNITY COSTS.
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Life Cycle: What does planning
tells us?
• The plan is a roadmap, telling us how to get from
one point to another.
• Pre-plans: a rough idea of what the project would
entail:
– proposals, feasibility studies, business cases, competitive
analysis etc. Pre-plans are important for project selection.
• Detailed project plan -rarely static:
– Gantt charts, network diagrams, resource-allocation
charts, resource loading charts, responsibility charts,
cumulative cost distributions etc.
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Life Cycle: What is control
useful for?
• Determine variances: between the plan and what
has been done to date, based on the level of
variances determined at the outset of the project.
– This is called Management by EXCEPTION in contrast
to micromanagement.
• The collection and examination of data on project’s
progress lies at the centre of the control process.
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The Project Manager
• Project Manager Responsibilities
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Developing Staff
Serving as Management/Staff Intermediary
Conveying Lessons Learned
Choosing a Management Style: Autocratic, Laissez-Faire &
Democratic managers (Figure 2.2., p.76)
• Exercise: case to be solved once normally and a second
time by applying the six-step methodology mentioned
earlier.
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5- PROJECT STAFF & TEAMS
• General issues: (kap.2): getting the job done- on time, within budget,
and according to specifications. What other responsibilities project
managers have? What management styles do they practice, and under
what circumstances? Who’s in Charge here? (case p.56-57 & Figure 2.1,
p. 59)
– The Perfect Project Staff Member: organizational commitment &
psychological commitment
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Working with people
The Mayers-Briggs type indicator
Using a Personal Touch
Team Efficiency & Cohesiveness
Structuring Teams
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Working with people (kap.2)
• Working Smart
– Do Things Right the First Time (communication - reflection undertakings)
– Set Realistic Goals
– Get Technically Competent People
• Thomas-Kilman Conflict Mode Instrument,
• FIRO-B Awareness Scale etc. [have some of them]
• Psychological Types (Carl Jung 1923. The Mayers-Briggs Type
Indicator)
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The Mayers-Briggs Type
Indicator
• The Mayers-Briggs Type Indicator
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The Extravert-Introvert Dimension
The Sensing-Intuition Dimension
The Thinking-Feeling Dimension
The Judging-Perceiving Dimension
• Applying Psychological Type Theory to Projects
– Selecting Staff. Diagnosing the Roots of Conflict. Improving
Relations with Staff. Self-Knowledge
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Using a Personal Touch
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Be supportive
Be clear
Learn something about the team members
Celebrate special occasions
Be accessible
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Team efficiency & Cohesiveness
(kap. 3)
• Team Efficiency: the fraction of potentially team
performance that is actually achieved.
– Matrix-Based Frictions (lack of direct control over project staff and
material Resources)
– Poor Communication (end rather than means).
• Nr of communication channels n(n-1)/2 (p.87).
• Information arteriosclerosis (difficult way, åreforkalkning).
• Garbled Messages
– Poor Integration
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Structuring Teams
• Isomorphic Team Structure:
– with project manager as integrator (Figure p.92)
• Specialty Team Structure:
– a variance of Matrix. Figure 3.3., p.94
• Ego- less Team Structure:
– high level of interaction. Western vs Japanese (Figure, p.95)
• Surgical Team Structure:
– The surgeon define effectiveness. System integration.Needs a Surgeon
and may end up with three bosses. Figure p.99
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6- EMPOWERMENT & TEAM
IDENTITY
• Making the Team Tangible
– Effective Use of Meetings: kick off meeting with a number
of actions & status review
– Collocation of Team Members
– Creation of Team Name
• Building a Reward system:
– Letters of recommendation, public recognition for good
work, job assignments, flexible work time, job-related
perquisites, new equipments, recommendation for cash
awards or bonuses.
• Understanding Finance & Budgets
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Understanding Finance & Budgets:
• Components of the Budget
– Direct labour costs: If we know the labour costs we can make good
estimates of total project costs (parametric cost estimation, 185)
– Overheads: relatively fixed in relation to direct costs
– Fringe benefits: from social security to tuition fees
– Auxiliary costs: travel expenses, consultant fees..
• Management Reserve
– To cover unanticipated problems: 5 or 10% on projects with low level of
certainty
• Budget Control
– Variance analysis can be used in controlling the budget (187)
– Cumulative Cost Curve (189)
• Staff & Economic Reasoning
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7. CONT. TASKS & ACTIVITIES:
Planning, Implementation & control
• Project Planning and Control (kap. 3)
– How Much Planning and Control is Enough
– Tools and Techniques for Keeping the Project on Course
(kap. 6)
– Planning and Control Tools: The Schedule
– Managing Special Problems and Complex Projects (kap.7)
• Planning & Control for Multiple Projects
• Planning & Control for Contracted Projects
• Planning & Control with Bureaucratic Milestones
– Achieving Results Principles for Success as a project
Manager (kap.8)
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How Much Planning and Control is
Enough
• Project Costs = Production + Administrative Costs
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Project complexity
Project Size
Level of Uncertainty
Organizational Requirements
User-Friendliness of the Planning and Control Tools
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Tools and Techniques for Keeping
the Project on Course (kap. 6)
• Reactive or proactive management
• The Project plan - three-dimensional:
– Time, Money & Resources (human and material)
– Good planning means phased planning or rolling wave approach to
planning (phase 1-2..)
• Planning and Uncertainty: terra incognita
– Uncertainty is different from complexity (figure: high complexity, low
uncertainty. Low complexity, High uncertainty - 166).
