Project management is more than merely parceling out work assignments toindividuals and hoping that they will somehow accomplish a desired result. Infact, projects that could have been successful'often fail because of such take-it-for-granted approaches. Individuals need hard information and real skills towork successfully in a project environment and to accomplish project objectives.Effective Project Management was written to equip its users with both——by explain-ing concepts and techniques and by using numerous examples to show how theycan be skillfully applied.
Although the focus of the book is squarely on the practical things readersabsolutely need to know to thrive in project environments, the book does notforsake objective learning; it simply challenges readers to think critically aboutproject management principles and to apply them within the context of the realworld. We capture lessons learned from years of managing projects, teachingproject management, and writing extensively about it.
Effective Project Management is intended for students as well as for workingprofessionals and volunteers. The book is designed to present the essential skillsreaders need to make effective contributions and to have an immediate impacton the accomplishment of projects in which they are involved. Thus, it supportsbusiness and industry's lifelong learning programs, which develop and trainemployees to succeed on interdisciplinary and cross-functional teams, and itsends students into the workforce with marketable skills.
Effective Project Management is written for everyone involved in projects, notjust project managers. Projects with good or even great project managers stillmay not succeed, as the best efforts of all involved are essential. All the people onthe project team must have the knowledge and skills to work effectively togetherin a project environment. People do not become project managers by readingbooks; they become project managers by first being effective project teammembers. This book provides the foundation individuals need to be effectivemembers of project teams and thereby boosts everyone's potential to rise to thechallenge of managing teams and projects.
2. Risk. If the proposed project involves an endeavor that has not beenundertaken before, such as a research and development project to comeup with a drug to control a disease, it may be necessary to include a largeamount of contingency, or management reserve, funds.
3. Value of the project to the contractor. There may be situations in which thecontractor is willing to live with a tight or low price. For example, if thecontractor doesn't have many other projects, it may need to lay offworkers unless new contracts are obtained. In such a case, the contractormay include only a very small fee to increase the chances of winning thecontract and avoid having to lay offpeople. Another example of a projectthat may be particularly valuable to the contractor is a project thatprovides an opportunity to extend capabilities or expand into new typesof projects. A building contractor who has been doing only remodelingprojects may want to get into building complete homes and may bewilling to make a low profit in order to gain entry into the market and establish a reputation.
4. Customer's budget. A contractor who knows how much money the cus- tomer has budgeted for a project should not submit a price that exceedswhat the customer has available. This is where good pre-RFP marketing is important. By helping a potential customer identify a need or submit- ting unsolicited proposals with cost estimates, a contractor can help the customer determine a budget for the project. Then, if the customer issues a competitive RFP （and doesn't disclose the amount budgeted for the project）, the contractor with the customer budget "intelligence" infor- mation may be in a better position to submit a proposal with an accept- able price than are contractors who have not done similar homework.
5. Competition. If many contractors are expected to submit proposals in response to a customer RFP or if some competing contractors are hungry for work, it may be necessary to submit a price that includes only a small profit to increase the chances of winning the contract.