• Project Controls
– There will be variances between actual realisations and the plan. Are
the variances (un)acceptable and according to which criteria?
Management by exceptions. Management reserve.
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Planning and Control Tools: The
Schedule
• Work-Breakdown Structure (WBS, 172)
• Gantt Chart visualizes tasks taken from WBS
• PERT/CPM Schedule Network: Program Evaluation and
Review Technique (PERT). Critical Bath Method
(CPM)
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Building a PERT/CPM Network
The Critical Path: longest time to complete (178-181)
Non-critical Tasks and Slack Time
Earliest and Latest Start Time
Configuration of PERT/CPM: the more people, the more parallel activities
Usefulness of the PERT/CPM Network for planning & control
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Planning and Control Tools:
Human and Material Resources
• Resource Matrix: primary & secondary
responsibility (190)
• Resource Gantt Chart (192)
• Resource Spreadsheet (193)
• Resource Loading Chart (194)
• Resource Leveling
• Graphical Control of Projects (198-199)
• Project Management Software
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Managing Special Problems and
Complex Projects (kap. 7)
• Planning and Control on Large Projects
• The Need for formality in Planning and Controlling
Large Projects
• The Earned-Value Technique: does numerically
what graphical approach does through charts.
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Budgeting cost of work scheduled (BCWS)
Actual cost of work performed (ACWP)
Budgeted cost of work performed (BCWP)
Budget variance = BCWP minus ACWP
Schedule variance = BCWP minus BCWS
50-50-rule, 10-90-rule or 0-100 rule (209)
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Planning and Control for
Multiple Projects
• The Project Portfolio (Figure 211)
• Special Considerations in Managing a Portfolio
– Portfolios are administratively more complex than single
projects
– Optimisation of the portfolio’s performance will require suboptimisation of individual projects
– Portfolios run the risk of falling victim to the tyranny of large
projects
• Sequencing Projects in the Portfolio (214)
• Gap Analysis (216)
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Planning and Control for Contracted
Projects
• Private-sector firms prefer to call the contracting effort
”outsourcing”
• Types of Contracts:
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Firm fixed prince. Fixed prince, economic price adjustment
Fixed price, incentive. Fixed price, award
Fixed price, with provisions for re-determination
Firm fixed price, level of effort term. Cost reimbursable
Cost sharing. Cost plus incentive
Cost plus award fee. Cost plus fixed fee. Time and materials
• Managing Changes to the Plan on Contracted Projects
• Government vs Private-Sector Contractual Projects
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Planning and control with
Bureaucratic Milestones
• Imposed milestone requirements:
– submit budget requests, reports and test data submitted at
bureaucratically crucial times.
• (Figure 224)
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Achieving Results (kap. 8)
• Principles for Success as a Project Manager
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Be conscious of what you are doing; don’t be an accidental manager
Invest heavily in the front-end spadework; get it right the first time
Anticipate the problems that will inevitable arise
Go beneath surface illusions; dig deeply to find the real situation
Be as flexible as possible; don’t get sucked into unnecessary rigidity and
formality.
• Areas of project Management
– Scope management. Time management. Cost management. Human resource
management. Risk management. Quality management. Contract management.
Communication management (Guide to the Project Management Body of
Knowledge, Upper Darby, Pennsylvania 19082)
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8- PROJECT EVALUATION
• Variety of evaluations throughout the life of a project
• Differences between Evaluation and Control:
– Control continual project progress. Evaluation periodical to
determine the status of project. vs goals
– [Figure p.14 Mid-project Evaluation]
– Control focuses on details. Evaluation the big picture
– Control is the responsibility of project manager. Evaluation is
carried out by individual or group NOT directly related to the
project.
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9- TERMINATION &
SUSTAINABILITY
• When project end, the project manager’s
responsibilities continue:
– equipment, staff, deliverables, final reports etc.
• Project maintenance:
– is a separate and distinct undertaking from the initial
project
• The fastest growing area of project management
lies in the information area
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A systems theoretical picture revisited:
PEAK->Octograph->SETS
•
•
•
•
•
•
•
•
•
•
1- organizational environment & projects
2- project localization & identification
3. organizational policy & projects
4- project management
5- project staff & teams
6- empowerment & team identity
7- cont. tasks & activites
8- project evaluation
9- termination & sustainability
10-key lessons to learn
Let us see to how much degree these lessons are representative
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10- KEY LESSONS TO
LEARN: Lesson 1
• Avoiding pitfalls. Recognize that problems will arise in
spite of best efforts.
• Three principal sources of project failure:
– 1. Organizational factors:
• arbitrary rules, micromanagement from the top, right
people, haphazard budgeting: Coordinate &
influence. Recognize limits & frustrations.Spend
much time on what you can influence.
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Lesson 2
– Inability to Identify Customer Needs and to Specify
Requirements Adequately.
• What is suggested, approved and ordered and what
is actually required. Management’s view, designer’s
opinion & ”expert” opinion.
• Customer needs and project requirements are major
sources of project failure
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Lesson 3
• Poor planning and control:
– Instruments: WBS (Work-Breakdown Structure) Gantt Charts,
PERT charts (Program Evaluation & Review Technique) /CPM
charts (Critical Path Method), Resource Matrix, Resource Gant
Chart, Resource Spreadsheet, Resource Loading Charts or
histogram, Resource Levelling, Graphic Control of Projects.
– How much planning and control should we undertake?
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Lesson 4
• No enough to avoid pitfalls. The project must also guide
the project forward proactively. Project guidance has
something to do with:
– Leadership
– Entrepreneurship
– Politics: the ability to influence others
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